High Performance Plastics Market Size, Share & Industry Analysis, By Type (Fluoropolymers, Polyamides, Polyphenylene Sulfide (PPS), Sulfone Polymers (SP), Liquid Crystal Polymers (LCP), and Others), By End-use Industry (Transportation, Electrical & Electronics, Industrial, Medical, Packaging, and Others), and Regional Forecast, 2024-2032

The global high performance plastics market size was valued at USD 29.67 billion in 2023 and is projected to grow from USD 31.95 billion in 2024 to USD 65.45 billion by 2032, exhibiting a CAGR of 9.4% during the forecast period. Moreover, the high performance plastics market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 10.73 billion by 2032.

High performance plastics are different from engineering plastics and standard plastics, mainly in terms of their temperature stability but also in terms of mechanical properties, chemical resistance, price, and production volume. These plastics meet higher requirements than engineering and standard plastics. They are more expensive and used in smaller quantities. High-performance plastics have higher levels of chemical resistance, mechanical strength, and temperature resistance.

Increasing applications in numerous industries drive the market due to their superior anti-corrosion and thermal conductivity properties. High performance plastics are gaining demand due to their excellent performance at high temperatures and as highly reactive chemicals. These plastics offer mechanical strength, chemical resistance, and high heat stability. However, the market accounts for only a small share of the global plastics market and demand for these plastics is anticipated to increase significantly during the forecast period.

The increase in initiatives and supportive government policies and regulations is the main cause of the market's growth rate. Increasing industrialization, coupled with the demand for applications such as automotive and aerospace, especially in developing countries, will also have a direct and positive impact on the market's growth rate. The growth and expansion of various end-user industries, coupled with an increase in awareness of the benefits, will fuel the market growth.

Additionally, the growing use of advanced plastics for a wide range of end-use applications, such as transportation and automotive applications, industrial, electrical and electronics, medical, construction, and defense applications, and the increase of industrialization, especially in developing countries are the main factors attributed to the growth of the market.

However, high costs, coupled with growing environmental concerns, will pose the main challenge to the market's growth. The availability of substitutes on the market will also hamper the market growth. In addition, fluctuations in raw material prices will further affect the market.

The spread of the COVID-19 pandemic since the last quarter of 2019 resulted in several countries, including China, Japan, the U.S., India, Germany, Italy, and Canada, announcing lockdowns, limiting the flow of products and resources. Since both raw material supply and finished goods distribution were affected, COVID-19 has rigorously distressed the revenue generation of plastic manufacturers. Companies in the plastic industry have ramped up production to meet the growing demand for plastic solutions. The manufacturers have started their activities by first implementing the indicated preventative measures.

High Performance Plastics Market Trends

Use of High Performance Plastics to Reduce Weight and Improve Fuel Efficiency in Automobiles to Favor Market Growth

The global market is driven by the growth of the automotive & transportation segment and is associated with the rising incorporation of advanced plastics in automobiles. Rising concerns about carbon emissions and the desire to develop more fuel-efficient automobiles have led to increased plastic use to reduce weight. Lightweight, durable plastics are increasingly used in fixed-wing and rotary aircraft, passenger railcars as well as all types of ground automobiles. Many plastics are available in ultraviolet-resistant formulations for longer outdoor life service. The plastics used in diesel and petrol automobiles can be formulated to operate in contact with lubricants and fuels. Reinforced high-temperature plastics are used in applications where parts are placed in close proximity to engines.

High Performance Plastics Market Growth Factors

Special Characteristics of High Performance Plastics to Aid Market Growth

A key growth driver for the high performance plastics industry is high-performance plastic's cost-effectiveness and lower-weight advantage. Owing to properties such as chemical stability and superior mechanical and high thermal properties, plastics have found their way into a wide range of industries, such as automotive, defense, aerospace, and construction. These end-use industries require lighter materials with the same or superior properties of metals to make the products more cost-effective without reducing quality. The global market has offered a huge advantage for these industries, which is likely to drive market growth.

Advanced plastic composites are a significant part of automotive designs. In order to improve safety and automobile performance, the manufacturers of the market have increased the availability of plastic composites that facilitate and improve the battery technology of the automobile. The automotive industry is taking advantage of the opportunities offered by the personal mobility revolution, and this applies to artificial intelligence and the market landscape of self-driving cars.

In addition, the applicative properties of high performance plastics have enabled their use for fuel consumption reduction, engine reduction, and weight reduction. Additionally, automotive and OEM key players are developing innovative solutions to meet country regulations and customer expectations. The use of plastics in the engine and powertrain helps reduce the weight of powertrain systems and increase overall fuel efficiency. In addition, lightweight propulsion systems lower the overall cost of the system, reduce vehicle weight, and increase fuel efficiency.

Increasing Demand for High Performance Plastics from Electronics Industry Aid to Drive Market Growth

As the electronics industry continues to evolve and innovate rapidly, the demand for materials that meet the stringent requirements of modern electronic devices and components is increasing. High performance plastics offer a convincing solution owing to their exceptional electrical insulation properties, thermal stability, and resistance to several environmental influences. These plastics enable the development of lightweight, efficient, and compact electronic products while ensuring the reliability and safety of sensitive electronic components. From intricate circuits and connectors to advanced semiconductor packages, high performance plastics play a critical role in improving the longevity and performance of electronics. As the electronics sector increasingly embraces miniaturization, high-speed data processing, and energy efficiency, the demand for high-performance plastics is anticipated to drive growth and innovation in the market.

RESTRAINING FACTORS

Fluctuating Prices of Raw Materials to Constrain Market

Factors such as high commodity prices, the shift of the end-use sector from developed to emerging countries, and rising production costs hamper the global market. Changes in the demand and supply of raw materials may negatively affect the growth of the market. Moreover, the challenge for this industry is the lack of suitable testing standards within the industry. Due to the lack of standardized test methods, industries are struggling with quality assurance and quality inspection, with many using internal methods for testing. Thus, fluctuations in the prices of raw materials can restrain the high performance plastics market growth.

Segmentation Analysis

By Type

Fluoropolymers to Surge Demand due to their Dominant Use in End-use Industries

Based on type, the market is segmented into fluoropolymers, polyamides, polyphenylene sulfide (PPS), sulfone polymers (SP), liquid crystal polymers (LCP), and others.

The demand for fluoropolymers is comparatively high due to their massive performance. The growth of the segment is associated with their high use in the industries, from transportation to medicine. Fluoropolymers offer remarkable chemical characteristics and are considered the most useful non-reactive material existing today.

Poly vinylidene (PVDF) and poly vinyl fluoride (PVF) are the well-known categories of fluoropolymers. These types of fluoropolymers can be utilized in the production of different industrial applications. For instance, PTFE is well known for its use in cookware and non-stick coating as it has a high melting point, high durability, and chemical resistance. Additionally, some of the typical uses of fluoropolymers are wire insulation, packaging of lithium and ion batteries, implants, bio-medical usage, and wire insulation. Thus, these properties of the product enable fantastic applications in the industry and make them suitable for adoption.

The polyamides segment is anticipated to account for a moderate growth rate during the forecast period. Polyamide is made of repeating units connected by amide bonds. Polyamide can be in natural units and can also be manufactured. Natural polyamide includes silk and wool, while artificial polyamide includes sodium poly aspartate, aramids, and nylons. Polyamides are low-cost materials that have a lower manufacturing cost than other materials, are easier to transport, and their production costs are often lower than metals. Due to its numerous properties, polyamide is often projected rather than woven. Such factors lead to the usage of polyamide in various applications across several sectors, which is likely to drive the growth of this segment.

End-use Industry

Dominant Use of High-Performance Plastic In Automobile Parts Manufacturing Is Responsible for The Growth of Transportation Segment

Based on end-use industry, the market is segmented into transportation, electrical & electronics, industrial, medical, packaging, and others.

The growth of the transportation segment is associated with the dominant use of high-performance plastic in automobile parts manufacturing and insulation, as it offers unmatched chemical and temperature resistance with outstanding electrical performance. These fluoropolymers are utilized in the granular and powder foam, which makes them helpful in the extradition and compression molding process. Extruded or compressed high-performance plastic offers multiple benefits over regular plastic or low-performance plastic. Moreover, the use of this high-performance plastic makes the vehicle flexible, lighter, and extremely reliable.

The most advanced use of the product is in the traditional Internal Combustion Engine (ICE), which makes it clean and safer in terms of transition to electromobility. Additionally, these materials have increased in OEM and after-market parts in recent years. For instance, automotive manufacturers use this material to protect cars and trucks from sunlight, car wash chemicals, weather, and corrosion resistance. Thus, the versatile use of the material in the transportation industry propels the product demand, thereby surging the segment’s growth.

HIGH PERFORMANCE PLATSICS REGIONAL OUTLOOK

With respect to region, the market covers North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

The Asia Pacific region held the largest high performance plastics market share and is anticipated to dominate the market during the forecast period. The growth of the region is associated with the increase usage of the product in the electrical & electronics industry. Countries in the region, such as India and China, are the fastest-growing economies and have the highest populations in the world. Thus, the demand for electrical & electronic devices has increased with the increase in population over the past years. This created a massive opportunity for the new and existing manufacturers of the latest electrical & electronic products. This resulted in increased pressure on the manufacturers to fulfill consumer’s needs. High-performance plastic is used in manufacturing semiconductors and smaller microprocessors as it increases the lifespan due to extreme chemical resistance.

North America is expected to witness a considerable growth rate by 2032. High disposable income and consumer preference for high-quality raw materials are due to the region's product demand. Countries in the region, such as the U.S., have the highest per capita income in the region, which puts pressure on transportation manufacturers to deliver high-quality products. Thus, the usage of high-performance plastic has drastically increased in the region. Additionally, the government and various organizations are encouraging automobile manufacturers to use safer and more durable materials in order to save human lives in accidents.

The market growth in Europe is associated with the rapid increase in the automobile industry as it plays a crucial role in the economies of European countries. The automotive industry has the largest investors and innovative car-producing companies, which deliver best-in-class engine efficiency in the region. Thus, the usage of high-performance plastics is high in automobile production as it offers remarkable chemical and physical characteristics over ordinary plastics. On the other hand, the region's medical industry has grown rapidly after a crucial hit by the COVID-19 pandemic. Health and hygiene awareness has increased, along with the number of hospitals having advanced technological treatment. This has resulted in a boost in the medical industry. Thus, all the factors are expected to boost the market growth in the region.

Meanwhile, Latin America and the Middle East & Africa will register a moderate growth rate during the forecast period, owing to the sluggish growth of end-user industries in these regions.

COMPETITIVE LANDSCAPE

Key Industry Players

Strategic Planning Adopted by Companies to Strengthen Their Market Share

A few major players primarily dominate the market. The existing players have developed proprietary types, and they maintain a competitive edge over other players owing to their unique type offerings. Furthermore, the companies are continuously conducting R&D activities to develop better solutions to match the changing needs of the electronic industry.

The major high performance plastics manufacturers operating in this market are Solvay, BASF SE, Arkema, Evonik Industries, and DuPont. Plant expansions and strategic mergers and acquisitions characterize the global market. The market's major businesses have been actively acquiring competitors to acquire better economies of scale.

List of Key Companies in High Performance Plastics Market:

• Solvay (Belgium)


• BASF SE (Germany)


• Arkema (France)


• Evonik Industries (Germany)


• DuPont (U.S.)


• SABIC (Saudi Arabia)


• DAIKIN INDUSTRIES, Ltd (Japan)


• Victrex plc (U.K.)


• Saint-Gobain Performance Plastics (France)


• DSM (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• December 2023- Arkema completed the acquisition of its 54% stake in PI Advanced Materials (PIAM). PIAM is one of the leading manufacturers of polyimide films used in electric vehicles and mobile devices. PIAM is expected to bring expertise in flexible screens and electric vehicles, cutting-edge applications in 5G antennas, and high-resolution OLED displays. The acquisition will broaden Arkema’s portfolio for the high-growth markets of electric mobility and advanced electronics.


• June 2023- BASF and Avient Corporation collaborated in order to offer Ultason high performance polymers colored grade to the global market. The colored grade offered is a combination of BASF’s Ultrason polyarylethersulfones as base polymer and Avient’s Colorant Chromatics color formulation. The collaboration will offer industries such as electrical & electronics, healthcare, and household & catering.


• October 2022- Arkema started a new series of recycled High Performance Polyamides (HPP) manufactured under the program Virtucycle at its custom recycling center in Italy, partially or fully recycled Rilsamid polyamide 12, Pebax polymers, and Rilsan polyamide 11.


• July 2022- BASF launched the PuriCycle portfolio of adsorbents and catalysts to enable plastic recycling. These advanced high-performance products are for the purification of most complex waste plastics pyrolysis feeds.


• May 2021 – Arkema successfully acquired the well-known high-performance plastic manufacturer Agiplast. The purpose of the acquisition is to provide end-to-end material circularity and address the growing market.


• July 2020- Evonik Industries opened a well-advanced 3D printing material development center. The purpose of the center is to provide high performance plastic material.


• July 2020- Victrex launched VICTREX AM 200 filament, which was specifically optimized and developed for Additive Manufacturing (AM). This new offering is used in several AM applications and is designed for conventional manufacturing methods such as injection and machining.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, and end-use industries. In addition, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, it encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation