Global polymer industry estimated to reach US$567 bln in 2017 at a CAGR of 3.8%

14-Mar-14

Revenue in the global polymer industry in 2011 reached US$454 billion due to growing demand for plastic products in emerging economies. The industry witnessed a CAGR of 5.1% during the last five years (2006-2011). As per Research and Markets, the industry is estimated to reach US$567 billion in 2017 at a CAGR of 3.8%. The polymer market, which is fragmented, includes thermoplastics, thermosets, and elastomers. Continuing growth in the demand for plastic materials in end-user markets, technological advances, and strong R&D capabilities were main reasons for industry growth. Regionally, APAC is expected to have the most potential for growth, as China is likely to drive polyethylene and polypropylene demand due to low-cost labor, downstream processing capacity additions, and government stimulus packages. The technological innovations achieved through embedding transistors within plastic are expected to drive the electronic device market with respect to its potential advantage of low raw material and manufacturing costs. According to the study, plastics supplanting metal and glass, emerging economies, expanding demand in end-user markets, rising living standards, and environmental awareness are anticipated to boost the industry. The industry is likely to face certain challenges such as increased regulatory environment through Kyoto Protocol, commoditization of plastic products, and the market's dependence on other industries' performance.