The Polyolefin Resins Market Is Estimated To Witness High Growth Owing To Opportunity In Infrastruct
Author : Ashish Thapa | Published On : 15 Jan 2024
Polyolefin resins are a category of polymers produced from olefin monomers such as ethylene and propylene through polymerization process. Polyolefin resins have excellent physical and mechanical properties such as high tensile strength, chemical resistance and durability making them suitable for wide range of applications in packaging, automotive, medical devices and construction industries.
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The global Polyolefin Resins Market is estimated to be valued at US$ 255.82 Bn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity in infrastructure development is expected to propel the growth of the Polyolefin Resins Market. Rapid urbanization and industrialization in developing economies has increased the need for infrastructure development including roads, bridges, rail, buildings etc. Polyolefin resins find extensive applications in construction due to their versatility and durability. They are used in manufacturing cables, pipes, geomembranes, sheetings and others. The ongoing projects of highways, metros, smart cities and other public infrastructure in countries across Asia Pacific and Latin America will demand significant amount of polyolefin resins over the forecast period. The growing infrastructure development is likely to open new avenues for polyolefin resin manufactures.
Porter’s Analysis
Threat of new entrants: The polyolefin resins market requires high capital investments, which acts as a major barrier for new players. Stringent regulations related to product quality and safety further increases the entry barriers.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitute products and undifferentiated nature of products.
Bargaining power of suppliers: The suppliers have low to moderate bargaining power due to availability of numerous suppliers in the market.
Threat of new substitutes: Threat of substitutes is moderate due to presence of alternative products like PVC, ABS, nylon etc. along with difficulty in product substitution due to high switching costs.
Competitive rivalry: The market is highly competitive due to presence of numerous global and regional players.
SWOT Analysis
Strength: High growth driven by increasing applications in packaging, construction and automotive industries. Polyolefins are cost effective and have high strength to weight ratio.
Weakness: Volatility in raw material prices lead to fluctuating product costs. Vulnerable to economic slowdowns impacting end use industries.
Opportunity: Rising demand from emerging economies of Asia Pacific and Central & South America. Ongoing product innovations resulting in development of new grades.
Threats: Stringent regulations due to environmental concerns over non-biodegradability. Threat from substitutes expanding product portfolio.
Key Takeaways
The global Polyolefin Resins Market Demand is expected to witness high growth during the forecast period of 2023-2030. The global Polyolefin Resins Market is estimated to be valued at US$ 255.82 Bn in 2023 and is expected to exhibit a CAGR of 8.1% over the forecast period 2023 to 2030.
The Asia Pacific region dominated the market in 2024 with China being the largest producer and consumer.
Key players operating in the polyolefin resins market are Accruent, Archibus, FM:Systems Group, LLC, IBM TRIRIGA, iOFFICE, OfficeSpace Software, Planon, QuickFMS, and SPACEWELL INTERNATIONAL. The demand is driven by packaging industry followed by construction and automotive sectors. Polyethylene and polypropylene are major product types with linear low density polyethylene (LLDPE) resin capturing largest share. Ongoing developments in resin properties and product innovation are helping polyolefins find new applications. Strict regulations on emissions and disposal due to non-biodegradability present challenges for market growth.
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