Engineering plastics market to gain 6 bln lbs by 2020 as market grows more competitive

01-Jun-15

The global engineering resin and polymer alloy/blend market reached 24.1 bln lbs in 2014. The market is projected to increase to over 25.2 bln lbs by 2015 and nearly 31.4 bln in 2020, with a compound annual growth rate of 4.5%, as per BCC Research. The engineering plastics industry is undergoing structural changes and shifts in focus within its various markets due factors such as a growing number of worldwide players, fluctuating raw material costs and a maturing customer base. In its new report on the engineering resin and polymer alloy/blend, BCC Research estimates the market at more than 31 bln lbs by 2020, up from 25 bln lbs in 2015. This industry is becoming increasingly competitive as more companies enter the market. However, the number of engineering polymer firms remains relatively small when compared with commodity polymer firms. The former often leave the industry, become involved in joint ventures, or are bought by larger firms. Also, recent acquisitions and divestitures involve private or public “financial” companies not directly involved in the plastics business. Engineering polymers continue to replace metals, but long lead times from design to production translate into a lengthy process for engineering polymer displacement of metals and glass. “The issue is simply not merely an engineering polymer vs. metal or glass scenario, but includes confrontation with other traditional, often lower-costing, upgraded commodity-type resins,” says BCC Research analyst Mel Schlechter. “For example, in some cases, mature varieties, such as polyamide, are becoming more vulnerable to upgraded commodity thermoplastics such as polypropylene.”