Automotive Plastics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Plastics Market is projected to expand from USD 47.64 Billion in 2025 to USD 65.35 Billion by 2031, registering a CAGR of 5.41%. These advanced polymeric materials are crucial in vehicle manufacturing, designed to decrease weight and boost fuel efficiency while preserving structural strength. The market is chiefly underpinned by specific drivers, including rigorous global emission standards that demand vehicle lightweighting and the swift growth of the electric vehicle sector, which necessitates lighter parts to counterbalance heavy batteries. As per the American Chemistry Council's 2024 data, a midsize electric vehicle incorporates roughly 45% more plastic than a comparable internal combustion engine vehicle.

Despite these positive indicators, the market confronts a major obstacle regarding the instability of raw material prices, specifically for resins obtained from crude oil feedstocks. This reliance exposes manufacturers to erratic cost variations and supply chain disruptions, which can seriously hamper consistent production planning and profitability throughout the global automotive supply chain.

Market Drivers

Rigid government mandates concerning vehicle emissions and fuel efficiency serve as a primary stimulus for the uptake of automotive plastics. Regulators worldwide are establishing ambitious goals to limit greenhouse gas emissions, forcing manufacturers to replace heavy metal parts with lightweight polymeric substitutes to enhance fuel economy. According to the United States Environmental Protection Agency's March 2024 final rule on 'Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles,' the administration set standards aimed at lowering fleet-wide average greenhouse gas emissions by 56 percent by 2032 relative to current 2026 benchmarks. This regulatory stance demands the widespread use of high-performance plastics in chassis and powertrain systems to secure necessary weight savings while maintaining safety and structural soundness.

The rapid growth of the electric vehicle sector, which necessitates lightweight solutions, further accelerates the need for advanced polymeric materials. As automakers aim to extend driving ranges and counterbalance the significant mass of battery packs, they are increasingly adopting thermoplastics and composites for battery housings, connectors, and thermal management units. Based on the International Energy Agency's 'Global EV Outlook 2024' released in April 2024, electric car sales are expected to stay strong, hitting around 17 million units by late 2024. To sustain this rising production, the industry is experiencing a surge in raw material demand. The European Automobile Manufacturers’ Association reported in February 2024 that new car registrations in the European Union recovered with a 13.9 percent volume increase for the full year 2023, indicating a revitalized manufacturing landscape that directly stimulates the consumption of automotive plastics in both electric and internal combustion markets.

Market Challenges

The instability of raw material costs, especially for resins stemming from crude oil feedstocks, creates a significant impediment to the stability of the automotive plastics market. Because polymer production costs are inherently tied to global oil markets, abrupt price hikes lead to immediate operational fluctuations for component makers. This uncertainty makes long-term contracting and budget planning difficult, often compelling firms to operate with lower capital efficiency to limit financial risks. As a result, manufacturers might postpone the mass production of lightweight parts crucial for modern vehicle assembly, thereby effectively slowing supply chain progress.

Such disruptions in the supply chain negatively affect total market output and manufacturing reliability. Persistently high input costs deter the expansion of operations needed to satisfy growing automotive demand, resulting in diminished material availability. The consequences of this economic pressure are measurable within the wider industry. According to Plastics Europe, the association reported in 2024 that European plastics production dropped by 8.3% relative to the prior year, a decrease largely ascribed to steep rises in raw material and energy costs. This contraction underscores the market's sensitivity to feedstock price volatility, which directly restricts the industry's capacity to sustain consistent growth patterns.

Market Trends

The growing use of bio-based and recycled interior plastics is fundamentally altering material sourcing strategies as manufacturers move towards a circular economy framework. This shift is motivated by corporate sustainability goals to reduce the carbon footprint of vehicle manufacturing, separate from tailpipe emission rules, by incorporating renewable feedstocks into cabin elements such as dashboards, seats, and carpets. Automakers are vigorously testing these secondary materials to guarantee they satisfy aesthetic and durability requirements similar to virgin polymers. According to Volvo Cars' 'Annual and Sustainability Report 2023' from March 2024, the company has officially committed to the circular economy by setting a goal to include 25 percent recycled and bio-based content in all new vehicle models by 2025.

The application of high-performance engineering plastics within EV battery housings is appearing as a vital technical advancement to improve thermal management and safety beyond mere weight reduction. Manufacturers are substituting conventional metal casings with advanced thermoplastics that provide enhanced electrical insulation, corrosion resistance, and the capability to integrate cooling channels directly into the battery pack's structural defense. This transition solves complex engineering difficulties associated with shielding high-voltage systems while streamlining assembly processes. As stated in SABIC’s June 2024 press release regarding 'SABIC Unveils its New Thermoplastic Solutions for EVs,' the company's recently created multi-material battery pack enclosure effectively lowers component weight by 20 percent relative to a standard all-aluminum configuration.

Key Players Profiled in the Automotive Plastics Market

• Teijin Limited
• BASF SE
• Borealis AG
• DuPont de Nemours, Inc.
• Koninklijke DSM N.V.
• Evonik Industries AG
• Exxon Mobil Corporation
• Mitsubishi Chemical Group Corporation
• LG Chem, Ltd.
• LyondellBasell Industries N.V.

Report Scope

In this report, the Global Automotive Plastics Market has been segmented into the following categories:

Automotive Plastics Market, by Type:

• Polypropylene
• Polyurethane
• Polyamide
• Polyvinylchloride
• Acrylonitrile Butadiene Styrene
• Polycarbonate
• Polyethylene
• Others

Automotive Plastics Market, by Application:

• Interior
• Exterior
• Under Bonnet

Automotive Plastics Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Plastics Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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