Consider this outlook on the future of the injection molded plastics market.
According to Grand View Research:
The global injection molded plastics market size was valued at USD 265.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.6% from 2021 to 2028. Growing demand for plastic components from various end-use industries including automotive, packaging, home appliances, electrical and electronics, and medical devices is anticipated to drive the market. Modern innovations to minimize the rate of faulty production have enhanced the significance of injection-molded technology in the mass production of complicated plastic shapes.
Volatile prices of major raw materials such as benzene, ethylene, propylene, and styrene coupled with growing environmental concerns regarding their disposal are expected to hinder the growth of the market for injection molded plastics over the forecast period. Companies are focusing on the development of injection molded plastics using bio-based counterparts to overcome such challenges.
Increasing construction spending, particularly in emerging markets such as Brazil, China, India, Mexico, Russia, and South Africa is expected to drive product demand. Versatile properties of finished products including better heat and pressure resistance make them more applicable to various industries.
Government support in the form of tax benefits and financial incentives in China and India to increase the Foreign Direct Investments (FDI) flow has helped develop the market for injection molded plastics in these countries. In addition, they offer low-cost labor, which further reduces the overall manufacturing cost for producers. However, this shift has resulted in the overcapacity of various plastics products, affected their prices.
However, slow down or halt manufacturing activities to contain the spread of coronavirus pandemic has led to a decline in the consumption of injection molded plastics and negatively impacted its demand in various applications across the globe. Manufacturers are experiencing difficulties in running their production units owing to logistic restrictions and limitations on the movement of people, which are further cascading the negative impact on the injection molded plastics demand.
Raw Material Insights
The polypropylene segment dominated the market for injection molded plastics and accounted for the largest revenue share of 34.2% in 2020 owing to its increasing consumption in automotive components, household goods, and packaging applications. Growing polypropylene finished product penetration in protective caps in electrical contacts, battery housings, and food packaging is anticipated to further drive its demand over the forecast period.
Polypropylene components are being widely used in food packaging and electrical contacts on account of corrosion resistance and electrical insulation properties respectively. On account of the aforementioned factors, the segment is expected to witness the highest growth over the forecast period.
However, slow down or halt in manufacturing activities to contain the spread of coronavirus pandemic has led to a decline in the consumption of polypropylene and negatively impacted its demand in various applications. Manufacturers are experiencing difficulties in running their production units owing to logistic restrictions and limitations on the movement of people, which are further cascading the negative impact on the product demand.
Acrylonitrile Butadiene Styrene (ABS) emerged as the second major raw material for injection molded plastics of the overall revenue in 2020. Rising acrylonitrile butadiene styrene component demand in medical devices, automotive components, electronic housings, and consumer appliances manufacturing is expected to drive its demand over the forecast period.
The packaging segment dominated the market for injection molded plastics and accounted for the largest revenue share of 30.6% in 2020. The finished products used in packaging undergo various development phases to cope up with regulatory guidelines and end-user requirements. Increased shelf life of food products, better performance towards wear and tear, and durability are a few requirements plastics need to meet for packaging applications.
Injection-molded plastics hold immense potential, particularly in the medical and automotive industry. The industry is expected to witness the highest growth in the medical devices and components sector. Optical clarity, biocompatibility, and cost-effective method of production are expected to drive demand for injection molded plastics in the medical industry.
Stringent regulatory scenario regarding medical-grade polymer use in healthcare sectors is anticipated to positively impact growth in the sector over the forecast period. Rising preference towards bio-degradable polymers among medical device manufacturers is also anticipated to create profitable opportunities in the medical industry over the forecast period.
A strong shift in the trend towards replacing steel with plastics in the automotive industry is expected to spur the demand for injection molded plastics over the forecast period. Government regulations in the recent past have forced automotive manufacturers to use plastics instead of other materials such as iron and steel.
Automobile manufacturers have been focusing on reducing the overall weight of vehicles to improve fuel efficiency. Increasing use of plastics to replace metals and alloys in automotive components is expected to drive product demand from the automobile segment, thereby providing an immense opportunity for the market for injection molded plastics to grow in near future.
Asia Pacific dominated the injection molded plastics market and accounted for the largest revenue share of 38.6% in 2020. Increasing infrastructure spending coupled with growing automobile demand in countries such as China, India, Indonesia, and Malaysia is expected to drive market penetration in the region.
Major end-use industries such as electronics and automobiles are shifting their manufacturing base to Asia Pacific countries such as India, China, Indonesia, and Thailand owing to low labor costs. Government incentives in the form of tax benefits are offered to manufacturers in these regions. This factor increases the requirement for manufacturing various automotive and electrical parts which in turn is expected to drive product demand over the forecast period.
In Europe, the market for injection molded plastics is expected to reach USD 95.2 billion by 2028. Europe’s non-food and beverages packaging applications include cosmetics and toiletries, pharmaceuticals, and household chemicals. Increasing demand for electronic appliances such as laptops and cellular phones particularly in U.K., Germany, and France is expected to drive demand from consumables and electronics applications. The growth of the automobile industry in Europe is expected to further drive the regional demand over the forecast period.
Key Companies & Market Share Insights
The market for injection molded plastics is highly fragmented with the presence of a largely unorganized sector particularly in Asia Pacific. Companies, hailing from Asia Pacific have been constantly looking for significant capacity additions over the past few years to take advantage of operational excellence and achieve economies of scale. A diverse product portfolio and differentiation make the market competitive in terms of price and distribution channels. Some of the prominent players in the injection molded plastics market include:
Lyondellbasell Industries N.V.
Eastman Chemical Company
Segments Covered in the Report
This report forecasts revenue and volume growth at global, regional, country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global injection molded plastics market report on the basis of raw material, application, and region:
Raw Material Outlook (Volume, Kilotons; Revenue, USD Million, 2016 – 2028)
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 – 2028)
Consumables & Electronics
Automotive & Transportation
Building & Construction
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 – 2028)