Molded plastics find application in several industries such as packaging, construction, automotive, electronics, clothing, and stationery. As a result of the strong performance of these industries in recent years, the global molded plastics market will grow at a CAGR of 4.8% during the forecast period of 2013 to 2019, in terms of revenue. In 2012, the global molded plastics market was worth US$255 billion and is anticipated to be worth US$352.37 billion by 2019. In terms of volume, the demand for molded plastics was recorded at 125 million tons in 2012 and is anticipated to reach 171.58 million tons by 2019 at a 4.7% CAGR during the forecast period.
Albany, NY -- (SBWIRE) -- 05/29/2015 -- Listed below are the factors shaping the growth of the multi-billion-dollar molded plastics industry.
Driver: Rising Consumption of Plastics in Automotives
The demand for molded plastics is expected to rise exponentially in Latin America, due to this region's flourishing automobile industry. Moreover, the demand for molded plastics is currently high in Asia Pacific, which is one of leading regions for automotive manufacturing at present. Asia Pacific is currently the leading regional molded plastics market and held a 35% share in 2012.
Driver: Increasing Demand for Plastic Components in Mobile Phones
The elevated demand from the electronic goods industry for molded plastics, especially for televisions, mobile phones, and laptops will propel the global molded plastics market. The growing use of these plastics in several internal and external parts of electronic goods will also support market growth. The demand for molded plastics from the electronics industry is anticipated to grow at a 4.9% CAGR during the forecasting horizon.
Driver: Increasing Demand for Plastics in Packaging Industry
The consumables and electronics segments together held a dominant share in the global molded plastics market, recorded at 30% in 2012. The rising demand of molded plastics from the food and beverages industry will also significantly contribute to the growth of the overall market.
Product-wise, the global molded plastics market is divided into molded polyethylene, molded polypropylene, molded polystyrene, molded polyvinyl chloride, and others. Molded polyethylene, the leading sector in 2012 with a 25% market share, is expected to grow at the highest CAGR due to the flourishing packaging industry. Moreover, the molded polyethylene sector has high growth potential during the forecast period, especially in China, India, and Brazil.
Restraint: Fluctuating Raw Material Prices and Surging Environmental Concerns
The constantly rising prices of crude oil, which is a key raw material used in the manufacture of molded plastics, is expected to suppress the growth of the global molded plastics market. Further, the rising concerns related to the harmful effects of the manufacturing process of molded plastics on the environment will also suppress the global molded plastics market. In accordance with this, the nonbiodegradable nature of molded plastics will also suppress this market.
Opportunity: Growing Use of Plastic in Oil and Gas Transmission Lines
The growing practice of using plastic pipes in the construction of new oil and gas transmission lines is creating good growth opportunities for the market. Plastic pipes corrode much slower than cast-iron, since they are drastically less reactive than metal pipes, and are less brittle.
The key companies operating in the global molded plastics market are BASF, Eastman Chemical Company, Huntsman International, LyondellBasell Industries, INEOS Group, SABIC, and Reliance Industries.
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