six-facts-about-the-global-injection-molding-market-and-the-automotive-industry

Despite some speed bumps in the automotive sector, the global plastic injection molding market is poised for sustained growth, according to Saipriya Iyer, Research Content Developer at Global Market Insights (Selbyville, DE). The market research and management consulting company has published a report on the global injection molded plastic market, which can be purchased on its website. Iyer shared some key insights from her research with PlasticsToday.

  • The global plastic injection molding market is expected to reach a value of $345 billion by 2024. Key sectors contributing to this growth are automotive, driven by lightweighting to improve fuel efficiency and electric vehicle range; packaging, including thin-wall and rigid bulk products; and electronics, where plastic injection molding results in consumer-friendly designs and lower production costs.
  • China’s market for plastic injection molding is expected to grow at 6% through 2024. The continued building spree and norms supporting sustainable construction contribute to this growth.
  • The German market, which was valued at $11 billion in 2018, is expected to reach $14.5 billion by 2024. The automotive sector historically has been a big customer of injection molding services, but it is currently in a down cycle.
  • The automotive sector typically is one of the prime, revenue-generating end markets for injection molders in Germany and elsewhere, but economic factors and technological change are affecting that dynamic. Slumping demand in China, emissions-related issues in Europe and a shifting trend toward electric cars are conspiring to drive down global demand. Germany saw an approximate 12% decline in car production in the first half of 2019. Although new car sales have declined from historic highs in the United States, the country remains a bit of an economic oasis in the world, and that has propped up vehicle sales in 2018, which grew 0.3% over the previous year.
  • Stringent regulations regarding CO2 emissions in Europe will saddle carmakers with an additional expense of approximately €1000 per vehicle to comply with the new standards. But demand for injection molded plastic parts will continue to grow, as automotive OEMs seek to improve fuel efficiency through lightweighting. Molded plastic parts are widely used throughout automobiles, from wiring harnesses and light covers to dashboards and door handles.
  • The adoption of electrical vehicles is likely to increase at a rapid rate by the year 2030. Companies such as Tesla are witnessing double-digit growth in terms of revenue. The company’s Model 3 was ranked the best-selling electric car in 2018, followed by Model X (ranked fourth) and Model S (fifth). The company reported revenue growth of 82.5% in 2018 as compared to 2017. Electric vehicle sales volumes are creating significant profit pools for upstream players and distributors: Sales of electric vehicles grew to more than two million units globally, 63% year-on-year growth but a market penetration rate of only 2.2%.

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