Key Takeaways

Key players operating in the industrial plastic market are Exxon Mobil Corporation, Sumitomo Chemical Co., Ltd., BASF SE, SABIC, Dow, Inc., Evonik Industries AG, Arkema, Celanese Corporation, Eastman Chemical Company, Chevron Phillips Chemical Co., LLC, Formosa Plastics Corporation, Covestro AG, Toray Industries, Inc., Mitsui & Co. Plastics Ltd., TEIJIN LIMITED, LG Chem, Huntsman International LLC, Chevron Phillips Chemical Co., LLC, and LyondellBasell Industries Holdings B.V.

The growing demand for plastics across major end-use industries such as automotive, packaging, construction and electrical & electronics is expected to positively influence the growth of the Industrial Plastics Market Size  over the forecast period.

The expansion of production facilities and capacity additions by prominent industrial plastic manufacturers especially in the Asia Pacific region has been increasing to cater to the rising local demand.

Market Drivers

Rising demand from the global automotive industry represents a major driver for the industrial plastic market. Plastics are increasingly being used to manufacture lightweight components in vehicles which helps improve fuel efficiency. Their robustness and resistance to corrosion also support long-lasting vehicle performance. This growing focus on the use of plastics among automakers to reduce vehicle weight is expected to augment the adoption of industrial plastics in the coming years.

The current global geopolitical instabilities are expected to impact the growth of the industrial plastic market. Ongoing conflicts and economic sanctions have disrupted global supply chains and trade relations. This has increased input costs and led to shortages of raw materials for plastic production. The impact has been more pronounced in Europe due to its proximity to the conflict zones and dependence on Russian oil and gas supplies. Volatility in energy markets along with high inflation is dampening manufacturing activity and consumer demand in major European economies. Manufacturers are facing challenges in procuring critical petrochemical feedstocks at stable prices. The uncertainty over availability and affordability of raw materials is deterring capacity expansion plans of plastic producers across the region.

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