Automotive Plastics Market Size, Share & Trends Report

Automotive Plastics Market Size, Share & Trends Analysis Report By Product (PP, ABS, PU, PE, PC, PA, PVC, PMMA), By Application (Powertrain, Interior/Exterior Furnishings, Electrical Components), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-193-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 182

Industry Insights

The global automotive plastics market size was valued at USD 35.7 billion in 2019 and is anticipated to progress at a CAGR of 11.1% from 2020 to 2027. Global recovery in the automotive sector, improved vehicle design capabilities, and increasing focus on vehicle weight reduction and emission control are the key factors boosting the growth of the market for automotive plastics. Plastics are widely used in automotive components and parts owing to easy manufacturing, possible sourcing from renewable raw materials, and improved designs.

Polypropylene (PP), polyvinyl chloride (PVC), acrylonitrile butadiene styrene (ABS), and polyurethane (PU) are the most common materials used for vehicle part and component applications.

U.S. automotive plastics market

Plastics undergo five different stages while recycling including sorting, washing, shredding, identification and classification, and extruding into final component or product. Improvements in recycling processes have forced manufacturers to use high-performance automotive plastics. Usually, an average car consists of 5.8 to 10% of plastics, depending on fuel-efficiency standards and performance requirements, with consumption in vehicular equipment accounting for over 105 kg in an average car.

This percentage is expected to increase owing to growing demand from consumers for high-performance, lightweight, and fuel-efficient vehicles, thereby augmenting demand for automotive plastics over the years to come. Weight reduction also offers a cost-effective way to reduce greenhouse gas (GHG) emissions and fuel consumption, conserving non-renewable crude oil reserves. For example, for every 10% weight reduction in a vehicle would improve fuel economy by 5 to 7%. However, 1 kg weight decrease can reduce 20 kg of carbon emission.

Plastic monomers are polymerized using chemical reactions and catalysts to form polymers and co-polymers and are turned into polycarbonate (PC), polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), and other such polymerized materials. These materials possess far better properties than their respective monomers and are extremely stable for use in molding and fabrication.

Designing a vehicle is a critical factor as it is subjected to various external forces and the possibilities of high impacts. Thus, to preserve the structural integrity of a vehicle, the materials used in its production become important factors for safety and stability. Although they are relatively cheaper than metals, their design parameters and manufacturing equipment are highly expensive, which is expected to pose a challenge to industry participants.

Product Insights

Polypropylene emerged as the leading product category and accounted for 32.4% of the total revenue in 2019 in the automotive plastics market. The product finds application in both rigid and flexible packaging owing to its physical and chemical properties. PP offers excellent chemical and electrical resistance at very high temperatures. It is semi-rigid, translucent, and provides integral hinge property. PP is quite light weighted as compared to other plastics and is widely used in the automotive sector. It helps reduce the overall weight of vehicles, which, in turn, helps reduce fuel consumption and carbon dioxide emissions. It is used in a variety of end-use industries such as packaging, electrical and electronics, construction, consumer products, and automotive.

Polyvinyl chloride emerged as the second-largest product segment in 2019. PVC is used in a broad range of domestic and industrial products such as raincoats, shower curtains, window frames, and indoor plumbing. Its major automotive applications include underbody coatings, sealants and floor modules, wire harnesses, passenger compartment parts, and exterior parts.

Application Insights

Interior furnishings emerged as the leading application and accounted for over 44% of the total revenue in 2019. Plastics are widely utilized for automobile furnishings including light displays and panels, seat covers, steering wheels, and fascia systems. Numerous other interior components including seat bases, load floors, headliners, and rear package shelves, are being constructed entirely from high-performance plastics, such as Glass-Mat Thermoplastic (GMT) and ABS composites, instead of conventional rubber and metal.

Global automotive plastics market

Moreover, proliferation of digitalization has fostered the demand for plastics integrated into car dashboards to support highly advanced electronics. Safety concerns and high electrical insulation properties of plastics have also propelled their demand in instrument panels containing advanced electronic systems. Plastics such as PVC exhibit excellent chemical and solvent resistance with good tensile strength and flexibility, which makes it highly suitable for instrument panels and other electrical components.

Regional Insights

Asia Pacific was the dominant regional market for automotive plastics and accounted for over 46% of the global market share in 2019. Shifting production bases from developed regions to emerging economies of Asia Pacific, particularly in China, India, Thailand, Vietnam, and Indonesia, is expected to boost market growth. Expanding manufacturing base and increasing investments in advanced technologies for vehicular production is expected to bring about a new era of automobiles, positively influencing the automotive plastic market. Consumers in Europe and APAC are highly conscious regarding fuel-efficiency.

This has also driven the demand for sustainable plastics. Europe accounted for more than 31% of the overall revenue share in 2019. Automobile manufacturers in Europe are using high-performance plastics as these materials are energy-efficient and help in weight reduction of the vehicle. Strict emission standards in the region have forced automakers in European countries to shift from diesel engines to electrified motors. This is also expected to augment product demand over the forecast period.

Automotive Plastics Market Share Insights

The market for automotive plastics is fragmented in nature with the presence of various key players such as BASF SE, SABIC, Dow Chemical Company, AkzoNobel N.V., Covestro AG, Evonik Industries AG, Borealis AG, and Royal DSM N.V. as well as a few medium and small regional players operating in different parts of the world. The global players face intense competition from each other as well as from the regional players who have strong distribution networks and good knowledge about suppliers and regulations. Companies in the market for automotive plastics compete on the basis of product quality offered and the technology used for the production of automotive plastics.

Major players, in particular, compete on the basis of application development capability and new technologies used for product formulation. Established players such as BASF SE are investing in research and development activities to formulate new and advanced plastics for automotive industry, which gives them a competitive edge over other players. In March 2019, BASF SE inaugurated a new research and development center in Shanghai, China, which has a special automotive application center for handling research and development activities specific to the automotive industry. The center is intended to develop innovative products and meet the increasing demand from various interior and exterior automotive applications.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Volume in Kilotons, Revenue in USD Million and CAGR from 2020 to 2027

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

Country Scope

U.S., Canada, Mexico, Germany, U.K., France, Italy, China, India, Japan, Southeast Asia, Brazil

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive plastics market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • ABS

    • PP

    • PU

    • PVC

    • PE

    • PC

    • PMMA

    • PA

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Power Trains

      • ABS

      • PP

      • PU

      • PVC

      • PE

      • PC

      • PMMA

      • PA

      • Others

    • Electrical Components

      • ABS

      • PP

      • PU

      • PVC

      • PE

      • PC

      • PMMA

      • PA

      • Others

    • Interior Furnishing

      • ABS

      • PP

      • PU

      • PVC

      • PE

      • PC

      • PMMA

      • PA

      • Others

    • Exterior Furnishing

      • ABS

      • PP

      • PU

      • PVC

      • PE

      • PC

      • PMMA

      • PA

      • Others

    • Under the Hood

      • ABS

      • PP

      • PU

      • PVC

      • PE

      • PC

      • PMMA

      • PA

      • Others

    • Chassis

      • ABS

      • PP

      • PU

      • PVC

      • PE

      • PC

      • PMMA

      • PA

      • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

      • Southeast Asia

    • Central & South America

      • Brazil

    • Middle East & Africa

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