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Conductive Plastics Market Overview
The Conductive Plastics Market size is forecast to
reach US$255.4 million by 2027 after growing at a CAGR of 13.4% during the
forecast period 2022-2027. Conductive Plastics are organic
polymers that conduct electricity. Conductive plastics are manufactured by
integrating carbon fibers, stainless steel fibers, or carbon nanotubes into plastic formulations. They can be categorized into polyamide, polycarbonate,
polyphenylene sulfide (PPS), polyethylene, polypropylene, polysulfones, and
other material types. According
to recent insights from the Semiconductor Industry Association, China imported
around US$378 billion in semiconductors, accumulated 35% of the world’s
electronic devices, and was responsible for 30% to 70% of the global PC, TV, and
mobile phone exports in 2020. An increase in demand from the electronics and
automotive industries act as the major drivers for the market. On the other hand, the low conductivity of conductive plastics may act
as a major constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced production activities as a result of the country-wise
shutdown of production sites, shortage of labor, and the decline of supply and
demand chain all over the world, thus, affecting the market. Studies show that
the outbreak of COVID-19 sharply declined the production of raw materials in
2020 due to a lack of operations across multiple countries around the world.
However, a slow recovery in the electronic industry has been witnessed across many
countries around the world since 2021. An increase in work from home and
e-learning practices during COVID-19 has significantly led to high demand for
laptops, tablets, and smartphones which have resulted in the higher production
of these electronics. For instance, according to the Retailers Association of India
(RAI), consumer electronics net sales increased by 2% in September and 8% in
October 2020, in comparison to 2019, owing to the increase for electronic
devices for remote practices during COVID-19.
In this way, a slow and steady increase in
electronics production activities will require the use of conductive plastics composed
of polyamide, polycarbonate, polyethylene, polypropylene, and other materials
since they are primarily used to dissipate the charge and provide barriers to
electromagnetic energy in these electronic gadgets. This will eventually lead
to an increase in demand for conductive plastics which indicates a slow and
steady recovery of the market in the upcoming years.
Conductive Plastics Market Report Coverage
The report: “Conductive Plastics Market – Forecast (2022-2027)”, by IndustryARC
covers an in-depth analysis of the following segments of the Conductive Plastics Industry.
By Materials: Polyphenylene Sulfide (PPS), Polyamide,
Polycarbonate, Polyethylene, Polypropylene, Polysulfones, PBT, and Others.
By End-Use
Industry: Automotive,
Aerospace & Defense, Electrical & Electronics, Industrial, Healthcare
and Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- Polyamide material segment in Conductive Plastics Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand and benefits over other types of conductive plastics materials such as polycarbonate, polyethylene, polypropylene, and other materials.
- Electrical & Electronics Industry in Conductive Plastics Market is expected to see the fastest growth, especially during the forecast period. The major reason behind this is the increasing demand for conductive plastics required for the production of electronic components, such as displays, solar cells, batteries, OLED, printing electronic circuits, actuators, and other electronic components.
- Asia-Pacific dominated the Conductive Plastics Market in 2021, owing to the increasing demand for conductive plastics from the electronics and automotive sectors from the region.
Figure: Asia-Pacific Conductive Plastics Market Revenue, 2021-2027 (US$ Million)
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Conductive Plastics Market Segment Analysis – By Material
The polyamide segment held the largest share
in the Conductive Plastics Market in 2021 and is expected to grow at a CAGR of 13.5%
between 2022 and 2027, owing to the increasing demand for polyamide due to the
characteristics and benefits it offers over other types of materials. Polyamide has high
strength and stiffness even at high temperatures, good impact strength, good
flow, and easy processing, along with good resistance to wear and abrasion in
comparison to polycarbonate, polyethylene, polypropylene, and other materials.
Moreover, polyamide has excellent chemical resistance, corrosion resistance,
flexibility, and adaptability in comparison to polyphenylene sulfide,
polycarbonate, polypropylene, and other materials, which makes it ideal for use
in electronic equipment and devices. Hence, all of these factors are most
likely to boost market growth in the upcoming years.
Conductive Plastics Market Segment Analysis – By End-Use Industry
The electrical & electronics industry held
the largest share in the Conductive Plastics Market in 2021 and is expected to
grow at a CAGR of 13.7% between 2022 and 2027, owing to the increasing demand
for conductive plastics during the production of electronic gadgets across the
globe. For instance, a recent study published on PricewaterhouseCoopers (PwC)
states that the GDP growth rate of consumer electronics which includes
electronic appliances and gadgets such as televisions, computers, laptops,
smartphones, tablets, and refrigerators in countries like India, China, the US, and
region like Europe is expected to increase up to 8.1%, 5.7%, 1.4%, and 1.7%
respectively by the end of 2022. According to recent insights published on
Growth from Knowledge (GRK) in September 2021, the global consumer electronics
industry obtained a total sales growth of US$ 42.8 billion during the first
quarter of 2021, an increase of 18% in comparison to 2020. This, in turn, will increase
the demand for conductive plastics required for the production of electronic components,
such as displays, solar cells, batteries, OLED, printing electronic circuits,
actuators, and other electronic components, thus, leading to the market growth during the forecast period.
Conductive Plastics Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
Conductive Plastics Market in 2021 up to 31%. The consumption of Conductive
Plastics is particularly high in this region due to its increasing demand from
the electronic sectors. For instance, according to a recent study published in
the Economic Times (Telecom) in 2021, electronic manufacturing and production
are valued at around US$ 100 billion in India currently. It further states that mobile manufacturing in India is estimated to surpass INR 90000 crore (US$ 12
trillion) by the end of 2021 as per the statement made by the Indian IT
Minister. According to the annual reports published by Samsung during the
fourth quarter of 2020, the total revenue of the consumer electronics division
was valued at KRW 13.6 trillion (US$ 11.3 billion) with an operating profit of
KRW 0.8 trillion (US$ 668 million). Furthermore, the
Statistical Handbook of Japan 2021, states that the production and shipments of
electronic equipment reached up to US$ 52.6 billion during the fourth quarter
of 2020, and is expected to increase in the upcoming year.
Hence, an increase in demand for the production of electronics equipment and devices will require the use of conductive plastics for use in electronic components, such as displays, batteries, OLED, electronic circuits, and more. This is most likely to boost the growth of the Conductive Plastics Market during the forecast period.
Conductive Plastics Market Drivers
An increase in demand from the electronics industry is most likely to increase demand for the product
The demand for conductive plastics has been
increasing rapidly as it is primarily used to dissipate the charge and provide barriers
to electromagnetic energy in electronic equipment and
devices. For instance, according to the annual reports published by Samsung during the
fourth quarter of 2020, the semiconductors division obtained a total revenue of
US$15.1 billion. Furthermore, Lenovo Group, a leading brand in consumer
electronics and media, published the annual report for the fiscal year that
ended in March 2021, which stated that the total revenue of the company reached
up to US$ 60,742 million in the fiscal year 2020/21, an increase by 20% in
comparison to the fiscal year 2019/20. Recent insights from
the Semiconductor Industry Association (SIA) states that the U.S invested
around US$ 142.2 billion on computers, and US$ 53 billion on consumer
electronics such as cell phones, TV, and other similar applications. It also
states that China’s National IC Fund has invested US$39 billion until July
2021, among which 69.7% has been allotted for front-end manufacturing with the
aim of increasing China’s share of global semiconductor production.
In this way, an increase in demand for
electronics products, components, and semiconductors is expected to increase the
demand for conductive plastics to be used in such devices. This is most likely
to drive market growth in the upcoming years.
An increase in demand from the automotive industry is most likely to increase demand for the product
According to a recent study published by the
German Association of Automotive Industry during the fourth quarter of 2020,
the new registration of motor vehicles reached up to 16,763 units in Europe,
37,467 units in Asia, 3080 units in South America, 17,421 units in North
America, 12,733 units in Western Europe, and 5180 units in other regions
worldwide. Likewise, a recent study published by the International Netherlands
Group (ING) states that the demand for the production and development of electric
vehicles has been increasing since the pandemic. It states that the global sales
of new electric vehicles have increased by 50% in 2021, and is expected to
increase by 8% in 2022. It further states that the sales of electric vehicles
have increased by 14% in Europe, 9% in China, and 4% in the US.
Hence, an increase in demand and production of
vehicles will also increase the demand for conductive plastics required for the
production of LED lighting, heat removal device, batteries, and other
electronic applications. This is most likely to drive the growth of the market
in the upcoming years.
Conductive Plastics Market Challenges
Low conductivity may cause an obstruction to the market growth
Conductive plastics exhibit lower electrical and
thermal conductivity in comparison to metals. Higher initial tooling costs,
limited range of working temperature, and higher lead time for tool development
are some of the common problems associated with the production of conductive
plastics. Moreover, conductive plastics have poor electroactive stability and
mechanical properties in comparison to metals. All of these limitations
associated with conductive plastics may confine the growth of the market.
Conductive Plastics Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Conductive Plastics Market.
Conductive Plastics Market top 10 companies include:
- Avient Corp.
- BASF
- Celanese Corp.
- DuPont
- LyondellBasell
- Mitsubishi
- Saint-Gobain
- TE Connectivity
- Lanxess
- Covestro AG
Recent Developments
- In March 2021, BASF launched Ultramid advanced grades with carbon fibers reinforcement in order to expand its polyphthalamide (PPA) portfolio. It has exceptional mechanical properties for the replacement of magnesium and aluminum. It is primarily designed for structural automotive applications, consumer electronics along with loaded industrial equipment.
- In May 2019, DuPont launched a new thermal-conductive interface material for battery assembly of EV/HEV (electric vehicles/hybrid electric vehicles). The material ensures proper retention of thermal conductivity due to good contact between the cooling plate and the battery cells with no material gaps.
Relevant Reports
Conductive
Polymers Market – Forecast (2022 - 2027)
Report Code: CMR 0326
Conductive
Coatings Market – Forecast (2021 - 2026)
Report Code: CMR 25920
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