(EMAILWIRE.COM, April 05, 2022 ) Acrylonitrile Butadiene Styrene Market size is forecast to reach US$40.8 billion by 2026, after growing at a CAGR of 6.9% during 2021-2026. The ABS is an invariable thermoplastic polymer that is composed of three different monomers as Acrylonitrile, Butadiene, and Styrene which may vary in proportions. They are also known as engineering plastics. Acrylonitrile gives chemical and thermal stability, styrene gives a glossy finish to the plastic and butadiene offers strength and endurance. These materials hold major shares in electronic appliances and automobile sectors for vehicle and auto parts manufacturing. The rapid growth of the Medial industry has increased the demand for medical equipment; thereby, fueling the market growth. Furthermore, the flourishing construction and aerospace industry is also expected to drive the ABS industry substantially during the forecast period.
COVID-19 Impact
The Coronavirus pandemic has impacted the polymer industry to a great extent stuttering the manufacturing and commerce industry. Currently, the core industries such as aerospace, automotive, and energy industry are highly impacted. Due to social distancing policy, most of the manufacturing plants of aircraft and automobiles were shut down, which declined the production of ABS. Global auto production in 2020 was severely hit by COVID-19 crises with a 16% drop in world auto production. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff has declined the market trend. However, the demand for plastic in the healthcare and medical industry for equipment manufacturing will help to raise market trends during the forecast period.
Acrylonitrile Butadiene Styrene (ABS) Market Segment Analysis By Technology
The extrusion segment accounted for a significant share of 28% in 2020 and is also expected to grow significantly during the forecast period 2021-2026. The increase of extrusion techniques in the production of ABS plastics boosted the growth of the ABS market in end-use industries. Increasing infrastructure and automobile demand in India, China, Japan, Indonesia, and others are driving the market growth of ABS. Special combinations of hardness, improved high tenacity and elasticity modulus, as well as extraordinary thermal stability, are given by ABS Plastics. The lightweight vehicle market is being increased and is mainly used in the aerospace, automobile, and defense industry and is expected to grow in the coming years.
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Acrylonitrile Butadiene Styrene (ABS) Market Segment Analysis By Grades
The Flame retardant thermoplastics account for a 28% share in the global market in the year 2020. The flame retardant thermoplastic will reduce ignition and helps in preventing the fire spread caused due to electric flaws or any other different sources. The Flame Retardants are added to different resins to extinguish the smoke and control the speed of flame. These are widely used in the automobile and transportation industry for controlling the fire caused due to an accident and also helps in stopping the fire spread in surroundings. Research and development works are underway to upgrade quality and standards to boost the demand across the globe. The ABS Grades like gloss is used in home appliances, toys, and electronic appliances, automotive interior, and exterior parts.
Acrylonitrile Butadiene Styrene (ABS) Market Segment Analysis By Application
ABS is commonly used to manufacture different automotive components like bumper, seating, dashboard, interior trim, headliners, canter consoles, lighting, and others. ABS approximately holds 16 % of the total automotive plastics used in a passenger car. ABS gives anti-corrosion and higher durability to the products which increases the demand. The Styrene Butadiene rubber is used in the manufacture of tires and gives high abrasion resistant property is likely to increase the market size in coming years.
Acrylonitrile Butadiene Styrene (ABS) Market Segment Analysis By End-Use Industry
The Transportation segment accounts for the largest share of 35% in 2020 and is expected to grow at a significant CAGR between the forecast periods. The Automobile sector of transportation segments holds the highest share in the market based on the lightweight vehicles to improve fuel efficiency and the reduced weight helps to control CO2 emission which increases the durability of vehicles. The other factors contributing to the growth of the Automobile sector are urbanization, advancement in technology, growing demands of an electric vehicle with the rise of fuel prices are expanding the market size during the forecast period. The construction industry is expected to hold a significant share in the global market. In many regions, such as Asia-Pacific, the Middle East, and Africa, stable GDP growth, relatively strong passenger demand, and lower commodity prices are driving the growth of the automobile industry. As a result, the ABS market has an increasing trend over the forecast market.
Acrylonitrile Butadiene Styrene (ABS) Market Segment Analysis By Geography
Asia-Pacific region holds the largest share in the ABS market of 45% in 2020, owing to the growth of end-use industries like appliances, automobile, construction, electric & electronic, and others. The government has worked for infrastructure development in developing countries like India, China, Indonesia, and others which helped for the growth of different sectors in this region. China dominated the Asia Pacific region and contribute more than 50% share among all countries in this region. The appliances market in China is expected to grow in the forecast period due to increased population, rising expendable income, and increased purchasing power of consumers despite trade disturbances caused due to trade war between the United States and China. The electric and electronic industry of Japan accounts for one-third of Japanese economic output and acts as a world leader for the production of computers, mobiles, and other appliances. According to Invest India, the auto component sector has USD 49 billion by 2020 and will reach USD 200 billion by 2026. Thus, with the flourishing automobile industry, there will be an upsurge in the demand for aerospace components, which is anticipated to drive the ABS market in the Asia-Pacific region.
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Acrylonitrile Butadiene Styrene (ABS) Market Drivers
Growing demand from Automotive Industry
The ABS is becoming more popular in the automobile sector due to its excellent strength, decorative color, and lightweight vehicles. ABS are utilized in a variety of applications in the automobile industry, including wheel, heavy-duty equipment, and others. China is the world’s largest vehicle market, according to the International Trade Administration (ITA), and the Chinese government expects automobile production to reach 35 million units by 2025. According to Invest in India, the electric vehicle market is expected to grow at a CAGR of 44% by 2027 and is expected to hit USD 6.34 million units annual sales by 2027. Thus, increasing automation production will require more automotive components, which will act as a driver for the ABS market during the forecast period.
Flourishing Electric & Electronic Sector
ABS materials are widely used in computers and office equipment which are commonly used in day-to-day life. ABS provides higher durability, impact resistance, process ability, surface quality, chemical resistance, anti-corrosion properties to the end-user product that increases the market size in the forecasted period. ABS resins are used along with other plastics to form different alloys such as polycarbonate (PC)- acrylonitrile butadiene styrene for consumer electronics segment. According to the Ministry of Commerce & Industry, The Indian Electronics market has grown with a CAGR of 14% from 2016-2019 and is estimated to generate revenue of USD 1 trillion value by 2025. Thus, the rising consumer demand for electronics positively influences the global ABS market.
Acrylonitrile Butadiene Styrene (ABS) Market Challenges
Higher Price of Acrylonitrile Butadiene Styrene
The cost of Acrylonitrile Butadiene Styrene is much higher. The reason behind this is its production cost, while producing ABS resins, the machinery and the equipment which are used are tagged with higher expense, also, these machineries require high maintenance. Owing to this factor, the product of ABS polymer comes with a higher price as compared to its alternative materials, which tends to constrain the growth of the market. In addition, even if the ABS provides better results, the customer usually prefers the less cost. Such factors have become the major challenge of Composite Coatings in terms of consumption, which constrains the growth of the market.
Acrylonitrile Butadiene Styrene (ABS) Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Acrylonitrile Butadiene Styrene (ABS) market. Acrylonitrile Butadiene Styrene (ABS) market top companies are:
LG Chemicals
3M
INEOS
SABIC
BASF SE
CHIMEI
Asahi Kasei Corporation
Formosa Chemicals & Fibre Corp.
China Petroleum & Chemical Corporation
ELIX Polymers, and others.
Acquisitions/Technology Launches
In August 2019, INEOS Styrolution, the global leader in styrene, launched the new ABS (acrylonitrile butadiene styrene) grade as part of its Novodur® family of ABS specialty copolymers. The new material grade, Novodur P4XF, excels with high flowability and offers an attractive balance profile between flowability and impact strength. It helps the material of choice for large and complex applications in the household and electronics industries and contributes to improving their carbon footprint.
Key Takeaways
Asia-Pacific dominates the ABS market, owing to the increasing electrical & electronics manufacturing in the region. According to Invest India, the domestic electronics market in India to attain US$120 billion by 2025.
Acrylonitrile Butadiene Styrene (ABS) market is increasing in Europe due to the growth in automobile manufacturing for its best quality, lightweight vehicle, higher production, and less carbon emission.
Acrylonitrile Butadiene Styrene (ABS) has been used in the construction industry for its excellent features. These features are growing the demand not only in Asia pacific but also globally due to higher durability and corrosion-resistant.
The growing trend of lightweight vehicles is expected to boost the manufacturing sector in China and banning the import of scrap plastics helps the growth of consumer electronics in turn helps the ABS Market growth.
Relevant Report
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https://www.industryarc.com/Report/16270/styrene-market.html
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