The global Automotive Plastics Market is predicted to rise from USD 28.8 billion in 2020 to USD 47.9 billion by 2025, registering at a Compound Annual Growth Rate (CAGR) of about 11% during the foreseen period of 2020 to 2025.
The Automotive Plastics Market has a slow growth pace in the market which is driven by the demand for polypropylene in the fast-growing automotive industry, as it is majorly used for interior and exterior plastics in the vehicle. The Automotive Plastics Market is expected to reach a total of USD 46.02 Billion by 2024 with a 10.96 % CAGR.
What are Automotive Plastics?
Automotive plastics are materials employed in the making of vehicle components. These plastics mainly replace metals in automobiles as they provide similar properties like stiffness, abrasion resistance, toughness, and flame retardancy. Characteristics of plastics, like versatility and flexibility, have boosted the advancement of many technologies to enhance the design of automobiles. Polymers have around 10% of the weight of an average car. The primary objective of utilizing polymers in automobiles is to decrease the weight of the vehicles, and hence escalating fuel efficiency and reducing carbon emissions.
Automotive Plastics Market Drivers and Restraints:
Rising fuel costs and stringent rules implemented by governments of many countries, and different organizations have influenced automotive makers towards the utilization of plastics. Plastics are generally durable, reliable, and provide easy manufacturing, procedure, and molding that makes its integration in automobiles a comparably simple task. Apart from that, polymers are also employed to enhance the design of the vehicle, therefore growing the safety standard of the motors. The call for automotive plastics is escalating with the increase in the production of lightweight vehicle parts from the automotive business. Strict environmental and safety rules imposed by the government of different countries have pushed the automotive OEM’s to replace metal parts with components that are made of polymers.
Automotive mass reduction is one of the critical priorities of automobile makers, as it is advantageous in decreasing carbon emission. Materials for vehicle design are carefully calculated by design engineers, on the basis of cost, material strength, physical & chemical properties, manufacturability, presence, and recyclability. Components made of High-speed steel (HSS), glass fibers, and sheet metal are at often available at a lower cost compared to aluminum, automotive plastics, and magnesium. Still, they have less mass reduction potential than these materials that escalate the call for lightweight plastic materials.
The high prices and lack of price-effective manufacturing procedures for high-volume applications have been restricting the employment of composite materials in the automotive business.
Growth Opportunities in the Automotive Plastics Market
Market experts are estimating a rise in the call for applications of long fiber reinforced thermoplastic (LFRT) and lightweight reinforced thermoplastic materials in the vehicle over the next few years. Businesses, like BMW (Germany), Mercedes-Benz, Lamborghini, and other high-end automakers, are planning to escalate the employment of carbon fiber reinforced polymer (CFRP) elements in the vehicles to decrease weight. This is also estimated to enhance the fuel economy by up to 50% and reduce the weight of the vehicles by almost 20–75% in comparison to the conventional materials.
Major Challenges in the Automotive Plastics Market
Capital expenses included with new material design or innovation are often moderated out in the long run or the life cycle of the machine. This feature resists the use of the latest advanced materials in automotive designs since these materials need new manufacturing techniques and include process re-engineering that incurs a considerable capital expense. Material cost is a crucial concern for high volume production of automotive plastics. Steel is still preferred in the automotive business, as it has inherent benefits, on the basis of present technological expertise, and is the cheapest material per pound as compared to the elements that are being used for structural components.
Automotive Plastics Market Segmentation Analysis along with accurate insights until 2025.
Automotive Plastics Market - By Type
Among the mentioned product types the polypropylene segment is the fastest growing in the market. The growth is mainly attributed to the low cost and outstanding mechanical support and moldability of polypropylene.
Automotive Plastics Market - By Application
Of the mentioned applications the interior segment is the largest and is expected to lead the market in the aforementioned forecast period. The growth is mainly attributed to the fact that plastics are majorly used in the interior of the vehicle such as dashboards, door panels, and others.
Automotive Plastics Market – By Region
The Asia Pacific automotive plastics market accounted for the most substantial share in 2019 and is estimated to remain so over the foreseen period. The Asia Pacific was the leading regional market for automotive plastics and accounted for close to 46% of the worldwide industry share in 2019. This is credited to the fact that China and India are dominating automotive manufacturing countries. China is estimated to remain the key country, attributing to the availability of easily affordable raw material that is reducing the overall limitations in the making of these automotive plastics. In addition, the surge in the usage of plastics in almost all the vehicles to reduce the weight is also promoting the expansion of the automotive plastics market in Asia Pacific area.
In North America automotive plastics market, the United States of America registered the substantial market share owing to rising call for automotive plastics owing to its properties like electric insulation, corrosion inhibition, good heat resistance, and low density. In Europe automotive plastics market, the strict policies by the government related to greenhouse gas emissions from vehicles has encouraged the automotive manufacturers to use more polymers. Usage of plastic reduced the weight of the automobile, hence escalating fuel efficiency. The presence of key automotive polymers market manufacturers in Europe is another factor responsible for the automotive plastics market expansion in Europe. Customers in Europe and Asia Pacific are very conscious relating to fuel-efficiency. This has also driven the call for sustainable plastics. Europe had for more than 31% of the total revenue share in 2019. Automobile makers in Europe are utilizing high-performance plastics as these composites are energy-efficient and assist in weight deduction of the automobile.
In the Middle East & Africa automotive plastics market, the major factors influencing the automotive plastics market progression is the obtainability of adequate raw materials for the making of plastics. Also, Latin America automotive plastics market is estimated to observe a significant expansion in the worldwide automotive plastics business.
Automotive Plastics Market Key Market Players:
By the end of 2018 BASF SE (Germany), Lear Corporation (US), Borealis AG (Austria), Grupo Antolin-Irausa S.A. (Spain), Adient plc (Ireland), Covestro AG (Germany), SABIC (Saudi Arabia), Magna International Inc. (Canada), Compagnie Plastic Omnium (France), and Evonik Industries AG (Germany) are the leading shareholders of the market for Automotive Plastics Market. There is a constant competition between these companies regarding the pricing and quality of the product.
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3.1 Executive Summary
3.2 Key Inferences
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1.4 Polyvinyl Chloride
5.1.10 Y-o-Y Growth Analysis, By Type
5.1.11 Market Attractiveness Analysis, By Type
5.1.12 Market Share Analysis, By Type
5.2.4 Under Bonnet
5.2.5 Y-o-Y Growth Analysis, By Application
5.2.6 Market Attractiveness Analysis, By Application
5.2.7 Market Share Analysis, By Application
6. Geographical Analysis
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
126.96.36.199 By Geographical Area
188.8.131.52 By Type
184.108.40.206 By Application
6.1.4 Market Attractiveness Analysis
220.127.116.11 By Geographical Area
18.104.22.168 By Type
22.214.171.124 By Application
6.1.5 Market Share Analysis
126.96.36.199 By Geographical Area
188.8.131.52 By Type
184.108.40.206 By Application
6.2 North America
6.1.2 United States
6.3.6 South Korea
6.5 Latin America
6.4.5 Rest of Latin America
6.6 Middle East & Africa
7. Strategic Analysis
7.1 PESTLE analysis
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 BASF SE
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Lear Corporation
8.3 Borealis AG
8.4 Grupo Antolin-Irausa S.A.
8.5 Adient plc
8.6 Covestro AG
8.8 Compagnie Plastic Omnium
8.9 Magna International Inc.
8.10 Evonik Industries AG
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, Collaborations, and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
a) List of Tables
b) List of Figures
Global, Regional and country-level analysis and forecasts of the study market; providing Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped
The segment-level analysis in terms of market by type, by material, by application along with market size forecasts and estimations to detect key areas of industry growth in detail
Identification of key drivers, restraints, opportunities, and challenges (DROC) in the market and their impact on shifting market dynamics
Study of the effect of exogenous and endogenous factors that affect the global market; which includes broadly demographics, economics, and political, among other macro-environmental factors presented in an extensive PESTLE Analysis
Study the microenvironment factors that determine the overall profitability of an Industry, using Porter’s five forces analysis for analyzing the level of competition and business strategy development
A comprehensive list of key market players along with their product portfolio, current strategic interests, key financial information, legal issues, SWOT analysis and analyst overview to study and sustain the market environment
Competitive landscape analysis listing out the mergers, acquisitions, collaborations in the field along with new product launches, comparative financial studies and recent developments in the market by the major companies
An executive summary, abridging the entire report in such a way that decision-making personnel can rapidly become acquainted with background information, concise analysis, and main conclusions
Expertly devised analyst overview along with Investment opportunities to provide both individuals and organizations a strong financial foothold in the market
Global Automotive Plastics Market By Region, From 2020-2025 ( USD Billion )
Global Automotive Plastics Market By Type, From 2020-2025 ( USD Billion )
Global Polypropylene Market By Region, From 2020-2025 ( USD Billion )
Global Polyurethane Market By Region, From 2020-2025 ( USD Billion )
Global Polyvinyl Chloride Market By Region, From 2020-2025 ( USD Billion )
Global ABS Market By Region, From 2020-2025 ( USD Billion )
Global Polyamide Market By Region, From 2020-2025 ( USD Billion )
Global HDPE Market By Region, From 2020-2025 ( USD Billion )
Global Polycarbonate Market By Region, From 2020-2025 ( USD Billion )
Global PBT Market By Region, From 2020-2025 ( USD Billion )
Global Automotive Plastics Market By Application, From 2020-2025 ( USD Billion )
Global Interior Market By Region, From 2020-2025 ( USD Billion )
Global Exterior Market By Region, From 2020-2025 ( USD Billion )
Global Under Bonnet Market By Region, From 2020-2025 ( USD Billion )