Plastics and engineered polymers have found a number of applications in the automotive industry. They are widely used in manufacturing exterior as well as interior components, such as bumpers, safety windows, hoods, doors, grilles, and wheel covers. The preference for using high-performance plastics in the automotive industry is growing, mainly due to their good mechanical properties and appearance.
In fact, many manufacturers are substituting conventional metal and rubber in several automobile components with high-performance plastics, as this helps reduce the weight of vehicles and make them more energy efficient. High-performance plastics can also offer benefits like better corrosion resistance, durability, toughness, impact and scratch resistance, and design flexibility.
All such benefits are going to increase the demand for Automotive Plastics in the coming years and thereby boost the global Automotive Plastics market. The Automotive Plastics market is expected to grow at a high CAGR of 11.5% and reach USD 68.58 billion by 2025. The growth of the market will be mainly driven by the increasing demand for lightweight and electric vehicles, and increasing automobile production, especially in emerging economies.
As mentioned already, the use of high-performance plastics in vehicles help reduce their weight considerably. With the enforcement of strict government regulations on fuel economy and emission control standards, the demand for Automotive Plastics will witness a gradual increase, as they help conserve fuel besides reducing the weight of vehicles. This in turn, will fuel the growth of the global Automotive Plastics market.
Plastics also offer greater scope for innovations, both in terms of technologies and designs. This too will increase the use of plastics in automobiles. Further, growing demand for electric and hybrid vehicles will also push the demand for Automotive Plastics. However, high cost of raw materials, non-degradable nature of Automotive Plastics, and environmental concerns associated with plastic manufacturing and disposal can act as an hindrance in the growth of the market.
But increasing demand for components like steering wheel, light panels & displays, seat covers, along with rising economic standards and growing demand for luxury vehicles will provide growth opportunities in the coming years. Likewise, increasing investments in R&D and in the development of advanced product technologies will promote market growth.
Asia-Pacific has been dominating the global Automotive Plastics market in recent years, owing to the huge production of automobiles in the region, especially in countries like China, Japan, India, and South Korea. The North American market, led by Canada, Mexico, and the US, is likely to register more than 8.5% gains in the next couple of years.
The growth of the North American Automotive Plastics market will be fuelled by stringent government regulations related to emissions, increasing prices of iron and steel, growing demand for lightweight electric vehicles, and technological innovation. The European market will also witness significant growth in the coming years.
The key players operating in the global Automotive Plastics market are DowDuPont, BASF SE, SABIC, Teijin Ltd., DSM Engineering Plastics B.V., Magna International Inc., Covestro AG, Evonik Industries AG, Borealis AG, Lear Corporation, Grupo Antolin-Irausa S.A., Johnson Controls International PLC, Adient plc, Momentive Performance Materials, and Compagnie Plastic Omnium.