Automotive Plastics Market (By Product: Acrylonitrile Butadiene Styrene (ABS), Polypropylene (PP), Polyurethane (PU), Polyvinyl Chloride (PVC), Polyethylene (PE), Polycarbonate (PC), Polymethyl Methacrylate (PMMA), Polyamide (PA), Others; By Process: Injection Molding, Blow Molding, Thermoforming, Other; By Application: Powertrain, Electrical Components, Interior Furnishings, Exterior Furnishings, Under the Hood, Chassis) - Global Industry Analysis, Market Size, Opportunities and Forecast 2020 - 2027

Category : Chemicals and Materials | Published at : June-2021 | Delivery Format : PDF | Status: Published | Pages : 190

The global automotive plastics market is expected to grow at a CAGR of around 5.4% from 2020 to 2027 and expected to reach the market value of around US$ 53.9 Bn by 2027.

Plastics account for approximately 15% of the weight of the average passenger car today, according to the ODI research report. They are increasingly being used to replace steel in automobile bodies and chassis, as well as hundreds of other components such as lights, bumpers, engine components, dashboards, and interior furnishings. Furthermore, every 10% reduction in vehicle weight reduces fuel consumption by 6 to 8%. According to a research study released by PLASTIVISION INDIA, automobile manufacturers are now incorporating more advanced plastic materials to reduce weight and make vehicles more fuel efficient due to current environmental and economic concerns.

Market Drivers

Automotive plastics promise to keep automobile industry alive

While companies work on self-driving cars, the global car stock is gradually electrifying. According to the International Energy Agency, 750,000 plug-in hybrid and fully electric vehicles were sold globally last year, accounting for about 1% of the total car market (IEA). Last year, consumers in the United States purchased 160,000 hybrid and electric vehicles. The scale and nature of change that lies ahead for the industry are unprecedented. These changes are also having an impact on the business of supplying engineering plastics to the automotive industry. Plastics used to make connectors and housings for the numerous electrical and electronic components required for both electric and autonomous vehicles will see an increase in demand. Polymers, for example, have aided in vehicle advancement for generations. Notably, they save energy by reducing vehicle weight by replacing heavier materials such as metal and glass. Polymer incorporation in automobiles helps to reduce weight by 10% and improves fuel economy by about 5%. Plastics also save money for automakers. A nylon bracket, for example, that holds components together under the hood may have mounts and other features molded right into it. A similar part made of metal would be made of many pieces and would necessitate costly assembly steps. As a result of these factors, the amount of plastics used in automobiles has grown over time.

COVID-19 impact on global automotive plastics market

The COVID-19 pandemic has had an immediate and severe impact on the global automotive industry. The automotive industry has been hit harder than any other sector of the plastics industry. Auto assembly lines, where employees work side by side, have been closed in China, Europe, and the United States. According to Autodata, 9 million vehicles were sold in the United States in April, a 46% decrease from the previous year. Celanese, which derives about 15% of its revenue from engineering polymers for automakers, took a significant hit. During April, the firm saw demand from the auto market fall by 50% globally and by 80% in the United States. Demand for polyvinyl chloride (PVC), which is used in pipes, siding, windows, and doors, has also been affected by the downturn in construction. The US Census Bureau reported a 19% drop in housing starts in April compared to the previous year, resulting in a nearly 25% drop during the same period.

Recycled plastics in automobile parts and components spur the growth of the global automotive plastics market

Auto recyclers and automakers are focusing on plastics and polymers: automakers are recycling plastic scraps, defective parts, and other materials as part of their manufacturing processes, as well as recycled post-consumer plastics; and recyclers and scrap yards are starting to recycle. There are currently about 39 different types of basic plastics and polymers used to make an automobile today; however, these three polymers account for 66 percent of the plastic used in automobiles: polypropylene (32%), polyurethane (17%), and polyvinyl-chloride (PVC) (16%). Plastics made from ELV. The use of recycled plastics in the manufacture of new auto parts and components is a goal shared by participants throughout the automotive life cycle. Recycled plastic from automobiles, bottles, caps, containers, and other packaging is increasingly being used to manufacture new car parts.

Market Segmentation

The global automotive plastics market is segmented based on product, process, and application. By product, the market is segmented as acrylonitrile butadiene styrene (ABS), polypropylene (PP), polyurethane (PU), polyvinyl chloride (PVC), polyethylene (PE), polycarbonate (PC), polymethyl methacrylate (PMMA), polyamide (PA), and others. By process, the market is segregated as injection molding, blow molding, thermoforming, and other. By application, the market is segmented as powertrain, electrical components, interior furnishings, exterior furnishings, under the hood, and chassis.

Based on product, the polypropylene segment leads the global automotive plastics market with the highest share. Recent advances in composite material technology have enabled the development of general-purpose plastics with properties comparable to those of engineering plastics in the field of general-purpose plastics such as polypropylene. By combining polypropylene compounds with excellent thermal properties, high impact strength, and a low coefficient of linear expansion. They can also be painted online in lamp finisher and front bumper applications. The regeneration of automotive plastics, particularly polypropylene, has enormous potential as a new supply source for the automobile industry while also meeting regulatory requirements for End-of-Life Vehicles (ELV) recovery. Furthermore, the closed loop developed for polypropylene (PP) plastics entails converting car bumpers (fenders) and wheel arch liners into directly reusable material that can be injected into new car parts.

Injection molding will gain a significant market share in the global automotive plastics market. The high share is attributed to the automotive industry's use of a diverse range of injection-molded plastics to manufacture door handles, engine hoses and tubes, console and dashboard covers and brackets, radio covers and other electrical internal components, buttons and bezel panels, knobs for shifter levers, controls and covers for the sunroof, and convertible roof assemblies.

The interior furnishings segment, by application, will foster a reasonable share of the automotive plastics market. The increasing demand for automotive plastics in areas such as body and light panels, seat covers, steering wheels, seat bases, load floors, headliners, and rear package shelves and fascia systems is expected to drive segment growth.

Regional Landscape

Asia Pacific dominates the automotive plastics market

The Asia Pacific region dominates the automotive plastics market. Higher concentrations of passenger vehicle manufacturing industries, as well as rising demand for passenger cars, three-wheelers, and two-wheelers in China and other Asia Pacific countries such as India and Japan, are driving industry growth.

Competitive landscape

The prominent players of the global automotive plastics market involve Magna International Inc., Lear Corporation, Adient plc, BASF SE, Plastic Omnium, Borealis AG, Covestro AG, and others.

Market Segmentation

Market By Product

Acrylonitrile Butadiene Styrene (ABS)
Polypropylene (PP)
Polyurethane (PU)
Polyvinyl Chloride (PVC)
Polyethylene (PE)
Polycarbonate (PC)
Polymethyl Methacrylate (PMMA)
Polyamide (PA)

Market By Process

Injection Molding
Blow Molding

Market By Application

Electrical Components
Interior Furnishings
Exterior Furnishings
Under the Hood

Market By Geography

North America
•    U.S.
•    Canada

•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa

Frequently Asked Questions

Automotive plastic market is expected to reach a market value of around US$ 53.9 Bn by 2027.

The automotive plastic market is expected to grow at a CAGR of around 5.4% from 2020 to 2027.

Based on product, polypropylene (PP) segment is the leading segment in the overall market.

Recycled plastics in automobile parts and components are one of the prominent factors that drive the demand for automotive plastic market.

Magna International Inc., Lear Corporation, Adient plc, BASF SE, Plastic Omnium, Borealis AG, Covestro AG, and among others.

Asia Pacific is anticipated to grab the highest market share in the regional market

Europe is expected to be the fastest growing market in the forthcoming years

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