Asia Pacific Polybutylene Terephthalate (PBT) Market
Polybutylene Terephthalate (PBT) is one of the five major, engineering thermoplastics. It is produced via the polycondensation of 1,4 Butanediol and dimethyl terephthalate, or with terephthalic acid. PBT is a linear, saturated polyester. It exhibits properties such as insulation, dimensional stability, chemical resistance, good mechanical & tensile strength and ease of flow. Owing to its characteristics and properties, it finds applications in electrical housings, plug connectors, switches circuit breakers, and sensors, in interior and exterior parts of automotive, personal care, and textile industries.
Market Overview:
PBT market in the Asia Pacific region is segmented into different applications, including electrical & electronics, automotive, household & consumer appliances, alloy & blends, and others. PBT demand in electrical & electronics and automotive segments collectively accounted for the largest share of demand in the region. On the back of high electrical resistance and dielectric strength, PBT protects the electrical & electronics components from leakage and breakdown. It is used in various electronic components such as cable liners, chip sockets, terminal boards, switches, circuit breakers, fiber optic tubes, sensor housings, connectors, and power sockets. China accounted for the largest share of the regional PBT demand in 2023. The growing electrical & electronics industry, low manufacturing costs, short turnaround times, supply chain management, and favorable government initiatives are driving the demand of PBT in the country.
India is home to one of the largest electronics products markets in the world. According to the government agency Invest India, the electronics market of the country is worth around USD 140 Billion, with domestic production responsible for 62% of the market. India’s production of electronics items grew with a CAGR of 15% to reach USD 89 billion in 2023 from USD 85 billion in 2021. Domestic production is poised to reach USD 300 billion by 2026, driven by the adoption of newer electronics products in the country on the back of transition of technology such as 5G technology and the Internet of Things (IoT). Additionally, high demand for IoT in electronic devices is boosted by initiatives such as ‘Digital India’ and ‘Smart City’. All these factors are boosting the PBT demand in India’s electronics sector.
The government of South Korea is boosting its semiconductor industry via its ‘K-Chips Act’. This act will increase the tax credit from 8% to 15% to attract investment in manufacturing facilities for companies such as Samsung Electronics Co., and SK Hynix Inc. Additionally, the small and medium-size firms will experience tax breaks to reach 25% from 16%. This will boost PBT demand in the country.
Demand Analysis:
Owing to its properties such as high mechanical and electrical strength, good thermal stability, durability, and better chemical resistance, PBT is preferred in the interior, exterior and under the hood parts of automotive. This includes windshield wiper covers, cowl vents, connectors, sensor housings, fuse boxes, mirror housings, handles, fans, motor components, ignition system components and fuel system components. China is the largest automotive market in terms of sales and production. The country sold around 21 million vehicles in 2021, including 21.4 million of passenger vehicles. Sales of passenger vehicle rose with a year-on-year growth of 7.1% from 2020. The Chinese government has undertaken several initiatives to boost its automotive consumption. This includes selling of vehicles without restriction which meet the set emission standards. Additionally, reduction of car sales tax and improved import policies for automotives are like to raise domestic consumption.
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