Mold making Index results between January and October of 2017 broke records with an average index reading of 55.8. By comparison, the last time the index experienced a comparable period of prolonged expansion was in 2014, when the average index reading from January to October was a respectable 53.8.
When interpreting Industry Intelligence data, a reading of 50.0 means that no change in the industry has occurred. All index readings above 50 represent growth. The greater the number is above 50, the faster the speed at which the industry is expanding. Readings below 50 work in a similar manner but represent industry contraction. The index is calculated by six underlying business conditions: backlog, employment, exports, new orders, production and supplier deliveries. The total index is the average of the movement of these six drivers. During a typical month, all six drivers may be expanding, but those expanding below the average of the six are considered to “pull the index down.”
The two most significant drivers of the Mold making Index in 2017 have been the production and new orders components, both of which had multi-year high growth values in 2017 that easily surpassed high records from the past. The readings for new orders in 2017 have been especially strong, which likely explains the growth in backlog and exports figures in 2017. At the end of October, backlog readings reached their 10th consecutive month of expansion. This far surpasses the most recent record for consecutive months of backlog growth, which lasted for three months.
Growth in new orders, which Industry Intelligence uses as a proxy for demand, has greatly improved in 2017. Data on prices in 2017 indicates that this increased demand for molds is resulting in improved pricing for mold builders. Readings of prices received began improving (or having index scores above 50) in the third quarter of 2016 and have steadily improved through to the present. The full history of data suggests that the industry can expect further expansion in the industry well into the future when the Mold making Index registers strong backlogs and strong pricing power.
The global injection molding market size was estimated at USD 285.5 billion in 2023 and is projected to grow at a CAGR of 4.9% from 2024 to 2030. The growing demand for injection molded components in the automotive industry is driving the demand for the market over the forecast period. Injection molding is suitable for producing a wide variety of exterior automobile components such as mudguards, door panels, wheel arches, grilles, trunk trims, front and rear covers, and outside car door trims. Injection molding is a crucial manufacturing process employed for developing different components used in the automotive industry as safety, consistency, and quality are critical for this industry.
In the U.S., the growing adoption of electric vehicles is driving the demand for light weight electric vehicle exterior components made of plastics. In addition, the favorable government regulations & initiatives, infrastructure availability, high expenditure on research & development, etc. are likely to contribute to the growth of electric vehicle manufacturing. For instance, Hyundai Motor Group announced a new electric vehicle factory in Georgia, U.S. in February 2024. The factory is set to open in 2025 with an annual production capacity of 300,000 electric vehicles.
Further, the federal government is providing support in the form of tax rebates and subsidies have further fueled the demand for electric vehicles. Increasing demand for injection molded components in both, conventional and electric vehicles for developing their interiors and exteriors, is expected to augment the growth of the market in the U.S. in the coming years.
Moreover, ongoing technological innovations in injection molding are propelling the market expansion. Technologically advanced injection molding improves the productivity and surface finish of the components. For instance, Metal parts manufactured from Metal Injection Molding (MIM) technology are utilized to manufacture medical components owing to the lesser manufacturing time, elimination of secondary operations, and better tolerance levels of final products. Extensive technological advancement has fostered the development of a wide array of components that can be manufactured easily with differing sizes and high complexities using the injection molding process.
At the global level, increasing penetration of injection molded plastic products in healthcare is one of the factors driving the market. Plastic is cost-effective, does not rust or corrode like metal, lightweight opposed to other material, pliable, and it can be molded into more complex shapes, sizes, and patterns. These factors are increasing the demand for plastics in healthcare products.
Market Concentration & Characteristics
The industry is characterized by a high degree of competition owing to the various cost-efficient technologies adopted by the Industry players for the manufacturing of components using injection molding process. Further, emerging economies witnessed rapid growth in the packaging industry due to the penetration of e-commerce, thereby driving the competition between the Industry players.
The industry is also characterized by a moderate degree of innovation, which results in the development of high-quality injection molding equipment & services. For instance, in March 2022,implemented the first Arburg-GESTICA control system through the installation of a new Arburg injection molding machine 520A. This energy-efficient and fully automated equipment is integral to a comprehensive reusable material packaging process. The adoption of the GESTICA control system represents a significant stride in the company’s digital transformation journey.
The market is fragmented in nature, with a few major players such as C&J Industries, HTI Plastics, and The Rondon Group dominating the Industry and some smaller companies competing in space. In the injection molding Industry, acquisitions and regional expansion are the strategies most adopted by the key players. In May 2023, Biomerics the company completed a merger with Precision Concepts’ medical business. This transaction involved the acquisition of both the medical business of Precision Concepts International (“PCI”) and Precision Concepts Group (“PCG”). The merged entity will operate under the name Biomerics and boast a collective manufacturing space exceeding 1.2 million square feet across 13 locations.
Moreover, the impact of regulations are likely to remain high on the market. ASTM Standards and ISO regulations are the group of regulations primarily impacting the market. Regulations in the injection molding machine market are vital for safety standards and ensures ergonomics, noise reduction, and the overall safety of the machinery. For instance, ANSI/PLASTICS B151.1-2017 – Plastics Machinery – Safety Requirements for Injection Molding Machines is an American National Standard that focuses on the safe use of Horizontal Clamp Injection Molding Machines
(HCIMMs) and Vertical Clamp Injection Molding Machines (VCIMMs) that process plastic materials and inject them into a mold held closed by the acting clamp.
Material Insights
The plastics segment dominated the market with the largest revenue share of 98.3% in 2023. Plastic injection molding involves manufacturing molded products by injecting molten plastic into a mold and then solidifying them. This process is used for manufacturing injection molding plastics used in various application industries such as packaging, construction, consumer goods, and automotive.
The metal segment is anticipated to witness the highest CAGR of 7.4% over the forecast period as the demand for metal injection molding is rising. Metal injection molding (MIM) is suitable for manufacturing intricate, small, and precision metal components required by the medical, automotive, aerospace, and consumer goods industries. The metal injection molding process uses powder metallurgy injection molding. The ability of the metal injection molding machines to lower the inventory costs, workforce, and raw material makes it a cost-effective option compared to the conventional fabrication methods.
Application Insights
The packaging segment dominated the market with the largest revenue share in 2023. The packaging industry contributes significantly to the market, as it is used to make thin wall containers, dairy juice & water packaging, beverage caps & closures, and specialty closures, among others. Increasing consumption of packaging products in the healthcare, cosmetics, personal care, and consumer goods industries is expected to boost the packaging industry market over the forecast period.
The medical segment is anticipated to witness high growth over the forecast period. Injection molding is used in the medical industry for manufacturing small and complex items such as dental implants, prosthetic replacements, endoscopic tools, implantable components, orthopedics, and drug delivery equipment. The increasing demand for medical disposables, technological developments, and rising plastics consumption in healthcare applications are driving the industry growth for medical injection molding.
Plastic resin demand has a significant impact on the injection molding market. Plastic resins are the principal raw material used in injection molding, hence changes in resin demand have a direct influence on the sector.
Rising demand for plastic resins, fulled by industry expansion, customer preferences, and technical improvements, drives the injection molding market. This demand drives up production volumes and income for injection molding firms, which serve a variety of industries including automobile packaging, electronic devices, and healthcare.
Furthermore, advancements in plastic resin formulas, such as lightweight and durable materials, drive the injection molding industry by boosting application options. As a result, the injection molding market’s expansion path closely tracks the dynamics of plastic resin consumption, making it critical for industry participants to monitor and adapt to market trends.
For instance, A modest increase in demand for plastic packaging items is projected to increase, as consumers hurry to stock up ahead of price increases caused by increasing resin costs. However, the utilization rate of plastic packaging items is likely to remain range restricted and mediocre around 50% to 65%.
The global Injection Molding market size was valued at USD 317758.24 million in 2021 and is expected to expand at a CAGR of 4.73% during the forecast period, reaching USD 419329.83 million by 2027.
we need a comprehensive blend of extensive quantitative analysis and thorough qualitative assessment, covering a macro overview of the overall market size, industry chain, and market dynamics, as well as detailed micro-level insights into segment markets by type, application, and region.
Now the competition in the mold industry is becoming more and more fierce. I think the price alone cannot fully occupy the advantage.
I agree your analysis,The mold company’s operating mode has changed a lot compared with the previous one.