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The automotive plastics for passenger car market size is expected to increase by USD 26.63 billion at a CAGR of 10.87% between 2023 and 2028. Market growth is driven by new or improved emission standards, government support for the adoption of EVs, and the increasing incorporation of electronics in passenger cars. Major contributors to this growth include China, the US, Japan, India, and Germany.
The interiors segment is estimated to witness significant growth during the forecast period. Automotive 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. Besides analyzing the current market scenario, our market research and growth report examines historic data from 2018 to 2022.
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The interiors segment was the largest segment and was valued at USD 14.55 billion in 2018. 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.
The automotive plastics for passenger car market is witnessing significant growth due to the increasing use of advanced materials like Polyether Ether Ketone (PEEK), Polyethylene Terephthalate (PET), Polysulfone (PSU), and Polyphenylsulfone (PPSU) in automotive manufacturing. These high-performance plastics offer superior thermal properties, making them ideal for engine components, under-the-hood applications, and personal protective equipment (PPE). Technological advancements continue to drive innovation in this sector, with automakers seeking lighter, stronger, and more durable materials for improved fuel efficiency and safety. PEEK, PET, PSU, and PPSU are gaining popularity due to their excellent heat resistance, chemical resistance, and mechanical strength, making them essential components in the automotive industry.
APAC is estimated to contribute 39% 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.
The automotive plastics for passenger car market is experiencing a transformative shift towards sustainable materials and innovative solutions. Wood, natural rubber, and bioplastics are gaining traction as eco-friendly alternatives to traditional plastics like Polyphenylene oxide (PPO) and Polyurethane (PU). Utilizing materials such as corn starch, vegetable oil, and food waste, manufacturers are producing recyclable products that reduce environmental impact. Additionally, sawdust is being repurposed to create high-performance plastic packaging solutions. This shift towards biodegradable and recyclable materials not only meets consumer demand for sustainability but also promotes a more environmentally-conscious approach within the automotive industry.
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 companies 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 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.
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 headlamps, handle doors, and interior car seats.
This automotive plastics for passenger car 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 for passenger car market is a dynamic sector characterized by a wide range of materials and applications. Plastics such as polystyrene (PS), polyethylene (PE), and polypropylene (PP) play a vital role in manufacturing automotive parts, toys, and industrial components. These materials are also extensively used in the packaging sector due to their versatility and cost-effectiveness. Factors such as Good Manufacturing Practices (GMPs) and fluctuations in petrochemical and crude oil prices significantly impact the market. Injection molding, thermoforming, and blow molding are key manufacturing processes driving the industry forward. Additionally, plastics find applications in building & construction, contributing to their widespread use across various sectors, from automotive to aerospace, including the production of spacecraft and even everyday items like paper clips.
Further, the market is shaped by diverse materials sourced from various origins. Key materials include plastic resins like Acrylonitrile butadiene styrene (ABS), Polybutylene terephthalate (PBT), and Polyvinyl chloride (PVC), among others. These plastics, derived from petrochemical sources such as petroleum and natural gas, are essential in manufacturing automotive components. Additionally, advancements in renewable sources are influencing the market landscape. Polycarbonate (PC), Polyamide (PA), and other plastics contribute to vehicle design, providing durability and versatility. As petrochemical prices fluctuate, the industry seeks sustainable alternatives. The interplay between traditional materials like glass and metals and innovative plastics reflects ongoing developments in the automotive sector, ensuring continual evolution and adaptation.
Moreover, the automotive plastics for passenger car market plays a pivotal role in various sectors, including healthcare, automotive, consumer goods, and more. In recent times, the demand for engineering plastics like Performance Polyethylene (PE) resins has surged due to their versatile applications, including the manufacturing of face masks, goggles, shields, gloves, and respirators. These plastics offer excellent thermal and mechanical properties, making them ideal for metal substitution in automotive components. Additionally, the industry is witnessing a shift towards circular polymers like CirculenRenew polymer, promoted by companies such as Iber Resinas, to address sustainability concerns. From the food & beverage industry to infrastructure & construction, plastics continue to drive innovation and efficiency across diverse sectors.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
Market growth 2024-2028 |
USD 26.63 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.53 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, Japan, India, China, 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., LyondellBasell Industries N.V., Nissan Motor Co. Ltd., Saudi Basic Industries Corp., SGL Carbon SE, Solvay SA, Sumitomo Corp., Teijin Ltd., and Toray Industries Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Material
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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