(I-BusinessNews.Com, April 04, 2022 ) The electronics and consumer goods plastics market size is forecast to reach US$56.3 billion by 2027 after growing at a CAGR of 6.5% during 2022-2027. The demand for consumer electronics catapulted during the pandemic as people started working from home which increased the demand for computers, laptops, and tablets. Also, online education and better connectivity requirement amplified the demand for smartphones. This trend of increased demand for various consumer electronics products will be there in the coming years, which will drive the marketís growth in the forecast period. As per July 2021 report by China.org.cn, consumer electronics export maintained a growth trajectory for 12 months in a row. The massive expansion in lighting equipment globally will also drive the marketís growth in the forecast period. For instance, as per the April 2021 news by inteliLIGHT, Sohar port in Oman will invest in a smart public lighting system with the use of LED lights to achieve cost effective and sustainable solutions. This will create a massive scope for the implementation of various plastics in the lighting equipment. The Asia Pacific region will witness the highest demand for electronics and consumer goods production which will augment the usage of plastics and related materials like polyvinyl chloride, polystyrene, polypropylene, acrylonitrile butadiene styrene, epoxy resins, etc., in the target market in the forecast period. However, the market might get hampered in the forecast period due to fluctuation in crude oil prices.
The electronics and consumer goods plastics market suffered deeply due to the COVID-19 pandemic. Disturbances in the supply chain, procurement of raw material, border closures are some of the key factors that affected the marketís growth during the pandemic. Furthermore, the volatility in the petroleum prices due to the pandemic downgraded the marketís development as some of the plastic types like polypropylene, polystyrene, etc., are derived from petroleum. BP statistics data revealed oil prices dropped to $41.84/bbl which is a historical plunge since 2004. However, amid all these challenges, some market players managed to maintain a decent flow in their supply chain process. For instance, according to the 2020 Annual Report by Sabic, the company continued to deliver multiple services including urgent supplies through its resilient supply chain network during the pandemic. Going forward, the target market will witness robust growth owing to the expanding household appliances demand.
Electronics and Consumer Goods Plastics Market Ė By Type
Polypropylene dominated the electronics and consumer goods plastics market globally in 2021 and is growing at a CAGR of 6.4% in the forecast period. This type of plastic is extensively used in various consumer electronics and household appliances owing to its lightweight, durability against heat and electricity, and cost-effectiveness. Owing to such high demand, market players are focusing on expanding their polypropylene portfolio. For instance, in October 2021, Saudi Basic Industries Corporation (SABIC) opened its new PP production line in Belgium to meet polypropyleneís increasing demand in the consumer and appliances industries. This new PP compounding line will help electronic and consumer brands to develop lightweight applications, which, in turn, will augment the use of PP plastics in the target market during the forecast period. Polycarbonate plastic is projected to witness significant demand in the forecast period owing to its increasing demand in lighting applications. For instance, in September 2020, Saudi Basic Industries Corporation (SABIC) joined hands with Elkamet Kunststofftechnik GmbH to launch its polycarbonate based renewable feedstock to use in multiple lighting applications. Such growing demand for polycarbonate plastic will stimulate the lighting industry applications, which will contribute to the electronics and consumer goods plastics marketís growth. Other plastics like polyvinyl chloride, polystyrene, acrylonitrile butadiene styrene will witness decent demand in the electronics and consumer goods plastics market in the forecast period.
Electronics and Consumer Goods Plastics Market Ė By Application
Consumer electronics which include computers and accessories, telephones, smartphones, laptops, etc, dominated the electronics and consumer goods plastics market in 2021 and is growing at a CAGR of 6.7% in the forecast period. Plastics like polypropylene, polyethylene, and acrylonitrile butadiene styrene are widely used in consumer electronics and the growing demand for consumer electronics will require high usage of these plastics, which, in turn, will contribute to the marketís growth in the forecast period. For instance, according to the September 2020 report by the American Customer Satisfaction Index, TV sales in the US witnessed a surge, especially in the big-screen TVs category. The report also states several new TV brands entered the US TV market in 2020 providing more options to the consumers. Such high growth in the TV segment increases the demand for higher usage of various plastics, ultimately driving the marketís growth in the forecast period. Household appliances will drive the electronics and consumer goods plastics market growth significantly in the forest period. According to April 2021 news by the Association of Home Appliance Manufacturers (AHAM), the US manufacturing association requested Biden Administration to address supply chain challenges so that the home appliances associations can stimulate the production rate to meet the growing demand for household appliances in the US. Such rising demand for house appliances will increase the demand for the usage of plastics like polypropylene and acrylonitrile butadiene styrene in the target market, which, in turn, will drive the electronics and consumer goods plastics marketís growth during the forecast period. Electrical applications and lighting equipment will witness decent demand in the forecast period which will drive higher usage of resins like epoxy resins and amino resins that are commonly used in plastics.
Electronics and Consumer Goods Plastics Market Ė By Geography
The Asia-Pacific region held the largest market share in the electronics and consumer goods plastics market in 2021 with a market share of up to 32%. Change in lifestyle, increasing population and low production cost are some of the key factors leading to higher manufacturing of consumer electronic products in the region. Countries like China and India are showing incredible growth in the consumer electronics segment. For instance, as per May 2021 data by China.org.cn, in 2020, with a market share of 16.9 percent, Huawei became the second-largest manufacturer in the notebook market in China. This boost in the sales of notebooks drives higher implementation of various electronics and consumer goods plastics, contributing to the growth of the target market. Similarly, as per the data by India Brand Equity Foundation, the consumer electronics and appliance industry will grow twice the current market size and reach a market value of US$ 21.18 billion by 2025. Such huge expansion in these industries will demand higher usage of plastics like polypropylene, acrylonitrile butadiene styrene, polycarbonate, etc., which will boost the marketís growth in the forecast period. The North American region is expected to witness significant demand for electronics and consumer goods plastics in the forecast period owing to the growth of manufacturing industries in the region.
Electronics and Consumer Goods Plastics Market Drivers
Increasing demand in lighting equipment will drive the marketís growth
Lighting applications are expanding globally owing to the rapid urbanization and innovation in LED lighting. Unlike CFL, incandescent, and halogen light sources, LED lighting offers high lumen power at low wattage which encourages the manufacturers to come up with more LED lighting solutions, ultimately augmenting the need for higher plastics usage in the lighting industry. According to the October 2021 report by the New York Power Authority (NYPA), the City of Utica has joined hands with NYPA to install nearly 7140 energy-efficient LED streetlights throughout the city. This is announced under the Smart Street Lighting NY program. Similarly, as per the June 2021 report by InteliLIGHT, the port of Casablanca in Morocco will invest in a smart public lighting system that includes LED lights. Such high demand for LED and smart lighting equipment will drive the growth of the electronics and consumer goods plastics market in the forecast period.
Growing consumer electronics segment will drive the marketís growth
The demand for consumer electronics products such as computers, tablets, laptops, smartphones, etc., is witnessing encouraging demand in the market. With the stay-at-home norms, work from home and online education became the new normal, increasing the demand for consumer electronic products. For instance, according to September 2021 report by China.org.cn, Chinaís Zhejiang witnessed an incredible rise in online retail sales in which consumer electronics ranked in the top categories. Similarly, according to the October 2021 data by India Brand Equity Foundation, Indiaís consumer electronic market is on a progressive track. Market players are focusing on capturing the maximum share in the Indian consumer electronics market. For instance, brands like Play and Omthing are planning to tap a higher share and develop a manufacturing base for electronic components in India. According to the September 2021 data by UKís Office for National Statistics (ONS), the European Unionís consumer electronics import value was 109.2 in the first quarter of 2021 as compared to the value of 108.4 in the first quarter of 2020. Such massive demand for consumer electronics will require higher usage of various plastics like polystyrene, acrylonitrile butadiene styrene, polypropylene, etc., ultimately contributing to the growth of the electronics and consumer goods plastics market in the forecast period.
Electronics and Consumer Goods Plastics Market Challenges
Fluctuation in crude oil prices might hamper the marketís growth
Most of the commonly used plastics like polyvinyl chloride, polystyrene, polypropylene, etc. in electronics and consumer goods are prepared from petroleum. However, the recent volatility in the petroleum prices also fluctuates the prices of these plastics, which might affect the marketís growth in the forecast period. In 2020, petroleum prices touched historic low figures due to lowered economical movement in the market. Furthermore, the oil price war between Russia and Saudi Arabia deteriorated the petroleum price as both countries failed to come to terms regarding the proposed oil-production cuts. As per the data by the Organization of the Petroleum Exporting Countries (OPEC), production of crude oil was lowered to 7.7 million barrels per day till Dec 2020, which is considered a historical drop in output. As per the statistics by BP statistics, the average oil price was $41.84/bbl in 2020, and it is the lowest figure since 2004. This fluctuation in the prices of crude oil might affect the growth of the electronics and consumer goods plastic market in the forecast period.
Electronics and Consumer Goods Plastics Market Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the electronics and consumer goods plastics market. Major players in the electronics and consumer goods plastics market are:
INEOS Nova LLC
Chevron Phillips Chemical
In June 2021, LyondellBasell, which deals with plastics production, acquired PolyPacific Polymers Sdn. Bhd. (PPM) in Malaysia. This acquisition will allow LyondellBasell to expand its plastics portfolio and use them for effective functionality in appliances and consumer electronics.
Polypropylene is leading the electronics and consumer goods plastics market owing to its high usage in consumer electronics. This plastic comes with the robust property of durability against heat and electricity which makes it a popular plastic in electronics and consumer goods.
Consumer electronics will drive the marketís growth in the forecast period. According to the September 2020 report by the American Customer Satisfaction Index (ACSI), demand for PC ramped up in the second quarter of 2020 in the US.
The Asia-Pacific region will witness the highest usage of plastics due to the growing electronics and consumer goods demand. According to May 2021 statistics by China.org.cn, Chinaís national online news service portal, Huawei is focusing on R&D to amplify consumer electronics profile that includes products like smart televisions, personal computers, wireless earbuds, and smartwatches.
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