Global Automotive Plastic Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Polypropylene, Polyurethane, Poly-Vinyl-Chloride, Others), By Application (Interior, Exterior, Under Bonnet), And By Geography - Forecasts From 2023 To 2028

The global automotive plastic market was valued at US$27.901 billion in 2018 and is estimated to grow at a CAGR of 7.42% over the forecast period. The growth of this market has been showing a strong correlation with the growth of the global automotive industry. As the automotive industry continues to witness solid growth in many regions on account of rising disposable incomes and continuously changing lifestyles, it is shaping the growth of the global automotive plastic market. Increasing the production of cars and commercial vehicles is a major driving factor for this market. According to data from the International Organization of Motor Vehicle Manufacturers (OICA), total automotive production in 2007 was 73,266,061 and it showed impressive growth over the past decade to reach 97,302,534 in 2017. Clearly, this is an impressive leap of nearly 33% in ten years which came as a result of continuously increasing the efficiency of manufacturing processes and rising investments by the industry players into capacity expansion among many other factors. Increasing production of vehicles is driving with it the demand for plastic components, thus driving the growth of the automotive plastic market. Furthermore, continuous strategic investments in Research and Development have been at the forefront of many market players’ growth strategies. These investments are catalyzing innovation and accelerating the identification and development of new plastic materials with improved characteristics like high impact resistance, improved toughness, high flexibility, high resistance to solvents, and atmospheric conditions among others. This is increasing the popularity of these performance materials among automakers, thus boosting the market growth.

The demand for automotive plastics is witnessing a continuous rise as automakers continue to increase their focus on enhancing the fuel efficiency of vehicles. Various moves by many governments worldwide have also been in this direction. For instance, the Corporate Average Fuel Economy (CAFE) standards in the United States have been successful in nearly doubling the fuel efficiency of cars and trucks from what was 40 years ago. According to data from the U.S. Office of Energy Efficiency and Renewable Energy, the fuel efficiency of U.S.-built cars, manufactured in line with CAFÉ standards, increased from 20 mpg in 1978 to 36.5 mpg in 2014. For the same period, the fuel efficiency of cars operating pre-CAFE gas guzzlers, the fuel economy increased from 18 mpg to 34.1 mpg. Similarly, the fuel efficiency of U.S.-built light trucks, manufactured in line with CAFÉ standards, increased from 18.2 mpg in 1979 to 26.4 mpg in 2014, and for the same period, the fuel efficiency of light trucks operating pre-CAFE gas guzzlers, the fuel economy increased from 17.2 mpg to 26.3 mpg. Clearly, the government has been making efforts to increase the fuel efficiency of vehicles in order to reduce emissions from them which affect environmental health. Shifting to plastic for many of the components is one of the ways that the automakers have been adapting to move in this direction. Reduction in vehicle weight as a result of using plastic components has been showing an impressive reduction in fuel usage. This is increasing the demand for plastic in the automotive industry, thus augmenting the growth of this market.

Geographically, the global automotive plastic market is segmented as North America, South America, Europe, the Middle East and Africa, and Asia-Pacific. North America and Europe accounted for a significantly large market share in 2017 owing to the increasing production of vehicles in these regions. Various automakers are shifting their production base to Mexico on account of cheap labor and the favorable business environment in this region. The Asia Pacific holds a leading position in this market and the market in this region is anticipated to show impressive growth over the forecast period. The growth of the market in this region will majorly be attributed to the rising production of autonomous cars in this region on account of increasing investments by many industry players into facility expansion in countries like China, India, and Japan.

Major industry players profiled as part of the report are BASF SE, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., Exxon Mobil Corporation, Formosa Plastics Corporation, LANXESS, and Borouge among others.

Segmentation:

The global automotive plastic market is segmented by type, application, and geography.

• By Type

• Polypropylene (PP)
• Polyurethane (PUR)
• Poly-Vinyl-Chloride (PVC)
• Others

• By Application

• Interior
• Exterior
• Under Bonnet

• By Geography

• North America

• United States
• Canada
• Others

• South America

• Brazil
• Argentina

• Europe

• UK
• Germany
• France
• Italy
• Others

• Middle East and Africa

• Saudi Arabia
• UAE
• Israel
• Others

• Asia Pacific

• Japan
• China
• India
• Australia
• Others