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The automotive plastics market size is forecast to increase by USD 13.2 billion at a CAGR of 3.2% between 2023 and 2028. The market's growth hinges on rising demand for electric and hybrid vehicles, bolstered by environmental concerns and government incentives. Additionally, as automakers acquire automotive plastic companies, it fuels innovation and streamlines production processes. The automotive industry's robust growth further propels the market, driven by technological advancements and consumer preferences for fuel-efficient and eco-friendly vehicles. These factors collectively shape the trajectory of the automotive market, highlighting the pivotal role of electric and hybrid vehicles in shaping the future of transportation.
The market is experiencing significant growth due to the increasing demand for lightweight and fuel-efficient vehicles. Vehicles made with plastics offer several advantages, including reduced weight, improved fuel efficiency, and enhanced durability. Carbon fiber reinforced plastics (CFRP) and engineering plastics are gaining popularity in the automotive industry due to their high strength-to-weight ratio and excellent resistance to heat and chemicals. The market is segmented into different types of plastics, including polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), and polyurethane (PU). These plastics are used in various automotive applications, such as interior and exterior parts, engine components, and under-the-hood applications. Factors driving the growth of the market include increasing demand for lightweight vehicles, stringent emission norms, and the rising trend of electric and hybrid vehicles. Moreover, the market is witnessing significant investments in research and development to innovate new materials and manufacturing processes. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for electric and hybrid vehicles is a key factor driving the market growth. Increasing concerns about climate change and air pollution have led to a greater emphasis on reducing greenhouse gas emissions.
Furthermore, electric vehicles (EVs) offer a cleaner and more environmentally friendly alternative to traditional vehicles, as they produce zero emissions. Governments worldwide are providing incentives and subsidies to promote EV adoption, including tax credits, purchase subsidies, and preferential parking. The rising popularity of electric and hybrid vehicles has fueled the demand, particularly for lightweight components. This trend is expected to drive the growth of the market.
High demand for lightweight and fuel-efficient materials is the major trend in the market. One significant trend in the automotive industry is the increasing focus on lightweight vehicles to improve fuel efficiency and reduce emissions. Plastics play a vital role in achieving these goals as they are lightweight and can replace heavier materials such as metal. Manufacturers are using advanced plastics and composites to reduce vehicle weight without compromising safety standards and performance.
Furthermore, growing awareness of climate change and the need to reduce carbon emissions have influenced consumer preferences. Many consumers now prioritize vehicles that offer better fuel efficiency and emit fewer pollutants. Automakers are responding to this demand by incorporating lightweight materials and technologies to improve the fuel efficiency of their vehicles, which is expected to boost the market growth and trends during the forecast period.
Complex design and engineering is a major challenge hindering market growth. Modern vehicles require complex designs to incorporate advanced features, connectivity, and safety systems. Plastic components need to be designed and engineered to fit seamlessly within the vehicle structure and meet specific functional requirements. The design and development of molds and tooling can be time-consuming and costly. Complex geometries, intricate part features, and tight tolerances can increase the complexity of the tooling and production setup.
Overcoming the challenges associated with complex design, tooling, and assembly processes can be demanding, requiring advanced engineering capabilities and close collaboration between automakers and plastic suppliers. Complex plastic components often require specialized tooling and manufacturing processes. The high initial investment and long lead times associated with tooling for complex plastic components can discourage some manufacturers from adopting plastics in their designs, which may hurt the growth of the market during the forecast period.
The market is experiencing significant growth due to the increasing use of lightweight materials in vehicle production. Vehicles made with plastic components offer several advantages, including reduced weight, improved fuel efficiency, and enhanced safety standard features. The use of plastic in car parts, such as engine components, interior trims, and exterior body panels, is on the rise. New technologies, like electric and hybrid vehicles, are also driving the demand for automotive plastics. In particular, the electric vehicle market is expected to witness robust growth due to the increased use of plastic parts in battery enclosures and other components. The vehicle manufacturing industry in emerging economies, like China and India, is also contributing to the growth of the automotive plastics market. The market is expected to continue its upward trend, with a focus on innovation and sustainability in plastic production and usage.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The polypropylene segment is estimated to witness significant growth during the forecast period. Due to its advantageous properties and cost-effectiveness, polypropylene is a popular thermoplastic polymer in the automotive industry. Polypropylene is a light material that helps reduce the overall weight of a vehicle.
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The polypropylene segment was the largest segment and was valued at USD 23.10 billion in 2018. Polypropylene (PP) is a widely used thermoplastic polymer in the automotive industry due to its favorable combination of properties and cost-effectiveness. Polypropylene is a lightweight material that contributes to overall vehicle weight reduction. Replacing heavier materials such as metal, it helps improve fuel efficiency and reduce emissions, aligning with the industry's focus on lightweight materials. New vehicle sales continue to grow, leading automotive OEMs to prioritize lightweight for improved fuel economy and carbon emission reduction. Plastics, particularly Polypropylene (PP), are extensively used in vehicle parts, including interior components like instrument panels, door panels, consoles, and trims, and exterior and under-bonnet components. These materials offer design flexibility, impact resistance, dimensional stability, durability, and aesthetic appeal, aligning with environmental standards. Plastics are also employed in HVAC systems, air ducts, and other air management components.
Re-engineering of plastics, such as plastic separation and the use of PP resin, contributes to the industry's focus on powertrain systems and power systems in electric vehicles and gas alternatives. OICA reports show passenger car sales increasing, leading to a higher demand for plastic materials. IrgaCycle solutions and polymers like PP and Polyvinyl Chloride (PVC) are essential for comfort features and infrastructure development in the automotive sector. Injection molding technology advances the use of these polymers in vehicle manufacturing. Polypropylene is extensively used in the production of interior components such as instrument panels, door panels, consoles, and trims. It offers design flexibility, good dimensional stability, and resistance to wear and tear.
The vehicle type segment is classified into passenger vehicles, commercial vehicles, and electric vehicles. The passenger vehicle segment dominated the market in 2022. Plastics have become an integral part of the automotive industry due to their versatility, lightweight properties, and cost-effectiveness. The market experienced significant growth in 2022, with passenger vehicles leading the demand. Plastics, known for their versatility, lightweight properties, and cost-effectiveness, are integrated into various car components. These include exterior parts like bumpers, fenders, and hoods, as well as interior and engine components. The increasing use of plastics in automotive manufacturing is driven by factors such as fuel efficiency, fuel prices, and integration with design and safety standards. Advancements in plastic processing abilities and molding properties contribute to the market's expansion.
Production units of automakers comply with BS-VI norms and employ inventory systems to meet sales and purchase decisions. Plastics, such as Acrylonitrile Butadiene Styrene (ABS), Polypropylene (PP), Polyurethane (PU), Polyamide (PA), Polyvinyl chloride (PVC), and Polycarbonate (PC), are used extensively in automotive manufacturing. Latest trends include the integration of Automotive 3D Printing and 3D printing in vehicle manufacturing by companies like Daimler, XEV, and LSEV. Lightweight vehicles, adhering to safety regulations, are in high demand due to their reduced greenhouse gas emissions and the shift towards electric vehicles. However, safety issues and the use of metal components pose restraint factors. They are used in various components of passenger cars, ranging from exterior body panels to interior parts and engine components. The demand for passenger cars has been increasing steadily over the years. Plastics are extensively used in the manufacturing of bumpers, fenders, hoods, and other exterior parts due to their ability to absorb energy in the event of a collision, reducing the impact on passengers.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In 2022, APAC held the largest share of the market. China, India, Japan, and South Korea are just a few of the APAC nations that have made significant contributions to the demand. The production and sales of automobiles in China have significantly increased, making it the largest automotive market in the region. Automotive plastics are frequently used in electric vehicle components, so the Chinese government's efforts to promote them have also increased demand. Such factors will increase the market growth in this region during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Avery Dennison Corp. - The company offers plastic retainers, fasteners, and clips.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
AGC Inc., Avery Dennison Corp., BASF SE, Berghof GmbH, Borealis AG, BOS GmbH and Co. KG, Cascade Engineering, CIE Automotive SA, Compagnie de Saint Gobain, Covestro AG, Eastman Chemical Co., Evonik Industries AG, Nifco Inc., Nippon Steel Corp., Nolato AB, Novares, Polystar Technologies LLC., W. L. Gore and Associates Inc., Weber GmbH and Co. KG, and Yachiyo Industry Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The global automotive plastics market thrives in vehicle manufacturing, emphasizing reduced emissions and environmental sustainability through eco-friendly, recyclable plastic solutions. Polymer technology contributes to both interior aesthetics and meeting stringent environmental standards and governmental regulations on emission levels. The surge in electric cars, driven by concerns over petrochemical reserves, relies on skilled labor for production. Plastics market for passenger car with diverse properties, including thermoforming, play a pivotal role in meeting vehicle weight regulations and standardizing emission norms, aligning with EU initiatives.
The market is a significant segment in the global automotive industry, with Polypropylene, Polyvinyl Chloride, and Polymer Composites being key materials. These plastics are used extensively in various automotive applications such as car bodies, interior parts, and exterior components. Passenger cars and commercial vehicles are the primary consumers. Lrgacycle and average car are some of the leading players in the market. Fuel efficiency and lightweight properties are driving the demand. Furthermore, the increasing trend towards electric and hybrid vehicles is also expected to boost the market growth. Plastics such as Polystyrens, PVC, and Polymer Composites are used in the production of automotive batteries and fuel tanks. The market is expected to witness significant growth in the coming years due to the increasing demand for lightweight and fuel-efficient vehicles. Additionally, the growing trend towards sustainable manufacturing and the use of recycled plastics in automotive production is also expected to provide opportunities for market growth.
End-user concentration focuses on polypropylene resin, polyvinyl chloride (PVC), and injection molding, despite volatile raw material prices and environmental concerns. The applications in interior furnishing, body and light panels, seat covers, steering wheels, fascia systems, automotive electronics, average car dashboards,vehicle design and esthetics, and exterior furnishings. Polycarbonate caters to combustion engines, offering thermal insulation properties to combat wear & tear across various plastics grades and point-of-applications in the architecture & platform framework of automotive OEMs.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 13.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.1 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
China, US, Japan, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AGC Inc., Avery Dennison Corp., BASF SE, Berghof GmbH, Borealis AG, BOS GmbH and Co. KG, Cascade Engineering, CIE Automotive SA, Compagnie de Saint Gobain, Covestro AG, Eastman Chemical Co., Evonik Industries AG, Nifco Inc., Nippon Steel Corp., Nolato AB, Novares, Polystar Technologies LLC., W. L. Gore and Associates Inc., Weber GmbH and Co. KG, and Yachiyo Industry Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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