Injection Molded Plastics Market Size, Share & Trends Analysis Report By Raw Material (Polypropylene, ABS, HDPE, Polystyrene), By Application (Packaging, Electronics, Medical), And Segment Forecasts, 2019 - 2025

Industry Insights

The global injection molded plastics market size was valued at USD 325.69 billion in 2018. It is expected to expand at a CAGR of 5.7% during the forecast period. 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 growth. Modern innovations to minimize the rate of faulty production have enhanced the significance of injection molded technology in 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 is expected to hinder market growth over the forecast period. Companies focus on developing 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 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 an overcapacity of various plastics products, affected their prices.

Raw Material Insights

Polypropylene held the largest market share of over 36% of total demand in 2018, due to its increasing consumption in automotive components, household goods, and packaging applications. Growing polypropylene finished products penetration in protective caps in electrical contacts and battery housings, food packaging is anticipated to further drive its demand over the estimate 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 aforementioned, the segment is expected to witness the highest growth over the forecast period.

ABS emerged as the second major raw material for injection molded plastics and accounted for over 25% of the total revenue in 2018. High ABS component demand in medical devices, automotive components, electronic housings and consumer appliances manufacturing is expected to drive its growth over the forecast period.

Application Insights

Packaging led application segment of the injection molded plastics market with a net demand of over 46,656.5 kilo tons in 2018. 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 is expected to drive demand in medical industry. The segment is expected to grow at a CAGR exceeding 6.3% in terms of value to reach a net worth of USD 40.49 billion by 2025.

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 medical industry over the forecast period.

Strong shift in trend towards replacing steel with plastics in automotive industry is expected to spur growth of injection molded plastics over the forecast period. Government regulations in 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 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 automobile segment, thereby providing immense opportunity for the market to grow in near future.

Regional Insights

Asia Pacific led the global demand with a market share of over 37% in terms of volume in 2018. Increasing infrastructure spending coupled with growing automobile demand in countries such as China, India, Indonesia, and Malaysia are expected to drive market penetration in the region.

Major end-use industries such as electronics and automobile 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 firm 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.

Europe was another major market for injection molded plastics with a total demand estimated to reach USD 45.29 billion by 2025. 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 application. Growth of the automobile industry in Europe is expected to further drive the regional demand over the forecast period.

Injection Molding Plastics Market Share Insights

The global market is highly fragmented with presence of large unorganized sector particularly in Asia Pacific and Latin America. Companies, particularly hailing from Asia Pacific have been constantly looking for significant capacity additions over past few years to take advantage of operational excellence and achieve economies of scale. Diverse product portfolio and differentiation make the market competitive in terms of price and distribution channels.

Major companies including BASF, Dow Chemical Company, DuPont, and HTI Plastics have integrated their operations across the value chain to enhance their market presence. Other players having noteworthy stake in the market include LyondellBasell; SABIC; 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 of the latest 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