The global ABS market size was worth around USD 25.4 billion in 2022 and is poised to grow at an annual average growth rate of 6% to cross USD 45 billion by 2032 between 2023 and 2032. Acrylonitrile Butadiene Styrene (ABS) is a thermoplastic resin manufactured by co-polymerizing acrylonitrile(AN), butadiene(BD) and styrene(S) 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 is one of the widely used engineering plastic and has witnessed a 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, growth in purchasing power of developing economies are some of the key drivers for ABS 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.

The ABS industry has undergone various capacity additions post commercialization. The global ABS capacity stood at 12,200 kilo tons in 2022 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 12,200 kilo tons, of which more than 75% was located in Asia Pacific. North America and Western Europe together accounts for around 15% of the global ABS capacity.

Global ABS demand was estimated to be more than 10,120 kilo tons in 2022 and it has grown by an average annual rate of slightly over 2% since 2016 The global ABS market is expected to grow at an annual average of around 3.5% during the forecast period till 2032. 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 of ABS from electrical & electronics, automotive and construction industry. Total ABS consumption of North America was estimated to be more than 850 kilo tons in 2022. The US is a major consumer in North America followed by Mexico. The country has witnessed growth rates in the range of 1-3% since the past few years.  

The global ABS demand has been week between 2018-2020 due to decline in automotive production and COVID-19 pandemic. The COVID-19 pandemic had a negative impacted 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 the weight also decreases the fuel consumption helping reduce pollution.

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 automotive. With the global automotive manufacturers investing in developing highly efficient automotive, the need for further weight reduction without affecting the security of its users will be crucial. With every 10% reduction in weight of automotive, efficiency can be enhanced which is attained by 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 emission and reduce fuel permeation is expected to drive the ABS market. Growth in production of automobiles and initiatives taken by original equipment manufacturers to increase fuel efficiency, reduce emissions, eliminate fluid leaks, and improve the efficiency of by reducing weight of the vehicles will further drive the demand of ABS in the long-term forecast.

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 dominates the global electronics ABS market and it is further expected to grow at highest CAGR of in the forecast period owing to the increasing demand of 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 kilotons. This expansion will enable the company to meet the growing demand for ABS in industries such as automotive, electronics, and construction.