Automotive Plastics Market - Global Industry Analysis (2018 - 2021) - Growth Trends and Market Forecast (2022 - 2026)

Thermal insulation and noise reduction techniques used in automotive plastics-based automobiles enhance their resilience and add safety quotient to the cars. Amplified demand for vehicle electrification, lightweight materials, and burgeoning sales are all steepening the growth curve of the automotive industry. Projection over the horizon of the next 5 years points toward sales of 100 million units, leading to a 5% market expansion. That said, the global automotive plastics market is primed to witness substantial growth in years to come. Recently, concerns around the performance, safety, and functionality of automobiles have been on the rise.

A well-built and robust frame is at the heart of an automobile’s credibility and is often considered a key performance indicator.  In this context, automotive plastics have been experiencing major shifts in demand. This can be ascribed to their resilience against corrosion, optimal space utilisation capabilities, and operational flexibility. In addition to this, automobiles utilising plastic-based parts are lightweight, which maximises fuel efficiency, curtailing fuel usage by 7% to 8%. Having surpassed the revenue worth US$ 48.7 Bn in the year 2018, the automotive plastics market is on track to exceed US$ 68.6 Bn by the end of 2026. Fairfield Market Research anticipates stellar growth during the projection years of 2022 and 2026, maturing at a CAGR of 7.7%.

Trends in Global Automotive Plastics Market

• Electronic and light under the hood exterior are major end-user segments in the global market. And, the interior application segment is set to acquire a major market share, acquiring US$14.7 Bn worth, in 2020
• Polypropylene (PP) was the most coveted automotive plastic in 2020 and expects an overall valuation to reach US$13.5 Bn by 2026
• The use of plastics in automobiles is trailing the way for innovations in the domain of vehicle electrification and the development of autonomous cars

Consumer Preference to Lightweight, and Fuel-Efficient Vehicles and Net-Zero Targets Set by Government Bodes Well for Automotive Plastics Market

Automotive plastics find their application in the interior and exterior parts of automobiles. lighting, upholstery, interior trims, under-the-hood components, fuel system, dashboards, bumper, exterior parts, and instrumental panels are a few prominent use cases of these plastics. Such applications promote greater resistance and dimensional stability in automobile parts while reducing the overall weight of vehicles and reducing fuel usage. Among these, under the hood is witnessing a substantial push in terms of automotive plastics application. In addition, governments worldwide are laying down stringent norms and regulations apropos to curbing fuel carbon emissions. Moreover, consumers are also favouring the uptake of lightweight, fuel-efficient vehicles.

Asia Pacific to Reign Supreme in Global Automotive Plastics Market

Garnering 50% of the automotive plastics market share, Asia Pacific is likely to continue building on the momentum. India, South Korea, Southeast Asia, China, and Japan are the core manufacturing hub of the region. The low-cost availability of labour and raw materials is poised to augment growth prospects for the regional market.  With cutting-edge technological developments and a rise in per capita income levels, Southeast Asian economies and India are expected to stay at the vanguard of the market.

Key Companies

Some of the most prominent players in the global automotive plastics market include BASF SE (Germany), Borealis AG (Austria), SABIC (Saudi Arabia), Evonik Industries AG (Germany), LG Chem (South Korea), Solvay (Belgium), DuPont (US), Arkema SA (France), LyondellBasell Industries Holdings BV (Netherlands), and Covestro AG (Germany).