Automotive Plastics Market

The global automotive plastics market is projected to grow at a robust CAGR of 10.45% during the forecast period from 2018 to 2023. The market is estimated to reach USD 43,562.89 million by the end of 2023. The key factors driving the growth of this market are the increasing demand for fuel-efficient automobiles and surging demand for passenger and commercial vehicles. Furthermore, the anticipated rise in demand for bioplastics in various automotive applications is projected to propel the market growth in the years to follow.

However, fluctuations in the raw material prices of plastic are likely to hinder the market growth during the review period. Furthermore, recycling of automotive plastic components poses a major challenge to players in the market.

The global automotive plastics market is segmented on the basis of type, application, and region.

On the basis of type, the market is categorized into polypropylene, polyurethane, PVC, acrylonitrile-butadiene-styrene (ABS), polyamide, polycarbonate, polymethyl methacrylate, and others. Among them, the polypropylene process accounted for the largest market share of 37.33%, by value, in 2017 and is estimated to grow at a CAGR of 10.11% during the forecast period. The dominance of this process is mainly attributed to its superior chemical resistance to many acids, bases, alcohols, and other chemical solvents. Additionally, it is easily available, has low cost, retains its electrical and mechanical properties at high temperature, and is impervious to water. The polyamide segment is projected to grow at the highest CAGR of 12.10% owing to its high strength, excellent water-absorbent property, and superior wear resistance. In addition, its cost-effectiveness, lightweight, excellent design flexibility, and good chemical resistance are likely to favor its growth during the forecast period.

Based on application the market is divided into interior, exterior, under the hood, powertrain, drivetrain, instruments panel, electronics, and others. The interior application segment was the largest consumer of automotive plastics in 2017 and is estimated to reach USD 17,299.68 million by the end of 2023 at a CAGR of 11.70%. The technological advancements in automotive design to increase vehicle compatibility, including more safety features in reduced space, and improving seat belt designs are expected to drive market growth in interior applications. PP, PET, PVC, and ABS are the plastics used to manufacture interior rims, dash and door panels, instrument panels, lightweight seats, durable upholstery, sound control fabrics, safety systems among others. The Under the Hood, the segment is witnessing the highest CAGR of 12.02% during the forecast period. Plastics are considered as a favorable lightweight substitute to heavy metals used in under the hood parts owing to their superior heat and chemical resistance, wear resistance, and most importantly the cost-effectiveness.

Geographically, in 2017, the market was dominated by Asia-Pacific with a market share of 52.35%%; it is projected to grow at the highest CAGR of 11.07% to reach USD 23,580.26 million by the end of 2023. The primary factor favoring the growth of the market in this region is the strong growth in demand for both passenger cars and commercial vehicles on the backdrop of increasing disposable income. Moreover, the rapid urbanization and industrialization mingled with favorable government policies in favor of increasing domestic production may boost the growth of this regional market.

Market synopsis

Market Size

· 2017: USD 24,446.61 Million

· 2023: USD 43,562.89 Million

CAGR

· 2018–2023: 10.45%

Key Geographies

· Asia-Pacific: 52.35%%

· Europe: 25.86%

· North America: 11.74%

Key Leading Countries

· China

· US

· India

· Mexico

· Germany

· Brazil

Key Market Drivers

· Increasing demand for fuel-efficient automobiles

· Surging demand for passenger and commercial vehicles

Key Market Opportunities

· Anticipated rise in demand for bioplastics in various automotive applications

Key Vendors

· BASF SE

· LANXESS

· SABIC

· Teijin Limited

· LyondellBasell Industries Holdings BV

· Mitsubishi Chemical Corporation

· DowDuPont