Automotive Plastics Market Share, Size, Top Companies, Trends, Growth Factors for New Business Opportunities and Investment by 2025
Fairfield Market Research finds that, registering a promising CAGR of 7.7%, the global automotive plastics market will garner a total market value of US$ 68.6 billion by 2026. Considering the market share of US$ 48.7 billion 2018, automotive plastics’ expected market valuation over the forecast period is poised to create sound headways for steady growth, paving the way for strategic partnerships, collaboration, and advanced R&D initiatives.
Globally, the utilization of plastics in the automotive industry has observed a consistent surge over the past few years. This demand is most pronounced in the manufacturing and design cycle owing to the highly favorable nature of plastics in the production of modern automobiles. Different varieties of plastic material readily aid in the manufacturing of safer, more sustainable, and future-ready equipment in the automotive industry.
The chemical properties of plastics also help to create products for the automotive industry that are better in terms of performance and functionality. Consequently, the automotive plastics market has risen to be the third-largest outlet for plastics, next only to packaging and construction. In the foreseeable future, market drivers such as increased demand for lightweight automotive materials, change in buyer’s behavior, increase in purchasing power, strict emission regulations, and greater adoption of EVs are set to substantially expand the global market for automotive plastics.
Looking For a Sample Copy of This Report? Request the Same Here: https://www.fairfieldmarketresearch.com/report/automotive-plastics-market/request-sample
High Preference of Automotive Plastics in Interior Applications Makes it the Leading End-Use Segment
In terms of volume, interior applications held the highest market share in 2020, accounting around 40% of the total automotive plastics market. Interior applications segment is expected to maintain its rank as the leading end-use segment over the forecast period of 2022 to 2026. Multiple varieties of plastics such as polypropylene (PP), polyamide (PA), and polyurethane (PU), and polyvinyl chloride (PVC) can be utilized in this segment for varied purposes including manufacturing door panels, seat leather upholstery, interior trims, and instrument cluster. Notably, PP is the most sought-out plastic type by manufacturers; by 2026, growing with a CAGR of 7.8%, PP is projected to reach a market value of US$ 13.5 billion. The major reasons for robust use of automotive plastics in interior applications include due adherence to safety norms, enhancement in vehicles’ aesthetics, design flexibility, and reduction in noise, vibration, and harshness (NVH).
During the study period, under the hood applications are poised to register the fastest growth rate in terms of volume and value. Government policies around fuel carbon emissions, emphasis on sustainable innovation, buyer preference for fuel-efficient and lightweight vehicles are the foremost growth drivers in this segment of the automotive plastics market.
Asia Pacific Sustains its Dominance over Global Automotive Plastics Market
In 2020, Asia Pacific commanded a market share of almost 50% in the global automotive plastics market. In the upcoming years, this region is set to rapidly expand its automotive plastics market, particularly in China, India, Japan, South Korea and Southeast Asia. OEMs in Asia Pacific are increasingly choosing automotive plastics, creating lucrative opportunities. The plastic consumption per vehicle is higher in North America and Europe, this, coupled with rapid adoption of EVs, is projected to rapidly expand the automotive plastics market of North America and Europe. Key market players in the global automotive plastics market include Borealis AG, BASF SE, Evonik Industries AG, Covestro AG, Arkema SA, DuPont, LG Chem, and SABIC, among others.
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.
Fairfield Market Research
Follow Us: LinkedIn