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Global injection molding plastics market expected to reach $277.78 billion by 2020

Article-Global injection molding plastics market expected to reach $277.78 billion by 2020

A new study released by Grand View Research claims that the global market for injection molded plastics is expected to reach $277.78 billion by 2020. Packaging is increasing the demand for the usage of plastics, for instance, the growing packaging industry in Asia is expected to be a key factor driving market demand over the next six years. In addition, the growing need for weight reduction in automobiles is also expected to augment the demand for plastics as a substitute to metal which in turn is expected to increase the demand for injection molded ABS and polypropylene.

Volatile crude oil prices coupled with growing environmental concerns is expected to be a key issue for market participants. Globally, the cost of resin or raw material accounts for 42% of the total cost incurred for production of injection molded plastics. Cost incurred for the process and other costs associated with it accounts 45% to the total cost and machinery accounts for 13% of the total cost for producing injection molded plastics.

End-market demand

Packaging was the largest application segment for injection molding plastics accounting for nearly 30% of global demand in 2013. Packaging finds application in both consumer and industrial for both flexible and rigid packaging. The demand for packaging is on the rise due to the improving economic conditions of countries such as India, Brazil, Russia and other Asian countries.

Automotive and transportation segment is expected to emerge as the fastest growing application segment at an estimated CAGR of 5.7% from 2014 to 2020. The growing demand for plastic as replacement to metal in automobiles is expected to be a major driver for the market. Injection molded plastics are used in building and construction segment to produce doors and sanitary wares accounted for close to 10% of the market in 2013. Other applications of injection molded plastics such as healthcare devices accounted for 14% of the global demand in 2013.

Raw material insights

Polypropylene is the most widely used polymer material for the production of injection molded plastics. Propylene accounted for over 34% of global demand in 2013 and was followed by ABS in terms of demand volume. ABS is widely used in the production of automotive bumpers. High density polyethylene (HDPE) was the third largest consumed injection molded plastics accounting for 17% of global demand in 2013 and is expected to grow owing to its increasing use in the packaging industry.

North America and Europe losing share to Asia?

Asia-Pacific was the largest regional market for injection molded plastics accounting for 37% of global demand in 2013. The growing application industry such as automotive, electronics and construction in India, China and Malaysia is expected to be a key driver for the growing demand in the region. The study claims that the low labor and raw material cost in the region is further expected to augment the growth of industries in the region in turn boosting the demand for plastics over the forecast period. North America and Europe accounted for a significant share of the market in 2013 but are expected to lose share to Asia owing to the shift in manufacturing activities to other low cost markets. Latin America and Middle East were small markets and together accounted for over 10% of the demand in 2013.

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