U.S. Demand for Engineering Plastics Predicted to to Grow 3.5 Percent per Year

U.S. demand for engineering plastics is projected to grow 3.5 percent per year to 5.4 billion pounds in 2010, according to a study by Cleveland-based The Freedonia Group Inc. titled Engineering Plastics.

The market research firm says that the forecast shows a marked improvement relative to the 2000-2005 period, thanks to a resurgent electrical and electronics market, the largest outlet for engineering resins, and by increasing per-vehicle use in the large motor vehicle market. The material will also benefit from the desire to replace metal and other materials with lightweight, cost-effective, high-performance plastics, according to The Freedonia Group.

However, the study warns that gains for engineering plastics will be tempered by increasing market maturity and competition with lower-cost commodity resins.

According to The Freedonia Group, polycarbonate and polyesters will offer the best growth prospects of higher-volume resins. ABS, the largest engineering plastic by volume, is expected to grow more slowly. Polyacetal will also experience below-average gains in light of market maturity in key industrial and automotive applications. The study also forecasts that demand for smaller-volume engineering resins will grow at a “substantially faster pace” than large-volume counterparts. Polyphenylene sulfide, polyimides and polysulfones will make the most gains, according to The Freedonia Group, in light of their increasing use in high-temperature applications. Fluropolymers, which are used in wire and cable coatings and industrial components, will also grow.

Electrical and electronic products and motor vehicles, which together accounted for 60 percent of total demand, were the dominant markets for engineering plastics in 2005, according to the study. Electrical/electronic markets will see the fastest growth, driven by increasing shipments of business machines and other electronic equipment, though slower advances in appliances and optical media will temper gains. Consumer markets, particularly medical products, also show above average growth for engineering plastics, as do glazing and skylights in nonresidential construction markets.

Engineering Plastics can be ordered online at www.freedoniagroup.com.