Global demand to climb 4.7% annually through 2012
Global demand for plastics processing machinery is forecast to climb 4.7 percent annually through 2012 to $24.9 billion. Product sales will be spurred by ongoing economic growth and rising personal income levels, resulting in increased plastics product consumption, processing activity and associated equipment demand. Market advances will be constrained to some extent by a moderation in fixed investment spending following a period of healthy gains, as well as by competition from used and rebuilt machinery. However, the large increases that have been recorded in energy and resin prices in recent years will provide some offsetting support, leading to the replacement of older plastics processing equipment by new machinery that is more productive and energy efficient.
Product sales in developing areas to outpace demand in developed markets
Product sales in developing parts of Asia, Eastern Europe, the Africa/Mideast region and Latin America will outpace demand in the US, Western Europe and Japan through 2012. Advances will be stimulated by healthy economic growth, ongoing industrialization efforts and rising per capita income in developing areas. China will post the largest gains of any national market in value terms. Plastics processing equipment demand in the country will rise by over $1.6 billion from 2007 to 2012, when China will account for close to one-fourth of the global market total. Two of the other three BRIC nations — India and Russia — will also record strong advances, while machinery sales growth in Brazil will be more subdued, due in part to the doubledigit annual increases in demand that have been registered in recent years. Gains are expected to be healthy as well in lower-volume markets such as the Czech Republic, Iran, Malaysia, Saudi Arabia, Turkey and Vietnam.
Plastics processing equipment demand in developed parts of the world will expand as well, although growth will be much less robust than in developing countries. Product sales will be driven by generally favorable economic conditions and further increases in plastics processing activity in developed areas, bolstering demand for plastics processing machinery as fixed investment activity climbs.
Extrusion equipment to post strongest gains
Extrusion equipment will post the strongest gains of any major product type through 2012, benefitting from growth in global construction spending, which will fuel demand for extruded goods like pipe and siding, as well as by further advances in extrusion technology, resulting in increased sales of higher priced, more productive machinery. Demand for other miscellaneous equipment will also rise at an above-average rate, led by products like rapid prototyping and manufacturing, reaction injection molding and rotomolding machines, which do not require the use of molds and can replace injection molding in some low-volume applications. However, injection molding equipment will continue to account for almost two-fifths of the 2012 plastics processing machinery market total, benefitting from the greater accuracy, energy efficiency, flexibility and output of newer generations of equipment.
Study coverage
This new Freedonia industry study, World Plastics Processing Machinery presents historical demand data (1997, 2002, 2007) plus forecasts for 2012 and 2017 by product, application, world region and for 30 major countries. The study also considers market environment factors, evaluates company market share and profiles industry competitors.
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