Global Thermoplastic Resins Market - 2024-2031

Global Thermoplastic Resins Market - 2024-2031

Global Thermoplastic Resins Market reached US$ 10.5 billion in 2023 and is expected to reach US$ 15.5 billion by 2031, growing with a CAGR of 5.0% during the forecast period 2024-2031.

The rising demand for lightweight and naturally renewable resources, as well as their expanding uses in various end-use industries, is the primary driver. The automotive industry is the largest end-user of thermoplastic resin. The increased demand for developing lightweight and low CO2 emission automobiles drives the demand for thermoplastic resins in the automobile sector.

Furthermore, the expanding use of thermoplastic in the automotive industry is driving the market expansion. Germany is Europe's major automotive manufacturers. In accordance with the German Association of the Automotive Industry, Germany manufactured 441,990 units of vehicles in March 2023, a 67% increase from the previous year.

In 2023, North America is expected to be the second-dominant region with over 20% of the global thermoplastic resins market. High R&D activity in more sustainable and recyclable composite materials is likely to drive the region forward during the forecast period. Product demand has increased in regional end-use industries such as transportation, aerospace and defense, wind energy, and construction.

Dynamics

Rising Research and Development

Ongoing research and development are resulting in the introduction of innovative thermoplastic resins with improved features such as increased strength, heat resistance, and environmental performance. Advances in manufacturing methods like 3D printing, injection molding, and extrusion are boosting thermoplastic resin applications and efficiency, making them more versatile and cost-effective.

For example, in 2021, Solvay and Leonardo formed a joint research facility to produce thermoplastics for aeronautical purposes. Thermoplastic resins are also predicted to develop as the construction industry continues to expand at a rapid pace. It is utilized in the development of residential structures, infrastructure, and water utilities. The excellent qualities of thermoplastic resins make them a perfect alternative for the production of construction products.

Growing Investments in the Automotive Industry

Automobile producers are increasingly concentrating on reducing vehicle weight to enhance fuel efficiency and reduce emissions. Thermoplastic resins, which are known for their lightweight qualities, are replacing heavier materials such as metals in many vehicle components. The rapid expansion of the electric car market is fueling demand for innovative materials. It is critical in EV manufacturing due to its adaptability, lightweight, and electrical insulating qualities.

In 2022, U.S. automotive manufacturers proposed a US$ 13 billion investment in domestic EV manufacturing, more than tripling their expenditure in 2020. Toyota has announced a US$ 2.5 billion investment in its Carolina manufacturing site. Honda and LG Energy Solution established a US$ 4.4 billion joint venture to develop EV and battery manufacturing. The variables are projected to lead to increased automobile manufacturing.

Regulations and Volatility in Raw Material Price

Governments all over the world are enacting strict environmental restrictions to decrease plastic waste and pollution. Compliance with these requirements frequently necessitates large investments in sustainable practices and technologies. Many nations have implemented or plan to implement single-use plastic bans, which have a direct impact on the demand for particular types of thermoplastic resins.

Petrochemicals serve as the primary source of thermoplastic resins. Crude oil price fluctuations can have a substantial impact on the cost of raw materials, resulting in unpredictable manufacturing costs. Creating new and sophisticated thermoplastic resins with improved characteristics or sustainability features necessitates significant investment in R&D. Smaller organizations may struggle to allocate resources for such innovation.

Segment Analysis

The global thermoplastic resin market is segmented based on resin, fiber, product, end-user, and region.

Rising Applications in Automotive Production Drive the Segment Growth

Automotive is expected to be the dominant segment with more than 30% of the market during the forecast period 2024-2031. Thermoplastic resins are referred to for their great toughness and lightweight properties. The automotive industry widely uses glass mat thermoplastics for a variety of applications. The resins are used in the automotive industry for seat frames, battery trays, bumper beams, load floors, front ends, valve covers, rocker panels, and under-engine coverings.

In accordance to the Organisation Internationale des Constructeurs d'Automobiles (OICA), more than 85,016,728 motor vehicles were produced globally in 2022, up 6% from the previous year, showing an increased demand for thermoplastic composites from automotive part manufacturing.

Geographical Penetration

Rising Demand from Automotive Industry in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global thermoplastic resins market covering over 30% of the market. The usage of thermoplastic resins in the automotive sector is in great demand due to the ability to produce a diverse range of products that meet the industry's requirements. China is the world's largest automotive market in terms of both production and sales. The Chinese government is taking measures to tighten the economy.

In accordance to the China Association of Automobile Manufacturers, China has the world's largest automobile production base, with 27 million vehicles produced in 2022, a 3.4% rise from 26 million units produced the previous year. Furthermore, China's 14th Five-Year Plan contains a government-led initiative to integrate digital technologies into the building and construction processes. It is projected to increase demand for thermoplastic resins in the region.

Competitive Landscape

The major global players in the market include BASF SE, Arkema SA, DSM, Hexcel Corporation, LANXESS, SABIC, Solvay SA, SGL Carbon, LyondellBasell Industries Holdings BV and The Lubrizol Corporation.

COVID-19 Impact Analysis

Lockdowns and limitations in major production regions caused significant disruptions in the supply of raw materials required to manufacture thermoplastic resins. The epidemic caused transportation delays and increased expenses due to restrictions on mobility, limited shipping capacity, and port congestion. Lockdown procedures, social distance rules, and health concerns forced several manufacturing plants to temporarily close or limit operations. It resulted in lower production capacity for thermoplastic resins.

Due to economic uncertainty and lockdown measures, demand from vital industries like automotive, construction, and consumer goods fell sharply early in the epidemic. Demand progressively recovered when economies reopened and consumer confidence was restored, notably in areas like packaging, medical gadgets, and personal protective equipment (PPE), which experienced higher demand owing to the epidemic.

Russia-Ukraine War Impact

Russia and Ukraine are major suppliers of raw materials and feedstock for thermoplastic resin manufacture. The violence has affected the delivery of essential commodities like natural gas, crude oil, and petrochemical derivatives. The war has significantly disrupted transportation networks, including road, rail, and maritime transit. Blocked ports and damaged infrastructure have exacerbated the transportation of raw materials and finished goods.

Russia is a large exporter of natural gas and oil, both of which are required for the production of thermoplastic resin. The conflict has resulted in dramatic increases in global energy prices, affecting production costs for resin producers. Supply disruptions and rising energy prices have also boosted raw material costs, resulting in higher thermoplastic resin prices.

By Resin
• Polypropylene
• Polyamide
• Polybutylene Terephthalate
• Polyphenylene Sulfide
• Polycarbonate
• Others

By Fiber
• Glass
• Carbon
• Others

By Product
• Short Fiber-Reinforced Thermoplastic
• Long Fiber-Reinforced Thermoplastic
• Continuous Fiber-Reinforced Thermoplastic*
• Glass-Mat Thermoplastic

By End-User
• Aerospace and Defense
• Electrical and Electronics
• Automotive
• Construction
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In April 2023, LANXESS announced the formation of a joint venture with Advent International focusing on engineering materials, which will start operations on April 1, 2023. DSM's Engineering Materials section and LANXESS's former High-Performance Materials business teamed up to form the new joint venture. LANXESS holds roughly 40% of the joint venture, while Advent International owns about 60%.
• In April 2023, Solvay and GKN Aerospace declared the extension of their partnership agreement, under which both businesses would build a combined thermoplastic composites (TPC) roadmap to study breakthrough materials and production techniques for aircraft structures and collaboratively target future critical high-rate applications.

Why Purchase the Report?
• To visualize the global thermoplastic resins market segmentation based on resin, fiber, product, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of thermoplastic resins market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global thermoplastic resins market report would provide approximately 70 tables, 69 figures, and 207 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies