Plastic Injection Molding Outsourcing Services Market Size, Share & Trends Analysis Report By Product, By End-use, By Region, And Segment Forecasts, 2021 To 2028

The global plastic injection molding outsourcing services market is estimated to witness significant growth over the forecast period on account of the ability of contract manufacturers to provide high quality plastic molded components with a quick turnaround time. The outsourcing services aid in providing reliable turnkey solutions for the production of plastic injection molded components.

Plastic injection molding outsourcing services are used for the production of small, medium, and large components and products across a wide range of industries. Plastic injection molding outsourcing services enables three major benefits for any business namely, knowledge base, work offloading, and cost savings. Plastic injection molding contract manufacturers work with customers to determine materials to be used for manufacturing components based on their time requirements, design specifications, and certification requirements.

Plastic Injection Molding Outsourcing Services Market Segmentation

Manufacturers develop customized products based on the specific size, design, and quantity requirements. Outsourcing a certain part of this production process also leads to reduced manufacturing and operational costs for end users. The outsourcing system works on a demand flow basis. Hence, contract manufacturers work with OEM planners to level out changes in product demand, thereby leading to steady production and efficient supply chain management. This also leads to an increased focus of OEM on other aspects of the business, including sales, strategic planning, research and development, marketing, and customer services.

Plastic injection molding is a process that converts plastic materials into molds of various shapes and sizes, which can further be employed in various end-use industries including home appliances, medical, automotive, and consumer electronics. This process requires less time and makes it possible to manufacture several identical items ranging from disposable consumer goods to high-precision engineering components.

Thermoplastics such as polypropylene, polystyrene, polyethylene, and nylon are considered the most suitable plastics for the injection molding process as they can be heated and developed into desired sizes and shapes. ABS, nylon, polycarbonate, polypropylene, and polystyrene used in electronics and consumer goods industries are processed employing injection molding to form parts of refrigerators, washing equipment, smartphones, and smart consumer electronics.

During the injection molding process, desired materials are introduced into machines through hoppers. The injection molding machines consist of heated barrel equipment, which melt polymer materials inside the instrument. The melted polymers are then transferred to molds through channel systems of runners and gates to obtain desired shapes. Modern injection molding tools are controlled by computers, which act as controllers to regulate the actions of machines and ensure consistent output.

Time and cost are the two key challenges being faced by companies operating across medical, aerospace & defense, automotive, and consumer goods industries. The constant evolution of the supply chain makes it difficult to develop an optimum process for the reduction of manufacturing time and production costs. Increasing competition and rising focus of companies on increasing their profit margins have led to the adoption of processes that provide high efficiency at each stage of the supply chain.

Companies preferring outsourcing services are not required to invest in the establishment of new manufacturing facilities and the procurement of tools and machinery, along with the training of the staff. This leads to cost savings for them. In addition, the high-level expertise and technical knowledge of contract manufacturers enable the production of high-quality plastic products through injection molding. A strong relationship between contract manufacturers and raw material suppliers, along with efficient manufacturing methods, leads to a reduction in the production time of finished goods, thereby meeting the requirements of OEM.

Economies of scale play a very important role in the plastic injection molding outsourcing services market. The companies providing outsourcing services are engaged in the production of similar type of products for various OEMs, thereby reducing the production costs owing to mass production, in turn optimizing overall production costs.

The COVID-19 pandemic has boosted the importance of e-commerce and automation in almost all industries, wherein the manufacturing companies are focusing more on the resiliency and risk mitigation along with efficiency and production costs. This, in turn, is anticipated to augment the demand for diversification in product/component sourcing, thereby driving the plastic injection molding outsourcing services market growth.

The rising demand for plastic injection molding in the U.S. by manufacturers dependent on third-party overseas prior to the pandemic is expected to drive the market in the country. Outsourcing plastic injection molding aids the brands in saving money and time, along with delivering superior quality products with increased reliability.

Increasing local production of various products and components has enabled major manufacturing companies to provide customized solutions at a fast turnaround time. Furthermore, outsourcing the plastic injection molding services is anticipated to boost the level of quality control and provide more flexibility in product/component design.

Increasing penetration of plastics for manufacturing consumer electronics is expected to be one of the key factors for the growth of market over the forecast period. Plastics are widely used for manufacturing structures and bodies of television sets, smartphones, computers, video recorders, cameras, and laptops. They offer several benefits, over traditional metals in terms of high corrosion and chemical resistance, low costs, lightweight, and excellent durability.

Plastic injection molding outsourcing services include designing the entire product or a component or section, working on the injection molds, running pre-production samples, and completing the entire manufacturing process along with the logistics. The market is characterized by the presence of a large number of players, including Mack; SEA-LECT Plastics; Baysource; Flatworld Solutions; Hansen Plastics; Nolato AB; RSP Inc.; The Rodon Group; Montrose Molders Corporation; Rosti Group AB; EVCO Plastics; C&J Industries; Plastion Industries, Inc.; Tessy Plastics Corp.; and Inzign Pte Ltd.

Plastic Injection Molding Outsourcing Services Market Report Scope