Industrial plastics are synthetic or semi-synthetic organic solids that are used in various industrial applications such as manufacturing, construction, packaging, automotive and transportation due to their high strength, resistance to corrosion and other desirable physical properties. Some common examples of industrial plastics include polyvinyl chloride (PVC), polyethylene (PE), polypropylene (PP), polyurethane (PU), polytetrafluoroethylene (PTFE) and others. They are used in manufacturing a wide variety of durable and non-durable goods across many industries. The growing infrastructure and manufacturing activities along with increased usage of lightweight and high-performance materials are the key factors driving the demand for industrial plastics globally.
The industrial plastic market is estimated to be valued at USD 93.19 Bn in 2024 and is expected to reach USD 141.05 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

Key Takeaways

Key players operating in the industrial plastics market are Exxon Mobil Corporation, Sumitomo Chemical Co., Ltd., BASF SE, SABIC, Dow, Inc., Evonik Industries AG, Arkema, Celanese Corporation, Eastman Chemical Company, Chevron Phillips Chemical Co., LLC, Formosa Plastics Corporation, Covestro AG, Toray Industries, Inc., Mitsui & Co. Plastics Ltd., TEIJIN LIMITED, LG Chem, Huntsman International LLC, Chevron Phillips Chemical Co., LLC, and LyondellBasell Industries Holdings B.V.

The global Industrial Plastics Market Size is driven by the growing infrastructure development and construction activities around the world. The ease of processing, forming and molding industrial plastics into components for construction is fueling their demand. Rapid urbanization is resulting in new residential, commercial and industrial construction projects in developing economies boosting consumption.

Geographically, the Asia Pacific region dominates the global industrial plastics market and is expected to witness the fastest growth during the forecast period. This can be attributed to the increasing investments in the manufacturing and infrastructure development projects in major economies such as China, India, Indonesia, Thailand and Malaysia among others. Moreover, availability of cheap labor and raw materials is encouraging manufacturing facilities to set up production bases in the region.

Market Key Trends

The usage of recycled plastics in industrial applications is emerging as a key trend in the Industrial Plastic Companies. Recycling industrial plastic waste helps reduce the consumption of raw materials and dependence on fossil fuel based sources of plastics production. It also lowers carbon footprint making the plastic products more environmentally sustainable. Technological developments are supporting improved recycling processes for various industrial plastic types such as PET, HDPE, LDPE and others. Most leading plastic manufacturers are targeting a specific percentage of recycled content usage in their product lines over the next decade. This will drive the demand for recycled industrial plastics.
Porter's Analysis
Threat of new entrants: Plastic production requires substantial capital investments and established distribution networks. This makes entry difficult for new players.

Bargaining power of buyers: Industrial buyers have significant bargaining power due to the availability of substitute products and commoditized nature of plastics.

Bargaining power of suppliers: A few large multinational companies dominate the supply of raw materials. This gives them substantial bargaining power over plastic producers.

Threat of new substitutes: Alternatives like paper, glass, and metals pose a minor threat as plastics offer distinct technical and economic advantages.

Competitive rivalry: The industrial plastics industry is highly competitive due to many established players and abundant supply.

Geographical Regions
North America accounts for the largest share of the global industrial plastics market, both in terms of value and volume. This is attributed to high demand from various end-use industries such as packaging, automotive, consumer goods, construction, and others.

Asia Pacific is projected to be the fastest-growing regional market between 2024 and 2031. Rapid industrialization and urbanization coupled with growing manufacturing sector are driving plastic consumption in the region, especially in China and India.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)