Dublin, March 28, 2022 (GLOBE NEWSWIRE) -- The "Automotive Plastics Market - Global Industry Analysis (2017 - 2020) - Growth Trends and Market Forecast (2021 - 2025)" report has been added to ResearchAndMarkets.com's offering.
By the end of 2026, the automotive plastics industry is predicted to reach a market worth of US$ 68.6 Bn from US$ 48.7 Bn in 2018. Subsequently, this exhibits a stellar CAGR of 7.7% which provides ample growth opportunities for the market players.
Rising concerns related to enhancing the performance, built, safety, and functionality of automobiles is steering the demand for automotive plastics. These plastics provide corrosion resistance, operational flexibility, and optimally space utilization. Additionally, plastic-based car parts are built using efficient thermal insulation and noise reduction techniques making them highly resilient in terms of safety.
Car weight reduction is directly related to fuel consumption. To this end, an average reduction of 10% in the car weight will coherently decrease the fuel usage by 7% to 8%, approximately. The escalating demand for lightweight materials, vehicle electrification, and increasing sales are expected to augur well for the automotive industry. Moreover, in the span of 5 years, the market is forecasted to expand by 5% with an incessant rise in sales of 100 million units.
Key Highlights of Automotive Plastics Market:
Automotive plastics are widely used for the production of interior and exterior parts of vehicles. The segment of interior applications held a major share of 40% in the overall automotive plastics market in 2020.
The interior and exterior applications segment is expected to account for 70% of the total market value by the end of 2026.
Under the hood to be the fastest-growing application segment in terms of volume and value supported by governments regulations on fuel carbon emissions and changing buyer behaviour towards lightweight, fuel-efficient vehicles.
India and Southeast Asia to be high growth markets as favourable government policies such as production-linked incentive (PLI) coupled with rise in vehicle ownership with increase per capita income levels in coming five years.
In 2020, polypropylene (PP) emerged as the most sought-after automotive plastics, and the value of this market segment is expected to touch US$13.5 Bn by 2026, growing with a CAGR of 7.8%.
Favorable Properties of Automotive Plastics for Interior Vehicle Components to Ensure Perpetual Market Expansion
High-resistance and dimensional-stability are key imperatives for the growth of interior applications. Plastics are widely used in the production of vehicle components such as under the hood components, upholstery, interior trims, exterior parts, fuel system, dashboard, bumper, lighting, and instrumental panels. This wide array of applications is expected to bode well for market growth.
Asia Pacific to Outdo Sales Across All Other Regional Markets
Asia Pacific accounts for 50% of the market for automotive plastics. Significant shifts in customer preferences and surging demand for lightweight vehicles are key factors that are escalating the demand for automotive plastics in the region. Japan, South Korea, China, India, and Southeast Asia are the beating heart of the automotive industry. The presence of major automobile companies, along with low-cost labor and availability of raw material, could proliferate growth across these countries. Southeast Asia and India are likely to prosper owing to technological advancements and a rise in per-capita income levels.
North America and Europe are also flourishing with several growth opportunities, backed by government support. The governments in these regions are drafting rigorous policies and providing monetary assistance for the sustainable development of automobiles. Thus, the market for automotive plastics in these counties is driven by tightening regulations to prevent CO2 emissions, adoption of turbocharged engines, and vehicle electrification.
The key players in the global automotive plastics market are
- LyondellBasell Industries N.V.
- BASF SE
- SABIC
- Covestro AG
- Borealis AG
- LG Chem
- LANXESS AG
- Celanese Corporation
- INEOS
- Asahi Kasei Corporation
- Koninklijke DSM N.V.
For more information about this report visit https://www.researchandmarkets.com/r/7wmrii
