Automotive Plastics Market Size, Share & Trends Report

Automotive Plastics Market Size, Share & Trends Analysis Report By Product (PP, PVC), By Application (Powertrain, Interior Furnishings), By Process (Thermoforming, Injection Molding), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Oct, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-193-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 175

Report Overview

The global automotive plastics market size was valued at USD 28.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2020 to 2027. Recovery in the automotive sector, improved vehicle design capabilities, and focus of manufacturers on reducing overall vehicular weight and emissions are the key factors boosting the product demand. Plastics are widely used in automotive components and parts owing to easy manufacturing, possible sourcing from renewable raw materials, and better designs.

U.S. automotive plastics market size

Polypropylene (PP), Polyvinyl Chloride (PVC), Acrylonitrile Butadiene Styrene (ABS), and Polyurethane (PU) are the most commonly utilized materials for vehicle parts and component applications. Plastics undergo five different stages while recycling, including sorting, washing, shredding, identification, and classification, and extruding into the 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.

This percentage is expected to increase owing to rising demand from consumers for high-performance, lightweight, and fuel-efficient vehicles, thereby augmenting market growth over the years to come. Weight reduction also offers a cost-effective way to control Greenhouse Gas (GHG) emissions and fuel consumption, conserving non-renewable crude oil reserves. For example, every 10% weight reduction in a vehicle would improve fuel economy by 5 to 7%.

Plastic monomers are polymerized using chemical reactions and catalysts to form polymers and co-polymers and are turned into Polycarbonate (PC), Polyethylene (PE), Polystyrene (PS), PP, PVC, 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 automotive plastics 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

The polypropylene segment led the market and accounted for more than 32% share of the global revenue in 2019. This growth can be attributed to the rising product demand from end-use industries, such as packaging, electrical & electronics, construction, consumer products, and automotive.

Polypropylene finds application in both rigid and flexible packaging owing to its physical and chemical properties. Apart from this, it offers excellent chemical and electrical resistance at very high temperatures. PP is a lightweight material as compared to other plastics, which make it suitable for application in the automotive sector for reducing the overall weight of vehicles, which, in turn, helps reduce fuel consumption and carbon dioxide emissions.

Polyvinyl Chloride (PVC) 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.

Process Insights

The injection molding segment led the market and accounted for more than 56% share of the global revenue in 2019. The high share is attributed to the broad range of injection-molded plastics application in the automotive industry, such as for manufacturing entire door handles, engine hoses and tubes, console & 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.

Injection molding is one of the most common processes used in the automotive industry to mold plastic. It is a process of creating customized plastic parts and fittings by injecting molten plastic material into a metal mold under high pressure. Modern innovations to minimize the errors have increased the importance of injection molding technology in the mass production of complicated plastic molds.

The blow molding process is also widely used owing to its advantage of making more complex products in various designs and shapes that would otherwise be challenging with other technologies, with the cost of the end product being significantly higher. This process allows companies to increase their production output in a relatively short period while maintaining flexibility in terms of design and materials. However, it has a few drawbacks, such as high machine costs and the use of large machines that take up more space, which hinders the segment growth.

Application Insights

The Interior furnishings segment led the market and accounted for more than 44% share of the global revenue in 2019. Growing product demand in areas, such as body & light panels, seat covers, steering wheels, seat bases, load floors, headliners, and rear package shelves and fascia systems, is projected to boost the automotive plastics market growth over the forecast period.

Global automotive plastics market share

Moreover, 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 & solvent resistance with good tensile strength and flexibility, which make them highly suitable for instrument panels and other electrical components.

Regional Insights

Asia Pacific dominated the market and accounted for over 45% share of the global revenue in 2019. Shifting production bases from developed regions to emerging economies of Asia Pacific, particularly in China, India, Thailand, Vietnam, and Indonesia, are expected to boost the market growth. Growing manufacturing base and increasing investments in advanced technologies for vehicular production is expected to bring about a new era of automobiles, positively influencing the market growth. Consumers in Europe and APAC are highly conscious regarding fuel-efficiency. This has also driven the demand for sustainable plastics.

Europe was the second-largest market and accounted for 31% of global revenue in 2019. Automobile manufacturers in Europe are using high-performance plastics as these materials are energy-efficient and help in vehicle weight reduction. Strict emission standards in Europe have forced automakers to shift from diesel engines to electrified motors. This is also expected to augment product demand over the forecast period.

Key Companies & Market Share Insights

International companies face intense competition from each other as well as from the regional players who have strong distribution networks and good knowledge about suppliers & regulations. Major players, in particular, compete on the basis of application development capability and new technologies used for product formulation.

Established companies are investing in research & development activities to formulate new and advanced plastics for the automotive industry, which gives them a competitive edge over the other players. For example, in March 2019, BASF SE inaugurated a new center in Shanghai, China for handling R&D activities specific to the automotive industry.

The center is intended to develop innovative products to meet the increasing demand from various automotive applications. The global market is significantly fragmented owing to the presence of a large number of manufacturers across the globe. Some of the prominent companies in the global automotive plastics market including:

  • AkzoNobel N.V.

  • BASF SE

  • Covestro AG

  • Evonik Industries AG

  • Adient plc (Spin-Off from Johnson Control International plc)

  • Magna International, Inc.

  • Momentive Performance Materials, Inc.

  • SABIC

  • Dow Inc.

  • Borealis AG

  • Hanwha Azdel Inc.

  • Grupo Antolin

  • Lear Corporation

  • Owens Corning

  • Quadrant AG

  • Royal DSM N.V.

  • Teijin Ltd.

Automotive Plastics Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 28.1 billion

Revenue forecast in 2027

USD 36.5 billion

Growth Rate

CAGR of 3.8% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors, and trends

Segments covered

Product, process, application, region

Regional scope

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

Country Scope

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

Key companies profiled

AkzoNobel N.V.; BASF SE; Covestro AG; Evonik Industries AG; Adient plc (Spin-Off from Johnson Control International plc); Magna International, Inc.; Momentive Performance Materials, Inc.; SABIC; Dow Inc.; Borealis AG; Hanwha Azdel Inc.; Grupo Antolin; Lear Corp.; Owens Corning; Quadrant AG; Royal DSM N.V.; Teijin Ltd.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


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, process, application, and region:

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

    • Acrylonitrile Butadiene Styrene (ABS)

    • Polypropylene (PP)

    • Polyurethane (PU)

    • Polyvinyl Chloride (PVC)

    • Polyethylene (PE)

    • Polycarbonates (PC)

    • Polymethyl Methacrylate (PMMA)

    • Polyamide (PA)

    • Others

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

    • Power Train

    • Electrical Components

    • Interior Furnishings

    • Exterior Furnishings

    • Under-the-Hood Components

    • Chassis

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

    • Injection Molding

    • Blow Molding

    • Thermoforming

    • 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

Frequently Asked Questions About This Report

Pricing & Purchase Options

Service Guarantee

  • Insured Buying

    This report has a service guarantee. We stand by our report quality.

  • Confidentiality

    We are in compliance with GDPR & CCPR norms. All interactions are confidential.

  • GDPR.EU
  • Custom research service

    Design an exclusive study to serve your research needs.

  • 24/5 Research support

    Get your queries resolved from an industry expert.

Buy Chapters or Sections

Avail customized purchase options to meet your exact research needs:

  • Buy sections of this report
  • Buy country level reports
  • Request for historical data
  • Request discounts available for Start-Ups & Universities