Automotive Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Material ( Polypropylene, Polyurethane, Polyvinyl Chloride, Polyethylene, Acrylonitrile Butadiene Styrene, Polyamides, Polycarbonate, and Other Materials), Application (Interior, Exterior, Under Bonnet, and Other Applications), Vehicle Type (Conventional/Traditional Vehicles and Electric Vehicles), and Geography (Asia-Pacific, North America, Europe, South America, Middle-East and Africa). The report offers the market size and forecasts in terms of volume (metric tons) for all the above segments.

Market Snapshot

 Automotive Plastics Market Size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: >10 %

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Market Overview

The automotive plastics market is expected to register a CAGR of over 10% during the forecast period (2022-2027).

The COVID-19 pandemic mostly had a negative impact on automotive plastics producers by shutting down automotive production and decreasing the demand for vehicles due to the worldwide financial instability. However, in 2021 market grew significantly mainly due to increase in sales of electric vehicles. This is expected to boost the market studied in coming years.

  • Over the medium term, the increasing demand for lightweight and electric vehicles is expected to drive the demand for the market during the forecast period.
  • On the flipside, challenges associated with recycling of plastic is likely to hinder the market’s growth.
  • Technological development in electric vehicles is projected to act as an opportunity for the market in the future.
  • Asia-Pacific region dominated the global market majorly due to increase in demand of electric vehicles in the region.

Scope of the Report

Plastics are majorly processed into automotive components and parts owing to their ease of manufacturing, possible sourcing from renewable raw materials and relative ease of improved design. Further, automotive plastics play a key role in performance and safety innovations in commercial vehicles, HMVs, modern cars and SUVs. The market is segmented on the basis of material, application, vehicle type, and geography. By material, the market is segmented into polypropylene, polyurethane, polyvinyl chloride, polyethylene, acrylonitrile butadiene styrene, polyamides, polycarbonate, and other materials. By application, the market is segmented into interior, exterior, under bonnet, and other applications. By vehicle type, the market is segmented into conventional/traditional vehicles and electric vehicles. The report also covers the market size of and forecasts for the automotive plastics market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (metric tons).

Material
Polypropylene (PP)
Polyurethane (PU)
Polyvinyl Chloride (PVC)
Polyethylene (PE)
Acrylonitrile Butadiene Styrene (ABS)
Polyamides (PA)
Polycarbonate (PC)
Other Materials (Polyoxymethylene (POM) and Acrylic (PMMA)etc)
Application
Exterior
Interior
Under Bonnet
Other Applications (Chassis and Electrical Components etc)
Vehicle Type
Conventional/Traditional Vehicles
Electric Vehicles
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Under Bonnet Application to Dominate the Market

  • Plastic can act as an electric conductor as well as an insulator (mainly insulator). So it plays an important role in various under bonnet applications concerning propulsion, alternative drive systems, and batteries.
  • Plastics not only make electric and hybrid automotive batteries more affordable, but also aid in value addition by replacing heavy electric cells with compensatory light weighting.
  • The plastic sensors, harnesses, connectors, seals, fuses, and capacitors that are used in ‘under-the-hood’ applications in hybrid or electric vehicles help to consolidate parts, resist corrosion, and reduce noise.
  • Hybridization (the use of combined gas and electric propulsion system) has already increased the demand for efficiency, battery longevity, weight, and space savings, as well as safety standards in the automotive sector.
  • EV manufactures know that consumers demand driving ranges which are similar to driving ranges of gasoline vehicles. Plastic innovations are already assisting the manufacturers with this demand. Lithium-ion battery packs, Ni-MH battery packs, and snap-fit li-ion battery cell packs are all being made possible with plastics.
  • Improving the heat and chemical resistance of plastics in contact with some of the most demanding under bonnet applications, such as turbo chargers, is making it possible for small engines to meet high-profile performance requirements.
  • Therefore, from the above mentioned points, under bonnet application is expected to dominate the market. 
Automotive Plastics Market - Segmentation

Asia-Pacific Region is expected to Dominate the Market

  • Asia-Pacific region is expected to dominate the global market share. With the increasing in demand of lightweight vehicles and a large automotive production base in countries such as China, India, and Japan, the usage of automotive plastics is increasing in the region.
  • China continues to be the world’s largest vehicle market by both annual sales and manufacturing output, with domestic production expected to reach 35 million vehicles by 2025.
  • On a bright side, the Chinese government is majorly focusing on increasing the production and sale of electric vehicles in the country. Electric vehicle (EV) sales reach a total of 3.3 million units in 2021, up from 1.3 million in 2020. Such trends are expected to drive the Chinese automotive industry’s growth during the forecast period. 
  • According to OICA, the vehicle production of India reached a total of 4,399,112units in 2021 which is an increase of 30% over 2020 for the same period. Moreover, with the consistent economic development and rising incomes, the automotive industry has been witnessing a continued shift in vehicle preferences, from two- to four-wheelers, which helps to augment the demand for passenger cars in the country.
  • Moreover, in November 2021, Indian Oil Corporation (IOC) and two other public sector oil firms announced that they will install 22,000 electric vehicle charging stations over the next 3–5 years. 
  • Regarding e-mobility, the Japan's government has raised subsidies for electric vehicles (EV), and aims to increase the number of EV charging stations to 150,000 by 2030. The major OEMs support e-Mobility Power, a joint venture established to construct, maintain and operate charging stations and related electrical infrastructure. 
  • Such factors are in turn expected to boost the market demand at a steady rate in the region.
Automotive Plastics Market - Regional

Competitive Landscape

The automotive plastics market is partially fragmented in nature. Key players in the automotive plastics market include (not in any particular order) BASF SE, Covestro AG, Celanese Corporation, Borealis AG, and DSM, among others.

Recent Development

  • In March 2022, Covestro AG started up two polycarbonate compounding production lines at its Greater Noida plant near New Delhi in India. The new plants are intended to meet the growing demand for compounded plastics, particularly for the automotive and electrical and electronics industries.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Lightweight Materials from Electric and Hybrid Vehicles

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Challenges Associated with Plastic Recycling

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value-Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Material

      1. 5.1.1 Polypropylene (PP)

      2. 5.1.2 Polyurethane (PU)

      3. 5.1.3 Polyvinyl Chloride (PVC)

      4. 5.1.4 Polyethylene (PE)

      5. 5.1.5 Acrylonitrile Butadiene Styrene (ABS)

      6. 5.1.6 Polyamides (PA)

      7. 5.1.7 Polycarbonate (PC)

      8. 5.1.8 Other Materials (Polyoxymethylene (POM) and Acrylic (PMMA)etc)

    2. 5.2 Application

      1. 5.2.1 Exterior

      2. 5.2.2 Interior

      3. 5.2.3 Under Bonnet

      4. 5.2.4 Other Applications (Chassis and Electrical Components etc)

    3. 5.3 Vehicle Type

      1. 5.3.1 Conventional/Traditional Vehicles

      2. 5.3.2 Electric Vehicles

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 France

        4. 5.4.3.4 Italy

        5. 5.4.3.5 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Colaborations and Agreements

    2. 6.2 Market Share(%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Asahi Kasei Advance Corporation

      2. 6.4.2 BASF SE

      3. 6.4.3 Borealis AG

      4. 6.4.4 Braskem

      5. 6.4.5 Celanese Corporation

      6. 6.4.6 Covestro AG

      7. 6.4.7 Daicel Corporation

      8. 6.4.8 DuPont

      9. 6.4.9 DSM

      10. 6.4.10 Exxon Mobil Corporation

      11. 6.4.11 LANXESS

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Technological Development in Electric Vehicles

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Automotive Plastics Market market is studied from 2017 - 2027.

The Automotive Plastics Market is growing at a CAGR of >10% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

BASF SE, Covestro AG, Celanese Corporation, Borealis AG, DSM are the major companies operating in Automotive Plastics Market.

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