Plastic resins are manufactured materials derived primarily from natural gas and oil. They are broadly used in various end-use industries such as packaging, automotive, construction, electrical and electronics, logistics, consumer goods, textile and clothing, furniture and bedding, agriculture, medical devices, and others. Polyethene terephthalate, polyvinyl chloride, low-density polyethylene, polypropylene, and other plastic resins are available. These plastic resins have their physical properties, applications, and recyclability levels. One of the more common features is that recycled plastic resin is often unaffected by heat, allowing it to be reclaimed and injection molded into a new form.
Compared to traditional materials such as rubber or metals, plastics used in automotive applications help reduce fuel consumption by reducing the density and weight of the vehicle. Increasing consumer safety and health hazards awareness in various industries such as electronics, healthcare, wire and cable, construction, and automotive is expected to drive the plastic products market over the forecast period, resulting in demand for plastic resins.
Demand for plastics in exteriors and interiors and under-hood components is expected to be driven by the rapidly growing automotive industry. Plastics are widely used in under-hood automotive components. They are also used in the building industry for both the inside and outside commercial, residential, and industrial structures. Further, the demand for a safe, lightweight, and affordable multi-utility vehicle (MUV)/sport-utility vehicle (SUV) with high fuel efficiency and an emphasis on comfort and aesthetics is also driving the increased use of plastics in the automotive industry. Plastics' soft-touch and odor-free nature allows for better steering wheels, handles, and interiors in automotive applications.
In addition, plastics are expected to replace glass, wood, natural rubber, metals, and other manufactured materials such as concrete, surging the demand for plastic resins. Olefins, polystyrene, PVC, and other plastics, to name a few, are rapidly replacing most materials in automotive, construction and infrastructure, medical and healthcare, and consumer goods.
Furthermore, rising carbon emissions regulations and public awareness drive the substitution of lightweight plastics for metals and heavy substances, particularly in automobiles and industrial machinery. Density plastics save fuel and improve machinery performance, lowering carbon emissions. Carbon emissions are chemical compounds emitted into the atmosphere due to poorly burned fuels such as natural gas, crude oil, and coal.
In recent years, green buildings have gained popularity over conventional ones. Green building demand is being driven by lower operating costs, improved air quality, the use of renewable energy, the effective implementation of energy and water, and a lower overall load on metal structures compared to conventional buildings.
Furthermore, the growing influence of social factors such as creating a sense of community, improving occupant health and wellbeing, and encouraging sustainable business practices propels green building growth. Due to the rising demand for green buildings, the market for plastic resin in construction applications is expected to grow significantly during the forecast period.
Lastly, technological advances in the automotive industry, such as self-driving cars and the increasing popularity of electric vehicles, are expected to drive demand for plastic resin in automotive applications. The gradual increase in the number of electric vehicles on the road in the coming years is expected to create lucrative opportunities for plastic resin.
Europe dominates the regional market. It is expected to reach USD 204 billion by 2030, generating a CAGR of 4.2%. Due to high demand from the automotive, electrical and electronics, packaging, and construction industries, Europe is one of the largest consumers of plastic resins. Plastic resins are used in a broad range of industries due to their versatility, ease of molding, and ability to form desired shapes. Many automobile manufacturers prefer plastic vehicle components, which aids companies in achieving low-cost production and propelling the plastic resins market forward.
North America is the second-largest region. It is estimated to reach a value of USD 130.5 billion by 2030 at a CAGR of 3.5%. The North American market is boosted by the increasing investment in construction in the US. The country has a low-risk environment, a stable economy, and a solid financial sector.
Asia-Pacific is the fastest-growing region. It is estimated to reach a value of USD 205 billion by 2030 at a CAGR of 5.3%. Southeast Asian countries such as Vietnam, Indonesia, Thailand, China, Japan, and India are expected to emerge as the primary growth markets for plastic resins in Asia over the forecast period. The growing manufacturing sector is expected to propel the demand for plastic resins in automotive, industrial machinery, packaging, construction, and electrical and electronics industries.
Key players in the global plastic resin market are