Stable and healthy economic growth trend, increasing demand from end-user markets, rapid development of the engineering plastics industry, and numerous other factors are stimulating rapid growth in the engineering plastics market in Southeast Asia.
New analysis from Frost & Sullivan (chemicals&materials.frost.com), Engineering Plastics in South East Asia, finds that the total market for engineering plastics in Malaysia, Singapore, and Thailand in 2006 was 243,400 tons. These units are forecasted to grow at a rate of about 8.4 percent per year and reach about 426,800 tons by 2013.
The engineering plastics market in SEA is one of the most technologically advanced plastics markets. In fact, the markets in Malaysia, Singapore, and Thailand were among the most robust engineering plastics markets in the Southeast Asian region. Since the 1998 economic crisis in SEA as well as the 2001 global economic slowdown, the engineering plastics industry has been through a recovery period, seeing a positive growth in the past five years.
The current growth levels will continue, with Thailand, the main region for consumption of engineering plastics, driving the growth of the overall engineering plastics market in South East Asia.
"Thailand represents 58.5 percent of the total units, followed by Malaysia with 23.7 percent and Singapore with 17.8 percent, and is expected to maintain higher growth compared to the other countries," cites says Frost & Sullivan Industry Analyst Xu Dan. "By 2013, it is expected to hold approximately 67.6 percent of the unit share in the total engineering plastics market."
Thailand has increasingly become one of the global production bases for automotives, with the reputation of 'Detroit of Asia'. Growth in Thailand can be attributed to an increase in end-user demand following the imminent expansion and growth of its automotive industry.
Macroeconomic factors such as foreign capital investment and ASEAN Free Trade Area (AFTA) in Thailand also drive the market growth in the country. Furthermore, increase in electrical and household appliance sectors manufacturing is expected to strengthen the consumption of engineering plastics.
Despite the rising demand for engineering plastics in SEA, increasing cost of raw materials and erosion of profit margins due to stiff competition impede market growth. With the mounting production cost, especially in Malaysia and Singapore, many end users are relocating to other cost-effective parts of Asia such as China and Thailand. This poses a major challenge to the engineering plastics manufacturers in Malaysia and Singapore.
"In an effort to expand their market share, resin suppliers are looking to enhance product performance by using new polymerization technologies such as novel catalyst, different additives or polymer blends," remarks Dan. "Suppliers and processors must also continue to develop innovative products and technologies to further develop the automotive, electrical, and electronic applications markets, which are set to provide several growth opportunities."
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Engineering Plastics in South East Asia, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.
Engineering Plastics in South East Asia is part of the Chemicals and Materials Growth Partnership Service program, which also includes research in the following markets: Engineering Plastics in Singapore, Malaysia, and Thailand. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.