Automotive Bioplastic Market - Catalyzing the Shift towards a Fuel Efficient and Lightweight Future

Key Factors Molding Growth of the Automotive Bioplastic Market

Stringent Emission Norms

Bioplastic parts and components weigh a lot lesser than their metallic counterparts, hence, their usage in the construction of a vehicle leads to weight reduction, which is beneficial as it helps bring down fuel consumption and subsequently emissions. 

As per the data from the U.S. Energy Information Administration, the U.S. and Canada are ranked number two and seven, respectively, in terms of CO2 emissions, globally. Additionally, with respect to emission per capita, the U.S. is ranked number one among large economies. Consumers have become more aware of and proactive about climate change and global warming, as well as have to comply with stringent corporate average fuel economy regulations (CAFE); hence, they are increasingly focusing on vehicle maintenance. 

Burgeoning Sales of High-end Vehicles and Sports Cars

Europe is a lucrative market for the automakers, with Italy, Germany, the United Kingdom, and France being at the forefront. Automotive manufacturers in these countries are focused on rolling out mid-level to high-level variants, which take up a major share of the automotive bioplastic market. With high sales observed in such variants, it has become imperative that these models must incorporate high-end materials in their build, including bioplastic materials, as consumers place high focus on the quality and appeal of the vehicle.

Furthermore, consumers in the region are also concentrating on environmental sustenance, motivating a slight shift towards electric vehicles. High sales of electric vehicles coupled with growing focus on incorporating automotive bioplastic are some of the prime reasons driving the market growth. 

Lightweight Vehicles for Fuel Efficiency

Stringent emission standards in countries such as Germany, the U.S., Canada, the U.K., and Mexico, are compelling automotive builders to make fuel-efficient vehicles. To attain fuel economy, auto manufacturers are trying to reduce the weight of vehicles and their components, which will support the demand for light weight automotive brakes, such as carbon ceramic (CC) brakes. These brakes are comparatively light in weight and hence, improve the performance and durability of vehicles. 

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Automotive Bioplastic Market Structure Analysis

• The automotive bioplastic market is a moderately competitive and fragmented market across the globe.
• Strategies followed by key players in the automotive bioplastic market are expansion of business through partnerships, collaborations, and technological advancements.
• Advancements in automation and research have compelled manufacturers to manufacture advanced automotive bioplastic structures that are stronger than metal-based products.
• Increase in the number of luxury vehicles is a key trend observed in the automotive bioplastic market.

Automotive Bioplastic - An Alternative with a Future?

The automotive industry has been on a tear for years with fossil fuel becoming a dwindling resource, growing prominence of stringent emission regulations – especially in countries where implementation has been lax - and the rise of electric vehicles (EVs).

Over the years, increasing volume and reducing prices continued to influence the growth strategies of the industry, however, the volume is unlikely to grow steadily in the future amid wrenching changes in global economies and increasing focus on raising fuel efficiency. Today, cutting fuel consumption and emission by reducing vehicle’s weight is a prime objective and major challenge for the automotive sector.

With the emergence of ‘lightweight’ trend, plastics have continuously been used to substitute metals or heavier materials in vehicles. The automotive industry has, for now, escaped the scrutiny surrounding plastic pollution, and the search is on for alternative to conventional plastics. As a result, automakers are turning to ‘bioplastics’ with an aim to reducing products’ environmental impact, and stay ahead of the pack in the era of green technologies.

Exceeding Performance and Cost Parameters - Key Growth Influencer

Beyond the benefits of reduced weight, the future of the automotive industry lies choosing the most resource efficient material, and bioplastics – such as bio-based polyesters and bio-based polyamides – are well suited to contributing to the future. In recent times, bioplastics are finding diverse applications including automobile interiors, undercarriages, and even under the hood; the result is likely to lead to increased demand in the foreseeable future.

Moreover, the global automotive bioplastic market is set to record a value CAGR of ~11% in the next ten years, as per FMI’s study. The demand for automotive bioplastic is gaining further boost from its ability to reduce the dependency on limited fossil resource and minimize the environmental impact of car production by limiting energy use and CO2 emissions.

Bioplastic feedstocks include land-efficient annual crops (renewable resources) such as corns, castor oil plants, sugar beets, and switch grass, and it can also be derived from non-biodegradable polymers for use in durable applications. Innovations have been forthcoming in line with significant advancements in green chemistry to meet or exceed performance and cost parameters of conventional plastics.

Developed Nations - Ahead in the Game

Bioplastic is revolutionary material, changing how cars are made to align with global sustainability drive. Europe and North America and neck-and-neck in the automotive bioplastic industry, ranking relatively high in the field of research and development, as compared to other regions. These factors came into play when researchers in Eindhoven University of Technology, Netherlands developed the first car out of completely from bioplastics in June 2018.

With a growing number of raw materials, applications, and products, the number of manufacturers, converters, and end users are also increasing significantly in developed nations such as Japan. Moreover, Toyota, a Japanese carmaker, is the frontrunner in adopting bio-based plastic for its production process.

Stakeholders to Benefit from Rapid Replacement Rates of Conventional Plastics

The automotive bioplastic market shows a fair level of competition and fragmentation, with top ten players occupying half of the total revenue share. Considering the nature of the product and application, an embrace of R&D is underway among automotive bioplastic manufacturers to allow even more significant advantages than mere weight reduction.

While not necessarily biodegradable, automotive bioplastic can offer reduced life-cycle environmental impact and greenhouse gas (GHG) emissions. Further, owing to its resource, these bioplastics can provide possible hedge against the price volatility of the petroleum feedstocks used for conventional plastics, and help automakers fulfill increasingly stringent environmental regulations.

Several automotive components such as car seats made of polyurethane foam and PVC-based window seals, gaskets, and underbody protection are becoming important targets for replacement with bio-materials. Stakeholders active in the automotive bioplastic market are thus focusing on continuous advancements and innovations in new materials with improved properties and new functionalities.

How Growth Will Unfold

Automotive bioplastic is a key component of ‘bioeconomy’ - a novel concept of developing an entire economy based on renewable biological resources for sustainable production. For their growing technical applications, conventional automotive plastics are required to meet increasingly high standards, and bioplastics are no exception. In addition to technical complexity, there are plenty of room for improvement in barrier properties, durability, and compatibility with other polymers.

R&D initiatives are expected provide effective solutions and improve the current situation. Collaborations with ombudsmen and research institutes also remains a key focus of the market players to strengthen environmental claims made for their products and to maintain supremacy in the race of innovations.

Key Segment

Material Type

• Bio PA
• Bio PTT
• Bio PET
• Bio PBS
• Bio PP
• Bio PE
• Others

Application

• Exterior
• Interior
• Engine Surrounding
• Others

Vehicle Type

• Passenger Car
  • Compact
  • Mid-Size
  • Luxury
  • SUVs
• LCV
• HCV
• Electric Vehicles
  • BEV
  • HEV
  • PHEV

Region

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East and Africa
• Emerging Countries