North America Automotive Plastics Market Size, Share & Trends Analysis Report By Product (PP, PU), By Application (Interior Furnishings, Power Trains), By Process, By Vehicle Type, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The North America automotive plastics market size was valued at USD 4.76 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030. The presence of stringent government regulations regarding reducing vehicular emissions is leading automotive manufacturers in the region to use plastics in their vehicles to reduce overall weight, which results in declined fuel consumption. This trend is anticipated to lead to the growth of the market in North America over the forecast period.Ongoing research & development activities on the incorporation of energy management technologies that resist vehicle intrusion, prevent roof crush, and reduce the overall vehicle body weight without sacrificing performance or safety are likely to boost the market.

Technological breakthroughs, innovations, and studies carried out for expanding the product’s application scope are projected to foster demand. Automotive plastics are widely used to make vehicles more fuel-efficient, lightweight, and safe to drive. Airbags are usually made from high-strength nylon fabrics. Seatbelts and child safety seats are made from highly advanced automotive plastics. These factors, coupled with the presence of major automobiles and OEM manufacturers in the region, are likely to drive the North America regional market.

In August 2022, the President of the U.S., Joe Biden, signed a landmark tax, health, and energy bill that takes important steps toward fulfilling the goal to modernize the American economy and cutting down its dependence on fossil fuels. The bill is expected to help electric utilities switch to lower-emission sources of energy and encourage American citizens to purchase EVs through tax credits. The legislation is expected to raise about USD 700 billion through corporate tax increases and prescription drug savings, and it is expected to spend about USD 400 billion on clean energy and healthcare provisions. This newly passed bill is anticipated to give a point-of-sale tax credit of up to USD 7,500 for a new EV purchase. These factors are likely to boost the adoption of EVs in North America, in turn, benefitting the plastic demand.

Product Insights

The Polypropylene (PP) segment led the market and accounted for the maximum revenue share of more than 33% in 2022. This growth can be attributed to the high product demand from the end-use industries, such as packaging, electrical & electronics, construction, consumer products, and automotive.The product has applications in both rigid and flexible packaging owing to its physical and chemical properties. PP offers excellent chemical and electrical resistance even at very high temperatures. It is semi-rigid, translucent, and provides integral hinge properties. PP is relatively lightweight 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. LGF20, LGF30, and LGF40 contain 20%, 30%, and 40% long glass fibers respectively, reinforced with homopolymer-PP thermoplastic composites made using a pultrusion process in which the fiber is melt impregnated to maximize performance. Long fiberglass reinforcement increases the strength, stiffness, and durability of the composites.Moreover, PP LGF 30Y (Polypropylene Long Glass Fiber 30% by weight) is a type of reinforced thermoplastic composite material that consists of a PP matrix reinforced with long glass fibers.

It offers several other advantages, such as excellent dimensional stability, low warpage, and good resistance to chemicals & UV radiation. These properties make it suitable for applications where durability and long-term performance are critical, such as in automotive exterior components exposed to harsh environments. PP LGF 40 is anticipated to progress at the fastest CAGR from 2023 to 2030. These materials have excellent resistance to heat aging, chemical coupling, low warp, high strength, and creep & fatigue resistance for a longer duration. The others sub-segment includes LGF50, LGF60, mineral-filled PP compounds, and various long & short glass fibers.

The mechanical properties of this composite allow its use in a wide variety of applications in the automotive industry as a lightweight replacement for metals or as an engineering replacement for other heavy materials. Polyvinyl Chloride (PVC) emerged as the second-largest product segment in 2022. It is a thermoplastic polymer mainly used in the automotive industry for a variety of automotive components, including interior and exterior trims, instrument panels, door panels, and dashboards. PVC has a range of advantages that make it an attractive material for car manufacturers.

Process Insights

The injection molding segment led the industry and accounted for the maximum revenue share of more than 56.20% in 2022. Injection molding is a widely utilized plastic molding process in the automotive plastics market. This process is used to mold plastics that can be used as housing covers, light covers & lenses, clips for engine& lighting parts, wiring harnesses, and connectors. In addition, this process is used to manufacture engine hoses and tubes, entire door handles, console & dashboard covers, brackets, radio covers, and other electrical internal components, knobs for shifter levers, buttons, bezel panels, controls & covers for the sunroof and convertible roof assemblies. The injection molding process involves melting plastic pellets and injecting the molten material into a mold cavity of the desired shape.

The material is cooled and then solidifies, after which, the mold is opened and molded part is ejected.Apart from this, blow molding is a method of manufacturing thin-walled, hollow, and custom plastic parts for the automotive industry. It is mainly used to manufacture products with uniform wall thickness, where the shape of the final product is important. The process is based on the same principles as glassblowing. Blow molding equipment heats the plastic, then injects air, causing the hot plastic to expand, similar to a balloon. This plastic is then blown into a mold, and as it expands, the plastic is pressed against the walls of the mold, creating its final shape. After the plastic ball fills the mold, it cools and hardens before ejecting the part.

Application Insights

The interior furnishings segment led the industry in 2022 and accounted for the largest share of over 43.0% of the overall revenue. The growing demand for automotive plastics in seat covers, steering wheels, body & light panels, seat bases, rear package shelves, fascia systems, load floors, and headliners is projected to boost the segment growth over the forecast period.Automobile interior accessories, such as fascia systems, steering wheels, body & light panels, and seat covers, are made using various automotive plastics. Various other internal components, such as headliners, seat bases, and load floors, are built entirely from high-performance plastics, such as Acrylonitrile Butadiene Styrene (ABS) and Glass Mat Thermoplastics (GMT) composites instead of metal, conventional rubber, and other parts.

Plastics aid in the production of comfortable, long-lasting, and aesthetically appealing components while contributing to noise reduction, harshness reduction, and vibration reduction. Design flexibility enables manufacturers to create innovative, integral, lightweight parts while reducing lead time and costs, along with addressing the problems associated with vehicle redesign. In-Mold Decoration (IMD) and In-Mold Labeling (IML) techniques are becoming increasingly important due to the growing manufacturing of aesthetically coated auto parts with decorative films, soft-touch materials, or textiles.

Surface finishes of IMD or IML have aesthetic and protective functions and can reduce the noise levels in a vehicle. Furthermore, they can also hide superficial defects or change the surface properties, which are in line with the interiors of a car, for better aesthetic value. IMD with formable film enclosures is replacing traditional post-mold printing, painting, chrome plating, and hot stamping. IMD and IML technologies have advanced to much larger 3-Dimensional (3D) parts, such as entire instrument panels, fascias, bumpers, roofs, and hoods, for cars, SUVs, and heavy-duty trucks. The demand for interior furnishing of automobiles is anticipated to grow steadily over the forecast period with an increasing application scope and technological developments.

Vehicle Type Insights

The conventional vehicle type segment led the industry and accounted for the largest revenue share of over 91.0% in 2022. Automotive plastics are engineering plastics known for their enhanced performance that is increasingly used in the automotive industry owing to their versatility. These plastics are ideal for utilization in vehicles, as well as for carrying out required innovations in the automotive industry. In addition, automotive plastics are lightweight, which reduces fuel consumption and increases the range of EVs. PP, Polyurethane (PU), PVC, and Acrylonitrile Butadiene Styrene (ABS) are some key plastics used in the automotive industry for manufacturing different components of vehicles.

PP is a high-performance, durable, and semi-crystalline plastic polymer. It is an ideal material for developing automobile components with complex designs. Moreover, its heat and chemical tolerance makes it suitable for producing vehicle parts, such as engine covers, cable insulation, and bumper fascia.Plastics are among the primary materials used in passenger vehicles as they result in the development of fuel-efficient and lightweight vehicles that are not only safe and comfortable for passengers and drivers but also allow manufacturers to offer aesthetically appealing automobiles. Luxury car manufacturers, such as Audi, BMW, Mercedes, and Porsche, also use plastics in the interiors of their vehicles for dashboards, interior wall panels, seating, etc.

Country Insights

The U.S. dominated the market and accounted for a revenue share of over 81% in 2022. The growing production of automobiles in the country is creating a huge demand for automotive plastics. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the production of vehicles in the country reached 10.06 million in 2022, up from 9.15 million in 2021. Thus, with the growing production of automobiles, the demand for automotive plastics in various applications, such as powertrain, chassis, and electrical components, is anticipated to rise.The U.S. made a significant return to the electric car industry in 2021, with sales more than doubling from the previous year to exceed half a million.

The U.S. auto market improved as well, but EVs more than quadrupled their market share to 4.5%, according to the International Energy Agency (IEA). Tesla continues to dominate the U.S. electric car industry, accounting for over half of all-electric cars sold. This is expected to positively affect the demand for automotive plastics in the country.In July 2022, Volkswagen (America) started the production of all-electric ID.4 compact SUVs in Chattanooga, Tennessee, U.S. This was the company’s first assembled EV in the country. The company invested approximately USD 800 million in electrifying its Chattanooga facility including facilities for vehicle and battery pack assembly. The assembled ID.4, Volkswagen’s electric SUV flagship, is expected to be sourced in the North America region.

The vehicle has components and materials assembled in major U.S. states, such as steel in Ohio and Alabama, interior components in South Carolina and Indiana, and electronics parts in North Carolina and Kentucky. The U.S., one of the significant markets in North America, is distinguished by technological advancements in plastic formulating methods and rising awareness among consumers regarding the health and environmental effect of plastics. Regulatory policies by the EPA, FDA, and other agencies are expected to be restraining factors; however, the impact of this factor is anticipated to reduce by alternative production processes through the product life cycle.

Key Companies & Market Share Insights

Most of the key playershave integrated their raw material production and distribution operations to maintain product quality and expand regional reach. This provides companies a competitive advantage in the form of cost benefits, thus increasing the profit margin. Companies are undertaking research & development activities to develop new products to sustain market competition and changing end-user requirements. For Instance, in June 2020, BASF SE launched Polyethersulfone Ultrason E0510 C2TR for automotive parts, which come in contact with hot oil.

This product enables the manufacture of different car parts that come into contact with oil, such as oil control pistons, oil pumps, pressure valves, and high-speed components, in manual or automatic gearboxes.Research activities focused on new materials, which combine several properties, are projected to gain wide acceptance in this industry in the coming years. Some of the prominent companies in the North America automotive plastics market include:

• BASF SE

• SABIC

• Dow, Inc.

• Hanwha Azdel Inc.

• Lear Corporation

• Owens Corning

• Magna International, Inc.

• Momentive Performance Materials, Inc.

• DuPont de Nemours, Inc.

• Covestro AG

North America Automotive Plastics Market Report Scope

North America Automotive Plastics Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2023 to 2030. For the purpose of this study, Grand View Research has segmented the North America automotive plastics market report on the basis of product, application, process, vehicle type, and country:

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

  • Acrylonitrile Butadiene Styrene (ABS)

  • Polypropylene (PP)

    • PP LGF 20

    • PP LGF 30

    • PP LGF 30Y

    • Short Glass Fiber

  • Polyurethane (PU)

    • Filled

    • Unfilled

  • Polyvinyl Chloride (PVC)

  • Polyethylene (PE)

    • Filled

    • Unfilled

  • Polycarbonates (PC)

    • Filled

    • Unfilled

  • Polymethyl Methacrylate (PMMA)

    • Filled

    • Unfilled

  • Polyamide (PA)

    • Filled

    • Unfilled

  • Others

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

  • Injection Molding

  • Blow Molding

  • Thermoforming

  • Other

• Application Outlook (Volume, Tons; 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

• Vehicle Type Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • Conventional Vehicles

    • Passenger Cars

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Electric Vehicles

    • Battery Electric Vehicle (BEV)

    • Hybrid Electric Vehicle (HEV)

• Country Outlook (Volume, Tons; Revenue, USD Million, 2018 - 2030)

  • U.S.

  • Canada

  • Mexico