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Automotive Plastics Market

Automotive Plastics Market By Product Type (Polypropylene (PP), Polyurethane (PUR), Acrylonitrile Butadiene Styrene (ABS), Polyvinyl Chloride (PVC)), Application (Interior Components Exterior, Components & Frame), End Use (Conventional Vehicles, Electric Vehicles ) & Region – Forecast 2021 – 2031

Automotive Plastics Market By Product Type (Polypropylene (PP), Polyurethane (PUR), Acrylonitrile Butadiene Styrene (ABS), Polyvinyl Chloride (PVC)), Application (Interior Components Exterior, Components & Frame), End Use (Conventional Vehicles, Electric Vehicles ) & Region – Forecast 2021 – 2031

Automotive Plastics Market - Analysis, Outlook, Growth, Trends, Forecasts

Automotive Plastics Market Outlook 2021- 2031

The global automotive plastics market is expected to register year-on-year (Y-o-Y) growth of 5.6% in 2021 to total 40,941.0 Kilo Tons. The conventional vehicle segment is anticipated to grow at 5.6% to reach 39,596.9 Kilo Tons, while the demand in the electric vehicle segment is expected to be up by 6.2% to reach 1,344.1 Kilo Tons.

China is forecast to emerge as an attractive market for automotive plastics, accounting for about 69% of the overall automotive plastics sales in East Asia in 2021. Increasing investments in the production of new automotive units to cater the surging demand are expected to enable growth in the global automotive plastics market over the assessment period.

Key Points Covered in Automotive Plastics Market Survey

  • Automotive plastics market estimates and forecast 2016-2031
  • 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

2016-2020 Automotive Plastics Market Outlook Compared to 2021-2031 Forecast

Automotive plastics not only make the vehicle lightweight, but also add to the value by replacing conventional metallic parts & components with advanced lightweight materials. Owing to these benefits, demand for automotive plastics is anticipated to rise at a significant pace over the assessment period.

During the historical period 2016 to 2020, the global automotive plastics market expanded at a stagnated 0.20% CAGR. Sales prospects of automotive plastics were dampened to an extent due to the COVID-19 outbreak. Suspended production in the automotive industry resulted in lower consumption of automotive plastics.

However, FMI projects recovery of the automotive plastics sales, with the market benefitting from replacement and aftermarket installation of automotive components. This will provide growth opportunities for new entrants as well as for established players in the market.

Plastics are being widely adopted in the automotive industry for their benefits such as high- quality, lightweight structure and durability. These factors are driving their applications in vehicle seats and dashboards, thereby improving the comfort of drivers and passengers.

Considering this, FMI has projected the automotive plastics market to grow at a steady CAGR of 6.9% during the forecast period 2021-2031.

Growing Demand for Fuel-Efficient Vehicles to Boost Automotive Plastics Sales

Stringent government regulations regarding disposal methods, manufacturing parameters and product safety standards are ushering developments in the automotive plastics market. Growing concerns for emission control in various countries are compelling market players to incorporate lightweight components in vehicles to reduce the overall weight, which is driving sales of automotive plastics.

Increasing regulatory pressure to develop vehicles that are more fuel efficient is influencing the sales prospects of automotive plastics. Demand for lightweight and fuel efficient vehicles across the globe is propelling the consumption of automotive plastics.

In response to this, key players in the market are developing application specific material types with specialty formulations to benefit from this shift towards higher plastics consumption in the automotive sector.

What Is the Impact of COVID-19 Crisis on Automotive Plastics Market?

The global economy has witnessed slowdown last year owing to COVID-19 impact. Consequently, restrictions on movement have resulted in the decrease of trade activities, which has hampered the global supply chain for all kinds of products.

The automotive sector is one of most affected sectors due to the COVID-19 outbreak, as movement restrictions and work from home routines decreased demand for new vehicles as well as aftermarket spares.

However, the automotive sector is expected to post healthy recovery in the year 2021, although reaching pre-pandemic status would still take some time. Nonetheless, this will enable higher opportunities for automotive plastic sales in comparison to that registered in the last five years.

Automotive Plastics Market - Country-wise Insights

Why the U.S. is Exhibiting High Demand for Automotive Plastics?

As per FMI’s analysis, the U.S. market for automotive plastics to slated to grow by 5.6% year-over-year over the forecast period. Growing demand for lightweight vehicles across North America is anticipated to continue fueling sales of automotive plastics in the forthcoming years.

Despite plummeting automotive sales due to COVID-19, steady demand from aftermarket is anticipated to keep the market for automotive plastic afloat.

In addition to this, total sales of conventional and electric vehicle in the U.S. reached 16.6 Mn in January 2021, as compared to 16.3 Mn in December 2020. This is indicative of lucrative growth prospects for key market players in the U.S.

Will India Emerge as an Attractive Automotive Plastics Market?

Across South Asia, India is one of the leading passenger vehicle manufacturing hubs, which makes it a lucrative market for automotive plastics. As per the Society of Indian Automobile Manufacturers (SIAM), total sales of passenger vehicles in India increased by 11.4% in January 2020, despite pandemic and supply chain challenges.

This also had a positive impact on the sales of automotive plastics, which continued increasing at a steady pace in India.

How Will the Automotive Plastics Market Expand Across China?

Rising demand for premium cars and aesthetically pleasing car interiors in China is driving sales of automotive plastics. China is expected to be one of the key manufacturers and consumers of automotive plastics, accounting for about 69.0% of the East Asia automotive plastics market in 2021.

China is the most populous country in the world which also results in the high sales of new vehicles, as well as a significant fleet of on-road vehicles. These factors offer a conducive environment for sales of automotive plastics in China.

What will be the Demand Outlook for Automotive Plastics in Japan?

In Japan, demand for customized automotive interior components is increasing, which in turn is boosting sales of automotive plastics. Growing popularity of lightweight automotive interior components, driven by need for better fuel efficiency in vehicles will continue fueling sales of automotive plastics in Japan.

Besides this, presence of key automotive manufacturers such as Toyota and Nissan in the country is anticipated to bode well for the automotive plastics market in Japan.  

Automotive Plastics Market - Category-wise Insights

Demand for Polypropylene to Continue Rising

Based on material type, polypropylene is anticipated to dominate the market, accounting for about 26.6% the overall automotive plastic consumption. The segment is expected to grow consistently over the forecast period owing to stable production, supply, availability, and favorable characteristic compared other polymers. Its economical price range also makes polypropylene a material of choice in the market for many applications.

Interior Components to Emerge as Primary Automotive Plastics Application

In terms of applications, the interior components segment is expected to command 63.1% of the total automotive plastics market share. Backed by increasing demand for aesthetically pleasing interior components in vehicles, sales of automotive plastics are anticipated to continue rising during the assessment period.

Sales of Automotive Plastics for Conventional Cars to Remain High

Based on end-use, revenues in the conventional car segment are expected to grow by 6.3% year-over-year in 2021. Demand for automotive plastics in the  passenger car segment is anticipated to increase by 6.9% between 2020 and 2021, giving the combined automotive plastics market year over year growth of 6.8% in 2021, finds FMI.

Rising demand for fuel efficiency, greater comfort, and sustainable materials for automotive components are key factors driving the adoption of automotive plastics in the conventional cars segment.

Automotive Plastics Market - Competitive Landscape

Key players in the global automotive plastics market are focusing on research and development to create lightweight materials for the automotive components. Players are expanding their production capacities by commissioning new production units especially in the emerging economies. Besides this, mergers acquisitions and strategic collaborations are anticipated to assist automotive plastics players to improve sales in the forthcoming years. For instance:

  • In March 2018, Lyondellbasell introduced the Advanced Polypropylene (PP) compound, which can be used in making high quality surfaces in automotive exteriors & interiors designs. The company presented this compound in the Automotive Engineering conference held in Netherlands in 2018.
  • In 2018, Du Pont launched a new product called Crastin, a thermoplastic PBT resin for applications in electric and hybrid-electric vehicle. These resins are ideal for high-voltage connectors.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value and Kilo Tons for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, the Middle East and Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, South Africa, North Africa

Key Segments Covered

Material type, Applications, End Use and Region

Key Companies Profiled

  • LyondellBasell Industries Holdings B.V
  • Evonik Industries
  • BASF SE
  • Arkema Group
  • DuPont de Nemours, Inc.
  • The Dow Chemical Company
  • Hexion Inc.
  • Momentive Performance Materials
  • Hanwha Group
  • Saudi Basic Industries Corporation (SABIC)
  • Formosa Plastics
  • Sumitomo Chemical Co., Ltd.
  • Mitsui Chemicals, Inc.
  • Zoltek
  • Covestro AG
  • Eastman Chemical Company

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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Automotive Plastics Market by Category

By Material Type:

  • Polypropylene (PP)
  • Polyurethane (PUR)
  • Acrylonitrile Butadiene Styrene (ABS)
  • Polyvinyl Chloride (PVC)
  • Polyethylene (PE)
  • Polystyrene (PS)
  • Polycarbonate (PC)
  • Polyamide (PA)
  • Acrylic (PMMA etc.)
  • Plastic Composites
  • Others

By Application:

  • Interior Components
  • Exterior Components & Frame

By End Use:

  • Conventional Vehicles
    • Passenger Cars
    • Light Commercial Vehicles
    • Heavy Commercial Vehicles
  • Electric Vehicles
    • Pure Electric
    • Hybrid Electric

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia Pacific
  • Middle East

Key Questions Answered in the Report

What is the current automotive plastics market value?

The automotive plastics market reached a valuation of US$ 61.58 Bn in 2021.
The automotive plastics market registered growth at 0.20 CAGR between 2016 and 2020.
Increasing demand for lightweight components in automotive vehicles, coupled with rising sales of electric and hybrid-electric vehicles across the globe are anticipated to drive automotive plastics sales over the forecast period.
Leading players operating in the automotive plastics market include BASF SE, SABIC, Dow Chemical Company, DuPont and Lyondellbasell.
North America automotive plastics market is projected to grow at a healthy 6.30% CAGR during the forecast period.
Leading players in the global automotive plastics market are estimated to account for 45% of the total market share.
The automotive plastics market in Europe is anticipated to expand at a 7.0% CAGR between 2021 and 2031.
Japan and South Korea are anticipated to hold 6.3% and 6.5% of the global automotive plastics market share respectively.

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