ABS
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on ABS

•  ABS or Acrylonitrile Butadiene Styrene is an engineering thermoplastic. ABS plastic has excellent physical and mechanical properties that make it suitable for various structured applications. It is an electrical insulator in its property. ABS thermoplastics polymers are popular thanks to their affordability and other rich properties. 
•  ABS engineering thermoplastics are used in various applications, especially in automobiles. Around 12.5% of all automotive parts made of plastic are made from ABS resins. It is used to make steering wheel covers, as well as dashboards.  It is also used in pipe fitting and in making plastic sheets thanks to its mechanical properties. ABS is used in many consumer appliances like control panels in appliances, refrigerator liners, and housing panels of vacuum cleaners and food processors.It is used as a toy raw material and in the chemical industries.
• The global demand is expected to grow at approx. 2-3 percent CAGR through 2019-2024
• The automobile electronics market, electronics sector and smart consumer and home appliances are the major growth drivers
• The innovative fields of the auto electronics and 3D printing markets could be the potential platform for ABS applications
• The growing disposable income of the middle-class population in Asia is expected to drive the ABS consumption in the appliance, electronic, and auto electronics industries

Demand Market Outlook

The automobile and appliances markets are expected to drive the demand for ABS in NA and Europe, while in Asia, the electronics segment would be the key driver, followed by the appliances and automobile segments. 

The use of polymers in the automobile industry is increasing. Automobile companies are finding it easier to design cars thanks to the use of plastics like ABS. Also, regulatory demands to reduce automobile weight to bring down emissions is another positive factor that would help in the growth of the ABS industry. It is also an economic solution that meets their needs. The automobile sector is itself likely to witness increased growth, particularly in China, Taiwan, US, Indonesia, and Germany. This growth will have a positive impact on the demand for ABS resins.

Industry Best Practice

• Fixed margin-based pricing is generally preferred by buyers who procure lesser volume. The manufacturer tries to maintain its desired profit margin, within a range of 15–20 percent. When the prices of the raw materials change, the manufacturer looks at the overall input cost incurred in manufacturing the ABS resin, and applies their margin, subject to the market condition.
• Index-based pricing: Some of the suppliers peg the price of their ABS resin to the raw material styrene prices, as it accounts for 50 percent of the cost-contribution. Any change in the styrene prices is subsequently incorporated in the ABS resin prices during the review period.

Global Market Size: ABS

• The growth in the automobile, appliance, and electronic sectors is expected to drive the ABS market to approx. $23 billion by 2023.
• The growing disposable income of the middle-class population in Asia is expected to drive the ABS consumption in the appliances, electronics, and automobile industries.
• The global ABS market is expected to grow at a CAGR of 9 percent from 2017 to 2023, with Asia as the center of demand growth.
• The trend of lightweight vehicles is expected to boost the demand in China, With the new regulations of banning the import of scrap plastics, the growth of consumer electronics is a potential pedestal for ABS growth.
• China is expected to remain the key driver for the ABS market, in terms of consumption and production

Global Capacity–Demand Analysis

• Asia, being the largest demand center, is expected to drive the ABS market from the appliance and electronic downstream sectors.
• The innovative fields of the auto electronic market growing at approx. 12–14 percent could be the potential platform for ABS application.

Market Outlook

• ABS capacity in North America remained at 0.94 MMT occupying around 8 percent of the global capacity share.
• Demand is expected to grow at 2.8 percent until 2023, supported by the expected growth in automobile and appliance markets.
•  ABS is also a favored resin to be used in electric vehicles in line with stringent environmental regulations, especially in Europe.
• Automobile sector: 5 percent growth, driven by replacement of the painted heavy parts by light-weight ABS resins in dashboards, wheel casings, etc.
• Home appliance market growth: Domestic, kitchen, and home comfort appliances at 6-7 percent and smart consumer appliances at approx. 7 percent.
• Electronic component market w.r.t. wiring boards, enclosures, etc., is expected to grow by approx. 8-9 percent.
• Capacity additions are expected to come up more in Asia (from Trinseo and CNOOC & LG Petrochemical), Versalis is expected to increase their capacity in Italy by 75,000 tonnes.

Engagement Outlook

• Emerging Asian regions could be considered as favorable destinations of sourcing, due to the upcoming capacity additions and strong supply base. However, 2018 -2019 had led to lower demand for China-made electronics due to the US-China trade war.

ABS Global Demand by Application

On a global scale, automotive, appliance, and electronic are the major demand drivers.

Demand is expected to grow at 2.8 percent until 2023, from strong support from automobile, printed wire board, and smart consumer appliances. End-user applications of ABS are also seen in medical devices and musical instruments.

Fast-paced urbanization, rise in disposable income, the transition to a consumer, and a service-oriented economy would contribute to the growth in this industry

ABS Market Overview

•  As Q4 2019 settled, stable and sufficient supply levels, softer demand sentiments, and lower feedstock prices supported a decrease in ABS finance prices.  Buying momentum may remain cautious and volatile.
• The presence of ample supplies both domestically and from imports, high inventories, and poor demand drive, along with lower feedstock styrene prices, may support a decline in ABS financing prices. Concerns of supply issues from ACN may curb a strong decrease
• Increasing trade tensions between the US and China and the possibility of a trade demand between the two nations could continue the cautiousness in buying asset-backed securities volume.

ABS Industry Drivers 

• Metal replacement in the automotive, and electrical and electronics industries are the drivers for engineered resins, such as ABS. The need for lightweight and high-performance material is driving ABS demand in these sectors

• Emerging nations to drive demand: The demand for home appliances and electrical/electronic goods made of ABS is increasing in emerging nations, such as China and India, due to rising middle-class population

• Shift in manufacturing base: With the rapid development of China's Information Communications Technology (ICT) sector, China has become the world's largest manufacturing center for electronic products, including televisions, computers, handsets and DVD players. This development is driving ABS demand in the electronic segment

ABS Industry Constraints

• Metal replacement in the automotive, and electrical and electronics industries are the drivers for engineered resins, such as ABS. The need for lightweight and high-performance material is driving ABS demand in these sectors.
• Emerging nations to drive demand: The demand for home appliances and electrical/electronic goods made of ABS is increasing in emerging nations, such as China and India, due to the rising middle-class population.
• A shift in manufacturing base: With the rapid development of China's Information Communications Technology (ICT) sector, China has become the world's largest manufacturing center for electronic products, including televisions, computers, handsets, and DVD players. This development is driving ABS demand in the electronic segment

• The slowdown in major economies: Slowdown in China’s manufacturing activities and contraction of the Brazilian economy could have a negative impact on the global demand for engineered resins.

• The impact of COVID-19 on the economies of most countries, especially in developing countries is likely to act as a constraint for the growth of the ABS industry.

• The use of SBR or Styrene-butadiene rubber may act as a constraint for the growth of the industry. SBR’s growing demand in the automotive industry is a matter of concern.

ABS Innovations

Innovations in the ABS market are driven predominantly by light-weighting, cost reduction, performance, and sustainability needs

Natural fiber-reinforced ABS

Sustainability through Natural Fiber Reinforced ABS

• In Nov 2015, Elix Polymers introduced Elix ECO ABS-NF, a natural fibre reinforced ABS composite material for injection moulding applications and specific extrusion process 

• The product can be processed without the need to modify machines. The key features are high stiffness, heat resistance, low molding shrinkage ratios, low emissions, and lower weight compared to glass fibre reinforced ABS

• Elix has received EEA and Norway Grants, the first time, a European ABS market producer is given a grant to investigate new sustainable ABS materials and composites

Laser-weldable high-heat ABS

• In May 2016, INEOS Styrolution and Japan’s Ichikoh (a manufacturer of lamps and mirrors for automobiles) jointly developed a laser weldable high heat ABS for rear lamp

• The new rear lamp housings development has enhanced optimal aesthetics, better performance, and lower costs as a result of processing innovations (a new laser welding technique developed by Ichikoh and a unique styrenic polymer solution from INEOS Styrolution)

ABS Challenges And Opportunities

Challenges: Substitution in 3D printing from PLA resins, increasing the demand for silicone elastomers as insulation materials. 

Opportunities: Shift in manufacturing base to demand center (Asia)

Why You Should Buy This Report

Find information about the ABS market outlook, ABS market data, demand analysis, trade dynamics, import, export, etc. of regional and global markets. Porter’s five forces analysis of North America, Europe, and Asia. Industry drivers and constraints, major events and innovations, ABS market news, ABS market share. Asset-backed securities market cost structure, price forecast. Supplier analysis with SWOT analysis of major players like LG Chem, CNPC, Formosa Chemicals, etc. Best abs finance industry practices and contract structures.