BRIC Automotive Plastics Market

Automotive Plastics Market: BRIC Industry Analysis and Opportunity Assessment 2015 - 2020

  • 2015-07-30
  • REP-BR-81
  • 180 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Bric Automotive Plastics Market

This study offers a comprehensive, 360 degree analysis on the Bric Automotive Plastics market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Bric Automotive Plastics market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Automotive plastics are used to manufacture various components such as lighting system, seating system, auto carpet and bumper. Versatile properties of plastics such as easy moldability, scratch resistance, thermal stability, impact strength and resistance to abrasion give it an edge over other materials, especially in manufacture of automobile components. Apart from this, reduction in manufacturing cost, durability and toughness of plastics have encouraged automotive manufacturers to increase its application in doors, bumpers, fenders and other automotive components. All these components are used in three major applications, namely, exterior, interior and under bonnet. The BRIC automotive plastics market was valued at US $ 11,244.4 Mn in 2014 and is projected to expand at a CAGR of 15.4% during the forecast period (2015–2020).

Drivers & Trends

The growth of BRIC automotive plastics market is driven by various factors such as growing demand for passenger vehicles, rising export of automotive plastics components and stringent government regulation norms to control vehicular emission. For instance, in India, by the end of 2015, the Bharat stage-IV vehicle emission and fuel quality standards is expected to be implemented in 50 major cities. BS-IV+ is expected to be enforced by 2017. These norms are expected to push automotive manufacturers to produce lightweight vehicles with higher adoption of plastic components. Though the market is promising in terms of return on investment (ROI), patents and regulatory hurdles along with global shift towards bio-based plastic material might pose a challenge to the BRIC automotive plastics market.  The BRIC automotive plastics market is highly fragmented with multiple domestic and global leader participants.  Recently, the Indian government announced “Automotive Mission Plan (AMP) II, 2016-26” under the Make in India campaign, which is expected to be implemented by mid-2015. This plan focuses on development of auto parks, establishment of advanced automotive training institutes and auto design centres across the country. Additionally, by mid-2016 the proposed plastic park at Dahej, Gujarat is expected to become operational, which would offer tax benefits on exports and imports of plastic materials and capital goods. These factors are collectively driving growth of the BRIC automotive plastics market.

Market Segmentation

The BRIC automotive plastics market is categorically split under the following five segments: market analysis by distribution channel, vehicle type, application, product type and region. The distribution channel segment includes OEMs and aftermarket; vehicle type segment includes passenger vehicle and commercial vehicle; application type segment is classified into interior, exterior and under bonnet. Also, material types is further segmented into polypropylene (PP), polyurethane (PU), polycarbonates (PC), polyvinyl chloride (PVC), acrylonitrile butadiene styrene (ABS) and others (includes various plastics such as polyamide (PA), polyphenylene ether (PPE), polymethyl methacrylate (PMMA), polybutylene terephthalate (PBT). Furthermore, the mentioned segments are split under Brazil, Russia, India and China.

BRIC Automotive Plastics Market Analysis, By Application Type

Interior application was the largest segment in 2014 and accounted for revenue share greater than collective share of the exterior and under bonnet application segments. 

BRIC Automotive Plastics Market Analysis, By Product Type

Among plastic material types, polypropylene (PP) held the largest share in terms of consumption, account for 31% market share, followed by polyurethanes (PU), acrylonitrile butadiene styrene (ABS), and polycarbonates (PC), due to their various properties such as easy moldabilty and lightweight as compared to metals. PP segment is projected to dominate the BRIC automotive plastics market throughout the forecast period due to increasing penetration of premium segment cars, whilst ABS is expected to register the highest CAGR among all other plastic material due to its increasing application in vehicle interiors.

BRIC Automotive Plastics Market Analysis, By Distribution Channel Type

By distribution channel type, original equipment manufacturers (OEMs) is anticipated to be the largest segment, while the aftermarket segment is expected to expand at a double-digit CAGR over the forecast period. Growth of the aftermarket segment in the BRIC automotive plastics market is fuelled by replacement of old and damaged parts and increasing number of vehicles in operation due to increasing cab/rental car services in the region.

BRIC Automotive Plastics Market Analysis, By Region

The automotive plastics market is expected to expand significantly in BRIC region, with China projected to dominate the market during the forecast period. The Russia automotive plastics market is expected to account for US$ 2,888 Mn by the end of 2020, while the India automotive plastics market is anticipated to expand at a CAGR of 14% over the forecast period.

BRIC Automotive Plastics Market

Source: FMI, 2015

This Future Market Insights Report examines the ‘Automotive Plastics’ market for the period 2015–2020. The primary objective of the report is to offer insights about the market and potential market opportunities in the BRIC automotive plastics market. The usage of plastic components in automobiles is increasing at considerable pace across the globe.

Automotive plastics are used to manufacture various components such as lighting system, seating system, auto carpet and bumper. Versatile properties of plastics such as easy moldability, scratch resistance, thermal stability, impact strength and resistance to abrasion give them an edge over other materials which make them suitable for use in manufacturing of automobile components. Apart from this, reduction in manufacturing cost, durability and toughness of plastics have encouraged manufacturers to increase usage of plastics in various components such as doors, bumpers, fenders and others. All these components are used in three major applications, namely, exterior, interior and under bonnet.

To understand and assess opportunities in this market, the report is categorically split under five sections, namely, market analysis by channel, vehicle type, application, product type and region. The report analyses the BRIC automotive plastics market in terms of market value (US$ Mn) and volume (Thousand Tonnes)

The report starts with an overview of the automobile sector output across the globe and BRIC region. In the same section, FMI covers the automotive plastics market performance in terms of consumption and revenue. This section also includes FMI’s analysis of key trends, drivers and restraints from supply and demand perspectives. Impact analysis of key growth drivers and restraints based on weighted average model included in the report better equips clients with detailed insights about the market.

The next section of the report analyses the market on the basis of channel, and presents the forecast in terms of volume and value for the next ten years. Channel segment covered in the report include:

  • OEMs
  • Aftermarket

The next section of the report analyses the market on the basis of vehicle type, and presents the forecast in terms of volume and value for the next ten years. Vehicle type covered in the report include:

  • Passenger
  • Commercial

The next section of the report analyses the market on the basis of application type, and presents the forecast in terms of volume and value for the next ten years. Application type covered in the report include:

  • Interior
  • Exterior
  • Under Bonnet

The section that follows analyses the market on the basis of material type, and presents the forecast in terms of volume and value for the next ten years. Material types covered in the report include:

  • 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))

The next section of the report analyses the market by region, and presents the forecast in terms of volume and value for the next ten years. Regions covered in the report include:

  • Brazil
  • Russia
  • India
  • China

To calculate market size, the report considers average plastics components per vehicle across BRIC countries. Furthermore, data points such as regional split and market split by application, material type and qualitative inputs from primary respondents have been incorporated to arrive at apt market estimates. The forecast presented here assesses the total revenue as well as volume of plastics components. When developing the forecast of the market, the starting point is sizing the current market, which forms the basis for the forecast of how the market is anticipated to take shape in the near future. Given the characteristics of the market, we triangulated the outcome based on different analysis based on supply side, demand side and dynamics of BRIC automobile (parent) market. However, quantifying the market across aforementioned segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed.

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse the market on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the automotive plastics market.

As previously highlighted, the market for automotive plastics is split into various sub-categories based on region, material type and application. All these sub-segments/categories have been analysed in terms of basis point share (BPS) to understand individual segments relative contribution to growth. This detailed level of information is important for identification of various key trends in the BRIC automotive plastics market.

Also, another key feature of this report is the analysis of automotive plastics market by region, material type, channel type, vehicle type and application and its revenue forecast in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute $ opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the BRIC automotive plastics market.

Furthermore, to understand key growth segments in terms of growth & performance of automotive plastics, Future Market Insights developed market attractiveness index. The resulting index should help providers identify real market opportunities.

In the final section of the report, BRIC automotive plastics market landscape is included to provide report audiences with a dashboard view, based on categories of providers across the value chain, presence in automotive plastics product portfolio and key differentiators. Few of the market players featured in the section include:

  • BASF SE
  • Dow Chemical Co.
  • Braskem
  • Reliance Industries Limited
  • Faurecia Pvt. Ltd.
  • Lear Corporation
  • Johnson Controls, Inc.
  • Visteon Corporation
  • Magna International Inc.
  • Bayer AG

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