Automotive Plastics Global Market Report 2024

The automotive plastics market size has grown strongly in recent years. It will grow from $39.69 billion in 2023 to $43.56 billion in 2024 at a compound annual growth rate (CAGR) of 9.8%. During the historical period, growth in automotive plastics can be attributed to several factors, including increased automobile production, a surge in demand for commercial and passenger vehicles, heightened demand for sustainable plastics, and robust economic growth in emerging markets.

The automotive plastics market size is expected to see strong growth in the next few years. It will grow to $62.05 billion in 2028 at a compound annual growth rate (CAGR) of 9.2%. Forecasted growth is driven by the rising demand for electric vehicles, supportive government initiatives, and the expanding automotive industry. Key trends in the forecast period include the launch of new production lines, the recovery of used plastics from automotive parts production, partnerships and collaborations, and a focus on lightweight products.

The growth of the automotive plastics market is significantly influenced by the increasing demand for lightweight and electric vehicles. The automotive industry's shift towards greater utilization of plastic components has led to advancements in automobile design and contributed to reduced fuel consumption. This weight reduction results in lower energy requirements during vehicle acceleration. For instance, global automobile production reached 79.1 million units in 2021, reflecting a 1.3% increase from 2020, as reported by the European Automobile Manufacturers' Association in April 2022. The surge in demand for lightweight and electric vehicles is a key driver for the automotive plastics market.

Government initiatives are playing a pivotal role in driving the growth of the automotive plastics market during the forecast period. Worldwide, government regulations are shaping the automotive plastics market by mandating the inclusion of specific components in vehicles. Notably, the Government of Japan (GOJ) has set a target for all new cars sold to be environmentally friendly by 2035. Additionally, in South Korea, as reported by Business Korea, the government plans to reduce the cost of electric vehicles for consumers by nearly 10 million won ($9,000) over the next four years. This initiative is part of a broader plan to increase the number of electric vehicles on the road to 2.83 million by 2025. Consequently, supportive government measures are expected to drive the growth of the automotive plastics market in the forecast period.

The automotive plastics market is witnessing a significant trend towards technological advancements. Technological advancement, characterized by the acquisition of knowledge that enhances technological understanding, is driving innovation in the automotive plastics sector. In 2021, Covestro AG introduced a groundbreaking 3D printing material known as recycled Polyethylene Terephthalate (rPET). This material is specifically designed for 3D pellet printing, employing a technology called fused granulate fabrication (FGF). FGF technology enables the manufacturing of large-sized parts, and its applications extend to the automotive industry for the production of interior components. This technological innovation showcases the industry's commitment to leveraging advanced materials and manufacturing techniques for improved automotive plastic applications.

Companies in the automotive plastics market are increasingly emphasizing partnerships and collaborations to enhance their product portfolios and extend their geographical reach. In June 2022, Sumitomo Chemical, a prominent Japanese chemical company, joined forces with Newlight Technologies, a US-based biotechnology company specializing in advanced sustainable materials. Their collaborative effort aims to develop polypropylene (PP) compounds for applications in automobiles and textiles. The compounds utilize AirCarbon, a carbon-negative biomaterial derived from methane through microorganisms, specifically polyhydroxybutyrate (PHB). This partnership reflects a commitment to leveraging innovative biomaterials for sustainable automotive plastic solutions. Similarly, in March 2022, BASF, a leading German chemical company, entered into a strategic cooperation agreement with Zhejiang REEF Technology, a Chinese company focused on high-end engineering plastic-modified materials. The collaboration's objective is to develop cutting-edge recyclate formulations applicable to the automotive, packaging, and consumer industries. This strategic alliance emphasizes the pursuit of advanced, sustainable solutions in the automotive plastics sector.

In March 2021, Lear Corp., an automotive technology company, successfully acquired M&N Plastics, a specialist manufacturer of various engineered plastic components for the automotive industry. This strategic acquisition enhances Lear Corp.'s capabilities in designing and producing complex electrical components, strengthening its position in the automotive plastics market.

Major companies operating in the automotive plastics market report are Lyondellbasell Industries Holdings B.V., BASF SE, Covestro AG, Saudi Basic Industries Corporation (SABIC), Borealis AG, DSM, Evonik Industries AG, Exxon Mobil Corporation, Arkema Group, LG Chem, Lumax Auto Technologies, Tractors and Farm Equipment Limited, Nextage Co. Ltd., Bigmotor Co. Ltd., Evergreen Motors, Kothari Auto Link Private Limited, Modi Motors Agencies Private Limited, CarZ, China Grand Automobile Service Co. Ltd., Xianglong Borui Auto Services (Group) Co. Ltd., Sanhe Group, Changzhou Tourism Automobile Group Co. Ltd., Nanchong Kunhe Automobile Trading Co. Ltd., Ningbo Sailing Falaixin New Material Co. Ltd., Suzhou Xinyite Plastic Technology Co. Ltd., ShanDong DongChen New Technology Co. Ltd., Amazing Plastics Limited, Rapid Direct, Adreco Plastics, Omega Plastics Group, Rochling Industrial UK Ltd., Rutland Plastics, Nifco UK Limited, SKS Metaplast, Tenn-Tex Plastics, Zavod Signal, Ideal-Plast LLC, LitPromGarant -NN LLC, Coba Automotive Rus LLC, Atek Ltd., Aectra Plastics, Chevron Phillips Chemical, Americas Styrenics LLC, Johnson Controls, Lear Corporation, Celanese Corporation, Magna International Inc., Thogus Products, Zwick Roell Group, Belenus of Brazil S / A, METALAC, H.B. Fuller, Rimco Nigeria Limited, DVC Plastics Limited, COBA Plastics Moulding, Ampa Plastics Group (Pty) Ltd., Finke Plastics.

Asia-Pacific was the largest region in the automotive plastics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive plastics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive plastics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of automotive plastics include polypropylene (PP), polyurethane (PU), polyvinylchloride (PVC), polyamide (PA), acrylonitrile butadiene styrene (ABS), high-density polyethylene (HDPE), polycarbonate (PC), polybutylene terephthalate (PBT), and others. For instance, polypropylene (PP) is a tough and rigid thermoplastic polymer. Automotive plastics find diverse applications across interior, exterior, under-the-bonnet, and electrical components, as well as powertrain and chassis systems. These materials cater to various vehicle types, including conventional, electric, and hybrid vehicles.

The automotive plastics market research report is one of a series of new reports that provides automotive plastics market statistics, including automotive plastics industry global market size, regional shares, competitors with an automotive plastics market share, detailed automotive plastics market segments, market trends and opportunities, and any further data you may need to thrive in the automotive plastics industry. This automotive plastics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive plastics market consists of sales of diesel vehicles, polymethyl methacrylate, nylon, Styrofoam, injection moulding, and blow moulding. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.