Definition of Automotive Plastics   

Automotive plastics are thermoplastics known to exhibit high performance, making them suitable for the high demands of the automotive industry. Currently, automotive plastics are transforming the manufacturing of automotive parts. Polypropylene, polyurethane, acrylonitrile butadiene styrene (ABS), polyamide, and others are some of the common materials used in automobiles. Moreover, they are lightweight, which reduces the amount of fuel consumed. As a result of environmental and economic concerns, automobile manufacturers have begun to incorporate more advanced plastic materials to reduce the weight of their vehicles and make them more fuel efficient. The machinability and physical properties of automotive plastics are slowly displacing metal components in the industry.

 Global Automotive Plastics Market: Key Insights

Global Automotive Plastics Market Highlights Over 2023 - 2035

The global automotive plastics market is estimated to garner a revenue of ~USD 50 Billion by the end of 2035 by growing at a CAGR of ~10% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 29 Billion in 2022. The growth of the market can be attributed to the increasing demand and sale of automotive vehicles across the globe, the growing demand for lightweight materials to reduce the overall weight of the vehicles to obtain better fuel efficiency, and an improved understanding of the superior properties of plastics over conventional metals, are expected to boost the market growth. According to IEA (International Energy Agency), 73 million cars were sold across the world in 2020 and it is estimated to increase significantly over the forecast period.

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As vehicles have evolved, manufacturers and producers have made numerous material and design changes to ensure that they are efficient and safe for consumers. Since plastics are lightweight and fuel-efficient, they have become the primary material for vehicles. The properties of plastics enable manufacturers to make their vehicles safer, more lightweight, and more comfortable for their passengers, as well as make producers' products more appealing to consumers. The average automotive vehicle contains 30,000 parts, and about 13% of them are composed of plastics of 38 types.

Global Automotive Plastics Market: Growth Drivers and Challenges

Growth Drivers

• Increased Investment and Development in Electric Vehicles (EV) - According to an announcement made in 2022, Mahindra & Mahindra said to invest USD 1 billion in electric vehicles over the next five years, the company has announced that it will offer five electric vehicles in the next five years. The company plans to sell 2 lakh electric vehicles by the end of FY-2027. Government support and initiatives have heightened awareness about the benefits of EVs, and concerns about fuel consumption have created favorable conditions for EVs. Vehicles based on electric power are more efficient, energy independent, and better than vehicles based on fuel. EVs are designed with low-power engines; therefore, light materials are used to improve the engine's pulling power. As a result, the rising demand for EVs is expected to provide lucrative opportunities for the automotive plastics market over the forecast period. Rapid Production of Automobiles- According to research, the Indian automobile industry produced almost 22,930,200 vehicles from April 2021 to March 2022, an increase from 22,600,600 units in April 2020 to March 2021. This includes passenger cars, commercial vehicles, three-wheelers, and quadricycles.

• Fuel Emission Regulations Prompt Lightweight Materials Adoption- Many governments around the world have implemented strict fuel emission regulations. In response, OEMs have switched to lighter-weight materials, such as plastics, to make automobiles. Analyses show that reducing vehicle weight by 10% can increase fuel efficiency by nearly 7%.

• Increase in Middle-Class Income in the Population -In response to the increase in middle-class income, consumers are upgrading their vehicles to enjoy greater levels of comfort. Thus, growing income levels are expected to increase the adoption rate of automotive plastics in the automobile industry. According to the World Bank, the number of people with middle incomes in the world grew from 5.51 billion in 2015 to 5.86 billion in 2021.

• The increasing popularity of E-Mobility- To promote e-mobility, the Japanese government has increased subsidies for electric vehicles (EVs) and plans to install 150,000 charging stations by 2030. Several of the major OEMs support e-Mobility Power, a joint venture dedicated to the construction, maintenance, and operation of charging stations.

Challenges

• Consequences Of Using Plastics In Automobiles

A highly toxic polymer, Polyvinyl Chloride (PVC), is one of the most prevalent polymers in automobiles. Approximately 15% of the plastic used in cars today is PVC. This 15% of plastic in vehicles is not recyclable and is likely to pollute the environment in the long run. Hence, this factor will hinder market growth in the coming years.

• Governments are taking stringent measures against plastic products that emit low or no VOCs into the environment.

• Increasing Concern Over Plastic Recyclability

The global automotive plastics market is segmented based on vehicle type into passenger cars and commercial vehicles. Out of these, the passenger cars segment is expected to grow significantly during the forecast period, on the back of increasing demand for individual vehicles across the globe. As a result of the sustained economic growth and rising incomes throughout the world, the automotive industry is seeing a shift away from two-wheelers to four-wheelers, which enables the demand for passenger cars to increase. Furthermore, an increase in passenger car sales has encouraged the rapid adoption of lightweight plastics which is anticipated to drive segment growth over the forecast period. A significant increase was observed in global passenger car sales for the year 2021, reported at 55 million units, compared to 52 million units in 2020.

Global Automotive Plastics Market Regional Synopsis

The Asia Pacific automotive plastics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035 as a result of the region's dominance in the automotive industry, high demand for plastic in the region, increasing investment in advanced vehicle technologies, as well as an expanding manufacturing sector. Further, the presence of major auto OEMs (Original Equipment Manufacturers), supportive government regulations and initiatives, and easy availability of raw materials to manufacture plastics are expected to boost the regional market growth in the coming years. On the other hand, the Chinese government is actively promoting electric vehicle production and sales. As compared to 2020, electric vehicle sales reached 1.3 million units, up to 3.3 million units in 2021. Such factors are expected to drive the automotive industry’s growth in the region over the forecast period.

Market Segmentation

Our in-depth analysis of the global automotive plastics market includes the following segments:

Key Companies Dominating the Global Automotive Plastics Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global automotive plastics market that are included in our report are BASF SE, Magna International Inc., Adient plc, Borealis AG, Saudi Basic Industries Corporation (SABIC), Lear Corp., The DOW Chemical Company, Grupo Antolin-Irausa S.A., Evonik Industries AG, Covestro AG, and others.

Global Automotive Plastics Market: Latest Developments

• 2 June 2022 - LEM's solar current sensor is now constructed from BASF's high-performance polyamide Ultramid, owing to its exceptional flame retardance, electrical insulation, dielectric strength, and dimensional stability.

• 27 May 2022 - Kinglong United Automotive (Suzhou) Co., Ltd. to use BASF's water-blown polyurethane insulation spray foam in its latest bus model (Suzhou Kinglong). Suzhou Kinglong, are China's largest bus manufacturer.    

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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