The South America Engineering Plastics Market size was valued at USD 4.88 Billion in 2022 and is expected to surpass USD 9.13 Billion by 2031, expanding at a CAGR of 7.21% during the forecast period, 2023 – 2031. 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.
South America Engineering Plastics Market Trends, Drivers, Restraints, and Opportunities
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Increasing demand for engineering plastic from packaging industry is expected to boost the market during the forecast period.
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Rapid growth of the automotive industry owing to demand for light weight vehicles is major factors fueling the market during the forecast period.
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Growing environmental awareness and adoption of bio-based products is anticipated to drive the market during forecast period.
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High volatility in raw material prices is projected to hamper the market growth.
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Stringent regulations by government on the usage of harmful plastics act as major factors that can restrict the market growth during the forecast period.
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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.
Scope of the South America Engineering Plastics Market Report
The report on the South America engineering plastics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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South America Engineering Plastics Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Polycarbonate, Polyamide, ABS, PET & PBT, POM, Fluor polymers), End-Users (Automotive & Transport, Electrical & Electronics, Industrial & Machinery, Packaging, Consumer Appliances)
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Geographical Scope
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Brazil, Argentina, Colombia, Chile, and Rest of South America
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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BASF SE, SABIC, Solvay, Covestro AG, and DuPont
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South America Engineering Plastics Market Segment Insights:
The polyethylene terephthalate segment is projected to hold a major market share
Based on types, the South America engineering plastics market is segregated into polycarbonate, polyamide, ABS, PET & PBT, POM, Fluor polymers. The polyethylene terephthalate segment is expected to represent a key share of the market during the forecast period. PET resin is known for its excellent melt flow properties, strict mold tolerances, and high cavity productivity.
PET and polyolefin are most widely used materials in the plastic packaging industry. These products mainly include takeaway containers, frozen foods, lemonade and juice, tomato paste, mineral water, canned food, and baking containers. They are also used in the food industry to make mussels, gourmet packaging, and microwave food trays.
On the other hand, the polyamides segment is anticipated to expand at a rapid pace during the forecast period. Polyamide is mainly used in the textile industry because of its strong and flexible properties. These advantages make it suitable for clothing, carpets, and other products.
The automotive & transportation segment is expected to register at a significant pace
On the basis of end-users, the South America engineering plastics market is segregated into automotive & transport, electrical & electronics, industrial & machinery, packaging, consumer appliances. The automotive & transportation segment is expected to hold a key share of the market during the forecast period owing to increasing use of lightweight materials to meet the industry's goals of increasing carbon dioxide emissions and improving fuel efficiency.
The market in Brazil is projected to hold a major market share
In terms of regions, the South America engineering plastics market is classified as Brazil, Argentina, Colombia, Chile, and Rest of South America. Brazil is anticipated to dominate the market. The construction of new hotels, as well as the expansion of existing hotels, is expected to boost commercial construction in Brazil. The infrastructure sector in the country is currently in flux. Brazil's packaging material production is steadily increasing, with a value of approximately USD 71.5 billion, representing a 5.1 % increase.
Segments
The South America engineering plastics market is segmented on the basis of
Types
- Polycarbonate
- Polyamide
- ABS
- PET & PBT
- POM
- Fluoropolymers
End-users
- Automotive & Transport
- Electrical & Electronics
- Industrial & Machinery
- Packaging
- Consumer Appliances
Geography
- Brazil
- Argentina
- Colombia
- Chile
- Rest of South America
Key Players
Competitive Landscape
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.