Automotive Plastics Market size is estimated to cross USD 45 Billion by the end of 2033, growing at a CAGR of 5% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of automotive plastics was USD 28 Billion.The primary factor that is attributed to fuel the market growth in the forecast period is the rapid expansion in the automotive industry. Recent calculation stated that the revenue generation by global automotive industry is anticipated to stand at almost USD 9 trillion by 2030.
Car manufacturers are highly focusing on building improved designs to reduce the weight of vehicles. Plastics are easy to produce which can be sourced from renewable materials are easy to handle for improved designs. As a result, automotive plastics are preferred over the rest in the automotive industry. This rapid growth of automotive industry has also propelled the employment rate to increase in the sector considerably. In fiscal year 2018, the Indian automotive industry employed approximately 2 million people.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 28 Billion |
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Forecast Year Market Size (2033) |
~ USD 45 Billion |
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Regional Scope |
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Vehicle Type (Conventional Cars, Electric Cars)
The automotive plastics market is segmented and analyzed for demand and supply by vehicle type into conventional cars and electric cars. Out of these, the conventional cars segment is anticipated to garner the highest market share by 2033, owing to rising demand of passenger cars around the world. vehicles by the burgeoning population. International Organization of Motor Vehicle Manufacturers (OICA) revealed the sales of global passenger vehicles to be 53 million in 2020 and the production to be 55 million in the same time period.
Major Macro-Economic Indicators Impacting the Market Growth
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Our in-depth analysis of the global market includes the following segments:
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By Product |
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By Application |
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By Process |
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By Vehicle Type |
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Regionally, the global automotive plastics market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2033. The rising the population along with their income levels have increased the demand of vehicles which, in turn, is expected to bring lucrative growth opportunities for market. The total production of vehicles in the region was 46 million in 2021, whereas, the total sales in the region was 42 million in 2021 as per statistics released by International Organization of Motor Vehicles (OICA). Also, the presence of leading key players and exporters in the region is another factor that is expected to affect the automotive plastics market positively. China, a country of Asia Pacific is estimated to have exported around 402,000 commercial vehicles and around 2 million passenger vehicles in the year 2021.
BASF has launched styling polymer Luviset 360 that offers strong, flexible and long-lasting hold as well as low flaking along with anti-pollution properties and allows for new textures.
Arkema has decided to acquire Agiplast, a leader of high performance polymersspecialty polyamides and fluoropolymers. This acquisition is expected to bolster the company’s capacity to offer a full service to customers in terms of materials circularity.
Author Credits: Smruti Ranjan, Rajrani Baghel
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