The market for engineering plastics is set to hit $ 104.32tn (€ 91.6bn) by 2024, driven by “growing demand” in the automotive, electronics and construction development segments, according to a recent report.

According to a report by UK-based consulting firm Frost & Sullivan, titled ‘Global Engineering Plastics Market Projection to 2024’, rapid urbanization and rising purchasing power in Asia, particularly in China, India and the South Asia are the main reasons behind the growth in demand, estimated at a CAGR of 5.4% until 2024.

“The market presents tremendous opportunities for specialty materials manufacturers as evolving applications demand new R&D, product development and functional solutions,” said Sayan Mukherjee, Materials, Chemicals & Research Analyst, EIA, Frost & Sullivan.

According to the expert, the development of new formulas and products for OEMs and end users will provide “lucrative income, product differentiation and technological advancements” for the industry during the forecast period.

Mukherjee also recommended that smaller players should follow the lead of “market leaders such as DSM, SABIC and BASF” to expand their capabilities within the Asia Pacific market.

This, he said, is likely to provide “maximum exposure and growth opportunities for the foreseeable future.”

The Frost & Sullivan report recognized metal lightening and replacement, as well as construction, transportation and medical applications as key growth opportunities in the market.

Additionally, he noted a shift in focus towards niche applications and product differentiation strategies to avoid the “commodification of engineering plastics.”

Despite these growth drivers, the report also identified several key factors that could disrupt the supply chain and hinder growth.

These included government regulations, volatility in oil prices, international trade wars, and miniaturization of electrical and electronic components.

“To be prepared for the future, players must develop contingency strategies to mitigate disruptions and include bio-based engineering plastics with a low environmental footprint in their product portfolio, particularly in Europe and North America,” he added.