Acrylonitrile Butadiene Styrene Market

Acrylonitrile Butadiene Styrene Market

The global acrylonitrile butadiene styrene (ABS) market size is valued at USD 28.6 billion in 2023 and is projected to reach USD 39.9 billion by 2028, growing at a cagr 6.9% from 2023 to 2028. The demand for acrylonitrile butadiene styrene (ABS) is being driven by growing demand from end-use industries, surging consumer awareness & preferences for high performance plastics, and advancements in manufacturing technologies.

ABS Market Trends

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ABS Market Dynamics

Driver: Growing demand from end-use industries

The growing demand from end-use industries, such as automotive and electrical and electronics, is a significant driver for the ABS market. In the automotive sector, ABS is extensively used in components like bumpers, interior trim, dashboards, and lighting due to its lightweight, impact resistance, and dimensional stability. In the electrical and electronics industry, ABS is favored for producing casings, covers, and structural components, providing essential properties like electrical insulation, impact resistance, and ease of customization, driving its market growth.

Restraint: Competition from alternative materials

Competition from alternative materials poses a restraint for the ABS market. Other plastics such as polycarbonate, polypropylene, and polyethylene offer similar properties to ABS, making them potential substitutes in certain applications. These alternatives can sometimes be more cost-effective or offer specific advantages, leading to a shift in consumer preferences. To remain competitive, ABS manufacturers must continuously innovate, enhance product performance, and offer unique value propositions to retain their market share amidst the presence of alternative materials.

Opportunity:

Advancements in 3D printing present a significant opportunity for the ABS market. 3D printing technology allows for the additive manufacturing of ABS parts, enabling rapid prototyping and customized production. The ability to create complex geometries and intricate designs using ABS opens new possibilities in various industries. As 3D printing becomes more accessible and cost-effective, the demand for ABS as a 3D printing material is expected to grow, creating new avenues for market expansion and diversification of applications.

Challenges: The availability and efficiency of recycling infrastructure for ABS waste

The availability and efficiency of recycling infrastructure for ABS waste poses a challenge for the ABS market. While ABS is a recyclable material, the lack of well-established and efficient recycling facilities can hinder the proper disposal and recycling of ABS waste. Inadequate recycling infrastructure may lead to the improper disposal of ABS products, increasing environmental pollution and waste accumulation. Addressing this challenge requires investment in recycling technologies and infrastructure to promote sustainable practices and circular economy principles within the ABS market.

ABS MARKET: Ecosystem

By type, Opaque is the third fastest-growing segment due to its wide-ranging applications in various industries. Opaque ABS formulations offer solid color appearances, providing color consistency and opacity, making them popular in automotive parts, consumer goods, electronics, and household appliances. The demand for opaque ABS is driven by its versatility, durability, and ease of molding, allowing manufacturers to create products with consistent color and appearance, contributing to its rapid growth and market significance.

By grade, high-impact ABS is projected to grow at the fastest CAGR, during the forecast period, due to its exceptional toughness and impact resistance properties. It finds extensive usage in automotive components, safety equipment, and durable consumer goods. The rising demand for lightweight, durable, and visually appealing materials in various industries drives the adoption of high impact ABS. Its ability to withstand harsh environments, mechanical stresses, and rough handling makes it a preferred choice, propelling its rapid growth and market dominance in the ABS market.

By manufacturing process, Emulsion polymerization accounted for the largest share of the ABS market due to its ability to produce ABS with excellent dispersion and fine particle size. This method offers controlled polymerization, resulting in ABS formulations with desirable properties like high impact strength and good processability. Emulsion polymerization's cost-effectiveness, energy efficiency, and capability to cater to a wide range of applications have contributed to its increasing adoption, driving its rapid growth and significance in the ABS market.

By technology, injection molding is estimated to be the fastest-growing segment during the forecast period in the ABS market due to its high efficiency and cost-effectiveness in mass production. This technology allows for the high-speed injection of molten ABS into molds, enabling the manufacturing of intricate and complex three-dimensional parts with precise accuracy. The widespread adoption of injection molding in various industries, including automotive, electronics, and consumer goods, drives the demand for ABS materials. Its versatility, ease of customization, and ability to produce high-quality components contribute to its rapid growth and prominence in the ABS market.

By applications, appliances segment is projected to grow at the highest rate in the ABS market due to the increasing demand for durable, lightweight, and visually appealing materials in various end-use applications. ABS offers a wide range of properties that meet the requirements of the appliances industry, including high impact resistance, dimensional stability, electrical insulation, and ease of molding. Its use in manufacturing components for appliances such as refrigerators, washing machines, vacuum cleaners, and small domestic appliances has propelled its rapid growth and significance in the ABS market.

Asia Pacific is the fastest-growing region in the ABS market due to several factors. The region's booming automotive, electronics, and appliances industries drive the demand for ABS in manufacturing various components and products. Additionally, the increasing construction activities and infrastructure development in countries like China and India lead to higher consumption of ABS in pipes, fittings, and other construction applications. Moreover, the rising population, urbanization, and economic growth contribute to the region's expanding consumer goods sector, further boosting the demand for ABS in diverse end-use industries.

Source: Secondary Research, Primary Interviews, and MarketsandMarkets Analysis

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Key Market Players

The key players in the ABS market are LG Chem Ltd. (South Korea), ChiMei Corporation (Taiwan), INEOS Styrolution (Germany), Petrochina Co Ltd. (China), Formosa Chemicals & Fibre Corporation (Taiwan), Sabic (Saudi Arabia), Toray Industries Inc. (Japan),  Lotte Chemical (South Korea), Versalis (Italy), Kumho Petrochemical (South Korea), BASF SE (Germany), and Covestro AG (Germany), Trinseo(US), Techno UMG Ltd(Japan), Tianjin Dagu Chemical (China) , The Iran Petrochemical Commercial Company (Iran) , Shanghai Gaoqiao Petrochemical Company (China),  IRPC (Thailand), RTP Company (USA) and Ravago Manufacturing (USA), among others. The ABS market report analyzes the key growth strategies, such as new product launch, expansions, investments, and acquisitions adopted by the leading market players between 2018 and 2023.

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Scope of the Report

This report categorizes the global ABS market based on type, grade, manufacturing process, technology, applications, and region.

On the basis of type, the ABS market has been segmented as follows:

• Opaque
• Transparent
• Colored

On the basis of grade, the ABS market has been segmented as follows:

• High Impact
• Heat Resistant
• Flame Retardant
• Electroplatable
• Blended ABS

On the basis of the manufacturing process, the ABS market has been segmented as follows:

• Emulsion Polymerization
• Mass Polymerization
• Continuous Mass Polymerization
• Others

On the basis of technology, the ABS market has been segmented as follows:

• Extrusion
• Injection Molding
• Blow Molding
• Thermoforming
• 3D printing

On the basis of application, the ABS market has been segmented as follows:

• Appliances
  • washing machine
  • refrigeration
  • others
• Electrical and Electronics
  • Electronic enclosures
  • Computer and printer housing
  • Others
• Automotive
  • Instrument panel
  • Dashboard console
  • Others
• Consumer Goods
  • small domestic appliances
  • protective cases
  • others
  • Construction
  • Pipes and fitting
  • Roofing and membrane
  • Others
  • Others

On the basis of region, the ABS market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In May 2023, After the launch of a 450,000 tons/year ABS manufacturing line in September 2021. Chi Mei Corporation is planning to expand its ABS production capacity at the Zhangzhou plant to 600,000 tons/year by 2025.
• In April 2023, Formosa Chemicals & Fibre Corporation has planned a significant expansion of producing ABS with a projected capacity of 7.43 million tonnes per annum by 2030. 
• In January 2022, INEOS Styrolution expanded its ABS capacity in Wingles, France to produce 50 KT ABS with the aim to meet the increased demand for ABS in Europe from the construction, household, and automotive industries.

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