High Impact Polystyrene Market Grows Stronger With The Expansion In The Construction Industry
Excellent machinability, ease of fabrication along with high impact strength and durability offered by high impact polystyrene has paved the way for its widespread use in the construction industry. The global construction industry is undergoing a radical change with evident improvement in socioeconomic conditions and growing middle class population. As per an Oxford economics study, revenue from the construction market is estimated grow six-fold from $2.5 trillion in 2015 to $15.5 trillion by 2030. The global market for high impact polystyrene is expected to grow substantially with a CAGR of over 11% over the forecast period of 2019-2026. The growth in the construction industry is expected to present huge growth opportunities for this market. Further demand for greater aesthetics along with the compact factor in the electronics, automotive and consumer goods industry is speculated to infuse growth prospects in the global HIPS market. However, strict government regulation on petroleum-based plastics and fluctuation in raw material prices are the major factors that impede the growth of the market.
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Asia Pacific region the land of opportunities for high impact polystyrene market
Geographically, Asia pacific region is at the forefront in terms of HIPS (High Impact Polystyrene) consumption. Asia is the largest producer of plastics globally. An established automotive sector, large scale housing projects, rapid e-commerce growth and packaged food growth are the factors driving the HIPS demand in the region of Asia. According to International Monetary Fund (IMF), Asia Pacific is the world’s economic engine at present and the economy is anticipated to grow at the rate of 5.7% till 2020. Such high economic growth has positively supplemented large investment in the manufacturing, construction sector and other end users of HIPS aiding the market growth. Owing to rapid urbanization and industrialization coupled with huge infrastructural investment for the smart city development, India and China are the most lucrative countries within Asia Pacific region for the companies operating in the HIPS market. As per the United Nation, India and China are ranked as top 2 countries with highest rural population and it is projected that by 2050 India and China would add 404 million and 292 million urban dwellers respectively. Furthermore, the automobile sector is one of the core sectors of the Asian economy. As per International Organization of Motor Vehicle Manufacturers, OICA, China, Japan, India and South Korea in total account for approximately 50% of the passenger cars and commercial vehicles production in 2018. Such factors are leading the way for the growth of HIPS market in the region.