Automotive Plastics Market

Automotive Plastics Market size was valued at USD 22.5 billion in 2021 and is projected to reach USD 32.0 billion in 2029, growing at a CAGR of 4.5% during the forecast period 2022-2029 attributed to growing demand for lightweight vehicles and strict regulations imposed by governments to reduce emissions.

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Major Automotive Plastics Market Drivers

Primary factors driving global automotive plastics market are growing adoption of lightweight materials by manufacturers due to strict regulations imposed by governments, rising focus of vehicle weight reduction and improvements in recyclability of plastics. Sales of different type of passenger vehicles and other automobiles has increased rapidly in the last two decades. But rising demand for passenger vehicles has increased the emissions of greenhouse gases such as carbon dioxide worldwide, which is creating challenges related to climate change. According to International Energy Agency’s (IEA) estimates, transportation industry roughly generates 1/5th of global carbon emissions, of which 45% of these emissions comes from passenger vehicles such as cars, motorcycles, busses and taxis. As a result, governments in developed and developing countries are coming with strict emissions and fuel regulations for vehicles, which in turn, is pushing Original Equipment Manufacturers (OEMs) to use lightweight materials like plastics to comply with these regulations. Using plastic materials can improve fuel economy in vehicles, while maintaining safety. As plastic materials are lightweight, using these materials can reduce fuel consumption in vehicles because lightweight requires less energy at time of acceleration. And vehicle lightweighting also reduce fuel cycle greenhouse gas emissions. Demand for passenger vehicles is expected to increase in future as more affordable cars are becoming available in the market coupled with rising per capita incomes in many countries, are expected to create more demand for lightweight materials like plastics materials in the coming years.

Electric vehicles (EVs) are gaining traction in the Automotive industry as these vehicles incurs low fuel cost and requires, offers better driving experience, and requires less maintenance as compared to Internal Combustion (IC) engine-based vehicles. With increasing environmental awareness amongst consumers, incentives provided by governments for manufacturing EVs and growing investments by OEMs, demand for electric vehicles will increase in the forthcoming years. Since EVs are designed to be lightweight, they have low power engines and requires lightweight materials, which will create lucrative opportunities for automotive plastics market. Moreover, improvements in the plastic recycling processes are encouraging manufacturers to use high-performance plastics. Typically, on an average, car consists of 5.8 to 10% plastics, this percentage will rise in future as the demanding for high-performance and lightweight vehicles are increasing. However, high cost of capital and infrastructure required for re-engineering plastics has become a major challenge for companies, which is restricting the growth of automotive plastics market.

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Based on Material, Polypropylene (PP) segment is expected to dominate the market.

Polypropylene is widely used by manufacturers as automotive polymers as it can be easily formed into any shape as per requirement. Polypropylene finds its application in passenger vehicles primarily in bonnet components, and exteriors and interior. Polypropylene is gaining popularity in the automotive plastics market as it is comparatively cheaper than engineered plastics.

Based on Application, Interior segment is estimated to dominate the market. 

Plastics are rising used in interior applications as it offers impact resistance and dimensional stability, increased durability and aesthetic appeal to vehicles. In addition, as plastic act as an electric conductor and insulator, it is increasingly used in under-bonnet applications, which are concerned with alternative driving systems and batteries.

Vehicle Type: Segment Analysis

Growth of Electric Vehicles segment is driven by rising demand for greener mode of transportation, depletion of finite fossil fuels and increasing focus of governments to achieve net zero emission levels. As per IEA’s report, almost 2.1 million electric cars were sold globally in 2019 of electric cars, which accounted for 2.6% of the international car sales.

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Based on Region, Asia-Pacific region held the largest market share in 2021.

Asia-Pacific automotive plastics market is driven by rise in the manufacturing of vehicles, government initiatives promoting EVs and growing demand for lightweight vehicles. Foreign investors are showing an interest in investing in this region as the land prices are cheaper, raw materials are easily available and various companies are increasingly adopting latest technologies. China automotive plastics market is propelled by increasing middle-income population, changes in the lifestyles of consumers and growing industrialization in the country.

Top Market Players

Several leading companies operating in the automotive plastics market are Covestro AG, Röchling SE & Co. KG, BASF SE, Saudi Basic Industries Corporation (SABIC), DOW Inc., AkzoNobel N.V., Evonik Industries AG, Borealis AG, Royal DSM N.V., and Magna International, Inc. among others.

Key Developments: 

• • In March 2022, Covestro AG opened two polycarbonate compounding production lines in Greater Noida plant, which is located near New Delhi, India. The new plants are set-up to cater the increasing compound plastic demand across automotive and electrical and electronic industries.
  • In May 2021, Covestro manufacturer of polyurethane and polycarbonate based raw materials based out Germany introduced its glass fiber filled recycled polyethylene terephthalate (rPET) for 3D pellet printing.
  • In May 2021, Arkema announced that it has acquired Agiplast, a leader in sustainable plastic compounding and regeneration. Through this acquisition, Arkema will leverage Agiplast mechanical recycling technologies to provide high quality recycled plastics to its consumers.
  • In March 2021, DuPont a leading developer of technology-based materials and solutions completes acquisition of Laird Performance Materials for USD 2.3 billion.
  • In October 2020, Rochling Automotive, announced the launch of KG launched Röchling-BioBoom Bioplastic, a polylactide (PLA)-based biopolymer, which is derived from at least 90% renewable raw materials. This product is economical alternative to materials including polystyrene (ABS), polyolefins, and polyamides (PA6).
  • In May 2020, BASF launched a new styling polymer Luviset 360, which is designed to provide long-lasting hold under high humid conditions. Luviset is suitable for high viscous styling products with low movement inside package.

Segments covered in the Report:

The global Automotive Plastics Market has been segmented on the basis of material, application, vehicle type, and key regions. Based on material, the market is segmented into Polycarbonate (PC), Polymethyl Methacrylate (PMMA), Polyethylene (PE), Polyvinyl Chloride (PVC), Polypropylene (PP), Polyamide, and others. Based on the application, the market is segmented into exterior, interior, under bonnet, and others. Based on the vehicle type, the market is segmented into conventional vehicles and electric vehicles. 

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Market Segmentation

Global Automotive Plastics Market by Material

• • Polycarbonate (PC)
  • Polymethyl Methacrylate (PMMA)
  • Polyethylene (PE)
  • Polyvinyl Chloride (PVC)
  • Polypropylene (PP)
  • Polyamide
  • Others

Global Automotive Plastics Market by Application

• • Exterior
  • Interior
  • Under Bonnet
  • Others

Global Automotive Plastics Market by Vehicle Type

• • Conventional Vehicles
  • Electric Vehicles

Global Automotive Plastics Market by Region

• • North America Automotive Plastics Market (Option 1: As a part of the free 25% customization)

    • By Material
    • By Application
    • By Vehicle Type
    • US Market All-Up
    • Canada Market All-Up

  • Europe Automotive Plastics Market (Option 2: As a part of the free 25% customization)

    • By Material
    • By Application
    • By Vehicle Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Automotive Plastics Market (Option 3: As a part of the free 25% customization)

    • By Material
    • By Application
    • By Vehicle Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Automotive Plastics Market (Option 4: As a part of the free 25% customization)

    • By Material
    • By Application
    • By Vehicle Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Automotive Plastics Market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Covestro AG
  • Röchling SE & Co. KG
  • BASF SE
  • Saudi Basic Industries Corporation (SABIC)
  • DOW Inc.
  • AkzoNobel N.V
  • Evonik Industries AG
  • Borealis AG
  • Royal DSM N.V
  • Magna International, Inc