Automotive Plastics Market Report

The most commonly used materials for car parts and component applications are Polypropylene (PP), Polyvinyl Chloride (PVC), Acrylonitrile Butadiene Styrene (ABS), and Polyurethane (PU). Based on fuel-efficiency regulations and performance requirements, an average automobile typically contains 5.8 to 10% plastics, with consumption in vehicular equipment accounting for more than 110–120 kg. Due to rising customer demand for high-performance, lightweight, and fuel-efficient automobiles, this percentage is anticipated to rise in the coming years, boosting the requirement for automotive plastics. Additionally, reduction in the weight offers a cost-effective way to lower fuel usage and greenhouse gas (GHG) emissions, conserving non-renewable crude oil sources. For instance, a vehicle's fuel efficiency would increase by 5 to 7% for every 10% reduction in weight.

In addition to being lightweight, polymeric materials also have a broad range of adjustability in terms of their visual appeal, tactile feel, acoustic behaviour, and odour. Automotive plastics are regarded as a true alternative for producing seat coverings, steering wheels, seat bases, load floors, headliners, rear package shelves, and fascia systems. Over the forecast period, manufacturers are implementing a number of activities to improve their market position. For instance, Covestro AG introduced recycled Polyethylene Terephthalate (rPET) as a new product in 2021. For 3D printing, the recycled PET has been modified. Additionally, known as fused granulate fabrication, this technique (FGF). Large-scale items may be produced quickly and profitably using additive manufacturing. When producing tiny interior elements for automobiles, this has a significant application.

In 2022, the automotive plastics market was dominated by the polypropylene category, which had a revenue share of more than one-third. The increased product demand from end-use sectors such packaging, electrical and electronics, construction, consumer goods, and automotive is crucial for this expansion. Due to its physical and chemical properties, polypropylene is used in both rigid and flexible packaging. In addition, it has outstanding electrical and chemical resistance at extremely high temperatures. Because PP is relatively lightweight compared to other polymers, used in the automobile industry to lighten the total weight of cars, which helps drastically cut on fuel use as well as carbon dioxide emissions. In 2022, polyvinyl chloride grew to become the second-largest product category. Underbody coatings, sealants, floor modules, wire harnesses, passenger compartment components, and external components are just a few of its many automotive applications.

Owing COVID-19 pandemic, the passenger car industry had a negative effect as the sales were plummeted, manufacturing facilities were shut down, there was a shortage of car components, and working capital fell. It caused the supply chain to be disrupted and production to be suspended, which decreased retail sales. Additionally, a lot of people's purchasing choices were influenced by their uncertainty about their employment and the long-term economic and health repercussions of the virus on their life. According to the OICA, global passenger automobile sales fell by -15.8% in 2020, from 63.7 million units in 2019 to 53.6 million units. The automotive plastics industry for passenger vehicles, which depends on the sale of passenger automobiles, is predicted to be significantly impacted by this outbreak. At its Greater Noida facility in India, near to New Delhi, Covestro AG began operating two polycarbonate compounding production lines in March 2022. In especially for the automotive, electrical, and electronics sectors, the new operations are designed to address the rising demand for compounded plastics.

Ultradur, an engineering plastics product with very efficient additives that delay hydrolytic degradation, was introduced by BASF SE in June 2022. Due of its resistance to water damage at high temperatures, the material. This substance may keep sensitive gadgets secure in the most challenging conditions. Particularly major businesses compete on the basis of their capacity to create applications and adopt new technology for product formulation. In order to create new and improved plastics for the automotive industry, established firms like BASF SE spend in research and development efforts, giving them a competitive advantage over rivals. A new R&D facility with a dedicated automotive application centre was opened by BASF SE in Shanghai, China, in March 2019. This facility will handle R&D tasks unique to the automobile sector. To fulfil the rising demand for numerous interior and exterior automobile applications, the centre will create cutting-edge products. Due to the existence of several producers all over the world, the market is shown to be highly fragmented.

In 2021, Asia Pacific led the market and accounted for over 2/5 of total revenue. Facilities are likely to move from established nations to growing economies in Asia Pacific, notably in China, India, Thailand, Vietnam, and Indonesia. A new age of automobiles is anticipated, which will have a favourable impact on the market for automotive plastics. This will be brought about by expanding the manufacturing base and rising investments in cutting-edge technology for vehicle production. European and APAC consumers pay particular attention to fuel economy. This has also increased demand for sustainable plastics. For instance, the Indian Oil Corporation (IOC) and two other public sector oil corporations announced plans to install 22,000 electric car charging stations over the next three to five years in November 2021. In 2021, Europe ranked as the second-biggest market for automotive plastics. High-performance plastics are used by automakers in Europe because they are energy-efficient and contribute to the lightening of the car. Automakers in European nations have been compelled to switch from diesel engines to electric motors due to the region's strict pollution regulations. Over the period of the forecast, this is also anticipated to boost product demand.