by Industrial plastics are synthetic or semi-synthetic organic solids that are widely used in applications such as automotive, packaging, construction and healthcare owing to their properties such as durability, lightweight and resistance to corrosion. Commonly used industrial plastics include polyvinyl chloride (PVC), polystyrene (PS), polyethylene (PE), polypropylene (PP) and polycarbonate (PC). These plastics are manufactured materials that have replaced traditional materials like metal, glass and wood in industries due to advantages such as flexibility in design and eco-friendly nature. With rapid infrastructural development activities across sectors such as energy, construction and transportation, the demand for industrial plastic is increasing significantly.
The Global Industrial Plastic Market is estimated to be valued at US$ 141.05 Billion in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Industrial Plastic market are Exxon Mobil Corporation, Sumitomo Chemical Co., Ltd., BASF SE, SABIC, Dow, Inc., Evonik Industries AG, Arkema, Celanese Corporation, Eastman Chemical Company, Chevron Phillips Chemical Co., LLC, Formosa Plastics Corporation, Covestro AG, Toray Industries, Inc., Mitsui & Co. Plastics Ltd., TEIJIN LIMITED, LG Chem, Huntsman International LLC, Chevron Phillips Chemical Co., LLC, and LyondellBasell Industries Holdings B.V. The industrial plastic manufacturers are investing in capacity expansion and new production lines in developing countries owing to growing demand from end-use industries. Asian countries like India and China along with Middle East & African countries are emerging as highly lucrative Industrial Plastics Market Growth due to increasing infrastructure development activities in these regions. The demand for industrial plastics is also increasing due to rising application scope in healthcare sector with growing usage in medical equipment, devices and components.
Market drivers
A major driver for the industrial plastics market is the increasing infrastructure development activities around the world. Mega infrastructure projects pertaining to energy, transportation, construction and urban development require extensive use of plastic materials replacing metals and wood owing to their lightweight, corrosion resistance and durable properties essential for these long-term constructions. Government initiatives and investments to develop roads, railways, airports, seaports, power and water supply networks have greatly contributed to the rising global consumption of industrial plastics in recent years.
PEST Analysis
Political: Government regulations around plastic usage and disposal along with rules on plastic recycling will impact the growth of the industrial plastic market. Tax incentives and subsidies can encourage greater adoption of recycled plastic materials.
Economic: Economic growth and industrial production will drive demand for industrial plastics from sectors like packaging, construction, automotive and electronics. Volatility in oil prices which are a key factor in plastic prices can impact market conditions.
Social: Growing public awareness about environmental issues like plastic pollution and demand for sustainable materials will shape market trends. User preference for recycled content can support the circular economy.
Technological: Advances in plastic recycling technologies allow for higher rates of collection and improved quality of recycled resins. Development of bio-based and biodegradable plastics provides alternatives to fossil-fuel based virgin plastic materials.
The industrial plastic market sees high concentration of value in developed regions with strong manufacturing sectors like North America, Europe and Asia Pacific countries. The United States accounts for the largest share due to its diverse manufacturing industries spanning automotive, construction, packaging and more. China is also a prominent market benefitting from its position as the world’s largest manufacturing nation and consumer of plastics.
The industrial plastic market in Asia Pacific region excluding China and Japan holds promising growth potential. Countries like India, Indonesia, Vietnam and others are slated to witness rapid industrialization and manufacturing expansion in the coming years. As production capacities scale up across sectors, demand for plastic raw materials from the industrial sector will steadily rise, making Asia Pacific a fast emerging market for industrial plastics.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
