Automotive Plastics Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for automobile plastics is estimated to be worth about 30 billion dollars in 2023, and is projected to reach 42 billion dollars in 2032, registering a CAGR of 4.6% from 2024 to 2032. This is mainly driven by the increasing need for fuel efficiency and the increasingly stringent requirements for exhaust gas emissions. Since the weight of the vehicle is a major problem, in order to reduce the weight of the vehicle and improve the performance, the use of advanced plastics has become more and more common. The development of polymer chemistry has also led to the emergence of high-strength, high-performance plastics that can withstand extreme conditions and are flexible in design. Also, with the rise of electric vehicles, the need for lightweight materials has also increased. The leading companies in the global automobile plastics market, such as BASF, DuPont, and Covestro, have actively involved in strategic cooperation and new material research and development, so as to enhance the advantages of their products and maintain their competitive advantages. In recent years, the development of sustainable plastics has been an important trend in the industry.

Regional Market Size

Regional Deep Dive

The demand for lightweight materials, improved fuel efficiency, and improved design in the automotive industry is growing significantly. Each region has its own specifics, influenced by local regulations, preferences and innovations. In North America, the emphasis is on the use of advanced production methods and sustainable materials, while in Europe the strictest environmental standards are the key driver. In the Asia-Pacific region, the rapid industrialization and urbanization is accompanied by a boom in the car industry. Middle East and Africa are gradually catching up with modern technology, and Latin America is a growing market that has a significant influence on the use of plastics in cars.

Europe

• European automakers are leading the charge in integrating recycled plastics into vehicle production, with initiatives from companies like Volkswagen and BMW aiming to enhance circular economy practices.
• The European Union's stringent regulations on carbon emissions are driving innovation in lightweight materials, prompting manufacturers to explore advanced polymer technologies to comply with these standards.

Asia Pacific

• The Asia-Pacific region is witnessing a surge in electric vehicle (EV) production, with companies like Tesla and BYD utilizing advanced plastics to reduce vehicle weight and enhance battery efficiency.
• Government initiatives in countries like China and India are promoting the use of lightweight materials in automotive manufacturing, supported by investments in research and development for new plastic composites.

Latin America

• Latin America is experiencing growth in automotive production, with countries like Brazil and Mexico focusing on local sourcing of plastics to reduce costs and improve supply chain efficiency.
• The region is also seeing an increase in collaborations between automotive manufacturers and plastic suppliers to develop innovative materials tailored for local market needs.

North America

• The North American automotive industry is increasingly adopting bio-based plastics, with companies like Ford and General Motors investing in sustainable materials to meet consumer demand for eco-friendly vehicles.
• Recent regulatory changes, such as the Corporate Average Fuel Economy (CAFE) standards, are pushing manufacturers to reduce vehicle weight, thereby increasing the use of plastics in automotive applications.

Middle East And Africa

• The automotive sector in the Middle East is gradually shifting towards modern manufacturing practices, with companies like Nissan and Toyota exploring local partnerships to enhance the use of plastics in their vehicles.
• Regulatory frameworks in several African countries are beginning to support the adoption of lightweight materials, driven by the need for more fuel-efficient vehicles in the region.

Did You Know?

“Approximately 50% of a vehicle's weight can be attributed to plastics, which play a crucial role in enhancing fuel efficiency and reducing emissions.” — Plastics Industry Association

Segmental Market Size

The plastics used in automobile construction play a key role in the overall automobile market. The market is growing steadily as a result of the increasing demand for lightweight materials, which increase the fuel efficiency of cars and lower emissions. The trend towards electric cars, which require new materials for the housings of the batteries and the lightweight components, is also driving the market. The use of plastics in the automobile industry has now reached a stage of maturity. Leading companies like BASF and DuPont are developing new solutions based on polymers. The main applications are in the interior, the exterior and under the bonnet, where the most widely used materials are polypropylene and polycarbonate. In addition, trends such as the use of recycled plastics and bioplastics are driving growth. Furthermore, the injection moulding and 3D printing of components is also influencing the evolution of the plastics market, enabling more complex components to be manufactured with less waste.

Future Outlook

The market for automobile plastics will grow from $3 billion to $4.2 billion between 2023 and 2030, a CAGR of 4.4%. This growth is primarily due to the increasing demand for lightweight materials to increase fuel economy and reduce emissions in vehicles. As automobile manufacturers continue to adopt sustainable production and comply with stricter regulations, the use of high-end plastics such as polycarbonate and polypropylene will increase. It is estimated that the proportion of plastics in the total material composition of vehicles will increase from 15% in 2023 to about 20% in 2030. This highlights the increasing importance of plastics in the design and manufacture of automobiles. Further growth is expected to come from the development of high-end composites and bioplastics. Moreover, advances in injection molding and 3D printing will improve the cost-effectiveness of plastic parts, making them more attractive to original equipment manufacturers. Also, the emergence of electric vehicles will bring new opportunities for automobile plastics, as these vehicles will require special lightweight materials to optimize the performance and range of batteries. In the future, the development of smart materials and the circular economy will also play an important role in shaping the future of automobile plastics.