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

Automotive Plastics Market Size & Forecast

The 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 plastic materials, cost-effective materials, and easy replacement.

Furthermore, bioplastics, sustainable materials, and a focus on multi-material solutions are expected to offer significant growth opportunities for players in the automotive plastics market.

Automotive Plastics Market Growth Drivers

• Adoption of Lightweight Plastic Materials

Lightweight plastics help in reducing the overall weight of vehicles. Since lighter vehicles require less fuel to operate, there's a growing emphasis on lightweighting in the automotive industry to meet fuel efficiency standards. Plastics, being lighter than traditional materials like metal, contribute significantly to achieving these goals. Lightweight plastics offer greater design freedom for car manufacturers. They can be molded into complex shapes, allowing for more aerodynamic designs that further enhance fuel efficiency. Additionally, some plastics can be just as strong as metals, making them suitable for various car parts without compromising performance.

Plastics offer automotive OEM designers greater freedom in shaping automotive components compared to traditional materials. This flexibility enables the creation of innovative designs that not only reduce weight but also enhance aesthetics and functionality. Additionally, lightweight plastics can enhance vehicle performance by improving acceleration, handling, and braking. These materials offer design flexibility, allowing automakers to create sleeker and more aerodynamic vehicles. As a result, the adoption of lightweight plastics can positively impact the driving experience. Furthermore, various market players are initiating innovative initiatives to drive market development. For instance, in January 2024, Marelli (Italy) launched its LeanLight headlight and rear light concepts. Compared with traditional automotive lighting, the products feature up to 20% fewer components, a 20% reduction in weight, and a 6 kg reduction in CO2 emissions.

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• Cost-effective Materials

Cost-effective plastics often offer a favorable balance between cost and performance, making them ideal for lightweighting plastic component designs in the automotive industry. Compared to traditional materials, cost-effective plastics provide designers with greater flexibility in creating complex shapes and innovative designs. This versatility allows automakers to optimize component designs for performance, functionality, and aesthetics while keeping production costs in check. Also, by replacing heavier materials with lightweight plastics, automakers can improve fuel efficiency and meet stringent emissions regulations without significantly increasing manufacturing costs.

Cost-effective plastics are often engineered to maximize material efficiency, minimizing waste during the manufacturing process. This efficiency contributes to lower material costs and reduces the environmental impact associated with material consumption and disposal. Cost-effective plastics are typically sourced from readily available raw materials, leading to a more stable and predictable supply chain. This stability helps automotive manufacturers mitigate supply chain risks and fluctuations in material prices, ensuring consistent production and cost control. Such factors will support the growth of the automotive plastic market during the forecast period.

Automotive Plastics Market Trends

• 3D Printing and Customization

3D printing facilitates rapid prototyping, allowing automotive OEM designers and engineers to quickly iterate and refine their designs. This accelerated development process reduces time-to-market for new vehicle models and enables faster innovation cycles, enhancing competitiveness in the automotive industry. 3D printing enables automotive manufacturers to produce highly complex and customized plastic components that would be challenging or even impossible to create using traditional manufacturing methods. This flexibility allows for innovative designs tailored to specific customer preferences and functional requirements.

Additionally, 3D printing enables the on-demand production of plastic automotive parts, eliminating the need for large-scale inventory storage and reducing associated costs. Automakers can produce components as needed, reducing waste and optimizing supply chain efficiency. 3D printing allows for the creation of complex geometries with intricate structures that optimize strength-to-weight ratios. This capability is particularly advantageous for lightweighting initiatives in the automotive industry, where reducing vehicle weight is critical for improving fuel efficiency and performance.

• Integration of Plastic with Advanced Sensors

The integration of plastics with advanced sensors is indeed a significant trend driving innovation in the automotive industry. Plastics have long been valued for their lightweight properties, which contribute to fuel efficiency and overall vehicle performance. However, advancements in sensor technology have opened up new possibilities for utilizing plastics in innovative ways within vehicles, and by embedding sensors directly into plastic parts, automotive manufacturers can add new features and capabilities to vehicles, such as adaptive cruise control, collision detection, and lane departure warning systems.

Advanced sensors embedded within plastic components enable vehicles to gather real-time data on various parameters such as temperature, pressure, and mechanical stress. This data can be utilized to enhance vehicle performance, optimize fuel efficiency, and improve overall driving experience. The growing demand for connected, autonomous, and electric vehicles is driving the rapid advancement of sensor technology in the automotive industry. As automakers strive to meet evolving consumer preferences and regulatory requirements, the integration of plastic with advanced sensors is becoming increasingly essential for staying competitive and meeting market demand.

Automotive Plastics Market Opportunity

• Bioplastics and Sustainable Materials

Bioplastics and sustainable materials are creating lucrative growth opportunities in the automotive plastics market, driven by the growing focus on environmental sustainability, regulatory pressures, and consumer demand for eco-friendly products. Bioplastics are often lightweight materials, offering comparable or even superior mechanical properties to conventional plastics. By incorporating bioplastics into automotive plastic components, automakers OEMs can achieve weight reduction, leading to improved fuel efficiency and reduced CO₂ emissions over the vehicle's lifecycle.

Bioplastics are biodegradable polymeric materials that can be recycled and readily decomposed when they end up in landfills. These can be used to replace conventional petrochemical plastics and are considered superior polymers compared to synthetic plastics due to their biocompatibility, making them exceptional for automobile applications. Bioplastics can be starch-based, cellulose-based, protein-based, lipid-based biopolymers, etc. Some of the major bioplastics that are used in the manufacturing of various automobile components are as follows:

• Bio-polyamides (Bio-PA)
• Polylactic Acid (PLA)
• Bio-based polypropylene (Bio-PP)

Automotive Plastics Market Analysis: Key Findings

By Type: In 2024, the Thermoplastics Segment to Dominate the Automotive Plastics Market

Based on type, the global automotive plastics market is segmented into thermoplastics and thermosetting. Further, the thermoplastics segment is sub-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 segment is sub-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. 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, and the 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.

By Process: In 2024, the Injection Molding Segment to Dominate the Automotive Plastics Market

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.

By Vehicle Type: In 2024, the 2-wheelers & 3-wheelers Segment to Dominate the Automotive Plastics Market

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 property, cost-effectiveness, and affordability, which plays a significant role in the appeal of manufacturing 2-wheelers & 3-wheelers. As, 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.

By Application: In 2024, the Interior Segment to Dominate the Automotive Plastics Market

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.

By End User: In 2024, the Conventional Vehicles Segment to Dominate the Automotive Plastics Market

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.

Geographical Analysis

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.

Automotive Plastics Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the product portfolios and geographic presence of leading market players and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the automotive plastics market are 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).

Automotive Plastics Industry Overview: Latest Developments from Key Industry Players

• In January 2024, Sonichem (U.K.) announced the launch of a project to transform the automotive industry with bio-based plastics. The company has been granted USD 747,300 (GBP 600,000) in funding from Innovate UK’s 'Resource Efficiency for Materials and Manufacturing' (REforMM) program. The funding will accelerate the development of the proprietary Sonichem ultrasound technology and the production of renewable, cost-effective alternatives to petrochemicals commonly used in the production of plastics, resins, and composites within the automotive industry.

• In February 2024, MBA Polymers UK Ltd. launched a recycling initiative to recycle damaged or end-of-life car bumpers into polymers for use in the automotive industry. By receiving bumpers from authorized treatment facilities (ATFs), insurers, and garages at two of its U.K. sites, MBA Polymers offers a range of sustainability benefits, such as reducing the amount of plastic that ends up in landfill, reducing the carbon emissions required to produce its materials, assisting car makers in meeting strict new recycling targets and advancing the automotive industry towards a standardized circular economy.

• In April 2023, Yamaha Motor Co., Ltd. (Japan) developed a new recycled polypropylene (PP) material that can be used for the main exterior bodywork of motorcycles. The company claims that the eco-friendly recycled PP material is made only from pre-consumer materials with a traceable manufacturing history and no risk of containing environmentally hazardous substances, such as purging compounds and scraps generated in the production processes of petrochemical and molding manufacturers.
• In August 2023, Borouge (UAE) announced a joint venture with the Abu Dhabi National Oil Company (ADNOC) to launch new polypropylene (PP) products for the automotive industry made from up to 70% post-consumer recycled (PCR) materials. The first solution contains 50% PCR material that reduces the carbon footprint by about 28% compared to virgin grades. It improves performance, processability, and long-term heat resistance, making it ideally suited for under-body shields, bumper brackets, and structural parts in cars. The second solution contains a blend of up to 70% PCR materials and was developed for producing wheel arches and other exterior components. It achieves a 32% reduction in carbon footprint compared to virgin grades while striking a balance between impact strength and stiffness.

Automotive Plastics Market Research Summary:

Key questions answered in the automotive plastics market report: