Performance Plastics Market - Forecast(2023 - 2028)

Performance Plastics Market size is forecasted to grow at a CAGR of 5.2% during the forecast period 2021-2026. Globally, performance plastics are considered as specially engineered polymers with chemical resistance, high mechanical strength, and most importantly, temperature resistance. Owing to the most important factors such as superior performance qualities and versatility in integrating components have raised the market growth. Increasing usage of thermoplastic carbon-fibre plastics is also estimated to drive the growth of the market. Moreover, due to the superior thermal conductivity of thermosets performance plastics, the performance plastics industry is gaining popularity in a variety of end use industries such as medical, transportation, building and construction, industrial, and others.

The performance plastics industry due to declined domestic demand and exports was negatively impacted in the year 2020 due to coronavirus-induced lockdowns and disruptions. Moreover, owing to the shutdown of several manufacturing firms the demand for performance plastics faced huge declination which further affected the growth of the performance plastics market.

The reports: “Performance Plastics Market Report – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the performance plastics market.

By Type: Fluoropolymers, Polyphenylene Sulfide, High Performance Polyamides (HPPA), Liquid Crystal Polymers, Polyimides (PI), and Others

By End Use: Healthcare, Transportation, Electronics, Building and Construction, Industrial, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), APAC(China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America(Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

 

Fluoropolymers held the largest share of around 26% in the performance plastics market in 2020. Fluoropolymers are used in a variety of applications to ensure protection, reliability, and efficiency in a variety of sectors and cutting-edge technologies. Their unique properties enable technologies drive industries towards greater efficiency and performance. Fluoropolymers withstand a wide range of violence, from chemical resistance to harsh outdoor exposure, while maintaining heat stability and good electrical properties. Because of their unique non-adhesive and low friction properties, as well as superior heat, weather, and chemical resistance and superior electrical properties compared to other polymers, they are widely used in automotive, semiconductors, electronics, and common household appliances. Thus, with an increase in the demand for fluoropolymers in several applications the market is anticipated to rise in the forecast period.

Transportation sector held the largest share in the performance plastics market in 2020 and is projected to grow at a CAGR of 4.2% during the forecast period 2021-2026. Performance plastics play a vital role in the transportation industry. Owing to the lightweight property of the performance plastics, it is widely preferred in the automotive and aircraft sectors. Lightweight performance plastics are required for the most fuel-efficient vehicles. It is estimated that every 10% reduction in vehicle weight results in a 7% reduction in fuel consumption. Due to current environmental issues, the automobile and aircraft industry is prioritizing the development of fuel-efficient components. Thus, this is raising the growth of the market. Furthermore, with an increase in the demand for performance plastics in the transportation sector the market is estimated to rise over the projected period.

Asia-Pacific region held the largest share of more than 38% in the performance plastics market in 2020. Because of the steady presence of many industry leaders and the consistent demand for technological improvements, Asia-Pacific region is expected to dominate the performance plastics market in the upcoming years. In the region’s emerging economies such as China, Japan, India, and Malaysia, the automotive and consumer electronics industries are dominant in their respective markets, which is a key factor for the performance plastics market to expand steadily in the coming years. According to the OICA, the production of passenger cars increased from 520 526 units to 534 115 units with an increase of 2.6%. With the rising production of automotive sector, the market for performance plastics is estimated to increase. Thus, the demand for performance plastics is therefore anticipated to increase in the Asia-Pacific region over the forecast period.

Thermoset plastics combine thermal stability, chemical resistance, and structural integrity to provide a high-performance blend. Because of its excellent chemical and thermal stability, as well as superior power, toughness, and mold ability, thermosets components are widely used in a variety of industries, including the automotive, appliance, electrical, lighting, and energy sectors. At a low cost, thermoset plastic composites can meet the demands of a wide variety of production materials. Their use enables a wide range of small and large parts to be fabricated at high volume while ensuring consistent repeatability from batch to batch. Thermosets plastics have grown in popularity among manufacturers, who have begun to use them as a lower-cost alternative to metal components. When complex and geometric shapes cannot be accomplished by metal welding or the use of thermoplastics, but can be produced in a mould, thermosets provide an alternative process. Thermoset plastics remain stable in a wide range of temperatures and environments. Thus, with the increasing demand for thermoset plastics the market demand for performance plastics is anticipated to rise over the forecast period.

Performance plastics are created through the polymerization or polycondensation of natural materials such as cellulose, coal, natural gas, salt, and crude oil. Volatility in the price of raw materials such as crude oil is estimated to hinder the growth of the market. According to U.S. Energy Information Administration, the crude oil price in 2016 Q1 was US$ 30 per barrel which rose to US$ 63.03 per barrel in 2018, and further declined to US$ 24.65 per barrel in the year 2020. Thus, fluctuating price of crude oil in recent years, can act as a constraint for the growth of the performance plastics during the forecast period.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the performance plastics market. Major players in the performance plastics market are Saint-Gobain Performance Plastics Corporation, Sekisui Chemical Co., Ltd., Röchling-Group, Ensinger India Engineering Plastics Private Ltd., Dover High Performance Plastics, Grindwell Norton Ltd., DuPont, Quantum Polymers, A. Schulman Inc., BASF SE, and Q Holding Co., among others.