High impact polystyrene (HIPS) is a form of polystyrene blended with butadiene copolymer or rubber. Compared to normal plastics, HIPS offers excellent machinability and higher impact strength. These properties of HIPS make it an ideal candidate for application across various industry verticals including consumer goods and electronics, construction and others. The global market for high impact polystyrene is expected to witness a substantial growth with a CAGR of approximately 12% over the forecast period of 2019-2026. Factors including high growth in the packaging industry coupled with ever-increasing demand from the construction sector and technological advancements in the manufacturing of HIPS act as key drivers for the growth of the market.
The given report on global high impact polystyrene market covers segmentation analysis based on application and type. Based on the type, the global market for high impact polystyrene has been sub-segmented into extrusion molding, injection molding and others. Extrusion molding is expected to hold the largest share in the type segment. Higher flexibility while production, low cost and uniform cross-sectioning of the finished products offered using extrusion molding are the key factors why extrusion molding asserts dominance. Based on application, the global market of HIPS has been sub-segmented into consumer goods and electronics, horticulture and agriculture, automotive industry, construction and others. The construction segment is set to dominate applications. High growth in residential construction globally as a result of growing urbanization and improved socioeconomic conditions acts as the primary driver for the growth of the construction segment.
Geographically, Asia Pacific commanded the largest market share in terms of revenue for the high impact polystyrene market followed by North America and Europe in 2017. Asia Pacific region is the global hub for electronics and automobile manufacturing which acts as a key factor for the dominance of the Asia Pacific region in the global market. Furthermore, growing urbanization in countries including India and China along with high investments in the construction sector has provided a major impetus to the growth of the Asia Pacific HIPS market. The North American and European market for HIPS is expected to exhibit modest growth owing to the high demand of HIPS for packaged food and consumer goods along with growth in the automotive sector.
The global high impact polystyrene market is a highly consolidated market with the presence of some global players and a few numbers of regional players. The key players in the market are King Plastic Corporation (USA), LyondellBasell (Netherlands), Astor Chemical Industrial (China), LG Chem (South Korea), Total S.A. (France) and others. Merger and acquisition is the key strategy adopted by the major players in the market. For instance, in 2018 LyondellBasell acquired A. Schulman, Inc (USA), the combined synergy of both the plastic makers is expected to provide a major boost to the former’s polystyrene market.