Burgeoning automotive industry bolsters SEA engineering plastics market

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Improved economic conditions and favorable manufacturing environments in Singapore, Malaysia, Indonesia, Thailand, and the Philippines have drawn significant investments to the engineering plastics market in Southeast Asia.

The market for engineering plastics is expected to develop in tandem with the electrical, electronics as well as automobile sectors, which are expected to grow by more than 10-15 percent from 2012 to 2018.

New analysis from Frost & Sullivan, “Strategic Analysis of Engineering Plastics Market in Southeast Asia,” finds that the market earned revenues of over US$2.07 billion in 2011 and estimates this to reach US$4.28 billion by 2018.

The higher affluence of consumers in Southeast Asia will have a positive bearing on the domestic adoption of electrical appliances and automobiles in the region, especially of two wheelers in Indonesia, Frost & Sullivan said in a press release.

“Several Japanese electronics and office equipment manufacturing companies are setting up bases in Indonesia, Thailand, and the Philippines,” said Frost & Sullivan research analyst Sushmita Mahajan. “The application of engineering plastics in these growing end-user segments boosts the market’s revenue.”

The popularity of engineering plastics in construction and infrastructure further drives revenue growth. Plastics are replacing metals in many applications, as they often eliminate expensive secondary manufacturing steps, offer a large degree of design freedom, and are relatively easy to process.

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