High performance polymers to grow to US$10 bln at 7% to 2018

08-Oct-14

In 2013, over 500,000 metric tons of high performance polymers were consumed on a global basis valued at approximately US$7 bln, as per Principia. Based on extensive discussions across the high performance polymers value chain, Principia is projecting a growth rate of 7% to 2018, which would make this business approach the US$10 bln level in 2018. Like any sector of the global economy affected by the 2008 financial meltdown, the suppliers of high-performance resins noticed the impact as global economic activity slowed down. Some of the companies like Victrex Plc, the supplier of one of the strongest polymer PEEK, had its capacity utilization drop to just 34% from 62%. Other companies had to cut back on their production as well despite steady growth in emerging economies like China and India. The report concludes that despite the painfully slow rate of recovery, particularly in North America and Europe, suppliers have seen steady improvement in demand and by 2013 almost all participants were back to their typical operating levels. Ken Jacobson, Partner at Principia, points out, “Recovery in demand on a global basis in core sectors like automotive, electrical/electronics, and consumer; demand for these materials in rapidly growing oil and gas sector where the operating pressures and temperatures are rising, and new applications being developed in the medical sector are driving growth at this time. We have also learned in our research that the key to success in this sector is innovation in collaboration with OEMs. In addition, being able to serve customers on a global basis, particularly in China, is key.”