The global automotive plastics market is set to witness a remarkable transformation, with an estimated worth of US$68.6 billion by the end of 2026, marking substantial growth from US$48.7 billion recorded in 2018. Between 2022 and 2026, the market is anticipated to register a robust Compound Annual Growth Rate (CAGR) of 7.7%, according to a recent market analysis.
Driving Forces Behind the Automotive Plastics Market Surge
In recent years, the automotive industry has experienced a profound shift towards plastics, driven by increasingly stringent emission regulations and a heightened focus on safety standards. These factors, combined with consumer demand for fuel-efficient vehicles, have prompted automakers to prioritize lightweight materials. A mere 10% reduction in car weight can result in fuel savings of approximately 7%-8%. Moreover, the upsurge in car sales, growing demand for lightweight materials, and the electrification trend in vehicles are poised to provide significant growth opportunities within the automotive plastics market over the next decade.
Key Report Findings
- In 2020, interior applications retained their position as the largest market segment, constituting more than 40% of the total automotive plastics market in terms of volume.
- Polypropylene (PP), polyurethane (PU), polyamide (PA), and polyvinyl chloride (PVC) collectively accounted for over 65% of the automotive plastics industry in 2020.
- The Asia Pacific region held a dominant share of approximately 50% in the automotive plastics market in 2020.
Growth Drivers
- Stringent Emission Regulations and Growing Vehicle Electrification: Plastics have revolutionized the automotive industry by enhancing performance, safety, and functionality. As the automotive industry is projected to grow by 5% with sales exceeding 100 million units in the next five years, plastics will continue to play a pivotal role in achieving fuel efficiency and reducing greenhouse gas emissions.
Key Segments to Watch
- Polypropylene and Polyurethane Lead: These materials are expected to spearhead the industrys growth, contributing significantly to vehicle lightweighting and reduced emissions.
- Polycarbonates Fastest Growing: With the rise of electric vehicles (EVs) and autonomous vehicles, polycarbonates are set to experience the fastest growth, primarily driven by their use in battery thermal management and LiDAR sensor integration.
- Interior Parts Dominate: Interior applications, including trims, upholstery, and instrument clusters, represent the largest market segment, offering design flexibility, cost-effective manufacturing, and enhanced vehicle comfort.
- Under the Hood Grows Fastest: The under the hood segment is poised for rapid growth, supported by the adoption of high-temperature plastics like polyamides and polycarbonates, especially in turbocharged engines.
Regional Opportunities
- Asia Pacific Leads: Asia Pacific continues to be the largest automobile-producing region, with countries such as China, Japan, South Korea, India, and Southeast Asia as major manufacturing hubs. As automotive production shifts towards premium vehicles, the region is expected to witness increased plastic consumption due to its advantages over traditional materials like steel and cast iron.
- Europe Emerges Lucrative: Europe and North America are experiencing growing demand for automotive plastics, driven by turbocharged engines, vehicle electrification, and stringent CO2 emissions regulations.
Competition Analysis
In the highly competitive automotive plastics market, companies are focusing on innovation, sustainability, and high-temperature plastic blends to reduce environmental impact. Notable innovations include the incorporation of recycled plastic products into portfolios. Key players in the market include SABIC, Borealis AG, BASF SE, Evonik Industries AG, Solvay, LG Chem, LyondellBasell Industries Holdings BV, DuPont, Arkema SA, and Covestro AG.
Global Automotive Plastics Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2026 – [2023 UPDATE Available – Forecast 2023-2030*] (By Product Coverage, Application Coverage, By Geography, Leading Companies) https://www.fairfieldmarketresearch.com/report/automotive-plastics-market
Our Trending Reports:
Automotive Filters Market
https://www.fairfieldmarketresearch.com/report/automotive-filters-market
Autonomous Trains Market
https://www.fairfieldmarketresearch.com/report/autonomous-trains-market
Automotive Rain Sensor Market
https://www.fairfieldmarketresearch.com/report/automotive-rain-sensor-market
About Us
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.
Contact
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746
Web: https://www.fairfieldmarketresearch.com/
Email: [email protected]
This press release first seen on Brilad
COMTEX_440910062/2840/2023-09-25T13:12:25
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Smart Herald journalist was involved in the writing and production of this article.