Injection Molded Plastics Market Size Report By Raw Material (PP, ABS, HDPE, PS), By Application (Packaging, Consumables & Electronics, Automotive, Construction, Medical), And Segment Forecasts, 2018 - 2025

Industry Outlook

The global injection molded plastics market size was valued at USD 283.54 billion in 2016. Increasing demand for plastics components across various end-use industries including packaging, automotive, electrical and electronics, home appliances, and medical devices is a key trend observed in this market. 

The injection molding process involves manufacturing of molded products by injecting molten plastic materials using heat into a mold and then solidifying them. Recent innovations to minimize rate of faulty production have encouraged mass production of complicated plastic shapes.

Fluctuating prices of basic petrochemical raw materials including benzene, ethylene, propylene and styrene, coupled with growing environmental concerns regarding their disposal, is expected to hinder market growth over the forecast period. These trends are further projected to affect finished injection molded plastic prices and demand-supply balance. To overcome such challenges, the industry has shifted its focus towards developing injection molded plastics using their bio-based counterparts.

Increasing spending on construction, particularly in the emerging markets of Brazil, China, India, Mexico, Russia, and South Africa, is estimated to fuel demand. Versatile properties of finished products, including better heat and pressure resistance, are further boosting their application across different end-use industries.

Government support in the form of tax benefits and financial incentives in economies such as China and India to increase FDI flow has benefitted the market for plastics in these countries. In addition, they offer low-cost labor, which further reduces overall manufacturing cost for producers. However, this shift has resulted in an overcapacity of various plastics products, which has adversely affected their prices.

Raw Material Insights

Polypropylene emerged as the largest raw material segment and accounted for just over 36% of total demand in 2016 owing to its rising consumption in household goods, automotive components, and packaging applications. Increasing penetration of polypropylene finished products in food packaging, protective caps in electrical contacts, and battery housings is likely to contribute to the growth of the segment over the forecast period. 

Polypropylene components are being widely used in food packaging and electrical contacts owing to their superior corrosion resistance and electrical insulation properties. Because of the aforementioned factors, the segment is poised to witness the highest growth over the forecast period.

ABS emerged as the second major raw material for injection molded plastics and accounted for just over 25% of the total revenue in 2016. High demand for ABS component in medical devices, automotive components, electronic housings, and consumer appliances manufacturing is anticipated to supplement the growth of the market.

Application Insights

Packaging was the leading injection molded plastics application segment with a net demand of more than 43,385 kilo tons in 2016. Finished products used in packaging undergo various development phases to cope up with regulatory guidelines and end-use requirements. Increased shelf life of food products, better resistance towards wear and tear, and high durability are a few requirements that plastics need to meet for packaging applications.

Injection molded plastics hold immense potential, particularly in the medical and automotive industries. The market is expected to witness the highest growth in the medical devices and components sector. Biocompatibility, optical clarity, and cost-effective method of production is projected to bolster demand in the medical industry. The segment is estimated to grow at a CAGR exceeding 6.0% in terms of revenue during the forecast period.

Stringent regulatory scenario regarding medical grade polymer use in the healthcare sector is likely to positively influence the growth of the segment. Growing preference for bio-degradable polymers among medical device manufacturers is also poised to create lucrative opportunities for injection molded plastic manufacturers targeting the medical industry.

Strong shift from metal parts towards plastic components in the automotive industry is anticipated to spur the growth of the market over the same period. Government regulations in the recent past have mandated automotive manufacturers to use plastics instead of other materials such as iron and steel.

Automobile manufacturers have been focusing on reducing overall weight of vehicles in order to improve fuel efficiency. Increasing use of plastics to replace metals and alloys in automotive components is projected to support the growth of the automotive and transportation end-use segment.

Regional Insights

Asia Pacific dominated the global demand and accounted for over 37.0% of the overall volume in 2016. Increasing infrastructure spending, coupled with growing automobile demand in countries such as China, India, Indonesia, and Malaysia, are expected to propel the regional market.

Major end-use industries such as electronics and automobile are shifting their manufacturing base to APAC countries such as China, India, Thailand, and Indonesia owing to low labor costs. Governments in these regions are offering incentives in the form of tax benefits. These factors are encouraging manufacturing of various automotive and electrical parts, which in turn is estimated to increase demand for injection molded plastics over the same period.

Europe is another major injection molded plastics market with the total revenue estimated to amount to USD 122.37 billion by 2025. Europe’s non-food and beverages packaging applications include cosmetics and toiletries, pharmaceutical, and household chemicals. Increasing demand for electronic appliances such as laptops and cellular phones particularly in U.K., Germany, France, and Germany is poised to stoke the demand for injection molded plastics for consumables and electronics applications. Sustained automobile production in Germany, U.K., and Italy is likely to boost regional demand over the forecast period.

Injection Molded Plastics Market Share Insights

The global market for injection molded plastics is highly fragmented with presence of a large unorganized sector, particularly in Asia Pacific and Latin America. Companies, particularly hailing from Asia Pacific, have been constantly looking for significant capacity additions to take advantage of operational excellence and achieve economies of scale. Constant efforts of companies to diversify and differentiate product portfolio are rendering the market highly competitive in nature in terms of price and distribution channels.

Major companies operating in the global injection molded plastics industry, including BASF, Dow Chemical Company, DuPont, and HTI Plastics, have integrated their operations across the value chain in order to enhance their market presence. Other players having significant stake in the industry include SABIC; LyondellBasell; Eastman Chemical Company; Huntsman; Ineos Group; and Magna International Inc.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global injection molded plastics market report on the basis of application, raw material, and region:

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Packaging

  • Consumables & Electronics

  • Automotive & Transportation

  • Building & Construction

  • Medical

  • Others

• Raw Material Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Polypropylene

  • ABS

  • HDPE

  • Polystyrene

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

  • Europe

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East and Africa

    • Saudi Arabia