US Engineering Plastics Demand to Reach 5.4 Billion Pounds in 2012

Demand for engineering plastics will rise 3.1 percent per year to 5.4 billion pounds in 2012.  Gains will represent a notable acceleration from performance during the 2002-2007 period, in which declining motor vehicle production and a weak electronics market resulted in sluggish growth in engineering plastics demand.  Advances will be driven by a continued trend toward the replacement of metal parts with high-performance plastic resins.  However, gains for engineering plastics will be tempered by increasing competition with lower-cost commodity resins and weakness in key markets.  These and other trends, including market share and product segmentation, are presented in Engineering Plastics, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

ABS, polycarbonate and nylon will continue to be the three largest volume engineering plastics, accounting for over three-quarters of total demand in 2012.  Of these, the most rapid advances are expected for polycarbonate resins, driven by opportunities in motor vehicles, medical products and construction, as well as the increasing use of polycarbonate in blends with other plastics.   Above-average gains for nylon will be fueled by a rebound in motor vehicle output, where the resin is penetrating new applications in under-the-hood components. 

The fastest gains among engineering resins will be seen in smaller-volume specialty plastics such as polysulfones, polyphenylene sulfide and polyimides.  Gains for these resins will be fueled by the increasing need for high-temperature performance and corrosion resistance in electronic and automotive markets, particularly as electrical components become further miniaturized.  Fluoropolymers will also see growing opportunities in wire and cable coatings and industrial components. 

Electrical/electronic products and motor vehicles were the leading markets for engineering plastics in 2007, combining to account for nearly 60 percent of total volume demand.  Motor vehicle markets will see favorable gains as automotive production rebounds from a depressed 2007 base.  Additionally, engineering plastics will increase their penetration into motor vehicle components, as the volume of resin used per vehicle is expected to rise twelve pounds by 2012.  Fastest growth, however, is forecast for the consumer and institutional market, driven by the expanding use of high-performance resins in medical product applications. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.