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

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).

Report scope can be customized per your requirements. Click here.

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. 

To understand key trends, Download Sample Report