Automotive Plastics Market Size, Share & Trends Analysis Report By Product, By Application (Powertrain, Interior/Exterior Furnishings, Electrical Components), By Process, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global automotive plastics market size was valued at USD 29.50 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. Globally, recovery in the automotive sector, improved vehicle design capabilities, and an 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. The COVID-19 pandemic has impacted the automotive plastics market due to a drop in new vehicle sales, the shutdown of production facilities, a limited supply of vehicle parts, and a decline in working capital. It led to the interruption in the supply chain and suspension of production, resulting in reduced retail sales. Furthermore, many individuals were uncertain about their jobs and the long-term economic and health effects of the virus on their lives, influencing their purchasing decisions.

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, with consumption in vehicular equipment accounting for over 110-120 kg in an average car.

This percentage is expected to increase due to the growing demand from consumers for high-performance, lightweight, and fuel-efficient vehicles, thereby augmenting the 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, 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), 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 their use in molding and fabrication.

Designing a vehicle is a critical factor subjected to the various external forces and 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

The polypropylene segment led the market for automotive plastics and accounted for the largest revenue share of more than 32% in 2022. This growth can be attributed to the rising product demand from end-use industries such as packaging, electrical and 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 quite lightweight as compared to other plastics making 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 emerged as the second-largest product segment in 2022. 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 automotive plastics market and accounted for the largest revenue share of more than 56% in 2022. The high share is attributed to the application of the broad range of injection-molded plastics in the automotive industry 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.

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 error rate have increased the importance of injection molding technology in the mass production of complicated plastic molds. For instance, in May 2021 - LyondellBasell began producing virgin quality polymers in Wesseling, Germany, utilizing raw materials obtained from plastic waste. In the company's manufacturing plants, these raw materials are transformed into ethylene and propylene, which are then processed into polyethylene (PE) and polypropylene (PP) in the downstream units for plastics production.

Apart from this, the blow molding process is also widely used in the automotive industry 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 cost and the use of large machines that take up more space is restraining their usage small-scale industry.

Application Insights

The interior furnishings segment led the market for automotive plastics and accounted for the largest revenue share of more than 44 % in 2022. The growing demand for automotive plastics in vehicle areas such as body and light panels, seat covers, steering wheels, seat bases, load floors, headliners, and rear package shelves and fascia systems is projected to boost the market for automotive plastics over the forecast period.

Moreover, the 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 & solvent resistance with good tensile strength and flexibility, which makes them highly suitable for instrument panels and other electrical components. For instance, in June 2021, HDT Automotive Solutions LLC has agreed to purchase Veritas AG. The alliance would broaden HDT's inventive material science and connection expertise in metal fluid, plastics, and rubber connecting devices for various automotive applications.

Regional Insights

Asia Pacific dominated the market for automotive plastics and accounted for the largest revenue share of over 46.0% in 2022. Shifting production bases from developed regions to emerging economies of Asia Pacific, particularly in China, India, Thailand, Vietnam, and Indonesia, is expected to boost the market growth. Expanding the 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 for automotive plastics. Consumers in Europe and APAC are highly conscious regarding fuel efficiency. This has also driven the demand for sustainable plastics. For instance, in November 2021, the Indian Oil Corporation (IOC) and two other public sector oil companies declared plans to build 22,000 charging stations for electric vehicles over the next three to five years.

Europe was the second-largest market for automotive plastics and accounted for a revenue share of more than 31% in 2022. Automobile manufacturers in Europe are using high-performance plastics as these materials are energy-efficient and help in the 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 in the forecast period.

Key Companies & Market Share Insights

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 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 the automotive industry, which gives them a competitive edge over the 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 aims to develop innovative products and meet the increasing demand from various interior and exterior automotive applications. The market is significantly fragmented in nature due to the presence of a large number of manufacturers across the globe. Some of the prominent players in the global automotive plastics market include:

• BASF SE

• SABIC

• Dow Inc.

• AkzoNobel N.V.

• Covestro AG

• Evonik Industries AG

• Borealis AG

• Royal DSM N.V.

• Magna International, Inc.

• Teijin Limited

Recent Developments

• In June 2023, Borealis announced plans to acquire Rialti S.p.A. for strengthening injection molding and extrusion capabilities. Rialti leverages its capacity of 50,000 tonnes annually to develop PP compounds for injection molding and extrusion that find applications in varied industries, including automotive, construction, and appliances.

• In May 2023, Evonik announced plans for capacity expansion of VESTAMID E polyether block amide in Shanghai. The product exhibits exceptional low-temperature impact strength and outstanding chemical resistance properties and is convenient to color and process – which elevates its demand in diverse applications including the automotive and MedTech industries. 

• In January 2023, Evonik, in collaboration with over 19 research institutes and industrial companies, including Thyssenkrupp, BMW Group, the Technical University of Munich, and the Fraunhofer Institute planned to develop advanced processes for deploying sustainable materials in circular automotive manufacturing. As per the agreement, Evonik planned to leverage its plastic and recycling expertise in the project.

• In November 2021, Covestro announced to strengthen its collaboration with Farsoon Laser Sintering Systems for assessing the printing and processing of new materials including polypropylene (PP), thermoplastic polyurethane (TPU), and polybutylene terephthalate (PBT). Downstream customers have authenticated such components for applications in the automotive, consumer, and electrical industries.

• In May 2021, SABIC announced advancements to its thermoplastic solutions designed for critical EV battery capabilities. Most remarkably, the automotive business of the company had fabricated a plastic-intensive concept in battery packs for EVs by integrating a systems-engineering approach. This approach highlights the importance of lightweight plastics to cater to the critical needs of enhanced performance, flexible design, improved economics, and elevated safety.

Automotive plastics Market Report Scope

Global Automotive Plastics Market Report Segmentation

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 2019 to 2030. For this study, Grand View Research has segmented the global automotive plastics market report based on product, process, application, region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polypropylene (PP)

  • PP LGF 20

  • PP LGF 30

  • PP LGF 30Y

  • Others

  • Polyurethane (PU)

  • Polyvinyl Chloride (PVC)

  • Polyethylene (PE)

  • Polycarbonate (PC)

  • Polymethyl Methacrylate (PMMA)

  • Polyamide (PA)

  • Others

•  Process Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Injection Molding

  • Blow Molding

  • Thermoforming

  • Other

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Powertrain

  • Polyethylene (PE)

  • Polypropylene (PP)

  • Polyvinyl Chloride (PVC)

  • Polyurethane (PU)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polycarbonate (PC)

  • Polyamide (PA)

  • Others

  • Electrical Components

  • Polyamide (PA)

  • Polypropylene (PP)

  • Polymethyl Methacrylate (PMMA)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polyvinyl Chloride (PVC)

  • Others

  • Interior Furnishings

  • Polyurethane (PU)

  • Polypropylene (PP)

  • Polymethyl Methacrylate (PMMA)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polyvinyl Chloride (PVC)

  • Exterior Furnishings

  • Polypropylene (PP)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polyvinyl Chloride (PVC)

  • Polyurethane (PU)

  • Polyamide (PA)

  • Under the Hood

  • Polyethylene (PE)

  • Polypropylene (PP)

  • Polyamide (PA)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polyurethane (PU)

  • Chassis

  • Polyethylene (PE)

  • Polypropylene (PP)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polyamide (PA)

  • Polyurethane (PU)

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • Italy

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Southeast Asia

  • Central and South America

    • Brazil

  • Middle East and Africa