Selbyville, Delaware, March 02, 2022 (GLOBE NEWSWIRE) -- As per the latest report by Global Market Insights Inc., the Automotive Plastics Market was estimated at USD 18 Billion in 2020 and is anticipated to reach a valuation of about USD 35 billion by the end of 2027, registering with a CAGR of 11% from 2021 to 2027. The research report provides a detailed assessment of market size & estimations, top winning strategies, competitive scenario, drivers & opportunities, wavering market trends, and major investment pockets.
Automotive plastics offer numerous advantages, including improved mechanical strength, high design flexibility, excellent cost-performance, and ease of recycling. The ability of automotive plastics to enhance passenger safety and improve car performance is primed to support market growth through the forecast timeline.
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Polyethylene is widely used in fabricating automotive parts as it offers several beneficial properties, such as its high impact strength, solid durability, and low density. Additionally, since it is a low-cost product and provides superior moisture resistance, it is considered ideal for use in glass-reinforced car bodies as well as electrical insulation, which is likely to further support its application in automotive parts. Driven by these factors, the global automotive plastics market share from the polyethylene (PE) product segment is foreseen to be valued at around USD 2.5 billion by 2027.
Key reasons for automotive plastics market growth:
- Escalating demand in electric vehicles.
- Surging uptake in electrical components.
- Growing usage in under the hood applications.
- High adoption of polyethylene in automotive parts.
2027 forecasts show ‘under the hood’ segment retaining its dominance:
In terms of application, the under the hood segment is estimated to reach a valuation of more than USD 4 billion by the end of the forecast period. Plastics have gained popularity as a replacement for metal for under the hood application due to their ability to decrease vehicle weight. Plastics like polypropylene are also extensively utilized for under the hood application. For under the hood application, manufacturers have been increasingly relying on plastics that have high temperature resistance to help enhance part integration and extend service life, which is set to foster segmental outlook in the forthcoming years.
On the other hand, the electrical components segment is slated to exhibit robust growth to surpass USD 12 billion in revenue by 2027. Excellent insulating properties of plastics support their usage in switches, handles, and light fittings, which is speculated to boost the growth of the segment over the review timeline.
Europe to maintain top status in terms of revenue:
On the regional spectrum, the Europe automotive plastics industry is projected to grow at a CAGR of approximately 12% through the forecast period on account of surging demand for lightweight and electric vehicles in the region. Integrating automotive plastics in electric vehicles reduces the vehicle’s weight and offers durability, heat resistance, and better safety. The ability of automotive plastics to reduce the vehicle’s weight and bolster durability is expected to drive product demand in passenger vehicles. Moreover, mounting uptake of advanced technologies, coupled with rising vehicle production, would propel product adoption, which is poised to fuel regional market growth in the upcoming years.
Impact of COVID-19 pandemic on automotive plastics market:
The onset of COVID-19 caused a severe disruption in the global supply chain due to stringent lockdown restrictions imposed by governments across the globe. The subsequent steep decline in the demand for automobiles resulted in a decrease in the need for automotive plastics, thereby impeding market growth during the pandemic. However, prevalent vaccination drives and increasing government focus on expediting economic recovery have positively influenced market growth in recent years.
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Leading market players:
Some major companies in the global automotive plastics industry include Teijin Ltd, LyondellBasell, Dupont, Solvay SA, SABIC, DSM, Evonik Industries, BASF SE, LG Chem, Borealis AG, Arkema SA, and Covestro AG, among others.
About Global Market Insights Inc.
Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider. Offering syndicated and custom research reports, growth consulting and business intelligence services, Global Market Insights Inc. aims to help clients with penetrative insights and actionable market data that aid in strategic decision making.
