Thermoplastic Resins Market Size
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.
Market Scope
| Metrics | Details |
| CAGR | 5.0% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Resin, Fiber, Product, End-User, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market 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.
Market 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.
Market Geographical Share
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.
Market Key Players
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.
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
