Injection molding is a process used for manufacturing everything from mere plastic trinkets to automotive parts, cell phone cases, water bottles, and more. The process involves melting specific materials and injecting those into molds so that they can be converted into desired shape and size. The majority of everyday objects that people use are created through injection molding. The process uses a wide variety of polymers, silicone, and metals. Injection molding is a fast process that caters to a wide array of industries across the globe. Although the technology is quite simple, the credit for its widespread usage largely goes to the evolution of injection molding machines that have enabled industries to widen the boundaries and use materials other than plastic and rubber.
The global injection molding machine market is huge and it is growing alongside other global industries. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 2.20 percent with an estimated global value of $4.86 billion by 2021. The automotive industry accounts for the largest share in the global injection molding market which is 30.5 percent. The consumer goods industry holds the second largest percentage of the market share at 22.5 percent. The largest market for injection molding is APAC that consists of high demand regions markets as India, China, and Japan.
Injection Molding Machine Market Future Opportunities:
To understand future opportunities in the global machine molding market, it is imperative to know the current market trends in the industry. Here is an elaborate overview of the global machine molding market.
- The current market data reflects sustainable future growth and significant growth will be registered in the APAC and LATAM regions due to the establishment of multiple facilities by the biopharma sector.
- The injection molding machine supplier market is fragmented but is highly concentrated in Asia, Europe, and North America. As far as the global supplier markets are concerned, high maturity markets such as Italy, U.K., Germany, and the U.S. drive market growth through innovations in technology and their quality survives. However, due to high growth in the recent past, suppliers are also shifting manufacturing units to countries such as China, Japan, and India.
- The market is also segmented by molding materials such as thermoplastics, thermosets, metal powder, metal liquid, rubber, ceramics, gas injection molding, micro-injection molding, and liquid silicone rubber injection molding.
- The industry typically does not follow lease practices and direct engagement with Original Equipment Manufacturers (OEM) is the standard sourcing practice. Maintaining operational efficiency is another driving factor in the current injection machine molding market that is encouraging demands for hybrid and electric molding machines.
- The market is also greatly affected by the Total Cost of Ownership (TCO) of injection molding machines in various industries. A large portion of TCO consists of machine refurbishment and maintenance costs. Since some machines use hydraulics, and they require maintenance at regular intervals of approximately 3 months. On the other hand, electric injection molding machines use servo motors that do not require frequent maintenance contrary to the hydraulic machines. While drawing a comparison between both the machines, the maintenance cycle of hydraulic machines start from the second year of purchase whereas electric machines start requiring regular maintenance after 10 months of purchase. This draws a huge difference in the TCO which pushes the industry to opt for better technology for manufacturing.
- The business opportunities in the injection molding industry are increasing specifically in Asia and Latin America. For a new enterprise, the best way would be to find a niche and start developing their expertise in it. For instance, a business can focus on manufacturing a specific product that requires particular raw materials and make their way through a special market segment. The choice of the niche depends on the market maturity and demand-supply situations. The business can choose to manufacture larger parts, small parts, low volume, high volume, or even high cost/low-cost parts. This is a better approach than hurriedly starting an injection molding business and trying to compete with already established enterprises.
- Another good example of a business opportunity would be daily medical supplies such as disposable injection syringes that are being used in millions on a daily basis worldwide. This seems like a good choice for manufacturing but the decision-makers have to consider that the return from these products is 10 percent of the investment on a single unit. This is because injection syringes use tinted but transparent material and they incorporate stringent regulations as well. Therefore, businesses implement unique revenue models that allow them to generate profits and maintain efficiency in the processes.
The injection molding market is fragmented but highly competitive. Thousands of manufacturers cater to several low-end industries whereas niche industries opt for expert solutions that include some of the industry leaders from countries like Germany and the U.S. New players would have to create opportunities rather than seeking to grab one.