Electric Vehicle Plastics Market

Global Electric Vehicle Plastics Market Size (2024 to 2029)

The electric vehicle plastic market size is expected to be valued at USD 3.02 billion in 2024 and is expected to reach USD 10.27 billion by 2029, growing at a CAGR of 27.7% from 2024 to 2029.

Global Electric Vehicle Plastics Market Drivers:

One major factor propelling the expansion of the electric vehicle plastic market is the rising demand for electric cars. Also, lighter cars have a greater driving range and better overall energy efficiency. Improving their performance as a result. Furthermore, plastics have excellent endurance, roughness, and durability, which makes them suitable for different uses in electric vehicles. Also, they are resistant to bad weather, vibrations, and mechanical strains that frequently occur in car parts. Furthermore, these provide design freedom to producers to create complex shapes and forms that are difficult to accomplish with other materials; this design flexibility allows for the building of aerodynamic and streamlined E.V. parts. So, it can further improve energy efficiency. Moreover, the electric vehicle plastics market will expand rapidly due to the growing demand for E.V.s. This growth will be fueled by the requirement for affordable, strong, and lightweight materials for use in production.

Another factor propelling the growth of the electric vehicle plastics market is strict pollution regulations. Fossil fuel-powered automobiles were banned because of these rules. This increased the demand for plastics for manufacturing new cars as the old ones were phased out. Greenhouse gases were emitted as the volume of automobiles fueled by fossil fuels increased. Methane, nitrous oxide, carbon dioxide, and hydrofluorocarbons are examples. Furthermore, businesses will be forced to develop E.V.s as a result of these stringent rules and regulations.

Additionally, the demand for polymers went up because of the rapid manufacturing of E.V.s. The desire for these vehicles boosted the manufacturing of plastics due to rising fuel prices, stringent environmental policies, and urbanization. Moreover, flameproofing, thermal insulation, and impact resistance are characteristics of polymers that are shared by traditional auto parts. The E.V. market will see these polymers' growth continue to change.

Global Electric Vehicle Plastics Market Restraints:

Sustainability is a key factor in innovation and for the future car industry. Also, electric vehicles have less environmental effects than internal combustion engine ones. So, the sales of these vehicles increased. However, some OEMS claim that the materials and their processing are responsible for about 30 percent of the carbon dioxide emissions produced by the vehicle during its lifespan. Therefore, the auto industry started concentrating on eco-friendly manufacturing methods and ensuring the sustainability of raw materials.

Global Electric Vehicle Plastics Market Opportunities:

Plastics are gaining traction in electric vehicles (E.V.s) due to functional integration, which permits part consolidation and design flexibility. Critical E.V. components, including battery trays, high-voltage battery housings, and external elements, are made of plastics, such as thermoplastic materials, which allow for weight reductions, better thermal transmission, and aesthetically pleasing designs. Without sacrificing economy or safety, this incorporation of plastics into E.V.s satisfies the industry's unique requirements for high durability, sustainable materials, and improved performance attributes. Plastics, which take the place of more conventional materials like metal, support the continuous advancement of electric car technology as well as the development of the automotive sector.

Global Electric Vehicle Plastics Market Challenges:

One of the key obstacles for the market is the high infrastructure and capital costs for plastic re-engineering. To shift manufacturing from traditional materials to advanced engineering plastics, significant investments in R&D and manufacturing techniques are required. In addition, the infrastructure needed for the production and recycling of these materials is costly to build. Hence, these obstacles will further discourage manufacturers from using engineering plastics. This will also derail the market growth and decrease the innovation and acceptance rate in the electric vehicle plastics market.

Impact of COVID-19 on the global electric vehicle plastics market:

COVID-19 had a major effect on the electric car plastics market in addition to other sectors. The outbreak disrupted the global supply networks. This affected the production and sale of electric vehicles and plastic components for production. Further, there was a delay in the manufacturing of electric vehicles due to supply chain constraints caused by raw material shortages, transit limitations, and factory closures.

REPORT COVERAGE:

This research report on the global electric vehicle plastic market has been segmented and sub-segmented based on resin, vehicle, application and region.

Global Electric Vehicle Plastics Market - By Resin:

• Polypropylene (P.P.)
• Polyurethane (PUR)
• Acrylonitrile Butadiene Styrene (ABS)
• Polyvinyl Chloride (PVC)
• Polyoxymethylene (POM)
• Polystyrene (P.S.)
• Polycarbonate (P.C.)
• Polyamide (P.A.)
• Acrylic (PMMA)
• Others (Polyethylene)

The polyurethane segment dominated the electric vehicle plastics market with a significant share of global sales. This was due to enhanced toughness, chemical resistance, radiation resistance, water resistance, and other qualities. Moreover, it increases battery power and enhances crash safety in E.V.s. 

In addition, thermoplastic polyolefin and other polymer-based materials have replaced traditional steel components in E.V.s. This makes them sleeker and lighter. Additionally, polycarbonate has also replaced the glass in headlights. So, with polymers used in both the exterior and interior components, E.V. interiors are quieter and more ergonomic.

Global Electric Vehicle Plastics Market - By Vehicle:

• Hybrid Electric Vehicles (HEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)
• Battery Electric Vehicles (BEVs)

The battery electric vehicle (BEV) segment holds a dominant position in the electric vehicle plastics market and contributes a notable share of over 75 percent of total revenue. The market for E.V. products is expanding due to the expanding population and stricter pollution restrictions. While plastics are used to reduce a vehicle's total weight, the goal of BEVs is to reduce vehicle weight to extend the range of electric cars. Automakers are focusing on the robustness and safety of their cars when employing inexpensive polymers for the sections of the battery compartment. It is anticipated that these trends will lead to favor for plastics over pricey metals.

Global Electric Vehicle Plastics Market - By Application:

• Interior Furnishing
• Exterior Furnishing
• Powertrain System/Under Bonnet
• Lighting & Electric Wiring

The exterior furnishing segment is leading under this category of the electric vehicle plastics market. It accounts for one-third of the market share. The consumption of plastics is rising as a result of an increase in the use of plastic in place of metal in various automotive components, such as door assembly, lighting, and bumper. Plastics serve as absorbent bodies and using them reduces the danger of accidents. It also contributes to lowering the total weight of vehicles, improving their appearance, and giving them the necessary strength. Plastics' electrical and physical qualities, such as their resistance to abrasion, heat, and chemicals, are anticipated to fuel the market's expansion.

Global Electric Vehicle Plastics Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Asia Pacific will lead in the global electric vehicle plastics market. China's market for electric vehicles is expanding rapidly. Due to its popularity and zero emission qualities over PHEVs, the BEV segment of the country's plastic demand is expected to be the most appealing during the projected period. Furthermore, it is projected that investments from firms like Tesla will increase the plastic components needed by boosting demand for electric automobiles. For instance, in India, through the financial subsidies by the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME), India Scheme Phase II was provided by the states. Thus, the Indian government is encouraging the installation of E.V. charging stations, which will further increase the regional market share.

North America is anticipated to propel the electric vehicle plastics market at a higher growth rate. The regional market is expanding because of government programs to support electric transition. Also, there is a rising need for lightweight materials to increase fuel economy and lower emissions. Moreover, the adoption of E.V.s is driven by strict federal rules. The aim is to reduce automobile emissions, which is pushing up demand for electric vehicle plastics.

Europe is the biggest market in the world for electric vehicles. Therefore, plastics are in great demand. Furthermore, the region's market for electric vehicle plastics continues to grow as a result of the European Union's quick adoption of E.V.s. In addition, the demand for electric vehicles made of sustainable materials has increased due to Europe's rising consumer awareness of sustainability.

Latin America is a growing electric vehicle plastics market. Governments have started to implement laws to encourage the use of electric vehicles. So this will significantly accelerate the regional market growth. However, the E.V. penetration rate is still quite low when compared to Europe.

Middle East and Africa are emerging markets for electric vehicle plastics. The E.V. market is still in its early stages. The demand for plastics used in electric cars is anticipated to increase in the upcoming years due to the region's rising interest in these vehicles.

KEY MARKET PLAYERS: 

BASF SE, SABIC, LyondellBasell Industries Holdings B.V., Evonik Industries, Covestro AG, Dupont Sumitomo Chemicals Co. Ltd., L.G. Chem, Asahi Kasei, LANXESS, INEOS Group, Celanese Corp., AGC Chemical, EMS-Chemie Holding, Mitsubishi Engineering Plastics Corp. are some of the market players dominating the global electric vehicle market.

RECENT DEVELOPMENTS IN THE MARKET:

• In June 2022, A new technical plastic called PA66 was developed by BASF specifically for E.V.s. It belongs to the Ultramid product category.