The global plastic market size is expected to reach USD 722.6 billion by 2027, expanding at a CAGR of 3.2% over the forecast period, according to a new report by Grand View Research, Inc. Increasing automotive production and subsequent rise in plastics consumption in automotive component fabrication because of regulatory policies pertaining to vehicular weight reduction and fuel efficiency is expected to drive the market over the forecast period. Plastic facilitate fuel saving in automotive applications on account of reduced car weight and density as compared to conventional materials such as metals or rubber.
Since the last decade, there has been a substantial demand for the products as replacement for metals and ferrous alloys across various industries such as consumer goods, automotive, and industrial machinery. The growth of the market criticality lies on various factors such as ever-increasing requirement of end users in terms of product specification and versatility influencing consumption dynamics. Other factors such as socio-political, production process, and feedstock availability events also have a significant impact on industry trends.
Rapidly developing construction and automobile markets in Asia Pacific is expected to increase the demand for plastic in interiors, exteriors, and under hood components. Its major applications include under hood components in the automotive industry, building interior and exteriors in the construction and infrastructure industries, and various applications in electronics and durables.
However, the outbreak of highly contagious COVID-19 across the globe is severely affecting manufacturing industries, which, in turn, is anticipated to negatively impact the growth of the market. As COVID-19 continues to spread across the world, work from home rules, order cancellations, and shipping complications are surging throughout the plastics industry.
End-use industries such as automotive, consumer electronics, furniture and bedding, and construction are witnessing a sharp decline in terms of demand and production. This is owing to the reducing discretionary spending, increasing spending on essential items such as food and medical products, factory shutdowns, limitations on supply and transport, and a slowdown in infrastructure development activities across the globe. This, in turn, is anticipated to hamper the market. Moreover, rising number of COVID-19 positive cases across the globe is expected to result in an increased demand for medical devices, thereby positively influencing the growth of the market in medical device application such as ventilators, testing equipment, gloves, and masks.
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Further key findings from the report suggest:
- Raw materials used in plastic include hydrocarbon fuels (coal, natural gas and crude oil), salt, and sand. PE production in North America is dependent mainly on natural gas, which is available at a very low cost in the region. PE producers in the region are, thus, highly competitive
- Asia Pacific dominated the market during the forecast period from 2020 to 2027 and is projected to witness a CAGR of 3.9%
- Polyether ether ketone is expected to witness a CAGR of 6.2% in terms of volume during the forecast period. They are widely used in engineering applications owing to their characteristics, which include being colorless and organic
- Various strategic initiatives were recorded over the past few years in order to boost the growth of the market. For instance, in April 2020, Exxon Mobil Corporation announced to increase the monthly production of specialized polypropylene by 1,000 tons to meet the growing need for medical masks and gowns owing to the spread of coronavirus. This surge in the production of polypropylene is expected to help medical masks and gown manufacturers to produce an additional 20 million gowns or 200 million medical masks.