Electric car sales and improvements are driving the global automotive plastics market.
Covid-19 Impact & Market Status
The COVID-19 epidemic has wreaked havoc on the worldwide automobile supply chain. The initial supply and manufacturing sector isn't the only one that's been thrown off.
Due to lockdown implementation in various areas of the world, the whole automobile industry has been impacted, resulting in an unpredictable recovery period. During the COVID-19 pandemic, the automotive sector is currently facing four key challenges: a lack of car parts, a drop in new vehicle sales, the closure of manufacturing facilities, and a decrease in working capital.
According to the OICA, worldwide passenger car sales would fall by -15.9% in 2020, from 63.7 million units in 2019 to 53.6 million units in 2020. This epidemic is projected to have a considerable impact on the automotive plastics industry for passenger cars, which is dependent on passenger car sales.
Due to lockdowns, travel bans, and business shutdowns, the COVID-19 has had a negative impact on economies and businesses in a number of countries. The closure of various plants and factories has had a severe influence on global supply chains, negatively affecting manufacturing, delivery schedules, and product sales in the worldwide market.
This report offers a comprehensive overview of the key elements of the market such as drivers, restraints, opportunities. Furthermore, current market size, growth rate estimates through the forecast span 2021-2028, individual sectors and sub-sectors, countries, and regions contributing majorly to the growth of global access control market are studied in the report. The report gives some recommendations and solutions that help market players take informed decisions in the global access control market.
PP (polypropylene) Segment Poised for Rapid Market Growth
The global automotive plastics market is classified into PMMA, PVC, PA, PC, PE, PU, ABS, PP on the basis of product. Among these, the PP held the largest market share of global automotive plastics market. The PP (polypropylene) neutralizes battery weight which is the key factor for increased demand of PP in automotive manufacturing including both traditional and electric vehicles.
Electric Train Held the Largest Market Share
The global automotive plastics market is classified into electric train, fuel tanks, suspension bushings, wheels and tyres, wheel covers, others on the basis of application. Among these, the electric train segment held the largest market share of global automotive plastics market and is anticipated to grow at a fastest CAGR in the forecast years 2021-2028.
APAC To Record Sporadic Growth in Global Automotive Plastics Market
During the projected period, the market in Asia Pacific is expected to grow at the quickest rate. The key factors such as traditional auto-manufacturers adopting the plastics-first mindset for developing certain automotive designs, engineering and production purposes, emerging importance of automotive plastics parts are contributing to the growth APAC in global automotive plastics market.
The increasing need of designing fuel efficient vehicles and improving performance, safety, construction and functionality of cars is improving the reliance on plastics furthering development of global automotive plastics market.
Owing to benefits such as suitable chemical properties of materials, cost-effectiveness, light-weight properties, fuel efficiency, design freedom, easy and cost-effective way to address noise and vibration challenges in traditional and electric cars, versatility, enhanced durability and safety, recyclability and environmental responsibility, the automotive plastics are experiencing rapid adoption as opposed traditional alternatives like metal thus fostering remarkable progress in global automotive plastics market.
The key factors such as traditional auto-manufacturers adopting the plastics-first mindset for developing certain automotive designs, engineering and production purposes, emerging importance of automotive plastics parts are contributing to the growth of global automotive plastics market.
The global automotive plastics market size is anticipated to reach close to 60.56 Bn USD by 2028 with an annualized growth rate of 4.4% through the forecast years, 2021-2028. The key factors such as introduction of new vehicle design approaches, automotive designers increasing their focus on reducing weight and designing environment friendly parts are fueling the global automotive plastics market. Because of their ease of manufacture, ability to get renewable raw resources, and improved designs, plastics are frequently employed in automotive components and parts. Plastics are chosen in the automotive sector because of their light weight and great carbon-reduction potential. Increasing use of plastics automobile industry is driving the automotive plastics market.
Automotive plastic is recyclable synthetic material that is light-weight, eco-friendly, provides design freedom, reduces noise and vibrations common in traditional electric cars, minimal squeaking eliminating time and expenses for secondary operations, and various other properties. These advantages have shifted automotive manufacturers’ mindset from using traditional metal based products to using plastic materials.
However, recycling and disposition challenges, regulatory challenges are hampering the global automotive plastics market growth. Furthermore, increasing demand for plastics in automotive exteriors and electric cars, government led regulatory and policy changes for increasing fuel efficiency, multiple advantages offered by plastic materials as opposed to traditional materials is anticipated to provide a opportunity for remarkable transformation for the global automotive plastics market.
The major players in global automotive plastics market are Teijin, Magna International, Royal DSM N.V., Borealis, Evonik, Covestro, AkzoNobel, Dow, SABIC, and BASF SE among others.
Latest Innovations in the Automotive Plastics Market: a Snapshot
- Covestro AG introduced a new recycled Polyethylene Terephthalate product in May 2021. (rPET). The recovered PET has been tweaked to make 3D pellets. Fused granulate fabrication (FGF) is a method that enables for quick and cost-effective additive manufacture of large-scale items.
Automotive Plastics Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 60.56 billion|
|Growth Rate||CAGR of 4.4 % during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Teijin, Magna International, Royal DSM N.V., Borealis, Evonik, Covestro, AkzoNobel, Dow, SABIC, and BASF SE among others.|
Key Segments of the Global Automotive Plastics Market
Product Type Overview, 2018-2028 (USD Billion)
Application Overview, 2018-2028 (USD Billion)
- Electric train
- Fuel tanks
- Suspension bushings
- Wheels and tyres
- Wheel covers
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa