The global market for injection moulded plastics is highly fragmented with presence of a large unorganised sector, particularly in Asia Pacific and Latin America. Increasing infrastructure spending, coupled with growing automobile demand in countries such as China, India, Indonesia, and Malaysia, are expected to propel the regional market.

 

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

 

“The global injection moulded plastics market size was valued at $ 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,” said a Grand View Research Inc (GVR) report. 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 moulded plastic prices and demand-supply balance. To overcome such challenges, the industry has shifted its focus towards developing injection moulded 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.

 

Major players

The global market for injection moulded plastics is highly fragmented with presence of a large unorganised 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 moulded 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.

 

Regional insights

According to Grand View Research Inc report, Asia Pacific dominated the global demand and accounted for over 37 per cent 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.

 

Speaking about the demand for injection moulding machinery in India, Amit Pendse, Managing Director, Electronica Plastic Machines Ltd, says, "Currently, overall Indian manufacturing industry is doing well and plastic machinery manufacturing is not an exception. Further, within plastic manufacturing machinery, injection molding machines are and will be in much higher demand due to its versatility & utility to mould and manufacture a variety of parts & components for various applications & practically every segment of the industry. Currently, the overall demand for plastic injection molding machines is good and is more for moulding components & parts in industries such as automobile, packaging, construction, etc."

 

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 labour 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 moulded plastics over the same period.

 

Europe is another major injection moulded plastics market with the total revenue estimated to amount to $ 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 UK, Germany, France, and Germany is poised to stoke the demand for injection moulded 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.

 

Raw material insights

Polypropylene emerged as the largest raw material segment and accounted for just over 36 per cent 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 period of 2018-25, according to GVR report. 

 

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 in the future.

 

ABS emerged as the second major raw material for injection moulded plastics and accounted for just over 25 per cent 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 moulded plastics application segment with a net demand of more than 43,385 kilo tonnes 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 moulded 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 per cent in terms of revenue during 2018-2025 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 moulded plastic manufacturers targeting the medical industry.

 

Speaking about the demand for plastics machinery in India, Amit Pendse says, "The emerging trends not only in the Indian plastic machinery manufacturing sector but worldwide are the rising need of energy efficiency and high productivity. Indian plastic machinery manufacturing industry is on a good growth path and is expected to remain so during the next decade as well."

 

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.

 

Courtesy: Grand View Research Inc