According to a new research report by Global Market Insights Inc., the Polyphenylene Ether (PPE) Alloy Market size is forecast to exceed USD 2 billion by 2027. The rapid global population growth and imbalances between the supply & demand of high-performance electrical and electronics products will drive the business growth during the forecast spell.
The increasing population, mostly in developing countries of Asia Pacific & Latin America, has led to rising demand for mechanical structural products from the construction sector. Increased residential construction activities in the past few years have also boosted the polyphenylene ether alloy market share.
Energy conservation policies in many countries are influencing the adoption of renewable sources, such as solar energy, which are also expected to promote the industry sector. Furthermore, the rising demand for electric vehicles is anticipated to contribute to the automotive sector, which will lead to a rise in the demand for polystyrene-based products. The water management sector consumes PPE/PP products that are considered inert and weather-resistive when compared to normal plastic products.
Browse key industry insights spread across 185 pages with 159 market data tables & 22 figures & charts from the report, “Polyphenylene Ether (PPE) Alloy Market, By Product (PPE/PS, PPE/PA, PPE/PP), By Application (Automotive, Electrical & Electronics, Construction, Industrial), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021-2027” in detail along with the table of contents:
The COVID-19 pandemic will affect PPE alloy demand negatively
The impact of the COVID-19 pandemic on the polyphenylene ether alloy industry is significant and may vary from region to region. Lockdown, quarantine, and social distancing measures applied to combat the COVID-19 pandemic have limited scope to meet the supply and demand gap. Disruption of the supply chain and restriction on transportation will thereby affect the production system worldwide.
Furthermore, a limited labor force has already resulted in a reduced output either from international or domestic players in the market. Emerging economies are the worst affected as the closing of international borders restrict the supply chain, especially non-essential goods that witnessed a rapid surge in raw material costs. Low-income countries mostly depend on the labor force because they have more labor-intensive industries owing to less technological development. The shortage of labor has created a negative output in the production rate.
PPE/PS will remain as the largest product segment during the forecast timespan
PPE/PS segment is expected to reach USD 1.1 billion by 2027, at the highest CAGR of 5.8%. This can be attributed to its high demand across various end-use industries such as automotive, electrical & electronics, and water-related applications. PPE/PS exhibits outstanding dimensional stability, electrical properties, exceptional resistance, and mechanical & dielectric strength.
Moreover, owing to the abundant availability of raw materials coupled with low production cost compared to other materials is projected to boost the polyphenylene ether alloy market growth in the coming years. PPE/PS is highly used in the electrical & electronics industry in printers, projectors, battery adaptors, chargers, etc. In the automotive industry, it is used in battery casing, relay blocks, exterior parts, etc.
Presence of large automobile manufacturers in the region will influence the PPE alloy demand in Europe
Europe is home to various car manufacturers with facilities in the UK, Germany, Poland, Italy, and Spain. High-class engineering, technical expertise, and advanced technologies have enabled European manufacturers to increase their market share globally. Polyphenylene ether alloy market value from automotive in Europe was valued at USD 43.3 million in 2020. Major automobile manufacturers in Europe are Volkswagen, Opel/Vauxhall, Mazda Motor, Chevrolet, Audi, BMW, Mercedes-Benz, Peugeot, and Renault. The production of passenger vehicles in Europe is increasing owing to domestic and international demand.
There are approximately 298 car assembly and engine production facilities across Europe. The region also has a healthy export economy of vehicles with approximately 5.6 million cars worth USD 145 billion exported in 2019. Europe also has ever-increasing vehicles per capita with 610 vehicles per 1,000 inhabitants in 2018. Recently, several initiatives have also been taken to improve European auto manufacturing competitiveness in the form of tax breaks and incentives.