Demand from automotive, electronics to boost global molded plastics market

29-May-15

Growing demand from automotive and electronics is expected to boost growth in the global plastics market. The factors shaping the growth of the multi-billion-dollar molded plastics industry, as per Transparency Market Research are: Rising consumption of plastics in automotives: Demand is expected to rise exponentially in Latin America, due to this region’s flourishing automobile industry. Moreover, the demand for molded plastics is currently high in Asia Pacific, which is one of leading regions for automotive manufacturing at present, with a 35% share in 2012. Increasing demand for plastic components in mobile phones: The elevated demand from the electronic goods industry for molded plastics, especially for televisions, mobile phones, and laptops will propel the global molded plastics market. The growing use of these plastics in several internal and external parts of electronic goods will also support market growth. Demand is anticipated to grow at a 4.9% CAGR during the forecasting horizon. Increasing demand for plastics in packaging industry: The consumables and electronics segments together held a dominant share in the global molded plastics market, recorded at 30% in 2012. The rising demand of molded plastics from the food and beverages industry will also significantly contribute to the growth of the overall market. Molded polyethylene, the leading sector in 2012 with a 25% market share, is expected to grow at the highest CAGR due to the flourishing packaging industry. Moreover, the molded polyethylene sector has high growth potential during the forecast period, especially in China, India, and Brazil. However, fluctuating raw material prices and surging environmental concerns will restrain growth. Rising concerns related to the harmful effects of the manufacturing process of molded plastics on the environment will also suppress the global molded plastics market.In accordance with this, the nonbiodegradable nature of molded plastics will also suppress this market. The growing practice of using plastic pipes in the construction of new oil and gas transmission lines is creating good growth opportunities for the market. Plastic pipes corrode much slower than cast-iron, since they are drastically less reactive than metal pipes, and are less brittle.