Automotive Plastics Market

Key Points Covered in Automotive Plastic Market Survey

• Market estimates and forecast 2015-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Automotive Plastics Market and How to Navigate
• Recommendation on Key Winning Strategies

2021 – 2031 Automotive Plastics Market Future Outlook Brighter In Comparison To 2016 – 2020 Historic Growth

According to the report by Future Market Insights, the growing demand for reducing curb weight of automobile has fueled the demand for automotive plastics across the globe. Lighting system, seating system, auto carpet, and bumpers of luxury and mid-range cars are made from automotive plastics.

Automotive plastics are scratch resistant, stable at elevated temperature, has high impact toughness and high resistance to abrasion. They are also easy to manufacture and highly moldable over metals like aluminum and steel.

Low manufacturing cost and versatile properties of plastics are making it an ideal choice for manufacturing of doors, bumpers, fenders and other automotive components.

The leading market growth drivers are high demand for passenger cars, flourishing automotive export sector and strict government regulation norms to control vehicular emission and reduce the green house effect.

Furthermore, growing consumer inclination towards passenger cars with a stunning aesthetics and better aerodynamic shape is causing manufacturer to incorporate advanced plastic which are easier to mould to desired shape than other materials into interior and exterior designing of the vehicle.

With surge in demand for better mileage without compromising the performance of the vehicle, market players are developing and designing plastic made lightweight automotive components, to improve appearance, functionality, and safety of the car.

In the future, the market is anticipated to grow significantly, as manufacturers are switching towards automotive plastics for making chassis and other parts. BRIC nations are will offer high growth opportunities, contributing towards the overall expansion of the market.

How Are Changing Emission Norms Affecting Automotive Plastics Market?

Bharat stage-VI vehicle emission and fuel quality standards were enforced across India, at the start of 2020. The emission norms were fast tracked due to worsening air pollution in national capital Delhi and neighboring regions.

These updated emission norms compelled the automotive manufacturers towards vehicle weight reduction leading to higher adoption of plastic components. This will create favorable condition for automotive plastics market growth.

The global transition towards bio-plastics and recycling along with fluctuating policies and patenting will hamper the market growth during the upcoming decade.

European Union and its members are proposing to announce European Stage-VII vehicle emission and fuel quality standards in 2021. ES-7 is expected to be enforced by 2025.

These new norms will reduce air pollution in Europe along with limiting the climate change. It will also lead to production of lightweight plastic components. This will accelerate the automotive plastics market demand.

Need For Emission Reduction Fuels the Adoption of Automotive Plastic Products

Automotive manufacturers are prioritizing towards reducing carbon emission by automotive mass reduction approach. The plastic components can reduce the overall curb weight of the vehicle as they are lighter in weight than aluminum.

Higher fuel efficiency can be achieved by reducing curb weight leading to lower CO₂ emission. It has been reported that 10% weight reduction can lead to around 4% of fuel savings.

Heightened demand for lightweight components by OEMs and high vehicle production rate is fueling the demand for automotive interior plastic component market.

With strict government regulations towards environmental safety, every material in vehicle design phase is evaluated by design engineers.

Metals are cheaper than automotive plastics but are less effective in mass reduction, accelerating the automotive plastics market demand.

Country-wise Analysis

How is The Automotive Plastic Market expanding in the Brazil?

The automotive plastics market in Brazil is expected to excel during the forecast period due to growing demand for light weight, high mileage vehicles across the country. The aftermarket for new and upgraded automotive components is thriving in Brazil with flourishing cab services and increase in number of operating vehicles.

The Federal Government of Brazil launched “INOVAR AUTO” programs aimed at improving benefiting the automotive industry in Brazil. This new program is expected to boost the use of automotive plastics. OEMs are switching towards advance plastic material for product manufacturing due to its ease of operation, superior mouldability, no weathering characteristics.

The demand for advanced plastic material made augmented products such as a navigation panel and rear vehicle infotainment system in mid range passenger cars will drive the automotive plastics market in Brazil.

Stringent regulatory policies and rule implemented by government to curb the vehicular emission is motivating OEMs to incorporate advance automotive plastic material for making under the bonnet components.

Several leading organizations are investing in research and development to offer novel technologies for reducing carbon foot print. Initiative promoting the use of automotive plastics for emission reduction will create attractive opportunities for the market in the coming years.

Why Is Demand for Automotive Plastics Surging In Russia?

According to the press release issued by Association of Russian Automakers, total automotive sales were up by 22.1% year-on-year in January-April 2021. The report also mentioned that around 168,122 passenger cars were sold in April 2021.

Rapid advancement in the electric vehicle section along with growing government initiative towards reducing carbon emission will boost the automotive plastics market in Russia during the forecast period.

Automotive manufacturers are inclining towards automotive plastics in their interior and exterior design due to strict regulations regarding carbon emissions in Russia. The carbon emission reduction is possible by incorporating turbo-charging, aerodynamic designing, and introduction of plug-in hybrid, and fuel cell systems in automobiles

Advanced plastic materials are being extensively used for modifying engine design, power-train and power systems, and components which require high precision and have complexity.

European Stage-V vehicle emission and fuel quality standards were implemented in Russia in 2014. These new norms pushed automotive manufacturers towards producing lightweight vehicles with higher adoption of plastic components. This accelerated the automotive plastics market demand.

Rising incorporation of carbon fiber polymers for interiors and exterior parts of luxury car will also promote the automotive plastics market demand.

Increasing disposable income and thriving luxury car market in Russia will offer lucrative market growth opportunities over the next decade.

How Lucrative Is The Growth Opportunity In The China?

According to a report published by China Association of Automobile Manufacturers (CAAM), sales of passenger cars in China experienced 10.8% year-on-year as of April 2021. Report also states that commercial vehicle segment also experienced 2.3% year-on-year growth in terms of sales.

Booming passenger vehicles segment will increase the demand for automotive plastics for making interior, exterior and under the bonnet components.

Rapid development and modernization of automotive industry in China will create novel market growth opportunities.

As per China Association of Automobile Manufacturers, around 117,000 passenger cars and 34,000 commercial vehicles were exported from China in April 2021.

Increase in export of automotive vehicles from the country will positively influence the automotive plastics market growth.

The government of China is promoting the adoption of new-energy vehicles (NEVs) with the mission to reduce high emissions from petrol as well as gas engines.

According to the data published by China Association of Automobile Manufacturers, 193,000 new energy passenger vehicles and 13,000 new energy commercial vehicles were sold in China in April 2021.

High tax exemption for customers buying new energy vehicles will increase the aftermarket sales leading to heightened demand for automotive plastics in China.

What Factors Are Driving The Adoption Of Automotive Plastics In India?

As per Indian Brand Equity Foundation (IBEF), passenger vehicles sale grew by 17.92% in February 2021 when compared with sales in February 2020. Rise in production of passenger cars will increase the consumption of automotive plastics for manufacturing the interiors and exterior components of the vehicle.

According to Federation of Automobile Dealers Associations (FADA), passenger vehicle (PV) sales in December 2020 registered around 24% growth over PV sales in December 2019. The rising popularity of passenger vehicles in India will fuel the automotive plastics market growth.

India also offers a very lucrative after sales markets as new vehicles sales sky rocketed as government abolished the Goods and Services Tax (GST) and reintroduced Sales and Services Tax (SST) on 1 September 2018.

Increased consumer spending on luxury cars due to rise in per capita income and growing demand for better interiors will boost the automotive plastics market growth in India throughout the assessment period.

Rising population in India will elevate the demand for vehicles in upcoming years. Aftermarket car sales are expected to increase further accelerating the automotive plastics market demand in the country.

 The Indian government also implemented “Automotive Mission Plan (AMP) II, 2016-26” under the Make in India campaign in 2015. The campaign aimed at development of auto parks, Starting advanced automotive training institutes and automotive 3D design centers across the country.

Favorable foreign direct investment policies is attracting major global car manufacturers to setup their manufacturing and assembly plants in India. This will create novel growth opportunity for automotive plastics market. 

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Category-wise Insights

Which is the top-selling product type?

Demand for automotive plastics especially polypropylene plastics (PP) is anticipated to be relatively high as it is easy to mold and light weight. Increasing demand for luxury vehicles in BRIC countries will increase the market sales.

Even thought PP will dominate the market sales, acrylonitrile butadiene styrene (ABS) market is forecast to expand at higher rate due to its increased application in vehicle interior design.

How Is Growing Rental Service Industry Affecting The Automotive Plastics Aftermarket Sales?

Rising digitization and convenient online booking assisted in cab/rental car services growth in the region. This fueled the number of vehicles in operation and increased demand for replacement of old and damaged parts of the vehicle. These factors supported the growth of aftermarket automotive plastics sales.

How Are Interior Designing Of Passenger Vehicles Stimulating Automotive Plastics Demand?

Automotive plastics are an integral part of the interior design of a passenger car as it serves wide range of purposes. For instance, they make the automobile light weight resulting in reduced carbon emission rate and elevated mileage. They also improve the aesthetics of the car thereby driving the automotive plastics market.

Automotive Plastics Market – Competitive Landscape

According to FMI, automotive plastics market is dominated by regional players with stable supply chain and excellent knowledge of regulations. Market leaders operating in automotive plastics market are focusing towards employing organic market strategies to consolidate their market position.

They are also looking towards developing innovative products and improve value chain. Manufacturers are also participating in strategic collaboration with distribution channels especially regional to cater increasing customer demands.

Organic strategies include new product development and extensive research and development for product portfolio expansion and gain a competitive edge over their rival companies.

Some market players are employing strategic merger and acquisition and forming an alliance with regional distributors to strengthen their supply chain channels.

For instance:

• BASF SE opened a new research and development center in Shanghai, China, in March 2019. This special automotive application center is capable of automotive handling research and development activities. The center is aimed at faster development of innovative products and to cater the rising demand from various interior and exterior automotive applications.

Automotive Plastics Market - Report Scope

Key questions answered in the report

• What is automotive plastics market size?

  Fueled by increasing demand for light weight vehicle body to reduce carbon emission, the automotive plastics market size is forecast to reach US$ 9.6 Bn in 2021.

• At what rate did the automotive plastics market expand in the last five years?

  Between 2015 and 2020, the automotive plastics sales soared at a 3% CAGR. The growth was driven by low manufacturing cost of the plastic components and better mechanical properties offered by plastics.

• What are the key trends shaping the automotive plastics market?

  Consumer inclination towards electric and new energy vehicles along with enactment of stringent emission laws to tackle the rising global warming will positively influence the automotive plastics growth.

• What are the key factors driving automotive plastics market demand?

  Mounting pressure from international organizations to reduce environment pollution and increasing demand of passenger cars among middle class population as a result of growing purchasing power will accelerate the automotive plastics market demand.

• What is China’s automotive plastics market outlook?

  Demand registered in China will continue rising, backed by increasing production of vehicles and easy availability of cheap and skilled labors; China is expected to register growth at 9.8% CAGR throughout the forecast period.

• Who are the leading companies in automotive plastics market?

  BASF SE, Du Pont, LyondellBasel, Covestro AG, SABIC, Borealis AG, China XD Plastics Company Limited, Shanghai PRET Composites Co., Ltd. are some of the top companies operating in the market.

• What is the cumulative share of leading companies in automotive plastics market?

  Top market players account for nearly 55% of the automotive plastics market.

• At what rate will automotive plastics sales increase in India?

  Automotive plastics sales will increase at 12.50% CAGR in India, backed by rising demand of luxury and passenger cars in the country.

• Which are countries are leading the production and export of automotive plastics?

  China and India are the leading producers of automotive plastics while China continues to lead the automotive plastics export.

• What are the key statistics for automotive plastics market in Brazil and Russia?

  Brazil and Russia cumulatively held around 30% of the overall automotive plastics market in 2020.

Enquiry before Buying

• Is the market research conducted by Future Market Insights?

  Yes, the report has been compiled by expert analysts of Future Market Insights, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

• What research methodology is followed by Future Market Insights?

  FMI follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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Key Segments Covered

By Channels:

• OEMs
• Aftermarket

By Vehicle:

• Passenger
• Commercial

By Application:

• Interior
• Exterior
• Under Bonnet

By Material:

• Polypropylene (PP)
• Polyurethane (PU)
• Polycarbonates (PC)
• Polyvinyl chloride (PVC)
• Acrylonitrile butadiene styrene (ABS)
• Others (includes various plastics such as polyamide (PA), polyphenylene ether (PPE), polymethyl methacrylate (PMMA), polybutylene terephthalate (PBT))

Key Regions Covered:

• Brazil
• Russia
• India
• China