High-Temperature Plastics Market Expected To Grow 10.2% A Year In Volume Over Next Decade
Polymer systems with heat deflection temperatures of at least 200°C had a global value of $3.1 billion in 1997, according to a new study by Kline & Company. High Temperature Plastics IV, 1997 reports that although these high-temperature plastics represent only a small niche of the engineering polymers market with 330 million pounds consumed globally in 1997, they command extremely high prices averaging over $9 a pound because of their highly specialized properties.
Since Kline's first analysis of this market in 1984, high-temperature plastics as a group have experienced excellent growth in value. Although fluoropolymers represent the largest group of high-temperature polymers by volume with polyphenylene sulfides (PPS) ranked second, polymides (PIs) account for the largest dollar value because of their high price.
Worldwide, the high-temperature plastics market is expected to grow at a rate of 10.2% a year in volume, reaching over $8 billion in 2007. Polymers with the highest overall growth rates are the new syndiotactic polystyrene (SPS) at over 35% a year, the fluoropolymer polychlorotrifluoroethylene (PCTFE) at 18.9% annually, and PCT at 16.3% a year. In addition, the group of polymers that includes PPS, liquid crystal polymors (LCP), polythermides (PEI), polyamides (high-temperature HPPA), polyketones, and the fluoropolymer fluorinate ethylene propylene (FEP) are expected to show an annual growth of 11% to 15% over the next ten years.
According to Pam Wiaczek, project manager at Kline, "Electrical/electronics is the dominant market for high-temperature polymers representing an estimated 45% of the value in 1997." And the continued strength and expansion of the electronics market is one of the driving forces behind market growth. Polytetrafluorethylene (PTFE), PPS, LCP's and polymides as injection-molded parts, films, and coatings are the major polymers used in electrical/electronics end uses. Applications in this market include connectors, relays, switches, sockets, bobbins, PCBs, and insulation. Wiaczek believes the use of personal computers and personal electronic devices will continue to drive growth for the foreseeable future.
Industrial applications accounted for 25% of demand in 1997. According to Wiaczek, "Some of the more voluminous applications include mechanical parts, bearings, seals, gaskets, valve/pump parts, filtration screens and membranes, and chemical processing equipment. The industrial market is dominated by PTFE."
Applications in the automotive market account for 22% of the total world demand for high-temperature polymers. This market consists primarily of under-the-hood applications such as sensors, fuel lines, manifold sections, housings for fuel pumps, valves for brake oil and coolants, transmission thrust washers, seals, check balls, piston rings, carburetor links, and brake shafts. With demands for lower maintenance costs, more efficiency and lower polluting vehicles requiring lighter and better performing materials under the hood, metal and lower performing polymers are being replaced by high-temperature polymers in the automotive industry. PTFE also dominates this market. As with the E/E and industrial markets, the United States is the leading consuming region for high-temperature polymers in this market.
The Kline study notes that the high-temperature polymer market is very competitive, particularly in the E/E sector and that the miniaturization of E/E connectors will continue to drive down volume used per unit. There are over 50 polymer suppliers in this market. At the same time, Kline expects the spread of surface-mount technology (SMT) processing to further E/E and that automotive connectors will increase demand for high-temperature polymers in those markets.
"In order to be a major factor in this market, a company almost has to be a sizable supplier in at least one of the two high-temperature polymers groups," says Wiaczek. DuPont is the leading supplier in fluoropolymers and PIs and, consequently, is by far the dominant supplier of high-temperature polymers with 23% of the world market. Hoechst/Ticona is a distant second with 9% of the total market. Hoechst/Ticona participates in are relatively broad range of polymers, including fluoropolymers, PPS, PBI, and LCPs, of which it is a leading supplier. Other major high-temperature polymer suppliers include General Electric, Phillips, Daikin, and ICI. Many companies, such as AlliedSignal, Mitsui, DSM, Eastman Chemical, and Ube, which are smaller players in the worldwide market, may be major players in one polymer or in one of the three regions.
The Kline & Co. study is available on subscription from Kline & Company, 165 Passaic Avenue, Fairfield, NJ 07004. For subscription terms and more information: Carl Eckert, Kline & Company, telephone: 973-808-3389.