The injection molding services category is anticipated to grow at a CAGR of 4.8% from 2023 to 2030. The trends such as on-demand injection molding, adoption of automation, and focus on sustainability are driving the demand for the category. Rising awareness about pollution created by waste has increased the focus on sustainability within the industry. According to the Journal of Clean Production 2023 report, the category accounts for 90% of the Global Warming Potential (GWP) created by the complete molding lifecycle, majorly because of energy consumption. As a result, companies are focusing on incorporating plastics such as PLA, or bio-PET materials that are biodegradable or can be recycled. Additionally, to provide energy savings, there is an increase in the adoption of all-electric injection molding machines over the traditional hydraulic-based machines.
The industry has been already automated. However, injection molding facilities can still adopt some new technologies such as robots, and artificial intelligence (AI). Collaborative robots, or cobots are increasingly used in processes along with human operators to improve productivity. AI-driven productivity is impacting across industries by collecting real-time production data to enhance production and reduce costs within injection molders. AI systems can indicate pain points and opportunities to enhance efficiencies. For instance, adoption of in-mold sensors can improve injection molding performance and gage the cavity pressure. The usage of multi-material molding machines is also rising as they can create complex components in one shot by injecting various materials into the mold during a single cycle.
China is a major player in the injection molding machines industry. China exported machines worth USD 4.8 billion in 2022. The rising need for machinery in industries such as packaging, automotive, electronics, and healthcare are expected to drive the demand for machines in these industries. On the other hand, injection molding majorly finds its application in the packaging industry and the U.S. being the top country in the packaging industry is expected to drive the demand for the category.
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The category is fragmented with the presence of numerous players seeking low-cost production. Molders involved in electronics, consumer products, automotive, and medical applications are continuously looking for low labor costs abroad. Competition from emerging regions such as Asia-Pacific and Latin America has been so profound that molders are developing new strategies to meet current and possible challenges.
Suppliers in the category provide raw materials such as plastic materials, molds, and machinery. The bargaining power of suppliers can be moderate to high, depending on the availability of alternative suppliers and the uniqueness of their products. However, injection molding companies can often negotiate contracts based on bulk purchases, which may reduce the suppliers' power.
Raw materials (plastic materials, molds), labor, rent and utilities, mold (tooling) costs, machinery & equipment, and others are some of the cost components of the category. Other costs include packing, and transportation costs. The cost of injection molding depends on the size, design, and volume of parts. The more the volume of production, the less the cost of production per part. Raw materials, rent and utilities, and machinery & equipment form a major part of the cost component. As the molding process is automated, for example, 3D printers and CNC machines are Computer Numerical Controlled Software run on their own. As a result, labor costs cannot be a crucial part of the cost structure. However, some steps such as setting up machinery, operating, and repairing machinery can require labor costs. Professional industrial injection molding equipment costs can range from USD 50,000 to USD 200,000.
In terms of sourcing injection molding services, companies usually adopt a complete outsourcing model. Companies outsource the services as it gives advantages such as industry expertise, quality assurance, cost-benefit, and economies of scale. Producing plastic products needs equipment and employees which can require heavy investment. The cost of production by outsourcing can be considerably lower. On the other hand, due to the sudden surge in on-demand injection molding can hit production limits. A trusted service provider can meet the production demand along with adding additional value to manufacturing and product needs.
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Injection Molding Services Procurement Intelligence Report Scope
• Injection Molding Services Category Growth Rate: CAGR of 4.8% from 2023 to 2030
• Pricing growth Outlook: 6% - 7% (annual)
• Pricing Models: Product type pricing, Volume based Pricing; Competition based pricing
• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence
• Supplier selection criteria: Quality of the product, type of material used, end-use, post-casting services, contract terms, delivery option, technology used, safety and environmental compliance, location and presence of supplier, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Key companies profiled
• Protolabs, C&J Industries
• HTI Plastics
• The Rodon Group
• EVCO Plastics
• Tessy Plastics
• Currier Plastics
• Formplast
• Major Plastics
• D&M Plastics