Electric Vehicle Plastics Market Size, Share & Trends Analysis Report By Resin (PP, PA, PC, PE, PU, PVC, PVB, PBT, ABS, PET, Others), By Application, By Components, By Vehicle Type, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global electric vehicle plastics market size was valued at USD 1.55 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 27.5% from 2022 to 2030. Increasing demand for weight reduction in BEV/PHEV and HEV and enhanced performance of plastic under harsh conditions are expected to drive the demand for plastics in the industry. Rising environmental concerns along with rigorous emission rules to push electrification and weight reduction, as well as the increased usage of anti-microbial plastics in EVs, are key factors driving the market. The U.S., the U.K., China, India, Japan, Germany, and Canada, are the major countries exhibiting significant global growth potential in the industry.

Increasing CO2 emissions coupled with growing environmental concerns have encouraged governments to impose stringent regulations regarding emissions. Thus, increasing regulations across the world are expected to create massive demand for EVs in the coming years, which, in turn, is expected to create demand for plastics over the forecast period. Electric vehicles have performance differences with respect to Internal Combustion Engines (ICE) regarding heat generation.

Electric vehicles’ heat generation is less compared to the ICE therefore the manufacturers can use resins in place of expensive metals. These factors are expected to drive product demand over the forecast period. The custom capabilities, formability, low price, performance, and natural fit of plastics make them suitable for utilization in EVs. Key features of plastics include low weight, part consolidation, molding components that fit in non-linear spaces, and noise & vibration damping. These factors are also expected to drive the demand for plastics in EVs.

Resin Insights

On the basis of resins, the industry has been segmented into Polypropylene (PP), Polyamide (PA), Polycarbonate (PC), Polyethylene (PE), Polyurethane (PU), Polyvinyl Chloride (PVC), Polyvinyl Butyral (PVB), Polybutylene Terephthalate (PBT), Acrylonitrile Butadiene Styrene (ABS), Polyethylene Terephthalate (PET). The PU segment dominated the global industry in 2021 and accounted for the largest share of more than 26.50% of the overall revenue. It has enhanced water resistance, radiation resistance, toughness, chemical resistance, and others. Polyurethane boosts power and promotes crash safety in EV batteries.

Furthermore, it is used in insulation panels, suspension bushings, foam seating, cushions, electrical compounds, and others. These factors are expected to drive the demand for plastics in EVs over the forecast period. On the other hand, the PP segment is estimated to register the fastest growth rate during the forecast period. Polypropylene manufacturers are developing different grades of PP to reduce the weight of the vehicle, which would help extend the range of EVs. Its application includes both interior and exterior parts and structural and non-structural parts as well. Furthermore, it is used in cable insulation, carpet fibers, bumpers, tailgate, and others.

Vehicle Type Insights

The Battery Electric Vehicle (BEV) type segment dominated the global industry in 2021 and accounted for the maximum share of more than 75.0% of the overall revenue. The growing population coupled with stringent emission regulations is boosting the demand for plastics in EVs. Plastics help in reducing the weight of vehicles, BEV is focused to reduce the weight of the vehicle, which would help increase the range of the EV. Manufacturers are concentrating on the safety and strength of vehicles and using cost-effective plastics for battery compartment areas. These trends are expected to create demand for plastics over metals, which are expensive.

Along with BEV, the other variants of EVs include the Plug-in Hybrid Vehicle (PHEV) and Hybrid Electric Vehicle (HEV). PHEVs have batteries to power the electric motor and an alternative fuel source to power the ICE. The vehicle automatically switches over to the ICE when the battery gets completely depleted. However, BEVs are preferred over PHEVs as they are more efficient and have low maintenance costs. HEVs incorporate an ICE coupled with an electric motor that uses energy stored in batteries. The additional power generated by the electric motor might allow a smaller ICE and further, reduce the engine idling when the vehicle is stopped. These factors provide enhanced performance and offer better fuel economy as well.

Components Insights

The interior trim segment dominated the industry in 2021 and accounted for the largest share of more than 16.0% of the overall revenue. The components segment includes steering & dashboards, car upholstery, bumper, door assembly, exterior trim, connector and cables, battery, lighting, electric wiring, and interior trim. Acrylonitrile butadiene styrene is one of the major plastics used for the manufacturing of steering and dashboards as it offers tensile strength, surface hardness, heat resistance, chemical resistance, and others. Polymethyl Methacrylate (PMMA) is used in car upholstery as it offers a transparent & glossy finish, hardness, and resistance to scratching, etc.

The interior component segments include door lining, roof lining, seat trim, steering cover, and others. Interior trim is intended to provide comfort and a suitable environment inside the vehicle. Exterior trim includes wheel covers, headlights, fenders, and others that are responsible for giving the vehicle an aesthetic look. Plastics lower the cost of production of batteries and eventually replace metallic components. Plastics, such as PP, have enhanced shock absorption abilities and prevent damage to the batteries from accidental shocks. Furthermore, PET is a good insulator that prevents short-circuiting and acts as a separator.

Application Insights

The exterior application segment dominated the industry in 2021 and accounted for the maximum share of more than 31.0% of the overall revenue. A rise in the use of plastics as a replacement for metals in different parts of the vehicles including bumper, lighting, door assembly, and others is contributing to the increase in demand for plastics. The use of plastics lowers the risk in event of an accident as these plastics act as an absorbing body. In addition, plastics help in reducing the overall weight of the vehicle, enhance vehicle aesthetics and provide the required strength. Interior parts are more decorative rather than functional.

Their purpose is to give an aesthetic look and transform the interior of the vehicle into a comfortable environment. Plastics have physical and electrical properties, such as heat resistance, chemical resistance, abrasion resistance, and others, which are expected to drive the segment. Under-the-hood components of vehicles were traditionally made of metals, which are now being replaced by plastics as they help in reducing the vehicular weight.

Nylon, PP, and polyphenylene sulfide are some of the major plastics used in vehicles that provide benefits including parts consolidation, corrosion resistance, sound dampening, cost savings, and others. Nylon is the most widely used thermoplastic in engine compartments as it has high strength and can withstand high temperatures. Polyethylene has low density, high impact resilience, and solid durability and can be used where moisture resistance is required. It can be used to make low-cost electrical insulations. Furthermore, PVC is used to make electrical cable sheathing.

Regional Insights

Asia Pacific was the dominant region in 2021 and accounted for more than 52.0% of the global revenue share. China, Japan, South Korea, and India are the major countries in the region with high production capacity. This is supported by the easy availability of raw materials and skilled & low-cost manpower. China has one of the largest EV sales in the region. A rise in disposable income and increasing demand for EVs from the middle-class population across emerging economies, such as China and India, is anticipated to boost the growth of the industry over the forecast period.

Europe also accounted for a significant revenue share in 2021. The chemical companies in the region are manufacturing plastics for EVs on a large scale. The tax exemption, subsidies, and supportive policies are boosting the market for EVs in the region, which would drive product demand over the forecast period. Volkswagen, a global automotive manufacturer, plans to invest USD 7.1 billion for the addition of 25 new EVs to its existing E-vehicle portfolio in North America. Furthermore, the manufacturer anticipates 55% of its vehicle sales to be electric across the U.S. in the years to come.

Key Companies & Market Share Insights

The global industry is largely fragmented due to the presence of a large number of global and regional players. Key global players are facing competition from regional players, who have robust distribution networks and an adequate understanding of suppliers and regulations. For instance, General Motors Company (GMC), a U.S.-based automotive manufacturer, has a higher market captivation in terms of EVs, posing a challenge for global automotive manufacturers, such as Audi and BMW, to expand their EV market across the U.S.

Major players are involved in research & development for the production of superior-quality resins that provide improved features. Technological collaborations are witnessed in the industry to carry out R&D activities related to EVs. For instance, in May 2022, LG Chem developed an advanced plastic product that helps in the prevention of thermal runaway in EV batteries. The product is made from different composites including PA and Polyphenylene oxide (PPO) resin. Some of the prominent players operating in the global electric vehicle plastics market include:

• BASF SE

• SABIC

• LyondellBasell Industries Holdings B.V.

• Evonik Industries

• Covestro AG

• Dupont

• Sumitomo Chemicals Co. Ltd.

• LG Chem

• Asahi Kasei

• LANXESS

• INEOS Group

• Celanese Corp.

• AGC Chemicals

• EMS Chemie Holding

• Mitsubishi Engineering Plastics Corp.

Electric Vehicle Plastics Market Report Scope

Global Electric Vehicle Plastics Market 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 the purpose of this study, Grand View Research has segmented the global electric vehicle plastics market report on the basis of resin, application, components, vehicle type, and region:

• Resin Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Polypropylene (PP)

  • Polyamide (PA)

  • Polycarbonate (PC)

  • Polyethylene (PE)

  • Polyurethane (PU)

  • Polyvinyl Chloride (PVC)

  • Polyvinyl Butyral (PVB)

  • Polybutylene Terephthalate (PBT)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polyethylene Terephthalate (PET)

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Interior

  • Exterior

  • Powertrain System/Under Bonnet

  • Lighting & Electric Wiring

• Components Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Steering & Dashboards

  • Car Upholstery

  • Bumper

  • Door Assembly

  • Exterior Trim

  • Interior Trim

  • Connector and Cables

  • Battery

  • Lighting

  • Electric Wiring

  • Others

• Vehicle Type Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Battery Electric Vehicle (BEV)

  • Hybrid Electric Vehicle (HEV)/ Plug-in Hybrid Vehicle (PHEV)

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Norway

    • Germany

    • U.K.

    • France

    • Sweden

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Southeast Asia

  • Rest of the world