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Forecast Period
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2025-2029
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Market Size (2023)
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USD 3.98 billion
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CAGR (2024-2029)
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5.26%
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Fastest Growing Segment
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ABS
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Largest Market
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West India
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Market Overview
India Engineering Plastics Market has
reached reach USD 3.98 billion by 2023 and is anticipated to project robust
growth in the forecast period with a CAGR of 5.26% through 2029. The growth of
the market is further bolstered by the wide range of applications that
engineering plastics offer. These versatile materials find use in numerous
sectors, including clothing, construction, packaging, home furnishing, and
agriculture, among others. Their durability, flexibility, and resistance to
heat, chemicals, and impact make them indispensable in these industries.
One of the driving factors behind this
demand is the rapid industrialization in India. In particular, the automotive
sector heavily relies on engineering plastics for various components such as
bumpers, interiors, and under-the-hood parts. Likewise, the construction
industry extensively utilizes these materials in applications like insulation,
piping, and roofing. Despite the challenges posed by environmental concerns and
the need for sustainable alternatives, the engineering plastics market in India
continues to thrive. Manufacturers are actively adapting to these changes by
investing in research and development activities to develop eco-friendly and
sustainable versions of engineering plastics. In conclusion, the future of
India's engineering plastics market appears promising. Its growth is fueled by
increasing investments, diverse applications, and rising demand from various
end-use industries. As manufacturers continue to innovate and adapt to evolving
market needs, the engineering plastics market in India is poised to reach new
heights.
Key Market Drivers
Growing Demand of Engineering
Plastics in Electronics Industry
Engineering
plastics, known for their exceptional mechanical and thermal properties, have
gained increasing popularity in the realm of electronic devices. Their unique
combination of durability, flexibility, and resistance to heat and chemicals
makes them the ideal choice for a wide range of electronic applications,
including storage batteries, computers, and communication equipment.
The
electronics industry, being one of the major end-users of engineering plastics,
plays a pivotal role in driving the growth of the engineering plastics market.
The surge in sales of electronic products directly influences the demand for
engineering plastics, creating a positive impact on the overall market.
Additionally, the packaging, electrical, and electronics industries
collectively contribute to the growth of the global engineering plastics
market.
The escalating demand for engineering plastics in the electronics
industry holds significant implications for the growth of India's engineering
plastics market. With the continuous expansion of the electronics industry, the
demand for engineering plastics is poised to witness a proportional rise,
thereby further propelling the growth of this market. The future of engineering
plastics looks promising, as they continue to revolutionize the electronics
landscape with their unrivaled properties and versatility.
Growing Demand of Engineering
Plastics in Automotive Industry
Engineering
plastics are increasingly becoming an integral part of the automotive sector
due to their superior mechanical and thermal properties, coupled with their
light weight. These materials offer numerous advantages, such as durability,
flexibility, and resistance to heat and chemicals, making them ideal for use in
a variety of automotive applications.
With
the rapid urbanization witnessed globally, the automotive industry has
experienced significant growth. This growth, in turn, has fueled the demand for
engineering plastics. Furthermore, the shift towards electric vehicles (EVs)
has opened up new avenues for the use of these materials. As EVs gain
popularity, the need for lightweight, durable, and heat-resistant plastics
becomes even more crucial.
The rising demand for engineering plastics in the automotive
industry is a key driver of India's engineering plastics market. As the
automotive industry continues to evolve and expand, the demand for these
materials is anticipated to grow correspondingly, propelling the engineering
plastics market in India to new heights. This increasing demand will not only
benefit the automotive sector but also contribute to the overall growth of the
engineering plastics industry in India, creating opportunities for
manufacturers, suppliers, and other stakeholders in the market.
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Key Market Challenges
Volatility in Price of Raw
Materials
Engineering
plastics are synthesized from a diverse range of raw materials, including crude
oil, natural gas, and other petrochemical derivatives. However, the prices of
these commodities are subject to significant fluctuations influenced by various
factors such as geopolitical tensions, supply-demand imbalances, and changes in
global economic conditions. The
plastic manufacturing industry heavily relies on the availability and cost of
raw materials, making fluctuations in these prices a cause for concern.
Unpredictable production costs pose a considerable challenge for manufacturers
striving to maintain stability and profitability. One
notable example of the impact of oil price volatility is its effect on the
plastic material and resins market. Significant declines or increases in oil
prices directly affect the production cost of engineering plastics, which are
derived from petrochemicals.
Furthermore,
price fluctuations have also affected the market for injection-molded plastics,
a significant segment within the engineering plastics market. For instance, the
polypropylene segment, which accounted for the largest revenue share in the
injection-molded plastics market in 2020, faces challenges due to unstable raw
material prices. In
addition to injection-molded plastics, traditional resin and packaging
purchases are also susceptible to significant price swings in the plastics raw
material markets. This volatility can adversely impact manufacturers' bottom
line, making it difficult for them to plan and budget effectively. Despite
these challenges, the engineering plastics market in India continues to
demonstrate resilience. Manufacturers are actively exploring strategies to
mitigate the impact of price volatility, such as diversifying their supply base
and implementing effective procurement strategies. While the volatility in the price of raw materials poses a
significant challenge, the engineering plastics market in India remains robust.
With the implementation of effective strategies and the growing demand from
various end-use industries, the market is poised for sustained and robust
growth.
Key Market Trends
Rising Demand for Consumer
Goods
The
burgeoning consumer goods sector in India is experiencing remarkable growth,
which is driving the demand for engineering plastics. These materials are
widely known for their superior mechanical and thermal properties, as well as
their durability, flexibility, and heat resistance, making them ideal for the
production of various consumer goods. One
of the key industries that heavily relies on engineering plastics is the
packaging industry, particularly in second-tier cities. With the surge in
demand for plastic packaging for new products, the engineering plastics market
is witnessing substantial growth. The packaging industry is flourishing,
meeting the increasing demands of the consumer goods sector. The
growth of the engineering plastics market in India is further fueled by rising
disposable income and the growing demand for consumer products. As consumers'
buying power increases, so does the demand for consumer goods, which in turn
drives the need for engineering plastics. The market expansion is directly
influenced by the rising demand for a wide range of consumer goods.
Furthermore,
the manufacturing sector plays a crucial role in the demand for engineering
plastics. Various consumer goods, ranging from home appliances to personal care
products, heavily rely on engineering plastics for their production. This trend
further contributes to the growth of the engineering plastics market in India. Additionally,
the increasing investments in the engineering plastics sector by both domestic
and foreign investors are a testament to the market's potential. Recognizing
the booming consumer goods industry, investors are capitalizing on the
opportunities presented by the growing demand for engineering plastics. Moreover,
the plastic industry in India, one of the fastest-growing segments, is expected
to witness further growth due to the increasing demand for inexpensive
packaging solutions. This growth directly benefits the engineering plastics
market, as it creates a favorable environment for the expansion and development
of the industry. The rising demand for consumer goods in India is a significant
trend driving the growth of the engineering plastics market. As the consumer
goods sector continues to expand, the demand for engineering plastics is poised
to rise correspondingly, propelling the growth of this market even further. The
future of the engineering plastics industry in India looks promising, with
ample opportunities for innovation and development.
Segmental Insights
Polymer Type Insights
Based
on the category of polymer type, the ABS segment emerged as the dominant player
in the Indian market for Engineering Plastics in 2023. Acrylonitrile Butadiene
Styrene (ABS), a widely used engineering plastic, is currently dominating
India's engineering plastics market. Its reign can be attributed to a multitude
of factors, each contributing to its unparalleled success across various
industries. One
of the key reasons for ABS's dominance lies in its exceptional balance of
properties. This versatile material exhibits superior toughness, hardness, and
heat resistance, making it an ideal choice for a wide range of applications.
Its remarkable attributes set ABS apart from other types of engineering
plastics, solidifying its position as a preferred option among manufacturers
and engineers.
Moreover,
the automotive industry plays a pivotal role in ABS's reign. With its
lightweight nature and superior properties in comparison to other polymers, ABS
finds extensive usage in the automotive sector. As the automotive industry in
India continues to experience rapid growth, the demand for ABS is witnessing a
concurrent escalation. Furthermore,
ABS enjoys widespread utilization in the packaging industry, which is thriving
particularly in second-tier cities in India. With the launch of new products
requiring plastic packaging, the demand for ABS in this sector continues to
surge, further bolstering its dominance in the market.
ABS's dominance in India's engineering plastics market can be
attributed to its unique properties, extensive usage in the automotive
industry, and flourishing demand in the packaging sector. As ABS continues to
demonstrate its exceptional performance and adaptability, its reign in the
market shows no signs of wavering.
End User Insights
The
automotive segment is projected to experience rapid growth during the forecast
period. The automotive sector plays a pivotal role in India's engineering
plastics market, asserting its dominance through a multitude of factors.
Firstly, the exponential growth of the automotive industry in countries like
India is a driving force behind the increasing demand for engineering plastics.
As urbanization continues to surge, the vehicle industry experiences a parallel
expansion, heavily relying on these versatile materials for various car
components.
Engineering
plastics have emerged as the preferred choice in automotive manufacturing owing
to their exceptional strength, durability, and heat resistance. These
properties make them ideal for critical applications such as dashboards,
bumpers, and interior parts. Moreover, their utilization aids in reducing the
overall weight of vehicles, thereby enhancing fuel efficiency - a paramount
consideration in today's sustainability-focused world. Another
factor contributing to the automotive sector's dominance is the ongoing trend
of metal replacement with engineering plastics across diverse applications.
Engineered plastics, known for their strength and durability, are increasingly
being employed as substitutes for metals. This shift not only results in
lighter vehicles but also facilitates improved fuel efficiency.
Furthermore,
it is noteworthy that the North Indian region commands a significant share of
India's automotive plastics market, consuming nearly 39% of the country's
automotive plastics production. This regional dominance further amplifies the
overall influence of the automotive sector within the engineering plastics
market. In
conclusion, the automotive industry's impact on India's engineering plastics
market is multifaceted, driven by factors such as the expanding automotive
sector, the trend of metal replacement, and regional dominance. These dynamics
underscore the pivotal role played by the automotive sector in shaping the
landscape of engineering plastics in India.
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Regional Insights
West
India emerged as the dominant player in the India Engineering Plastics Market
in 2023, holding the largest market share in terms of value. The dominance of
West India in the engineering plastics market can be attributed to several key
factors. Firstly, the western region of India is home to a multitude of leading
polymer and plastic manufacturers, which have established a strong and robust infrastructure
for the production and distribution of engineering plastics. These
manufacturers leverage their expertise and cutting-edge technologies to ensure
the highest quality of products.
Secondly,
the consumption rate of plastics in West India is significantly high. As of
FY2022, West India accounted for approximately 42% of the total consumption of
Poly Vinyl Chloride (PVC) in the country. This substantial consumption rate
stems from various industries, including construction, automotive, packaging,
and electrical sectors. The demand for engineering plastics in these sectors is
driven by their exceptional properties, such as durability, heat resistance,
and chemical stability.
Furthermore,
the geographical advantage of West India plays a crucial role in its dominance
in the engineering plastics market. The region's proximity to major ports and
transportation hubs facilitates efficient logistics and export opportunities,
allowing manufacturers to reach global markets more effectively.
In
addition, West India benefits from a skilled workforce that possesses deep
expertise in the field of engineering plastics. The presence of renowned
educational institutions and research centers in the region contributes to
fostering innovation and technological advancements in the industry.
Overall,
the combination of established manufacturers, high consumption rate, favorable
geographic location, and skilled workforce positions West India as a leader in
the engineering plastics market. This dominance is expected to further
strengthen as the demand for high-performance plastics continues to rise in
various industries.
Recent Developments
- In
September 2022, LANXESS made a significant breakthrough by introducing Durethan
ECO, a cutting-edge sustainable polyamide resin. This innovative product is
formulated with recycled fibers derived from waste glass, showcasing LANXESS's
commitment to reducing its carbon footprint and promoting environmental
sustainability.
- Also
in September 2022, LANXESS unveiled Pocan E, a highly advanced polybutylene
terephthalate (PBT) compound. This remarkable material boasts exceptional
tracking resistance, making it perfectly suited for a wide range of
applications in the rapidly growing fields of e-mobility, electrical
engineering, and electronics.
- Building
on their reputation for excellence, INEOS announced an exciting addition to
their highly regarded Novodur line in August 2022. The new Novodur E3TZ is an
extrusion grade that exhibits outstanding performance characteristics. It finds
versatile applications across various industries, including food packaging,
sanitary products, and luggage manufacturing. With this latest development,
INEOS continues to meet the evolving needs of their customers with superior ABS
solutions.
Key Market Players
- Gujarat Fluorochemicals Limited
- BASF India Limited
- LG Polymers India Pvt. Ltd.
- Radici Plastics India Pvt. Ltd.
- APPL Industries Limited
- E.I. DuPont India Private Limited
|
By
Polymer Type
|
By End User
|
By
Region
|
- ABS
- Polycarbonate
- SAN
- Polyamide
- PBT
- Others
|
- Automotive
- Electrical
& Electronics
- Consumer
Goods
- Others
|
- North
India
- East
India
- West
India
- South
India
|
Report Scope:
In this report, the India Engineering Plastics
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Engineering Plastics Market, By Polymer Type:
o ABS
o Polycarbonate
o SAN
o Polyamide
o PBT
o Others
- India Engineering Plastics Market, By End User:
o Automotive
o Electrical & Electronics
o Consumer Goods
o Others
- India Engineering Plastics Market, By Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India
Engineering Plastics Market.
Available Customizations:
India Engineering Plastics Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Engineering Plastics Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]