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The Plastics Market for the Passenger Cars Industry size is forecast to increase by USD 22,024.22 million at a CAGR of 10% between 2023 and 2027. The growth of the market depends on several factors such as the adoption of new or improved emission standards, the increasing government support to promote the adoption of EVs, and the increasing incorporation of electronics in passenger cars. China, US, Japan, India, and Germany are the top countries contributing to the growth of the market. China held the largest market share in 2021 projecting a revenue of USD 6,128.67 million. Arkema is one of the key market players and the company offers automotive plastics in the form of Arkema Polymers used for fitting, connectors, and emission control systems. Besides analyzing the current market scenario, our market research and growth report examines historic data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the adoption of new or improved emission standards. Due to the enforcement of stringent laws by various government institutions globally, there is an increase in the use of lightweight materials, such as plastics, for various applications in passenger cars. For instance, there is a growing implementation of Euro 6 emission standards or their equivalent in several countries such as the US, the UK, China, and India.
Hence, the implementation of such emission standards is forcing automotive component manufacturers to comply with the adoption of technologies that align with these standards. As a result, these new stringent emission standards facilitate the use of new or advanced materials that enhance fuel efficiency. Hence, such factors are expected to drive the global market growth during the forecast period.
A key factor shaping the global market growth is the lightweight and fuel efficiency of automobiles like passenger cars. Several vendors in the automotive industry are emphasizing lightweight vehicles to enhance fuel efficiency and minimize emissions. As a result, many manufacturers are adopting the use of advanced plastics and composites in passenger cars for the reduction of vehicle weight without compromising safety and performance.
Furthermore, there is a growing shift in consumer preferences towards vehicles that offer better fuel efficiency and emit fewer pollutants due to the rising awareness of climate change and the need to reduce carbon emissions. Thus, manufacturers are catering to consumer preferences by incorporating lightweight materials and technologies to improve the fuel efficiency of their vehicles. Therefore, such factors are expected to drive the global market growth during the forecast period.
Declining automotive production globally is one of the key challenges hindering the global market growth. Factors that are hindering the market growth include semiconductor chip shortages, increasing input costs, rising commodity prices and rising fuel costs are negatively impacting the growth of automotive production globally.
Additionally, the rising popularity of ride-hailing and ride-sharing services across the world is also significantly contributing to the decline in passenger car sales, which in turn is declining automotive production. Furthermore, factors such as disruption in the supply chain and decline in demand from Russia and Ukraine with Ukraine being the leading supplier of neon gas further limited the manufacturing of automotive cars globally. Hence, such factors are expected to hinder the global market growth during the forecast period.
The interiors segment is estimated to witness significant growth during the forecast period. Plastics are widely used in the interior parts of passenger car segments, thus OEMs are increasing their focus on the quality of the plastic used such as high thermal stability, scratch resistance, high strength, and aesthetics. Additionally, UV stability, good sound absorption, good color retention, and low emissions of volatile or harmful constituents are some of the other features which are crucial when deciding on plastic material by manufacturers.
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The interiors segment was the largest segment and was valued at USD 13,554.06 million in 2017. Some of the key interior areas where plastics are widely used in passenger car segments include instrument panel clusters, glove boxes, door panels, overhead consoles, center and fascia consoles, lower and back seat trims, folding tables, inner safety seat parts, and speaker consoles.
As the automotive market is an extremely competitive one with several players, several manufacturers are differentiating their products by offering better value for the price that customers pay than their competitors by increasing the number of components which improves the convenience and comfort of passenger car occupants. Hence such an increase in the number of components in passenger cars will increase the demand for plastics which in turn is expected to drive the global market growth during the forecast period.
Based on material, the polypropylene segment holds the largest market share. Polypropylene is a saturated polymer that is formed by the addition polymerization of monomer propylene. Polypropylene is rugged and is resistant to many chemicals, bases, and acids. Additives such as long glass fiber reinforcements can be used to enhance the properties of polypropylene further. It finds application in front and rear bumpers, chemical tanks, cable insulations, and carpet fibers.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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One of the main factors for the significant growth of the global market is due to the factors such as to the high demand for automobiles in countries such as China, Japan, South Korea, India, and Thailand. China is one of the prominent markets in terms of regional automotive production and sales, followed by Japan. Furthermore, there is an increasing demand for the luxury car segment in several APAC such as China, Japan, and South Korea which is expected to significantly contribute to the high demand for plastics in this region. Factors such as stringent regulatory norms on vehicular emissions and the increase in the adoption of EVs are expected to boost the demand for plastics which in turn will drive the global market growth during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
BASF SE- The company offers automotive plastic in the form of polymer for headlamp, handle doors, and interior car seats.
This market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arkema Group, BASF SE, Borealis AG, Celanese Corp., Covestro AG, Daicel Corp., Dow Chemical Co., DuPont de Nemours Inc., Evonik Industries AG, Hexion Inc., Koninklijke DSM NV, LG Chem Ltd., Nissan Motor Co. Ltd., Saudi Basic Industries Corp., SGL Carbon SE, Solvay SA, Sumitomo Corp., Teijin Ltd., Toray Industries Inc., and LyondellBasell Industries N.V.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Automotive Plastics Market is revolutionizing Vehicle Manufacturing by offering solutions for Reduced Emissions and promoting Environmental Sustainability through Recyclable Plastic Solutions and advancements in Polymer Technology. These plastics not only enhance Interior Aesthetics but also support the transition to Electric Cars, reducing reliance on traditional fuels and conserving Petrochemical Reserves.
Utilizing techniques like Thermoforming and materials like Polypropylene (PP) Resin and Polyvinyl Chloride (PVC) through Injection Molding, they cater to both Interior Furnishing and Exterior Furnishings requirements of modern vehicles, including Electric Vehicles. As the market witnesses Market Growth Stage and Mergers & Acquisitions, automotive OEMs drive innovation through New Product Launches and Production Expansion to meet evolving industry demands.
Plastics Market for Passenger Cars Industry Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10% |
Market growth 2023-2027 |
USD 22,024.22 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.3 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arkema Group, BASF SE, Borealis AG, Celanese Corp., Covestro AG, Daicel Corp., Dow Chemical Co., DuPont de Nemours Inc., Evonik Industries AG, Hexion Inc., Koninklijke DSM NV, LG Chem Ltd., Nissan Motor Co. Ltd., Saudi Basic Industries Corp., SGL Carbon SE, Solvay SA, Sumitomo Corp., Teijin Ltd., Toray Industries Inc., and LyondellBasell Industries N.V. |
Market dynamics |
Market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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