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The global injection molded plastics market is expected to witness USD 423.7 billion by 2030 and exhibit a CAGR of 4.2%. The use of plastic components in end-use industries like home appliances, packaging, automotive, medical devices, and electronics is anticipated to drive the industry’s growth during the forecast period. Additionally, factors such as advanced innovations to produce complex plastic shapes, and volatility in the price of raw materials are likely to propel the market growth during the forecast period.
The growing concern regarding the disposal of raw materials like ethylene, styrene, and benzene is a major challenge that tends to hinder the growth of the industry. To overcome this, organizations across the world are focused on the growth of injection-molded plastics with the use of bio-based counterparts. For instance, the biodegradable polymer is a renewable resource, used to overcome environmental disruptions such as plastic disposals in landfills. Biodegradable polymers are recommended to be highly used in the packaging industry with the aim to protect the environment as well as maintain public health.
Government support for financial incentives and tax benefits, especially in countries like China and India has resulted in an increase in the flow of foreign direct investment (FDI). This has successfully developed the growth of plastics, thus likely boosting the industry during the forecast period. Additionally, reduction in the labor cost significantly lowers the manufacturing cost for producers and this shift resulted in the overproduction of a variety of plastic products, thereby increasing the demand and contributing to the industry growth.
In terms of segment, polypropylene held the largest revenue share in the market due to its extensive use in household products, packaging applications, and automotive components. Additionally, the increasing penetration of polypropylene in battery housings, packaging, and protective caps in electrical contacts is propelled to drive demand during the forecast period. Polypropylene offers resistance to corrosion and offers better insulation properties to electrical systems, which is one of the major advantages of using polypropylene for electrical devices.
In terms of region, the Asia Pacific dominated the injection molded plastics market owing to increased spending on infrastructure along with the growing demand for automobiles in countries like Indonesia, India, Malaysia, and China. Major end-use sectors like automobiles and electronics effectively shifted the manufacturing base in countries like Thailand, China, and Indonesia due to reduced labor costs and the manufacturers in these countries receive government incentives as tax benefits. All these factors are expected to boost the demand for the product in the Asia Pacific during the forecast period.
The industry has a presence of fragmented and unorganized companies especially, in Latin America and Asia Pacific. Key players from these regions are particularly focused on gaining capacity for many years with the purpose to take advantage of operational superiority as well as accompany economies of scale. With a more differentiated and diversified portfolio of the product, the market can become competitive in terms of distribution and price channels, which is likely to increase the industry’s growth.
Research Support Specialist, USA