NEW YORK, March 1, 2024 /PRNewswire/ — The automotive plastics market size is estimated to increase by USD 13.48 billion from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 3.35% during the forecast period. APAC is estimated to account for 45% of the global market growth during the forecast period. The rising demand for electric and hybrid vehicles drives the market growth during the forecast period. The growing concerns regarding climate change and air pollution have led to an increasing focus on minimizing greenhouse gas emissions. Hence, there is an increasing adoption of electric vehicles (EVs) as they are more eco-friendly when compared to traditional vehicles as they produce zero emissions. Several governments across the world are encouraging the adoption of electric vehicles by offering incentives and subsidies including tax credits, purchase subsidies, and preferential parking. Hence, such factors are expected to drive market growth during the forecast period. Request a sample report
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Market Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.35% |
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Market growth 2023-2027 |
USD 13.48 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.99 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 45% |
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Key countries |
US, China, Japan, India, and Germany |
Segment Overview
Technavio has segmented the market based on the material (polypropylene, polyurethane, polyvinyl chloride, polyamide, and others) vehicle type (passenger vehicle, commercial vehicle, and electric vehicle), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market share growth by the polypropylene segment will be significant for overall market growth during the forecast period. There is an increasing popularity for polypropylene in the automotive industry due to its advantageous properties and cost-effectiveness. Polypropylene is widely used in automotive in order to reduce the overall weight of the vehicle. Additionally, there is increasing adoption of this segment by manufacturers as it helps enhance fuel efficiency and minimize emissions. Hence, such factors are expected to drive market growth during the forecast period.
Geography Overview
By geography, the global automotive plastics market is segmented into APAC, North America, Europe, South America, and the Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global automotive plastics market.
APAC is estimated to account for 45% of the global market growth during the forecast period. Some of the key countries which are significantly contributing to the global automotive plastics market growth in APAC are China, India, Japan, and South Korea. There has been an increasing production of automobiles in China, making it the dominant region in the market. Additionally, the Chinese government has undertaken several initiatives to encourage the use of automotive plastics in electric vehicles. Hence, such factors are expected to drive market growth in this region during the forecast period. Download a Sample Report
- Increasing demand for lightweight and fuel-efficient materials is a key trend in the automotive plastics market.
- Complex design and engineering is a significant challenge hindering the automotive plastics market growth. Insights on Market Drivers, trends, & Challenges, historic period(2017 to 2021) and forecast period(2023 to 2027). Request a sample report!
Analyst Review
The automotive plastics market is experiencing a significant surge owing to a confluence of factors ranging from fuel economy demands to greenhouse gas (GHG) reduction technologies and the rising need for vehicle electrification. Automotive OEMs are increasingly turning towards lightweight materials such as advanced plastics materials to address concerns regarding vehicle mass and carbon emissions. This trend is particularly prominent in the domain of passenger cars where EV makers are vying for a larger share of the market, capitalizing on the growing environmental awareness and government support and incentives.
Moreover, amidst the pandemic and economic meltdown, regions like China, South America, and Europe are witnessing shifts in consumer behavior towards more sustainable options. This has propelled investments by OEMs in technological revolution within powertrain systems and power systems to rival their internal combustion counterparts.
One of the pivotal aspects driving this transformation is the development of plastics that offer gas alternatives, enabling high cost of capital to be mitigated while improving vehicle electrification infrastructure. Additionally, the re-engineering of plastics and advancements in plastic separation technologies are enhancing the recyclability of plastics, a critical concern given technological and economic restraints.
Within the automotive plastics market ecosystem, segments like PP product type and polypropylene (PP) are gaining traction, particularly in interior applications, exterior applications, and under bonnet components. These thermoplastic polymers are driving commodity plastics towards low-cost vehicle design without compromising on comfort features or automotive interior segment standards.
Key attributes such as impact resistance, dimensional stability, durability, and aesthetic appeal are enhancing the adoption of automotive plastics across various demographics, especially in China, the Asia Pacific region, and Japan where the middle-class population with rising disposable income is driving rapid industrialization and changing lifestyles.
In conclusion, the trajectory of the automotive plastics market is deeply intertwined with global dynamics, technological advancements, and evolving consumer preferences, necessitating a concerted effort from major automobile companies, policymakers, and industry stakeholders to navigate through challenges and seize emerging opportunities. Request a sample report!
Related Reports:
The adhesives and sealants market size is estimated to grow at a CAGR of 4.75% between 2022 and 2027. The market size is forecast to increase by USD 17.33 billion.
The melt-blown polypropylene filters market size is estimated to grow at a CAGR of 6.95% between 2022 and 2027. The market size is forecast to increase by USD 980.45 million.
TOC
- Executive Summary
- Market Landscape
- Market Sizing
- Historic Market Size
- Five Forces Analysis
- Market Segmentation by Material
- Market Segmentation by Vehicle Type
- Customer Landscape
- Geographic Landscape
- Drivers, Challenges, and Trends
- Company Landscape
- Company Analysis
- Appendix
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contact
Technavio Research
Jesse Maida
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UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com
SOURCE Technavio
