Global engineering plastics market to grow at CAGR of 8% to cross US$79000 mln in 2018

07-Jan-15

The global engineering plastics market, valued at US$53580.7 mln in 2013, is estimated to reach about US$79026.6 mln in 2018, growing at a CAGR of 8% from 2013 to 2018, as per Research and Markets. The Asia-Pacific region led the global engineering plastics market; contributing nearly 42.5% of the total revenue in 2013. China was the global leader in engineering plastics consumption, followed by U.S.; totalling to 46.4% of the global consumption. The Indian engineering plastics consumption is expected to grow at 7.3% from 2013 to 2018. The engineering plastics market is witnessing a healthy growth due to its application as a substitute for metal. Another factor for its popularity among various end-user industries is its ability to withstand high temperatures and resistance against chemicals. Consumer & Appliances market is the biggest end-use market of engineering plastics; however in the recent years the use of engineering plastic is gaining popularity in the automotive & transportation industry and is being used in the several interior, exterior and under-the-hood applications. Growing demand from developing countries, due to increase in disposable income of the rising middle class, is expected to drive the growth rate for engineering plastics in the Asia-Pacific region. The increased usage in automobile & transportation, due to strict regulations, poses as an opportunity for the growth of engineering plastics in this end-user segment. Increasing R&D efforts are expected to ensure that the newer applications and better grades of engineering plastics will be developed for various end-use markets in the coming future. Engineering plastics market is driven by replacing traditional materials such as wood and metal, which don't possess a good weight to strength ratio. Increasing popularity in the automotive & transportation industry, medical industry, and building & construction industry assures the growth of engineering plastics in the long-term future. New product launch is the major strategy adopted by the companies for increasing their market share. Other development strategies that major market players are engaged in are mergers & acquisitions, agreements & collaboration and expansion. Companies are expanding their geographical footprints by setting up plants and subsidiaries at new locations; Asia-Pacific is emerging as a top destination for the companies in order to expand.