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Automotive plastics market to exceed 20 million tons by 2024

Article-Automotive plastics market to exceed 20 million tons by 2024

Automotive plastics market to exceed 20 million tons by 2024
Report forecasts automotive plastics will surpass $50 billion by 2024.

Increased production of passenger cars along with consumer demand for fuel-efficient, durable and lightweight vehicles should stimulate demand for plastics in the automotive industry, according to new research by Global Market Insights Inc. (Selbyville, DE). Automotive plastics is expected to surpass $50 billion by 2024, according to the report, “Automotive Plastics Market.”

Rapid industrialization and urbanization in India, Japan and China will boost demand for commercial vehicles, SUVs, hybrids and passenger cars. Rising per capita income and improving living standards will create demand for stylish vehicles driving industry growth. 

Automotive plastics are extensively used in automotive components including exterior body parts, power train systems, electronics, under-the-hood components, fuel systems and interior parts such as instrument panels. Plastics used in automotive are durable and scratch and abrasion resistant, and they allow for effective design for injection molding. Plastics also facilitate component integration and improve vibration dampening and noise control. Expanding manufacturing hubs along with increased government spending in advanced technology may contribute toward growth in automotive plastics.

The size of the North American automotive plastics market shows steady gains; it is expected to exceed $5 billion by 2024 thanks to a rise in consumer preferences for lightweight and fuel-efficient vehicles. Rising OEM demand for reduced vehicle weight and more cost-effective solutions may have a positive influence on regional growth. Stringent government requirements, such as the CAFE standard, regarding CO2 emissions and fuel economy, has resulted in OEMs searching for other methods to reduce vehicular weight to improve fuel efficiency.

The primary polymer raw materials used in the manufacture of vehicles include PU, ABS, PMMA, PVC and PP. Lack of standardization of plastic materials along with sustainability issues will be a major challenge and may impact industry growth. 

The German automotive plastics market is likely to register gains close to 8.5% during the forecast timeframe. Growth in the automobile industry and the presence of major industry giants along with innovations and market strategies will enhance product demand in the region. Increasing pressure on automobile manufacturers to reduce greenhouse gas emissions to comply with EU standards coupled with investments in research will drive regional industry growth. 

The PVC -based automotive plastics market demand is likely to surpass $1.9 billion during the timeframe. These are mainly used in underbody coatings, sealants, door panels, seating, dashboards, arm rests, window sealing profiles, weather stripping and body side protection. Increasing environmental concerns regarding carbon emissions coupled with rising consumer awareness of safety may act as a contributing factor for industry growth. 

The UK automotive plastics market demand for polypropylene (PP) may register substantial growth of about 9% during the projected period. The product has wide usage in cable insulation, petrol cans, carpeting, battery boxes and bumpers. PP is about 15 to 20% lighter than other materials, which is beneficial in automobile weight, thereby resulting in fewer CO2 emissions and lower fuel consumption. 

India’s automotive plastics market size for electrical component applications may expect consumption of over 380 kilo-tons by 2024 due to an increase in passenger vehicle production and consumer willingness to spend on stylish cars. The Indian government encourages foreign direct investment in the automotive sector and plans to invest in eco-friendly cars in the future, thereby promoting automotive plastics market growth. 

BASF, Delphi, Celanese, DSM, Evonik, SABIC, RTP, Lear Corp., Borealis, Adient and Covestro are prominent industry participants in the automotive plastics market. Companies are focusing on investing in R&D activities to comply with government standards, and enhancing their product portfolio by forming joint ventures and partnerships.

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