Engineering Thermoplastic Market

Engineering Thermoplastic Market Outlook (2023 to 2033)

The global engineering thermoplastic market is estimated to be valued at US$ 292.2 billion in 2023 and it is expected to grow at a CAGR of 5.9% to reach US$ 518.3 billion by the end of 2033.

Engineering plastic has gained wide acceptance in various end-use industries due to its superior performance. The growing use of engineering thermoplastics (ETPs) in fluid handling, agricultural equipment, and medical implant and equipment to increase its consumption during the forecast period.

Report Attributes	Details
Market Size (2022A)	US$ 279.9 Billion
Estimated Market Value (2023E)	US$ 292.2 Billion
Forecasted Market Value (2033F)	US$ 518.3 Billion
Global Market Growth Rate (2023–2033)	5.9%
Europe Market Growth Rate (2023–2033)	~5.6%
Key Companies Profiled	BASF SE Eastman Chemical Company 3M Dow DuPont Evonik Industries AG Mitsubishi Chemical Holdings Corporation Arkema S.A Sumitomo Chemical Co., Ltd.

Market Buoyancy Analysis

The global plastic industry has persistently grown for over 50 years, evidenced by the fact that production in this period has grown from 1.5 million tons to over 350 million tons. Engineering thermoplastics are high-performance plastics used in the manufacturing of high-quality end-use consumer products. Multiple cycles of heating and cooling can be performed on engineering thermoplastics without affecting the material’s performance thus allowing multiple reprocessing and recycling. Owing to this and its extensive demand from end-users, it accounts for nearly 76% of the total plastics demand across geographies.

Manufacturers of automobiles have been turning towards engineering thermoplastics to achieve better fuel efficiency and meet lower emission targets as these allow multiple auto parts to be consolidated. This would inevitably demand higher quality and effective thermoplastic polymers to meet the needs of future cars.

• Short Term (2023-2026): The use of engineering thermoplastic in automotive, building & construction, packaging, and other industries due to its superior properties are driving the market.
• Medium Term (2026-2029): Rising investments in infrastructure and the shift of consumers towards bio-based plastic are set to augment the engineering plastic market growth, especially in Europe and Asia.
• Long Term (2029-2033): The introduction of new techniques to separate PET from plastic packaging waste and growing demand for electric vehicles will drive engineering thermoplastic demand in the long run.

Over the 2018-2022 historical period, the global engineering thermoplastic market registered a CAGR of 4.2%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.9% CAGR between 2023 and 2033.

Market Dynamics Overview

“Growing Importance and Availability of Bio-Based Engineering Plastics / Bio-PET”

Crude oil reserves are expected to be depleted in the coming 45-50 years. There is a huge need for creating alternate raw materials with renewable sources. It is now becoming important to find non-oil alternatives for the thermoplastics industry for removing the unnecessary competition for procuring raw materials and to ensure the long-term availability of raw materials that are available in abundance and renewable in nature.

Replacing crude oil with coal, minerals or other food crop-based plastic raw materials will not be feasible, as they will create a problem in terms of shortages. Therefore, the use of wild plants, natural waste, and so on will be more feasible as they are less used or exploited and are available in abundance. Manufacturers have slowly started deploying these alternatives in order to maintain easy sustainability in the future and raise their production levels.

This will also help manufacturers reduce the levels of CO2 gas emissions and reduce their harmful impact on the environment.

“High Raw Material Prices and Plant Costs to Obstruct Growth”

The cost of production of engineering thermoplastics majorly comes from raw material prices. The processing cost has a very low share in the total cost of production of engineering thermoplastics. Resins used in the process are major of two types. Thermoplastic resins and thermoset resins are the two types of resins used for ETP production, where the prior is much costlier than the latter.

Apart from the above, the cost of setting up a plant and acquiring the required machinery is huge, resulting in higher product costs. This whole process reduces the commercial viability of engineering thermoplastics up to a certain extent. The use of engineering thermoplastic in various consumer products and the automobile industry can be made more feasible by reducing the cost of raw materials and cost of production.

Country-wise Insights

What Makes Germany a Hub for Engineering Thermoplastic Market?

Within Europe, Germany has remained the undisputed leader in terms of both plastic manufacturing and sales. It also is the best-served country in terms of available plastic production facilities. It also records the highest level of plastics demand by converters in the region.

Owing to this, Germany is anticipated to grow at the fastest pace owing to the rise in automobile manufacturing in the region, which happens to be the primary end-use consumer of engineering thermoplastics.

Germany’s engineering thermoplastic market will expand at a CAGR of 7.1% over the projected period to reach a valuation of US$ 40.7 billion by 2033 creating an absolute dollar opportunity of US$ 21.6 billion between 2023 to 2033.

Will the Growing Infrastructure Development in India Drive Engineering Thermoplastic Market?

India is a developing country and thus growing demand for engineering plastic from the building and construction, automotive, and packaging industries are driving the market.

Various government initiatives and investments to develop infrastructure are pushing the growth of the building and construction industry in the country.

• The Indian government allocated US$ 130.57 billion during the fiscal year 2022-2023 to enhance its infrastructure sector.
• According to PIAI (Packaging Industry Association of India), the packaging industry is growing at a CAGR of 22% to 25%. The growth is attributed to the expanding pharmaceutical, electronics, and FMCG among other industries.

Due to such favorable factors, India accounted for around half of South Asia & Oceania’s ETP consumption, and the market for engineering thermoplastic is expected to register a CAGR of 7.0% over the forecast period.

Category-wise Insights

What Makes Semi-Crystalline ETPs Most Widely Accepted?

Plastics are a cross-sectional material and thus are vibrant to technological innovation across other material-driven end-usages, and without them, basic materials required to make and realize newer innovations would not be available.

Semi-crystalline ETPs are tough plastic due to their strong intramolecular forces and have a highly ordered molecular structure with sharp melt points. Among the product type, semi-crystalline engineering thermoplastics are poised to grow at a rapid rate due to their heat absorbance and chemical resistance properties.

This is primarily due to the higher consumption of PBT/PET by end-users in the region, with its demand anticipated to touch over half of the semi-crystalline thermoplastics market demand by 2033.

Automotive Industry to Hold Lucrative Opportunities for Engineering Thermoplastic Manufacturers

Manufacturing of electric vehicles involves assembling components that are light in weight to increase the fuel efficiency of vehicles. Engineering thermoplastics are useful in making lightweight door panels, pick-up boxes, etc.

Polymers provide long-term performance and efficiency gains and have proven to improve fuel efficiency by 5%. More than 70% of plastic used in automobiles comes from four main polymers such as polyamides, polypropylene, polyurethane, and PVC.

Rising crude oil prices and initiatives by various governments to reach zero emissions by 2030 will increase the demand for lightweight and fuel-efficient vehicles thus increasing ETPs consumption over the projected period.

Competitive Landscape

Prominent engineering thermoplastic manufacturers are BASF SE, LG Chemical Ltd., Eastman Chemical Company, 3M, INEOS, Dow, DuPont, Evonik Industries AG, LyondellBasell Industries, SABIC, Sumitomo Chemical Co., Ltd., Reliance Industries Limited, Cabot Corporation, Mitsubishi Chemical Holdings Corporation, and Arkema S.A.

Owing to the increasing demand for ETPs from various packaging and automotive industries has led manufacturers to increase their production capacity to meet the demand. They are focusing on joining hands with end-users and are investing in R&D for developing newer materials that are easier to recycle. Besides, manufacturers are investing in recycling the existing plastic waste which is being accumulated in the landfills in the region and are adopting sustainable practices in an attempt to reduce their overall environmental impact.

• In September 2022, BASF started its first plant in Zhanjiang, China with a manufacturing capacity of 60,000 metric tons of engineering plastics. The new plant will increase the BASF’s production capacity of engineering plastic to 420,000 metric tons in the Asia Pacific.
• In March 2021, Eastman announced the investment for the upgradation and expansion of the extrusion capability for interlayer production at its manufacturing facility in Springfield, Massachusetts. This will strengthen its capability in meeting the demand for Saflex® polyvinyl butyral from the automotive and architecture sectors.

Fact.MR has provided detailed information about the price points of key manufacturers of engineering thermoplastic positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Engineering Thermoplastic Industry Research

• By Product :

  • Amorphous Engineering Thermoplastic
    • Styrene Copolymers (ABS/SAN)
    • Polycarbonate (PC)
    • Polymethyl methacrylate (PMMA)
    • Polyphenylene Oxide (PPO)
    • Others
  • Semi-Crystalline Engineering Thermoplastic
    • Thermoplastics Polyesters (PBT/PET)
    • Polyamide (PA)
    • Fluoropolymers (PTFE / Teflon)
    • Polyacetals (POM)
    • Polyether Ether Ketone (PEEK)
    • Polyphenylene Sulfide (PPS)
    • Others

• By Shape :

  • Sheet
  • Rod
  • Tube
  • Film
  • Custom
  • Polypropylene

• By End-Use Industry :

  • Packaging
  • Building and Construction
  • Automotive and Transportation
  • Electrical and Electronics
  • Household Appliances
  • Sports & Leisure
  • Agriculture
  • Medical
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA