Plastics Market for Electrical Appliances - Snapshot

Plastic is one of the highly functional, esthetic, and sustainable materials. It has replaced materials such as metal, concrete, and wood, as it is light in weight, corrosion proof, economical, and esthetically appealing. Manufacture of plastic also entails less energy. Global production of plastic stood at 322 million tons in 2015 and is estimated to increase at a CAGR of 6% to 7% by 2020. Plastics are bad conductors of electricity. Therefore, they are used in applications that require insulating properties. For instance, PVC is commonly used in wires and cables, while thermosets such as PU and PE are used in handles, switches, etc. Plastics is employed in outer body packaging of household appliances (toaster, blender, mixer, etc.) and personal care appliances (hair dryers, electrical razors, etc.).

Plastic is one of the key materials used in the manufacture of electrical appliances. Several resins such as ABS, SAN, PP, and PS are widely used in the manufacture of different appliances. In terms of revenue, the global plastics market for electrical appliances was valued at US$ 15.8 Bn. The market is anticipated to expand at a CAGR of 7.5% between 2017 and 2025. Growth in the market is largely driven by the rise in demand for electrical appliances across the globe. Demand for electrical appliances across the world is anticipated to increase at 6.6% per annum during the forecast period, thus offering substantial demand for plastics. In terms of type of resin, the PP segment accounted for substantial market share in 2016 as it is highly moldable and relatively inexpensive. The PP segment is anticipated to expand significantly during the forecast period. ABS & SAN and PS are also widely employed in electrical appliances. Other types of resins such as PC, PA, and LDPE have demand in niche applications. PC and PA demonstrate superior properties; however, their price is high. Thus, their usage in electrical appliances is limited.

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Air treatment products is one of the fast growing appliance segments of the market. Rise in demand for air treatment products such as air conditioners, especially split air conditioners, air purifiers, and fans is the key factor driving the segment. However, in terms of consumption, refrigeration appliances was the dominant segment of the market in 2016. The segment consumed substantial quanta of total plastic in 2016 and is anticipated to expand nearly twice by 2025. A typical refrigerator consists of several plastic components such as liners, trays, handles, holders, and stands. Thus, demand for plastic is high in the segment.

Demand for electrical appliances has been rising since the last two years. It is impacted by several factors such as availability of products, trends in an individual appliance segment, product development, per capita expenditure, disposable income, and economic factors. Increase in production of electrical appliances is expected to further boost the demand for plastics in the near future. Mass production of electrical appliances with plastic components also provides economic advantages while maintaining optimum functionality. Styrenic polymers, in particular, exhibit a wide range of properties through different products such as polystyrene, ABS, SAN, and block copolymers. The shift in usage from traditional materials to plastics has also propelled the plastics market. Unlike metals or organic materials, plastics are corrosion resistant. With the help of additives, they can also be made chemical- and acid-resistant. Furthermore, the need to produce lightweight appliances, while maintaining high performance, reliability, durability, and dimensional stability is met with the help of plastics. Different colors, textures, and properties such as transparency and opacity can be achieved with the use of colored additives or by blending two or more polymers. These factors work in tandem and propel the demand for plastics for electrical appliances.

Asia Pacific is a leading region of the market. The market in the region is anticipated to expand significantly during the forecast period. Asia Pacific is a global manufacturing hub. Prevalence of low-cost labor, lenient government regulations, inexpensive raw materials, and high demand for electrical appliances has rendered countries in Asia Pacific such as China, Thailand, Malaysia, India, South Korea, and Indonesia attractive manufacturing destinations for several electrical appliance brands. This has contributed to the dominant share of Asia Pacific in the total demand for plastics in the world. Following Asia Pacific, Europe was a significant market for plastics in electrical appliances. Various electrical appliances such as small cooking products, food preparation appliances, and dishwashers are manufactured in Europe. Thus, demand for plastics is high in the region.

Key players operating in the plastics market for electrical appliances include Lyondell Basell, Sinopec Group., PetroChina Group, Braskem Group, Shin-Etsu Chemicals, Ineos Styrolution Group GmbH, Borealis, SABIC, Exxon Mobil, Reliance Industries, Total PC, and Formosa Plastics Corp. Most manufacturers offer few polymers such as styrenics, i.e. ABS, SAN, and PS or polyethylene, i.e. LDPE, HDPE, LLPDE, XLPE, etc.

Plastics Market for Electrical Appliances - Overview

Plastic is one of the highly functional, esthetic, and sustainable materials. It has replaced materials such as metal, concrete, and wood, as it is light in weight, corrosion proof, economical, and esthetically appealing. Manufacture of plastic also entails less energy. Global production of plastic stood at 322 million tons in 2015 and is estimated to increase at a CAGR of 6% to 7% by 2020. Plastics are bad conductors of electricity. Therefore, they are used in applications that require insulating properties. For instance, PVC is commonly used in wires and cables, while thermosets such as PU and PE are used in handles, switches, etc. Plastics is employed in outer body packaging of household appliances (toaster, blender, mixer, etc.) and personal care appliances (hair dryers, electrical razors, etc.).

Plastic plays a vital role in reduction of weight of appliances. Plastics offer freedom of design in terms of product differentiation. They also save time in processes such as welding of parts or assembly of components. Usage of plastics also lowers the cost of post-machining processes such as painting, which can be achieved by mixing color additives in polymer resin composition. Plastics can be molded as per the product requirement prior to their fitting in the assembly as well. Electrical insulation, heat insulation, lightness of weight, freedom of design, and durability are some of the qualities of plastics that boost its usage in the manufacture of electrical appliances.

The global plastics market for electrical appliances is dominated by few major manufacturers, while the remaining share is highly fragmented. Several resins are used in the manufacture of electrical appliance components. Market leaders for each resin are different as raw materials, technology, and grades required for each resin vary significantly. Ineos Styrolution Group GmbH is the market leader in polystyrene, while Covestro dominates the market in terms of polycarbonate. Several manufacturers offer a wide variety of resins in various grades for various applications. Thus, the overall effect is stiff competition in the plastics market. Companies primarily focus on the marketing strategy of products in order to enhance their market share. Furthermore, manufacturers increase their sales force by expanding and strengthening their distribution networks. Existing companies as well as new entrants also focus on competitive pricing, since players operating in the market such as LG Chem, INEOS, BASF SE, ExxonMobil Corporation have integrated operations. Manufacturers focus on producing resins with exceptional properties to meet the high demand in electrical appliances (for instance, ABS, PS, and PP).

The report analyzes and forecasts the plastics market for electrical appliances at the global, regional, and country level. The market has been forecast based on volume (kilo tons) and revenue (US$ Mn) from 2017 to 2025. The study includes drivers and restraints of the global plastics market for electrical appliances. It also covers the impact of these drivers and restraints on the demand for plastics for electrical appliances during the forecast period. The report also highlights opportunities in the plastics market for electrical appliances at the global and regional level.

The report comprises detailed value chain analysis, which provides a comprehensive view of the global plastics market for electrical appliances. Porter’s Five Forces model for the plastics market has also been included to help understand the competitive landscape. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global plastics market by segmenting it based on resin, appliances, and region. These segments have been analyzed based on the present and future trends. Regional segmentation includes the current and forecast demand for plastics for electrical appliances in North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. The report also covers the demand for individual end-user industry segments in all the regions.

The study includes profiles of major companies operating in the global plastics market. Key players profiled in the global plastics market include Ineous Styrolution, LG Chem Ltd., BASF SE, Saudi Basic Industries Corporation (SABIC), ExxonMobil Corporation, LANXESS, Trinseo, Covestro AG, Toray Industries, Inc., LyondellBasell, Asahi Kasei Corporation, Mitsubishi Chemicals Corporation, Koninklijke DSM N.V., Reliance Industries Limited, Eni S.p.A., IRPC Public, SCG Chemicals, Petro Rabigh, Formosa Plastics, Hanwha Total Petrochemical Co. Ltd., GS Caltex, and SK Chemicals. Market players have been profiled in terms of attributes such as company overview, business strategies, recent developments, and financial details.

The report provides the estimated market size of plastics for 2016 and forecast for the next nine years. The global size of the plastics market has been provided in terms of volume and revenue. Market numbers have been estimated based on resin, appliance, and region. Market size and forecast for each product and end-user industry have been provided in terms of global and regional markets.

Plastics Market for Electrical Appliances, by Resin

  • Polycarbonate (PC)
  • Polypropylene (PP)
  • Acrylonitrile Butadiene Styrene and Styrene-acrylonitrile (ABS & SAN)
  • Low-density Polyethylene (LDPE/LLDPE)
  • Polystyrene (PS)
  • Polyvinyl Chloride (PVC)
  • Polyamide (PA)
  • Others

Plastics Market for Electrical Appliances, by Appliance

  • Refrigeration Appliances (RA)
  • Home Laundry Appliances (HLA)
  • Dishwashers (DW)
  • Air Treatment Products (ATP)
  • Microwaves (MW)
  • Small Cooking Appliances (SCA)
  • Vacuum Cleaners (VC)
  • Food Preparation Appliances (FPA)
  • Personal Care Appliances (PCA)
  • Irons (IR)
  • Others

Plastics Market for Electrical Appliances, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Thailand
    • Indonesia
    • Vietnam
    • Malaysia
    • Philippines
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • The report provides extensive analysis of market trends and shares from 2016 to 2025 at the global as well as regional level in terms of resin and appliance segments
  • It also provides detailed country analysis and forecast for key countries and sub-regions with respect to different segments
  • It also provides detailed Porter’s Five Forces Analysis and value chain analysis, which includes integration between market players along with identification of potential key customers for the plastics market
  • The report further analyzes various indicators, market drivers, inhibitors, current & future market trends, and emerging applications
  • It also comprises detailed pricing analysis with respect to products, end-user industries, and regions
  • It includes regional and county level production output, coupled with an understanding of the demand-supply scenario
  • Competition landscape covers key companies’ profiling, market share analysis, market footprint analysis, competitive business strategies, channels, and competition matrix for key players
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