The South America engineering plastics market size is projected to expand at a CAGR of 5% during the forecast period. The growth of the market is attributed to rising demand for engineering plastics in the automotive industry due to demand for production of light vehicles.
Plastics, also called as polymers, are used to make a wide variety of products, from paper clips to spacecraft due to their versatility, ease of manufacturing, ductility, lightness, water resistance, and low cost. The cause of polymer degradation prompts manufacturers to use renewable resources plastics made from renewable biomass sources such as corn, starch, and food waste are called bio plastics. Growing demand for plastic packaging solutions to protect products is an important driving force for the market. Engineering plastics are a group of plastics with the best mechanical and thermal properties. The motor uses a group of plastics such as polystyrene and polyethylene. These materials have special properties such as high strength, high wear resistance, and fatigue resistance. Engineering plastics are manufactured for special applications, so they are expensive.
The Covid-19 pandemic affected the demand and supply of South America engineering plastics market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for engineering plastic from packaging industry is expected to boost the market during the forecast period.
- Rapid growth of the automotive industry owing to demand for light weight vehicles is major factors fueling the market during the forecast period.
- Growing environmental awareness and adoption of bio-based products is anticipated to drive the market during forecast period.
- High volatility in raw material prices is projected to hamper the market growth.
- Stringent regulations by government on the usage of harmful plastics act as major factors that can restrict the market growth during the forecast period.
- R&D investment and development of eco-friendly plastics and introduction of electric vehicles in the market is expected to offer lucrative opportunities for the market players.
- BASF SE
- Covestro AG
Key players in the South America engineering plastics market include BASF SE, SABIC, Solvay, Covestro AG, and DuPont.
Some of these players are using several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares.
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