Global ABS Plastic Market Overview
The global ABS Plastic market size was worth around USD 25.6 billion in 2023 and is poised to grow at an annual average growth rate of 5.2% to cross USD 49 billion by 2036 between 2024 and 2036. Acrylonitrile Butadiene Styrene (ABS) is a thermoplastic resin manufactured by co-polymerizing acrylonitrile (AN), butadiene (BD), and styrene monomers.
ABS copolymers exhibit better toughness temperature stability and solvent resistance properties in comparison to high-impact polystyrene. ABS compounds are commercially available in many forms and grades including medium and high impact, high gloss, UV stabilized, flame retardant, heat resistant, low gloss, glass-fiber reinforced, and transparent.
ABS Supply Analysis
ABS is one of the widely used engineering plastics and has witnessed significant growth since 2016 on account of its increasing demand in major end-use industries such as automotive and electrical & electronics, especially in Asia-Pacific and other developing regions. Replacement of traditional materials like metals, inter-polymer substitution, and growth in purchasing power of developing economies are some of the
key drivers for ABS Plastic demand. China is the largest market for ABS. The country is heavily dependent on imports and has also witnessed a number of capacity expansions since 2006.
Global ABS Plastic Production Capacity, By Company - 2023 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
ABS Plastic Production Capacity
The ABS industry has undergone various capacity additions post-commercialization. The
global ABS Plastic capacity stood at 12,300 kilo tons in 2023 and it is further projected to cross 15,000 kilo tons in the forecast period. LG Chemicals, INEOS, Chi-Mei, Formosa Chemicals & Fibers, SABIC, and Lotte Chemicals are major ABS producer in the world accounting for around 50% of the global ABS capacity. Other manufacturers of ABS include Bhansali Engineering Polymers Ltd., Toray, Trinseo, PetroChina, IRPC, and Tabriz Petrochemical Co. According to
Prismane Consulting estimates, the global ABS capacity was estimated to be more than 12,300 Kilo ton, of which more than 75% was located in Asia Pacific. North America and
Western Europe together accounts for around 15% of the global ABS Plastic capacity.Key Market Trends in ABS Industry
The Asia Pacific is the fastest-growing region for ABS representing about 75% of global ABS demand. The region is further poised to witness strong growth in the forecast period on the back of strong demand for ABS from electrical & electronics, automotive, and construction industries. Total ABS consumption in North America was estimated to be more than 860 kilo tons in 2023. The US is a major consumer in North America followed by Mexico. The country has witnessed growth rates in the range of 1-3% in the past few years.
Global ABS Demand-Supply Analysis 2016 - 2036 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Impact of COVID-19 on the ABS Market
The global ABS Plastic demand has been weak between 2018 and 2020 due to a decline in automotive production and the COVID-19 pandemic. The COVID-19 pandemic had a negative impact on the global ABS market with the market contracting by around 3% in 2020, predominantly due to the automotive and building & construction industry. Automotive is the third largest application of ABS with major use in making high-performance engineering components. With the trend towards higher operating temperatures and miniaturization in the engine compartment, plastics and elastomers replacing metals offer weight reduction, noise reduction, and functional integration. The automotive industry has a wide array of opportunities for ABS. Automotive makers are constantly optimizing their engine performance; by reducing the automotive weight. This helps them achieve more efficiency. Reducing weight also decreases fuel consumption helping reduce pollution.
ABS Demand in the Automotive Industry
In the current scenario, plastics only account for a small share of the materials used in the automotive industry. According to the American Plastics Council, reinforced plastics account for around 360 pounds of the total weight of an average U.S. light automobile. With global automotive manufacturers investing in developing highly efficient automobiles, the need for further weight reduction without affecting the security of its users will be crucial. With every 10% reduction in the weight of automobiles, efficiency can be enhanced which is attained by the decrease in fuel consumption by 5% to 7%.
Unexplored opportunities of replacing metals in automotive and global tightening of environmental regulations for automobiles to improve fuel mileage, control emissions, and reduce fuel permeation are expected to drive the ABS market. Growth in the production of automobiles and initiatives taken by original equipment manufacturers to increase fuel efficiency, reduce emissions, eliminate fluid leaks, and improve efficiency by reducing the weight of the vehicles will further drive the demand for ABS in the long-term forecast.
Global ABS Plastic Demand, By Application - 2023 (kilo tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
ABS Demand, by Application
Electronics application dominates the global ABS market and is expected to remain the largest application throughout the long-term forecast. ABS is used in manufacturing several parts of electronics equipment like computers, Laptops, housings for telephones, keyboards, mobile phones, and other computer hardware. Laptop and Computer dominate the global electronics ABS market and it is further expected to grow at the highest CAGR in the forecast period owing to the increasing demand for remote working and Online Education.
Laptops & Computers are one of the essential consumer appliances in the market. With the day-by-day addition of innovative technologies and multi-functional facilities, the demand for these products is on the rise. Asia-Pacific is the power hub for the electronics industry. Countries like China, Japan, South Korea, Singapore Taiwan, and India have a significant manufacturing base for electronics. Electronics account for a decent share in their economy as well. Furthermore, with rising growth opportunities, companies from Europe and North America are investing in this region by bringing up new manufacturing facilities or through joint ventures.
In Western Europe, INEOS Styrolution, Trinseo, and Elix Polymers are the major producers of ABS, accounting for over 90% of the total installed capacity in the region. INEOS is the largest ABS producer in Western Europe, with plants in Belgium and Germany. The company recently commenced operations at its converted Polystyrene line in Wingles, France, which has been transformed into an ABS production line with a capacity of 50 kilo tons. This expansion will enable the company to meet the growing demand for ABS in industries such as automotive, electronics, and construction.
Acrylonitrile Butadiene Styrene (ABS) Manufacturers:
These companies are prominent manufacturers of Acrylonitrile Butadiene Styrene (ABS) and provide high-quality products for various applications.
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