Global Automotive Plastics Market by Application (Electrical Components, Interior/Exterior Furnishings, Powertrain), by Product (PC, PE, PU, PMMA, PP, PVC, ABS, PA) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global automotive plastics market was valued at USD 28.1 million in 2020. It is expected to grow at a compound annual rate (CAGR of 4.4%) between 2021 and 2028. The key factors driving the global growth of automotive plastics are recovery in the automotive industry, better vehicle design capabilities, increasing emphasis on vehicle weight reduction, emission control, and increased focus on vehicle weight, which all contribute to the overall market's success. Automotive parts and components are often made from plastics because of their ease of manufacturing, sourcing from renewable materials and better designs.

The most common materials used for vehicle parts are polypropylene (PP), polyvinyl chloride (PVC), Acrylonitrile butadiene styrene (ABS), PU (Polyurethane) and Polyvinyl Chloride. Plastics go through five stages during recycling: sorting, washing and shredding, identification and classification, extruding as the final product or component, and finally, extruding. High-performance automotive plastics have been made possible by improvements in recycling processes. An average car usually contains between 5.8 and 10% of plastics depending on performance standards and fuel efficiency. Vehicle equipment accounts for more than 110 to 120 kg.

This is due to the growing demand from consumers to purchase high-performance, lightweight and fuel-efficient cars. The demand for automotive plastics will continue to grow over the coming years. It is also cost-effective to reduce Greenhouse Gases (GHG) emissions, fuel consumption, and conserve non-renewable crude oils reserves. A 10% reduction in vehicle weight would increase fuel economy by 5 to 7 percent.

Polymerization of plastic monomers is done using chemical reactions and catalysts. They are then transformed into Polycarbonate, Polypropylene and Polyethylene (PP), Polyvinyl Chloride(PVC), Polystyrene and other polymerized materials. These materials have far superior properties than their monomers and are very stable and can be used in mold making and fabrication.

The design of a vehicle is crucial as it will be subject to many external forces and high impact. The materials used in vehicle production are crucial for safety and stability. They are generally cheaper than metals but their design parameters and manufacturing equipment can be very expensive. This will pose a problem for industry players.

Product Insights

The market leader in automotive plastics was the polypropylene segment, which accounted for more than 32.0% of the total revenue share. This is due to the increasing product demand from end-use sectors such as construction, electrical, and electronics, and automotive.

Because of its chemical and physical properties, polypropylene can be used in both rigid and flexible packaging. It is also very resistant to electrical and chemical attack at extremely high temperatures. PP is lighter than other plastics, making it ideal for automotive applications. This helps to reduce the vehicle's overall weight and fuel consumption.

In 2020, polyvinyl chloride was the second largest product segment. PVC can be used in many domestic and industrial products, including raincoats and shower curtains, window frames, indoor plumbing, and even indoor plumbing. PVC is used in many automotive applications, including underbody coatings and sealants, floor modules, wire harnesses and passenger compartment parts.

Process Insights

Injection molding dominated the automotive plastics market in 2020, accounting for more than 56.0% of the total revenue. This high share can be attributed to injection molding plastics being used in automotive manufacturing to make door handles, engine tubes and hoses, dashboard and console covers and brackets, radio covers, other electrical internal components, buttons, bezel panels, knobs for shifter switches, controls and covers to the sunroof and convertible roof assemblies.

Injection molding is one the most popular processes in the automotive industry for molding plastic. This is the process of injecting molten material under high pressure into a mold to create custom parts and fittings. Injection molding technology has become more important in mass production of complex plastic molds due to its ability to reduce error rates.

The blow molding process is widely used in the automotive sector. It allows for more complex products to be made in different shapes and designs that are not possible with other technologies. However, the final product cost will be significantly higher. This allows companies to increase production in a short time while still being flexible in design and materials. It has its limitations, such as the high cost of machines and the need to use large machines that take up space. This is why small-scale industries are advised to limit their use.

Application Insights

In 2020, the highest revenue share was attributed to interior furnishings. This segment dominated the automotive plastics market. It accounted for more than 44.0% of the total market. The market for automotive plastics is expected to grow over the forecast period due to increased demand in areas such as body and light panel, seat covers and steering wheels, load floors and headliners.

In order to support advanced electronics, digitalization has also prompted a demand for plastics that can be integrated into car dashboards. High electrical insulation properties and safety concerns have increased the demand for instrument panels with advanced electronic systems. PVC plastics are highly compatible with instrument panels and other electrical components because they have excellent chemical and solvent resistance, good tensile strength, and flexibility.

Regional Insights

Asia Pacific was the dominant market for automotive plastics in 2020, accounting for more than 45.0% of the total revenue. Market growth will be boosted by the shift in production from developed countries to emerging ones in Asia Pacific, especially in China, India and Thailand. The market for automotive plastics will benefit from an improved manufacturing base and increased investments in advanced technologies. APAC and Europe are very conscious about fuel efficiency. This has also fueled the demand for durable plastics.

Europe was the second largest market for automotive plastics, accounting for more than 31.0% of global revenue in 2020. High-performance plastics are being used by European automobile manufacturers as they are more energy-efficient and reduce the vehicle's weight. European automakers have had to switch from diesel engines to electric motors due to strict emission standards. This will also increase product demand during the forecast period.

Market Share Insights & Key Companies

Global players are in fierce competition with each other, as well as regional players with strong distribution networks and a good understanding of suppliers and regulations. The market is based on the quality of the products offered and the technology used to produce automotive plastics.

The application development capabilities and the new technologies used in product formulation are key factors that differentiate major players. BASF SE, an established player, is investing in research and development to create new advanced plastics for automotive industries. This gives them a competitive advantage over other players. BASF SE opened a new research center in Shanghai, China in March 2019. It has a dedicated automotive application center that will handle research and development activities for the automotive industry. This center will develop new products and meet increasing automotive demand. Due to the large number of global manufacturers, the market is fragmented. The following are some of the most prominent players in automotive plastics markets:

• BASF SE

• SABIC

• Dow Inc.

• AkzoNobel N.V.

• Covestro AG

• Evonik Industries AG

• Borealis AG

• Royal DSM N.V.

• Magna International, Inc.

• Teijin Limited

Up Market Research published a new report titled “Automotive Plastics Market research report which is segmented by Application (Electrical Components, Interior/Exterior Furnishings, Powertrain), by Product (PC, PE, PU, PMMA, PP, PVC, ABS, PA), By Players/Companies Teijin Limited, Royal DSM NV, SABIC, Covestro AG, Magna International Inc, AkzoNobel NV, BASF SE, Evonik Industries AG, Dow Inc, Borealis AG”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Automotive Plastics Market Report Segments:

The market is segmented by Application (Electrical Components, Interior/Exterior Furnishings, Powertrain), by Product (PC, PE, PU, PMMA, PP, PVC, ABS, PA).

Automotive Plastics Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Automotive Plastics Market

Overview of the regional outlook of the Automotive Plastics Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Automotive Plastics Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Automotive Plastics Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Electrical Components

                2. Interior/Exterior Furnishings

                3. Powertrain

                1. PC

                2. PE

                3. PU

                4. PMMA

                5. PP

                6. PVC

                7. ABS

                8. PA

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Automotive Plastics Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Automotive Plastics Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.