Injection Molded Plastics Market Size, Share & COVID-19 Impact Analysis, By Resin (Polypropylene (PP), Acrylonitrile butadiene styrene (ABS), High-density polyethylene (HDPE), Polystyrene (PS), and Others), By Application (Automotive, Packaging, Building & Construction, Electrical & Electronics, Medical, and Others), and Regional Forecast, 2020-2027

The global injection molded plastics market size stood at USD 360.60 billion in 2019 and it is projected to reach USD 498.98 billion by 2027, exhibiting a CAGR of 4.8% during the forecast period.

Injection molding is the manufacturing process for the fabrication of plastics. Some of the major applications of this are automotive, packaging, building & construction, electrical & electronics, medical, and others. They are majorly used in the packaging industry for making containers, food packaging, bottles for cosmetics and pharmaceutical products, and different types of closures. In 2018, packaging accounted for over 35.41% of the share in this market. Plastic is also an ideal material for electronics products as it can be conducive, as well as non-conductive plastic, UV resistance, rigid and flexible, and also available in various colors. Additionally, they also have considerable demand in applications such as LEDs and assemblies, inkjet printers, electric tools housing, computer boards and housing, switches, and many others.

COVID-19: Decreasing Demand for Automobiles to Cause Slight Downfall

The market is expected to show mixed growth due to the rising demand from packaging and medical application, while their demand would decrease drastically for applications such as automotive transportation, building & construction, electrical & electronics, and others. The automotive industry is expected to hit hard due to the already changing government regulations and then the sudden decrease in demand for automobiles in the pandemic situation. The overall market is expected to experience a slight downfall in 2020, due to the interruption in the demand/supply of raw materials and is expected to recover in late 2021. The interruption in demand and supply is due to the announcement of lockdowns by various nations.

LATEST TRENDS

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Innovation in Injection Molding Technologies is a Prominent Trend

There has been continuous innovation in the technologies of injection molding such as the growing inclination towards integrated approach to product design which has emphasized manufacturability. This has further narrowed down the gap between the designing and manufacturing phase, mainly in the case of complex products, such as medical devices. This is better known as micro injection molding in the manufacturing of medical devices where the practice is employed at a microscopic scale.

The manufacturing cost is a significant factor that decides the adoption rate of new technologies, but the usability of these technologies in complex applications outnumbers the cost factor. The emerging technologies such as IoT, automation, and others are being integrated with the existing injection molding technology for the monitoring of operations. For example, BOY Machines, a provider of precision injection molding machines, released its Status App which enables remote monitoring of injection processes 24 hours a day and seven days a week, using internet-connected devices.

DRIVING FACTORS

Growing Demand from Packaging Applications to Drive Growth

Injection-molded plastics are extensively used in packaging applications, especially in food packaging, as they do not react with food and keep it safe. The most common application of these are caps, closures, containers, bottles, and many more. An injection-molded plastic container’s packaging is clear and leak-resistant and thus keeps food fresh for a long time. These plastics are also reusable, washable, and microwavable, and thus have the highest demand amongst people.

Additionally, the latest innovations in injection-molded technologies are expected to have a positive impact on the injection molded plastics market growth, as the new packaging coming into the market is eco-friendly and 100% recyclable. Also, various government bodies are supporting recyclable packaging as it will reduce carbon footprint and this is expected to drive the market.

RESTRAINING FACTORS

Presence of Alternative Technologies and High Cost of Injection Molding Process to Confine the Market Growth

There are many alternative cost-effective technologies such as blow molding that restrict the adoption of the injection molding process. Injection molding is cost-intensive technology that further restricts the market growth. Emerging technologies such as 3-D printing are continuously improving and can print miniaturized products similar to injection molded products. Further advancement in such technologies is expected to create a negative impact on the demand for injection-molded plastic products in the upcoming years.   

SEGMENTATION

By Resin Analysis

Polypropylene Segment to Generate the Highest Revenue Owing to Its Wide Applications

The polypropylene segment holds the largest share in this market. Polypropylene is the most preferred resin for automotive, building, and construction industries as they are lightweight and shock-resistant, which are essential properties in terms of safety. It is amongst the lowest density plastics and is safe for food containers as it does not leach chemicals into food products. Polypropylene plastic injection molding is used to produce various parts and products of all shapes and sizes. Some of the significant reasons for polypropylene to be widely used in injection molding include moisture-resistance, high molding capability, availability in food-grade, excellent food grade, chemical resistance, and low cost.     

The acrylonitrile butadiene styrene (ABS) segment also holds a significant share in the market, as it has high strength, good toughness, and easy moldability. ABS has substantial applications in automotive parts, packaging, consumer products, industrial parts, and others. It is majorly used for those materials as it has high impact resistance, toughness, and high resistance to scratch and provides excellent dimensional stability. The ABS segment is expected to rise in the near future due to its significant applications in the making of automotive parts.

By Application Analysis

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Packaging Segment to Exhibit a Significant CAGR Backed by High Demand from Food & Beverages Industry

The packaging segment held the largest share in this market. This segment is driven by food & beverages, pharmaceutical, and retail applications. The demand for plastic closures and caps is driven by the long-term shift in consumer packaging as people moved from glass and metal to plastic because of the excellent properties of plastic packaging. Many injection molding companies work closely with the manufacturers of food & beverages, pharmaceuticals, and other manufacturers as these companies have to deal with government regulations and legal liabilities. The packaging segment is also driven by the demand from personal care & beauty, biomedical, and other industries.

The demand for injection molded plastics for electrical & electronics applications is increasing exponentially as these materials are widely used for the manufacturing of electrical and electronic devices. The manufacturing of various electronic devices, such as meters, sensors, and industrial test equipment, requires high accuracy. To meet this demand, components are made by injection molding method, which provides high accuracy.

Injection-molded plastics have applications in the manufacturing of automotive components. Exterior, interior, decorative interior, and various components such as resonators, fuel tank systems, and electrical covers are the primary examples of parts made from the injection molding method.

REGIONAL INSIGHTS

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Asia-Pacific is anticipated to remain a key region in the market during the forecast period owing to the rising demand for injection molded plastics from the packaging and automotive industries. China is a major consumer due to the increasing population along with rapid urbanization and thus, will have a significant impact on the growth of the regional market. Moreover, the increasing economic growth in Asia-Pacific and the consumer inclination towards efficient and smart buildings have urged manufacturers to develop high-performance products in the building and construction industry. The region is expected to exhibit the highest growth in this market across the globe. China, Japan, and India are key countries contributing to the market growth in the region owing to the demand for healthy food with proper packaging and the rising building and construction activities in these countries.

The demand in North America is expected to rise due to an exponential demand from the packaging and electronics industries in this region. For instance, advanced computer chips are still made in the USA, which has applications in various areas such as medical devices, military equipment, communication technologies, and others. There is also a presence of a large manufacturing base for these molded plastics in this region, and thus, the market is expected to show healthy growth in the near future.          

On the other hand, Europe is projected to hold a significant portion of the market. Increasing demand for packaged food and beverages would contribute to the growth of the market in the region. Additionally, the use of these molded plastics for electronic consumer goods is the other key factor driving the market growth in Europe.

Latin America and the Middle East & Africa would showcase lower growth in this market, as compared to the other regions due to the lower production capacities for injection molded plastics in these regions and high import cost.

KEY INDUSTRY PLAYERS

Market Players to Strengthen their Positions by Offering Novel Solutions

Major producers of injection molded plastics are located in Asia-Pacific, leading to a fragmented market. The producers located in North America and Europe are aiming to strengthen their market positions in various countries in Asia-Pacific to drive the growth of their respective organizations. Key players in the market have, therefore, developed strong regional presence, distribution channels, and product offerings.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• Dow Inc. (U.S)


• DuPont (U.S)


• HTI Plastics (U.S)


• Valder Kunststoffverarbeitungs GmbH (Germany)


• LyondellBasell  (Netherlands)


• Toshiba Corporation (Japan)


• Coastal Plastic Molding, Inc.(U.S.)


• Huntsman Corporation. (U.S.)


• Magna International Inc.(Canada)


• Others

KEY INDUSTRY DEVELOPMENTS

• August 2020: Avient Corporation (Formerly PolyOne) introduced injection moldable thermoplastic elastomers to its Versaflex series. The product was formulated without animal derivatives and is able to serve a variety of medical device applications.


• June 2020: Pacific Plastics Injection Molding, a part of Diversified Plastics Inc., added 5,000 square feet of office and production space to its existing facility in California. This expansion was done to improve production and safe operation.


• September 2019: Toshiba Corporation, a diversified products manufacturer and service provider headquartered in Japan, is expanding its assembly capabilities in the U.S. Injection Molding Division of Toshiba Machine. The capacity is increased by 58,000 ft2 in Elk Grove Village, Ill. This expansion was done to meet the increasing customer demand for plastics in this region.


• August 2019: Pexco LLC, a North America-based plastic extruder, acquired American Injection Molding Inc. and American Extruded Plastics Inc. This acquisition was done by Pexco LLC to offer integrated molded plastics solutions to its customers.

REPORT COVERAGE

An Infographic Representation of Injection Molded Plastics Market

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The injection molded plastics market report provides both qualitative & quantitative insights at the global and regional levels. Quantitative insights include the product demand in terms of value (USD billion) & volume (million tons) across each segment, sub-segment, and region profiled in the custom research scope. Also, the research report covers market share analysis and growth rates of the segment, sub-segments, and key counties across each region. The qualitative insight covers an elaborative analysis of the market drivers, restraints, growth opportunities, and key trends related to the market. The competitive landscape section covers a detailed company profiling of the key players operating in the global market.

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