Engineering Plastic Market

Growth in end-use industries is driving the market growth

The demand for engineering plastics is rapidly increasing due to its usage in various end-use industries such as automotive and transportation, and electrical and electronics. These industries are expected to continue driving the market growth in the coming years. Hence, the market CAGR is predicted to increase over the forecast period.

Furthermore, the market for engineering plastics is financially lucrative, with a surge in demand and emerging applications. The market is highly competitive, with numerous players operating globally and locally in different countries. The high level of competition and market fragmentation underscore the attractiveness of the market. Moreover, engineering plastic market products are available in versatile plastic materials with superior physical and electrical properties, including stability, chemical resistance, heat resistance, and abrasion resistance, alongside weather ability. These product characteristics made them one of the fastest-growing segments of the plastics industry on the scale during the ongoing forecast period ending in 2028.

Metals and glass continuously seek replacement with lighter materials because of continuous developments in the plastic industry. Thus, these factors drive the Engineering Plastic market revenue.

In 2024, Tata Elxsi, a global leader in product engineering and innovation-led design services, launched a unique package design for the Vatika Shampoo line in the UAE market. The result is an achievement that goes beyond sustainability in terms of the environment and shows how engineering and simulation can be creatively incorporated into design. Reducing plastic usage without compromising the bottle's functionality, usability, or structural integrity was the aim of this project.

The Global Engineering Plastic Market Industry is poised for substantial growth, with projections indicating a market size of 77.5 USD Billion in 2024 and an anticipated increase to 151.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 6.27% from 2025 to 2035, reflecting the increasing adoption of engineering plastics across various sectors. The market's expansion is likely driven by factors such as technological advancements, rising demand from end-use industries, and a growing emphasis on sustainability. These dynamics collectively contribute to a robust outlook for the engineering plastics market.

The expansion of end-use industries such as construction, healthcare, and consumer goods significantly impacts the Global Engineering Plastic Market Industry. Engineering plastics are favored for their versatility, durability, and resistance to chemicals, making them suitable for various applications. In the construction sector, materials like polyvinyl chloride (PVC) are utilized for pipes and fittings, while in healthcare, engineering plastics are employed in medical devices and equipment. This broadening of applications across industries is expected to drive market growth, with projections indicating a potential market size of 151.3 USD Billion by 2035.

A growing focus on sustainability and environmental responsibility is reshaping the Global Engineering Plastic Market Industry. Manufacturers are increasingly adopting engineering plastics that are recyclable and have a lower environmental impact compared to traditional materials. This shift is driven by regulatory pressures and consumer preferences for eco-friendly products. As companies strive to meet sustainability goals, the demand for bio-based engineering plastics is likely to increase, further propelling market growth. The industry's commitment to sustainability may also enhance its reputation and competitiveness, positioning it favorably in the global market landscape.

The Global Engineering Plastic Market Industry experiences a notable surge in demand from the automotive sector, driven by the need for lightweight materials that enhance fuel efficiency and reduce emissions. Engineering plastics such as polycarbonate and nylon are increasingly utilized in vehicle components, contributing to the industry's growth. In 2024, the market is projected to reach 77.5 USD Billion, with automotive applications accounting for a significant share. As manufacturers prioritize sustainability, the shift towards engineering plastics is expected to continue, potentially leading to a compound annual growth rate of 6.27% from 2025 to 2035.

The Global Engineering Plastic Market Industry benefits from the increasing application of engineering plastics in the electronics sector. With the proliferation of consumer electronics and the demand for lightweight, durable materials, engineering plastics such as acrylonitrile butadiene styrene (ABS) and polyphenylene oxide (PPO) are gaining traction. These materials offer excellent electrical insulation properties and thermal stability, making them ideal for electronic housings and components. As the electronics industry continues to evolve, the demand for engineering plastics is expected to rise, contributing to the overall market growth and potentially reaching 151.3 USD Billion by 2035.

Technological advancements in manufacturing processes significantly influence the Global Engineering Plastic Market Industry. Innovations such as 3D printing and injection molding enhance the efficiency and precision of engineering plastic production. These advancements allow for the creation of complex geometries and customized solutions, catering to diverse applications across industries. As a result, the market is likely to expand, with projections indicating a growth to 151.3 USD Billion by 2035. The integration of smart manufacturing technologies may further streamline operations, reduce waste, and improve product quality, thereby reinforcing the industry's competitive edge.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American engineering plastic market will dominated. The market in this region is expected to experience growth due to increasing demand from end-use industries, particularly the automotive and transportation as well as electrical and electronics industries. This trend is expected to drive market growth in the region. Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: GLOBAL ENGINEERING PLASTIC MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Engineering Plastic market accounts for the second-largest market share. The increasing demand for engineering plastics and their applications in various industries has made the market financially attractive. As a result, the market is expected to experience significant growth in the coming years.. Further, the German Engineering Plastic market had the largest market share, and the UK Engineering Plastic market was the fastest-growing market in the European Region.

The Asia-Pacific Engineering Plastic market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising vehicle sales and increased demand for electronic goods, including computers, communication devices, storage batteries, and other items, due to several causes, including increased consumer disposable income and expanded vehicle production facilities by companies. Moreover, China’s Engineering Plastic market held the largest market share, and the Indian Engineering Plastic market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Engineering Plastic market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The engineering plastic industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Engineering Plastic industry to benefit clients and increase the market sector. The Engineering Plastic industry has offered some of the most significant advantages in recent years. Major players in the Engineering Plastic market, including BASF SE (Germany), Covestro (Germany), Solvay S. A. (Belgium), Celanese Corporation (U.S.), E.

I. du Pont de Nemours and Company (U.S.), LG Chem Ltd. (South Korea), Saudi Basic Industries Corporation (Saudi Arabia), Evonik Industries AG (Germany), Lanxess AG (Germany), and Mitsubishi Engineering-Plastics Corporation (Japan), and others, are attempting to increase market demand by investing in research and development operations.

Saudi Arabia's Basic Industries Corporation, known as SABIC, is a Saudi chemical manufacturing company. Saudi Aramco owns 70% of SABIC's shares. It is active in petrochemicals, chemicals, industrial polymers, fertilizers, and metals. SABIC, a leading manufacturer of engineering plastics, recently added new products to their existing range. They introduced four new grades of chemically resistant LNP CRX polycarbonate (PC) copolymer resins to expand their portfolio of engineering plastics.

Solvay is a long-established chemical company that was founded in Belgium in 1863. The company is headquartered in Brussels, Belgium, and has announced the completion of a new thermoplastic composites (TPC) manufacturing plant in Greenville, South Carolina. The facility is expected to help the company expand its TPC production capabilities and bring new products to market.

Clariant is excited to present its latest innovations at Chinaplas 2024, currently happening in Shanghai, China. These technologies aim to assist the plastics sector improve safety and efficiency, encourage circularity, and reduce waste. The new AddWorks PPA polymer additive range not only provides smooth and steady processability but also eliminates sharkskin to guarantee the highest possible optical film properties.

Polyplastics, a Japanese provider of engineering thermoplastics, will launch a new high-performance thermoplastic in 2023 in addition to the ground-breaking sustainability initiative at Fakuma in Friedrichshafen, Germany. The company will present its latest product range and discuss how it meets industry standards for electronics, medical, and automotive as well as environmental sustainability.