The global automotive plastic market size is anticipated to reach USD 75,188.3 million in 2024. It is projected to surge at a CAGR of 6.8% during the forecast period of 2024 to 2034. It will likely attain a value of USD 145,333 million by 2034 and is anticipated to showcase a Y-o-Y growth of 6.4% in 2024.
Automotive plastic comprises a wide range of polymeric materials that are used in the manufacturing of conventional and electric vehicles. These materials are selected due to their favorable and compatible properties. The use of plastic in vehicles has surged prominently owing to the increased focus on fuel efficiency and manufacturing complex components and structures.
The advanced composites and engineered plastics are able to withstand high-impact collisions, reduce noise, and improve thermal insulation in vehicles. These properties are contributing significantly to enhanced vehicle safety and performance.
| Attributes | Description |
|---|---|
| Estimated Global Automotive Plastic Market Size (2024E) | USD 75,188.3 million |
| Projected Global Automotive Plastic Market Value (2034F) | USD 145,333 million |
| Value-based CAGR (2024 to 2034) | 6.8% |
The automotive industry is increasingly focusing on safety. Advancements in technologies have increased the demand for reliable plastics. These engineering plastic materials are known to have good impact strength. Vehicle parts like airbags and bumpers are increasingly being made from plastics to ensure maximum safety in instances of collisions or accidents, thereby ensuring the safety of vehicle occupants.
Polypropylene (PP) is anticipated to showcase a good growth rate compared to other materials. It is set to witness a CAGR of 6.8% through 2034. This growth is attributed to the increasing demand for lightweight, durable, and cost-effective materials.
The high chemical resistance and recyclability features of polypropylene make it an ideal choice for several applications in vehicle component manufacturing and assembly. Polypropylene is set to account for a value share of 20.3% during the forecast period. This significant value showcases the importance of the material and indicates its wide acceptance.
In one of the reports released by the American Chemistry Council (ACC), it was found that on average from 2012 to 2021, the amount of plastic in automobiles has increased by 16%. This signals the importance automobile companies are putting toward using more plastic-made components over traditional materials. The report also suggested the high use of plastic-made components has improved the fuel efficiency and safety of the vehicles.
Automotive plastic is more cost-effective compared to traditional metal-based materials. They also provide significant advantages to companies in terms of manufacturing efficiency and overall production costs. These plastics require less maintenance compared to metal parts and offer excellent durability, resulting in reduced lifecycle costs. The corrosion resistance property of plastics makes these a preferred material in automotive components manufacturing.
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The table below anticipates a comparative assessment of the variation in the projected CAGR for the automotive plastic industry over the semi-annual periods spanning from the base year (2023) to the current year (2024). The examination of the compound annual growth rate showcases the shifts in the performance of the market and divulges its revenue realization patterns.
The examination assists companies in gaining a better understanding of the industry and its growth trajectory over the years. The first half of the year, or H1, spans from January to June. The second half, i.e. H2, includes the months from July to December.
Numbers showcased in the table indicate the projected CAGR for the automotive plastic market over the semi-annual period starting from 2024 to 2034. The industry, in the first half (H1) of 2023 to 2033 is set to surge at a CAGR of 6.4%, followed by a spike in the growth rate during the second half (H2) where the CAGR is estimated to be 7.2%.
| Particular | Value CAGR |
|---|---|
| H1 | 6.4% (2023 to 2033) |
| H2 | 7.2% (2023 to 2033) |
| H1 | 6.6% (2024 to 2034) |
| H2 | 7% (2024 to 2034) |
Moving in the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to slightly decrease to 6.6% and then increase to 7% in the second half. In the first half (H1), the business experienced a surge of 20 BPS while in the second half (H2), it witnessed a decrease of 20 BPS.
Automotive Industry Embraces Bio-based Recycled Materials to Reduce Carbon Emissions
The global automotive industry is focused on developing and using bio-based and recycled materials to reduce their carbon footprint and promote sustainability. There has been an increasing focus on sustainability, primarily owing to strict environmental regulations and the shift of consumer preferences toward eco-friendly products.
Bio-based materials are often derived from renewable resources like sugarcane, corn, and algae. These resources offer alternative solutions to traditional petroleum-based plastics.
Key players are incorporating sustainable bio-based plastic materials within their vehicle component manufacturing. One such player is Ford Motor Company. The company has begun incorporating bio-based materials into its vehicles.
It has utilized soy-based foam in seat cushions and headrests to reduce the use of petroleum. The company is also exploring the use of other bio-based resources to make sustainable plastic material and incorporate its usage in component manufacturing.
High Preference for Polymer Composites Drives Growth
Polymer composites are being rapidly adopted in the industry. This increasing use is further pushing the adoption of plastics. The characteristics of these polymer composites are well-suited for automotive assembly. These beneficial features make them ideal for reducing the overall weight of the vehicle. This is essential for fuel efficiency and lower greenhouse emissions. The push for lightweight and fuel-efficient vehicles is accelerating the adoption of these advanced materials.
Polymer composites are known to provide superior mechanical properties and design flexibility. This helps manufacturers to produce complex shapes and components that offer strong and lightweight properties. Components of vehicles, including body panels, bumpers, chassis components, and others are increasingly being made from these advanced polymer composite materials.
Leading automotive manufacturers are investing heavily in research and development activities to integrate polymer composites into their production line-up. BMW has already started using these advanced composites in its i3 and i8 models.
Rising Electric Vehicle Adoption Fuels Automotive Plastic Use
The rapid growth of electric vehicles (EVs) is a prominent driving factor for the automotive plastic market. These plastics are known for their lightweight and high-strength properties. Electric vehicles require materials that offer high performance without adding excess weight to the vehicle. Automotive plastics are ideal to meet these requirements for electric vehicle assembly.
The design flexibility of plastics allows for the creation of complex shapes and components crucial for modern EV designs. The excellent thermal and electrical insulation properties of plastics make these a front-runner for protecting sensitive electronic components in EVs. For instance, Tesla uses high-strength, lightweight plastic in its Model S and Model 3 to improve performance and safety.
Cost-effectiveness of Plastics Augment Demand in Automotive Component Manufacturing
The cost-effectiveness of plastic materials compared to traditional materials like metal is one of the key factors contributing to their high sales. Plastic is known to offer a good economic advantage to manufacturers due to its low cost of production. Along with cost-effectiveness, plastic materials also have a few other favorable properties like design flexibility and high corrosion resistance.
The durability and low maintenance requirements of plastic components help extend the lifespan of the component. This reduces the need for frequent replacement or repairs, thereby decreasing the overall lifecycle cost of vehicles. These cost benefits combined with the performance advantages of plastics are increasing their demand in vehicle component manufacturing and assembly.
Principal Consultant
The global automotive plastic market was valued at USD 68,698.2 million in 2019. The industry registered a CAGR of 3.2% during the historical period between 2019 and 2023. The growth of the industry was positive as it achieved a value of USD 70,192.5 million in 2023.
The shift in the automotive industry from metal materials to plastic materials is prominently attributed to a rising focus on fuel efficiency, which will likely assist in reducing emissions. Plastic materials play a crucial role in achieving sustainability goals set by companies and countries.
Following the pandemic, cost-effectiveness became a primary concern for several businesses. This led to an increased demand for affordable plastic materials. International trade experienced a rapid recovery from 2021 to 2022.
Estimates by the European Central Bank suggest a growth of 13% in global trade in 2022. The rate continued to increase by over 5% year-on-year in the same year. This resurgence facilitated steady growth in the automotive plastic industry during the period.
The automotive plastic market forecast estimates the market to reach a value of USD 75,188.3 million in 2024. It is anticipated to surge at a CAGR of 6.8% throughout the forecast period to reach a size of USD 145,333 million by 2034.
The automotive plastic industry is experiencing good growth and innovative changes due to several factors. Plastic material has become an integral part of vehicle assembly and component manufacturing compared to traditional materials like metals.
Reduced barriers for trade between emerging economies have interconnected different regions, facilitating the surge of cross-border trade and boosting demand for plastic materials. The market is also witnessing a growing focus on waste reduction, recyclability, and reusability in manufacturing processes. This emphasis has positioned plastic materials as highly attractive for automotive component manufacturing, amid the rising environmental concerns.
Tier 1 companies primarily comprise industry leaders with a revenue of above USD 15,000 million. They capture a significant share of 45% to 50% globally. These businesses are distinguished by their broad expertise in manufacturing and a wide geographical reach, which is underpinned by a robust consumer base.
Businesses in Tier 1 have a high production capacity and an extensive product portfolio. They provide a wide range of plastic materials and have state-of-the-art manufacturing facilities spread across several regions. These organizations utilize the latest technology and ensure regulatory standards, providing good-quality products. Prominent companies within Tier 1 include BASF SE, SABIC, Dow Chemical Company, Mitsui Chemicals, and Sumitomo Chemical Co.
Tier 2 companies include players with revenue ranging from USD 5,000 to 15,000 million. They have a presence in specific regions and highly influence the local industry. These companies are characterized by a strong presence overseas and robust knowledge.
Organizations in Tier 2 may not have access to advanced technology but they ensure regulatory compliance in their processes. Renowned businesses in Tier 2 are Evonik Industries, Covestro AG, Formosa Plastics, and Eastman Chemical Company.
Tier 3 mainly includes companies operating at the local level. These businesses serve niche sectors and have a revenue below USD 5,000 million. These organizations are notably oriented toward fulfilling local demands and are consequently classified within the Tier 3 segment. These players have a limited geographical reach. Companies included in Tier-3 are Teijin Limited, Momentive Performance Materials Inc., and JSR Corporation.
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The section offers businesses with an overview of the industry on a country-by-country basis. It comprises a detailed examination of the potential trends and opportunities in various countries. This country-specific examination is likely to help companies understand the complex nature of the industry.
The examination consists of key factors, potential challenges, and forecasts influencing the demand, production, and consumption of the product within each country. This section aims to assist organizations in making informed decisions and developing effective strategies tailored to individual countries.
China is estimated to emerge as a dominating country during the forecast period with a projected CAGR of 8%. Germany, the United States, and Japan are likely to follow behind to become the leading countries with anticipated CAGRs of 7.3%, 6.6%, and 6.3%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| China | 8% |
| Germany | 7.3% |
| United States | 6.6% |
| Japan | 6.3% |
| India | 6.1% |
China’s automotive plastic market is poised to exhibit a CAGR of 8% between 2024 and 2034, reaching a value of USD 44,200 million by 2034. The country currently holds the most prominent share across East Asia, and the trend is set to continue in the forecast period.
Significant growth in the country is due to its status as the world’s most prominent automotive producer and consumer. The country’s automotive industry has witnessed steady expansion over the last few years. This is due to increasing domestic demand and government policies supporting the development of fully electric and hybrid vehicles.
China's manufacturing capabilities and scalability enable efficient production of automobiles. This assists the country in maintaining a cost-effective advantage over other nations and global manufacturers. The presence of a vast network of suppliers, suitable infrastructure, and low-cost labor has boasted its competitive edge in the global industry.
Germany currently holds a 13% share in Europe. The country is anticipated to surge at a CAGR of 7.3% throughout the forecast period, amounting to a value of USD 4,800 million by 2034.
The country’s growth in the automotive plastic industry is attributed to its position as a powerhouse in automotive manufacturing and innovation. Germany is renowned for its automotive engineering capabilities complimented by advanced research and development institutes, numerous automotive suppliers, and several automotive component manufacturing facilities.
This helps foster innovation in materials and technology, including high use of advanced plastics and composites to meet the strict EU regulations on emission and sustainability.
The commitment of the country’s government toward sustainability and environmental protection plays a significant role in boosting the adoption of automotive plastic. Implementation of new regulations to reduce emissions and increase efficiency is further estimated to increase the industry’s reliance on lightweight materials like plastic. Key manufacturers have started to incorporate these advanced plastics in their production lines.
The United States is anticipated to showcase a CAGR of 6.6% during the assessment period. This growth is owing to the presence of several renowned manufacturers in the country.
The country is home to a few of the leading automotive companies like General Motors, Ford, and Tesla. These key companies are responsible for carrying out continuous innovation and incorporating advanced materials to enhance vehicle performance, safety, fuel efficiency, and durability.
In 2023, according to the International Energy Agency (IEA), sales of electric cars in the United States stood at 1.4 million cars. This increased demand for electric and hybrid vehicles in the country has proven to be beneficial for the automotive plastic industry.
As consumers become environmentally conscious, they are likely to shift toward sustainable and fuel-efficient vehicles. Hence, the adoption of advanced plastic materials essential for optimizing battery performance and extending driving range is set to increase.
The section provides organizations with insightful data and analysis of the two leading segments of the target industry. Segmentation of these categories helps businesses to understand the dynamics of the segments and invest in the beneficial areas.
Examination of the growth of the industry helps companies gain a better understanding of the trends, opportunities, and challenges. This analysis is likely to help companies navigate the complex business environment and make informed decisions.
In terms of application, interior components are projected to account for a value share of 65.1% in 2034. Conventional vehicles are estimated to emerge as the dominating end-use with a value share of 96.1% in the same year. By material, the polypropylene segment is set to hold a share of 20.3% in 2034.
| Segment | Interior Components (Application) |
|---|---|
| Value Share (2034) | 65.1% |
The interior component segment dominates the industry in terms of revenue, accounting for about 65.1% of the share in 2034. Interior components like dashboards, door panels, seats, and consoles have a high demand for novel materials that offer comfort and functionality. Plastics provide exceptional design flexibility, allowing for the creation of intricate and visually appealing interior elements.
The exterior components segment, however, is predicted to surge remarkably both in terms of volume and value. The exterior component and frame segment is poised to surge at a value CAGR of 6.5% during the forecast period.
| Segment | Polypropylene (Material Type) |
|---|---|
| Value Share (2034) | 20.3% |
Based on material type, the polypropylene segment is anticipated to experience moderate growth compared to other materials. It is likely to showcase a CAGR of 6.8% through 2034. Increasing demand for lightweight, durable, and cost-effective materials among leading automakers is set to drive sales.
The characteristics of polypropylene like high chemical resistance and recyclability make it an ideal choice for several applications in vehicle component manufacturing and assembly. Polypropylene is anticipated to account for most of the share by 2034. This significant growth rate shows the importance and indicates the wide acceptance of polypropylene in the industry.
Key players in the automotive plastic market include BASF SE, DuPont de Nemours, Inc., Covestro AG, SABIC, LyondellBasell Industries, Solvay S.A., Mitsubishi Chemical Holdings Corporation, and LG Chem. Manufacturers are progressively focusing on providing enhanced aesthetics and sustainable materials. Key automotive plastic providers are also investing in research and development activities for the adoption of bio-based materials.
Prominent manufacturers have integrated their raw materials and distribution operations in order to maintain additive quality. Tier 2 and Tier 3 players are seeking to expand their regional presence. Research activities in the industry are primarily focused on the development of novel and effective materials that combine a number of properties to sustain the competition and evolving demand worldwide.
The automotive industry is currently facing minor economic challenges and cost pressures. Thermoforming, therefore, continues to remain a key component to achieve efficient and economical manufacturing solutions. This not only ensures innovation but also pushes continued growth in the automotive plastic market.
Vehicle weight regulations and standardization of emission norms are set to positively influence growth in the industry. Initiatives by the European Union (EU) to develop new plastic materials for the creation of light and fuel-efficient vehicles are also estimated to boost growth. The diverse end-user base of the industry is a crucial factor influencing the growth of the market.
Industry Updates
Based on material type, the industry is divided into polypropylene (PP), polyurethane (PUR), acrylonitrile butadiene styrene (ABS), polyvinyl chloride (PVC), polyethylene (PE), polystyrene (PS), polycarbonate, polyamide (PA), acrylic (PMMA), plastic composites, and others.
By application, the industry is divided into interior and exterior components and frames.
The product has applications in conventional vehicles and electric vehicles. The conventional vehicles segment is further divided into passenger cars, light commercial vehicles, and heavy commercial vehicles. The electric vehicles segment is segregated into fully-electric and hybrid vehicles.
The industry is spread across North America, Latin America, Europe, South Asia, East Asia, and the Middle East and Africa.
It is projected to reach USD 75,188.3 million in 2024.
It is estimated to reach USD 145,333 million by 2034.
BASF SE, DuPont de Nemours, Inc., Covestro AG, and SABIC are the key players.
China is anticipated to lead with a CAGR of 8% through 2034.
It is estimated to surge at a CAGR of 6.8% through 2034.
Sales in India are estimated to rise at a CAGR of 6.1% by 2034.
It is used in steering wheel covers, fenders, cable insulation, and dashboards.
PP has wide use in bumper facias, instrumental panels, and door trims.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Material Type
6.2. Application
6.3. End Users
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Type
7.1. Polypropylene (PP)
7.2. Polyurethane (PUR)
7.3. Acrylonitrile Butadiene Styrene (ABS)
7.4. Polyvinyl Chloride (PVC)
7.5. Polyethylene (PE)
7.6. Polystyrene (PS)
7.7. Polycarbonate
7.8. Polyamide (PA)
7.9. Acrylic (PMMA etc.)
7.10. Plastic Composites
7.11. Others
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
8.1. Interior Components
8.2. Exterior Components & Frames
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Users
9.1. Conventional Vehicles
9.1.1. Passenger Cars
9.1.2. Light Commerical Vehicles
9.1.3. Heavy Commerical Vehicles
9.2. Electric Vehicles
9.2.1. Fully-Electric Vehicles
9.2.2. Hybrid Vehicles
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. North America
10.2. Latin America
10.3. Western Europe
10.4. South Asia
10.5. East Asia
10.6. Eastern Europe
10.7. Middle East & Africa
11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Material Type, Application, and End Users for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. BASF SE
20.2. DuPont de Nemours, Inc.
20.3. Covestro AG
20.4. SABIC
20.5. LyondellBasell Industries
20.6. Solvay S.A.
20.7. Mitsubishi Chemical Holdings Corporation
20.8. LG Chem
20.9. Dow Inc.
20.10. Teijin Limited
20.11. Sumitomo Chemical Co., Ltd.
20.12. Asahi Kasei Corporation
20.13. Evonik Industries AG
20.14. Lanxess AG
20.15. Toray Industries, Inc.
Automotive
February 2024
REP-BR-81
306 pages
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Automotive Plastic Market
