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The global high performance plastics market size was valued at USD 20.93 billion in 2021 and is projected to grow from USD 22.71 billion in 2022 to USD 42.08 billion by 2029, exhibiting a CAGR of 9.2% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with high performance plastics experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global high performance plastics market exhibited a decline of 3% in 2020 as compared to 2019.
High-performance plastics are different from engineering plastics and standard plastics mainly by their temperature stability but by their mechanical properties and chemical resistance, price, and production volume. These are plastics that meet higher requirements than engineering and standard plastics. They are more expensive and are used in smaller quantities. High performance plastics have higher levels of chemical resistance, mechanical strength, and temperature resistance.
Increasing applications in numerous industries drive the market due to their superior anti-corrosion and thermal conductivity properties. High performance plastics are gaining demand due to their excellent performance at high temperatures and as highly reactive chemicals. These plastics offer mechanical strength, chemical resistance, and high heat stability. However, the market accounts for only a small share of the global plastics market, and demand for these plastics is anticipated to increase significantly during the forecast period.
The increase in initiatives and supportive government policies and regulations is the main cause of the market's growth rate. Increasing industrialization coupled with the demand for applications, such as automotive and aerospace applications, especially in developing countries, will also have a direct and positive impact on the market's growth rate. The growth and expansion of various end-user industries, coupled with an increase in awareness of the benefits, will fuel the high performance plastics market growth.
Additionally, the growing use of advanced plastics for a wide range of end-use applications, such as transportation and automotive applications, industrial, electrical and electronics, medical, construction, and defense applications, and the increase of industrialization especially in developing countries are the main factors attributed to the growth of the market.
However, high costs coupled with growing environmental concerns will pose the main challenge to the market's growth. The availability of substitutes on the market will also hamper the market growth. Also, fluctuations in raw material prices will further impact the market.
Supply Chain Disruptions Due to Lockdown Restrictions Hampered Market Growth
The spread of the COVID-19 pandemic since the last quarter of 2019 resulted in several countries, including China, Japan, the U.S., India, Germany, Italy, and Canada, announcing lockdowns, limiting the flow of products and resources. Since both raw material supply and finished goods distribution were affected, COVID-19 has rigorously distressed the revenue generation of plastic manufacturers.
However, after the crisis was under control, the government eased rules to aid nations in upscaling the economic value chain by supporting domestic and small-scale businesses to resume manufacturing operations.
Companies in the plastic industry have ramped up production to meet the growing demand for plastic solutions. The manufacturers have started their activities by first implementing the indicated preventative measures.
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Use of High Performance Plastics to Reduce Weight and Improve Fuel Efficiency in Automobiles to Favor Market Growth
The global market is driven by the growth of the automotive & transportation segment and is associated with the rising incorporation of advanced plastics in automobiles. Rising concerns about carbon emissions and the desire to develop more fuel-efficient automobiles have led to increased use to reduce weight. Lightweight, durable plastics are increasingly used in fixed-wing and rotary aircraft, passenger railcars as well as all types of ground automobiles. Many plastics are available in ultraviolet-resistant formulations for longer outdoor life service. The plastics used in diesel and petrol automobiles can be formulated to operate in contact with lubricants and fuels. Reinforced high-temperature plastics are used in applications where parts are placed in close proximity to engines.
Special Characteristics of High Performance Plastics to Aid Market Growth
A key growth driver for the high performance plastics industry is high-performance plastic's cost-effectiveness and lower-weight advantage. Owing to properties such as chemical stability and superior mechanical and high thermal properties, plastics have found their way into a wide range of industries, such as automotive, defense, aerospace, and construction. These end-use industries require lighter materials with the same or superior properties of metals to make the products more cost-effective without reducing quality. The global market has offered a huge advantage for these industries and is likely to drive market growth.
Advanced plastic composites are a significant part of automotive designs. In order to improve safety and automobile performance, the manufacturers of the market have increased the availability of plastic composites that facilitate and improve the battery technology of the automobile. The automotive industry is taking advantage of the opportunities offered by the personal mobility revolution, and this applies to artificial intelligence and the market landscape of self-driving cars.
In addition, the applicative properties of high performance plastics have enabled their use for fuel consumption reduction, engine reduction, and weight reduction. Additionally, automotive and OEM key players are developing innovative solutions to meet country regulations and customer expectations. The use of plastics in the engine and powertrain helps reduce the weight of powertrain systems and increase overall fuel efficiency. In addition, lightweight propulsion systems lower the overall cost of the system, reduce vehicle weight, and increase fuel efficiency.
Fluctuating Prices of Raw Materials to Constrain Market
Factors, such as high commodity prices, the shift of the end-use sector from developed to emerging countries, and rising production costs, hamper the global market. Changes in the demand and supply of raw materials may negatively affect the growth of the market. Moreover, the challenge for this industry is the lack of suitable testing standards within the industry. Due to the lack of standardized test methods, industries are struggling with quality assurance and quality inspection, with many using internal methods for testing. Thus, fluctuations in the prices of raw materials can restrain the growth of the market.
Fluoropolymers to Surge Demand due to their Dominant Use in End-use Industries
Based on type, the market is segmented into fluoropolymers, polyamides, polyphenylene sulfide (PPS), sulfone polymers (SP), liquid crystal polymers (LCP), and others.
The demand for fluoropolymers is comparatively high due to their massive performance. The growth of the segment is associated with their use in the industry, from transportation to medicine. Fluoropolymers offer remarkable chemical characteristics and are considered the most useful non-reactive material existing today.
Poly vinylidene (PVDF) and poly vinyl fluoride (PVF) are the well-known categories of fluoropolymers. These types of fluoropolymers can be utilized in the production of different industrial applications. For instance, PTFE is well known for its use in cookware and non-stick coating as it has a high melting point, high durability, and chemical resistance. Additionally, some of the typical use of fluoropolymers are wire insulation, packaging of lithium and ion batteries, implants, bio-medical usage, and wire insulation. Thus, these properties of the product enable fantastic applications in the industry and make them suitable for adoption.
The polyamide segment is anticipated to account for a moderate growth rate during the forecast period. Polyamide is made of repeating units connected by amide bonds. Polyamide can be in natural units and can also be manufactured. Natural polyamide includes silk and wool while artificial polyamide includes sodium poly aspartate, aramids, and nylons. Polyamides are low-cost materials that have a lower manufacturing cost than other materials, are easier to transport, and their production costs are often lower than metals. Due to its numerous properties, polyamide is often projected rather than woven. Such factors lead to the usage of polyamide in various applications across several sectors, which is likely to drive the growth of this segment.
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Transportation Segment Accounted for the Largest Revenue Share
Based on end-use industry, the market is segmented into transportation, electrical & electronics, industrial, medical, and others.
The growth of the transportation segment is associated with the dominant use of high-performance plastic in automobile parts manufacturing and insulation, as it offers unmatched chemical and temperature resistance with outstanding electrical performance. These fluoropolymers are utilized in the granular and powder foam, which makes them helpful in the extradition, and compression molding process. Extruded or compressed high-performance plastic offers multiple benefits over regular plastic or low-performance plastic. Moreover, the use of this high-performance plastic makes the vehicle flexible, lighter, and extremely reliable.
The most advanced use of the product is in the traditional Internal Combustion Engine (ICE), which makes it clean and safer in terms of transition to electromobility. Additionally, these materials have increased in OEM and after-market parts in recent years. For instance, automotive manufacturers use this material to protect cars and trucks from sunlight, car wash chemicals, weather, and corrosion resistance. Thus, the versatile use of the material in the transportation industry propels the product demand, thereby surging the segment’s growth.
Asia Pacific High Performance Plastics Market Size, 2021 (USD Billion)
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The Asia Pacific region held the largest high performance plastics market share and is anticipated to dominate the market during the forecast period. The growth of the region is associated with the increase in the electrical & electronics industry. Countries in the region, such as India and China, are the fastest-growing economies and have the highest population in the world. Thus, the demand for electrical & electronics devices has increased with the increase in population over the past years. This created a massive opportunity for the new and existing manufacturers of the latest electrical & electronic products. This resulted in increased pressure on the manufacturers to fulfill consumer’s needs. High-performance plastic is used in manufacturing semiconductors and smaller microprocessors as it increases the lifespan due to extreme chemical resistance.
North America is expected to witness a considerable growth rate by 2029. High disposable income and consumer preference for high-quality raw materials are due to the region's product demand. Countries in the region, such as the U.S., have the highest per capita income in the region, which puts pressure on transportation manufacturers to deliver high-quality products. Thus, the usage of high-performance plastic has drastically increased in the region. Additionally, the government and various organizations are encouraging automobile manufacturers to use safer and more durable materials in order to save human life in accidents.
The market growth in Europe is associated with the rapid increase in the automobile industry as it plays a crucial role in the economies of European countries. The automotive industry has the largest investors and innovative car-producing companies, which deliver best-in-class engine efficiency in the region. Thus, the usage of high-performance plastic is high in automobile production as it offers remarkable chemical and physical characteristics over ordinary plastic. On the other hand, the region's medical industry has grown rapidly after a crucial hit by the COVID-19 pandemic. Health and hygiene awareness has increased along with the number of hospitals having advanced technological treatment. This has resulted in a boost in the medical industry. Thus, all the factors are expected to boost the market in the region.
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Meanwhile, Latin America and the Middle East & Africa will register a moderate growth rate during the forecast period, owing to the sluggish growth of end-user industries in these regions.
Strategic Planning Adopted by Companies to Strengthen their Market Share
A few major players primarily dominate the market. The existing players have developed proprietary types, and they maintain a competitive edge over other players owing to their unique Type offerings. Furthermore, the companies are continuously conducting R&D activities to develop better solutions to match the changing needs of the electronic industry.
The major high performance plastics manufacturers operating in this market are Solvay, BASF SE, Arkema, Evonik Industries, and DuPont. Plant expansions and strategic mergers and acquisitions characterize the global market. The market's major businesses have been actively acquiring competitors to acquire better economies of scale.
An Infographic Representation of High Performance Plastics Market
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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, and end-use industries. In addition, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.
Value (USD Billion), Volume (Million Tons)
By Type, End-use Industry, and Region
Fortune Business Insights says that the global market size was USD 20.93 billion in 2021 and is expected to reach USD 42.08 billion by 2029.
In 2021, the Asia Pacific market size stood at USD 9.17 billion.
Registering a CAGR of 9.2%, the market will exhibit steady growth during the forecast period (2022-2029).
The transportation segment is expected to lead this market during the forecast period.
Rising demand from the transportation sector is anticipated to drive market growth.
Solvay, BASF SE, Arkema, Evonik Industries, and DuPont are few of the major players in the market.
Asia Pacific dominated the market in terms of share in 2021.
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