Redding, California - April 30, 2024

Automotive Plastics Market to be Worth $76.6 Billion by 2031

Automotive Plastics Market by Type (Thermoplastics and Thermosetting), Process (Injection Molding, Blow Molding), Vehicle Type, Application (Electrical Components, Powertrain), End User, and Geography - Global Forecast to 2031

Meticulous Research^®—a leading global market research company, published a research report titled, ‘Automotive Plastics Market by Type (Thermoplastics and Thermosetting), Process (Injection Molding, Blow Molding), Vehicle Type, Application (Electrical Components, Powertrain), End User, and Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the global automotive plastics market is expected to reach $76.6 billion by 2031, at a CAGR of 7.8% from 2024–2031.The growth of the automotive plastics market is driven by the adoption of lightweight, cost-effective, and easy-to-replace plastic materials. However, limited recycling capabilities restrain the growth of this market.

Furthermore, bioplastics, sustainable materials, and a focus on multi-material solutions are expected to offer significant growth opportunities for players operating in the automotive plastics market. However, safety concerns and regulations, as well as volatile oil prices and cost fluctuations, may hinder the growth of this market.

3D printing customization and integration of plastic with advanced sensors are prominent trends in this market.

The global automotive plastics market is segmented by type (thermoplastics {polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), polycarbonate (PC), acrylonitrile butadiene styrene (ABS), and other thermoplastics} and thermosetting {polyurethane (PU), polyamides (PA), epoxy, polyester, phenolic, silicone, and other thermosettings}), process (injection molding, blow molding, thermoforming, compression molding, extrusion, and other processes), vehicle type (2-wheelers & 3-wheelers, passenger cars, buses, and trucks), application (electrical components, powertrain, engine bay, chassis, interior, exterior, and other applications), and end user (conventional vehicles and electric vehicles). The study also evaluates industry competitors and analyzes the market at the regional and country levels.

Based on type, the global automotive plastics market is segmented into thermoplastics and thermosetting. Further, the thermoplastics segment is segmented into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), polycarbonate (PC), acrylonitrile butadiene styrene (ABS), and other thermoplastics. The thermosetting is segmented into polyurethane (PU), polyamides (PA), epoxy, polyester, phenolic, silicone, and other thermosettings. In 2024, the thermoplastics segment is expected to account for the larger share of ~63% of the global automotive plastics market.

Furthermore, the polypropylene (PP) segment is expected to account for the largest share of ~9% of the global automotive thermoplastics market. This segment's significant market share can be attributed to various factors, as polypropylene is a relatively inexpensive material compared to alternatives like metals or engineering plastics. Its affordability makes it a preferred choice for automotive manufacturers looking to keep production costs down while maintaining quality and performance. Polypropylene also offers excellent moldability and design flexibility, allowing for complex shapes and intricate designs. This versatility makes it suitable for a wide range of automotive applications, including interior components, exterior trims, engine bay parts, and structural components.

Furthermore, various key players are launching various polypropylene automotive plastics. For instance:

• In December 2023, LyondellBasell (U.S.) launched a new range of translucent polypropylene compounds bearing the brand names Hifax and Hostacom, offering OEMs an innovative platform for creativity. LyondellBasell's cutting-edge translucent polypropylene compounds, Hifax and Hostacom translucent grades, offer new solutions. These materials surmount challenges such as yellowing and low rigidity due to LyondellBasell's pioneering compounding technology.
• In November 2022, Lummus Technology (U.S.), a global provider of process technologies and value-driven energy solutions, announced its new product: Novolen PPure polypropylene (PP) technology. The new non-phthalate process technology aims to provide significant energy savings by delivering an improved hydrogen response with the catalyst. Polymer-based products are aimed at automotive, healthcare components, and food packaging materials.

Additionally, the thermoplastics segment is projected to register the highest CAGR during the forecast period.

Based on process, the global automotive plastics market is segmented into injection molding, blow molding, thermoforming, compression molding, extrusion, and other processes. In 2024, the injection molding segment is expected to account for the largest share of ~51% of the global automotive plastics market. This segment's significant market share can be attributed to various factors, as this method is one of the most used methods for molding plastic in the automobile industry. It involves pumping molten plastic material under intense pressure into a metal mold to create personalized plastic parts and fittings. The injection molding technique has become increasingly important in the mass manufacture of intricate plastic molds due to modern improvements aimed at reducing error rates.

Injection molding is also a highly efficient and cost-effective manufacturing process for automotive plastics. It enables high-volume production with minimal material waste, reducing manufacturing costs compared to traditional methods. Additionally, the scalability of injection molding allows for economies of scale, further driving down production costs.

Additionally, the injection molding segment is projected to register the highest CAGR during the forecast period.

Based on vehicle type, the global automotive plastics market is segmented into 2-wheelers & 3-wheelers, passenger cars, buses, and trucks. In 2024, the 2-wheelers & 3-wheelers segment is expected to account for the largest share of ~62% of the global automotive plastics market. This segment's significant market share can be attributed to the various factors as it offers design flexibility, lightweighting properties, cost-effectiveness, and affordability, which plays a significant role in the appeal of manufacturing 2-wheelers & 3-wheelers. Plastics offer design flexibility, allowing manufacturers to create sleek and aerodynamic bodywork, stylish fairings, and visually appealing components. The ability to achieve complex shapes and intricate designs enhances the overall aesthetic appeal of these vehicles.

Additionally, 2-wheelers & 3-wheelers are exposed to harsh environmental conditions, including rain, sunlight, and temperature fluctuations. Automotive plastics, such as ABS (Acrylonitrile Butadiene Styrene) and polypropylene, offer excellent durability, impact resistance, and weather resistance, ensuring long-term performance and aesthetic appeal even under challenging conditions. Such factors help to deploy the growth of the automotive plastics market for 2-wheelers & 3-wheelers during the forecast period.

Additionally, the 2-wheelers & 3-wheelers segment is projected to register the highest CAGR during the forecast period.

Based on application, the global automotive plastics market is segmented into electrical components, powertrain, engine bay, chassis, interior, exterior, and other applications. In 2024, the interior segment is expected to account for the largest share of ~53% of the global automotive plastics market. This segment's significant market share can be attributed to various factors, as automotive plastics offer various advantages in the interior design of vehicles, such as weight reduction, design flexibility, product durability, safety & comfort, and recyclability. Plastics play a crucial role in reducing noise, vibration, and harshness (NVH) levels within the vehicle cabin. Sound-absorbing plastics can be used in door panels, headliners, and floor assemblies to dampen noise and improve acoustic comfort, creating a quieter and more pleasant driving experience.

Also, the increasing integration of electronic systems and connectivity features within vehicle interiors necessitates the use of plastics for housing components such as infotainment systems, touchscreen displays, instrument clusters, and control panels. Plastics provide electrical insulation, electromagnetic shielding, and design flexibility required for the seamless integration of these technologies.

Furthermore, various key players are launching various initiatives in the development of automotive plastics for interior designs. For instance:

• In March 2023, Faurecia SE (France), a company of the Group FORVIA, and Veolia Environnement S.A. (France) signed a Cooperation and Research Agreement to jointly develop innovative compounds for automotive interior modules, aiming to achieve an average of 30% of recycled content by 2025. Through this partnership, the two companies will accelerate the deployment of breakthrough sustainable interior solutions implemented in instrument panels, door panels, and center consoles in Europe.
• In August 2022, SABIC (Saudi Arabia) introduced the SABIC PP compound G3430X and SABIC PP compound G3440X grades, two new short-glass fiber-reinforced polypropylene compounds offering enhanced performance and processing for demanding automotive under-hood, exterior and interior applications.

Additionally, the interior segment is projected to register the highest CAGR during the forecast period.

Based on end user, the global automotive plastics market is segmented into conventional vehicles and electric vehicles. In 2024, the conventional vehicles segment is expected to account for the larger share of the global automotive plastics market. This segment's significant market share can be attributed to various factors, as automotive plastics offer excellent durability, impact resistance, and corrosion resistance, making them suitable for a wide range of applications in conventional vehicles. Plastics can withstand exposure to harsh weather conditions, chemicals, and mechanical stress, ensuring long-term performance and reliability. Plastics are often more cost-effective than metals and other materials, making them an attractive option for automakers looking to reduce manufacturing costs without sacrificing quality. Injection molding and other plastic manufacturing processes also allow for high-volume production at a lower cost per unit.

Furthermore, various key players are launching various initiatives in the development of automotive plastics for conventional vehicles. For instance:

• In July 2023, Avient Corp., a Cleveland-based polymers and plastics producer, added two recycled-content thermoplastic elastomers (TPEs) to its reSound REC product line. The company developed the TPE grades in response to the growing demand for improved sustainability in transportation and said the new reSound REC 7310 product series meets common automotive original equipment manufacturer (OEM) standards for volatile organic compounds (VOCs) and fogging.
• In September 2022, Audi AG (Germany) announced it is setting up material cycles to create high-quality granulate materials for use in serial automotive manufacturing. The car company is launching pilot reprocessing projects for a growing number of materials and components. The objective is to gain experience with as many processing techniques as possible and produce derivatives for future applications of particular raw materials.

However, the electric vehicles segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the various factors as electric vehicles require lightweight materials to maximize their driving range. Plastics offer a lightweight alternative to traditional materials like metals, helping to offset the weight of heavy battery packs. Also, by reducing vehicle weight, plastics contribute to extending the range of electric vehicles on a single charge, enhancing their appeal to consumers. Plastics play a crucial role in battery thermal management systems in electric vehicles. Thermally conductive plastics can be used to dissipate heat generated by the battery pack, ensuring optimal operating temperatures and prolonging battery life. Additionally, plastics are used in the insulation and enclosure of battery cells to protect them from environmental factors and ensure safety.

Based on geography, the automotive plastics market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of ~48% of the global automotive plastics market. Asia-Pacific significant market share can be attributed to the growing demand for vehicles in this region drives the adoption of automotive plastics for various applications, including interior, exterior, and under-the-hood components. Consumers in the Asia-Pacific region are increasingly demanding vehicles with advanced features, including connectivity, safety, and comfort amenities. Plastics enable the integration of advanced technologies and features into vehicle interiors, such as infotainment systems, touchscreen displays, and advanced driver assistance systems (ADAS).

Additionally, rapid urbanization in the Asia-Pacific region has led to increased traffic congestion and pollution in cities. As a result, there is a growing demand for lightweight, fuel-efficient vehicles that can navigate congested urban environments efficiently. Automotive plastics contribute to lightweighting efforts, making vehicles more agile and fuel-efficient in urban driving conditions. Such factors help to deploy the growth of the automotive plastics market in Asia-Pacific during the forecast period.

Additionally, the Asia-Pacific market is projected to register the highest CAGR of ~9% during the forecast period.

Key Players

The key players operating in the global automotive plastics market include BASF SE (Germany), Covestro AG (Germany), DuPont de Nemours, Inc. (U.S.), SABIC (Saudi Arabia), Dow Inc. (U.S.), Asahi Kasei Advance Corporation (Japan), Celanese Corporation (U.S.), LANXESS AG (Germany), Akzo Nobel N.V. (Netherlands), Evonik Industries AG (Germany), Adient plc (Ireland), Magna International Inc. (Canada), Momentive Performance Materials, Inc. (U.S.), Daicel Corporation (Japan), and Borealis AG (Austria).

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Key Questions Answered in the Report:

• What are the high-growth market segments in terms of type, process, vehicle type, portability, application, and end user?
• What is the historical market size for the global automotive plastics market?
• What are the market forecasts and estimates for 2024–2031?
• What are the major drivers, restraints, opportunities, challenges, and trends in the global automotive plastics market?
• Who are the major players in the global automotive plastics market, and what are their market shares?
• What is the competitive landscape like?
• What are the recent developments in the global automotive plastics market?
• What are the different strategies adopted by major market players?
• What are the trends and high-growth countries?
• Who are the local emerging players in the global automotive plastics market, and how do they compete with other players?