Electric Vehicle Polymers Market Analysis by Type (Engineering Plastics, Elastomers, and Others); by Component (Synthetic Rubber, Natural Rubber, and Others); by Application (Exterior, Interior, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3737 | Published Date: Apr 03, 2023
The global electric vehicle polymers market is estimated to garner a revenue of USD 650 Billion by the end of 2035 by growing at a CAGR of ~72% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 13 Billion in the year 2022. The growth of the market can be attributed to the increasing demand for electric vehicles. Further, as customer preference for battery-powered, lightweight cars changes, consumer demand for EVs has increased dramatically over the past several years across the globe are also expected to add to the market growth. Performance polymers are necessary for the overall design and attractiveness of electric automobiles, they are also employed to make them lighter. As of 2026, demand for plug-in EVs for passengers is anticipated to increase by more than 120% to approximately 20 million vehicles globally.
In addition to these, factors that are believed to fuel the market growth of electric vehicle polymers include increasing government regulations. For instance, in recent years, more governments have focused on growing their nations' electric vehicle (EV) sectors. The adoption of electric cars has increased as a result of favorable government rules. To reduce the cost of electric cars, the government provides a variety of financial incentives. Further, to encourage the policy-driven adoption of plug-in electric cars, government incentives for them have been introduced all over the world.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~72% |
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Base Year Market Size (2022) |
~ USD 13 Billion |
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Forecast Year Market Size (2035) |
~ USD 650 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global electric vehicle polymers market is segmented and analyzed for demand and supply by type into engineering plastics, elastomers, and others. Out of the three types, the engineering plastics segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the growing automotive and transportation industry across the globe. Owing to their superior mechanical strength, high temperature, and abrasion engineering plastics are quickly replacing metals in the automobile sector. In addition to lowering weight, they improve fuel economy in automobiles. Further, engineering plastics are in greater demand owing to the fact that they are employed in a variety of transportation-related items, including mechanical components, engines, and fuel systems. As of 2021, worldwide motor vehicle manufacturing climbed by over 2%.
The global electric vehicle polymers market is also segmented and analyzed for demand and supply by application into exterior, interior, and others. Amongst these three segments, the interior segment is expected to garner a significant share. Electric vehicles have started a new trend in automotive interiors since they aren't constrained by a heavy internal combustion engine or fuel tank. The creation of a wide array of electric vehicles with cutting-edge features and improvements is also projected to increase demand for polymers. For instance, modern electric car interiors are made of polymers rather than metal, which helps lighten the total weight of these cars. Owing to the polymer's durability, visual appeal, and ability to muffle noise, vibration, and harshness, it has become the ideal material for car interior elements. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global electric vehicle polymers market includes the following segments:
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By Type |
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By Component |
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By Application |
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The Asian Pacific electric vehicle polymers market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing air pollution in the region. A growing awareness of the need to reduce carbon footprints has prompted more individuals to shift to electric automobiles. For instance, the Indian government has put in place a number of strategic programs to reduce pollution across the country. India has ambitions to switch entirely to EVs in the next years, taking into account both its huge population and high levels of air pollution. The need for polymers in electric vehicles will rise as a result. Moreover, the growth in the production of hybrid and electric cars is also anticipated to contribute to the market growth in the region. In addition, the region's rising costs of conventional gasoline, are also anticipated to boost the market growth during the forecast period. According to estimates, over 2 million premature deaths occur each year in the Asia Pacific area as a result of air pollution.
The North American electric vehicle polymers market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market can be attributed majorly to the growing use of electric vehicles. For instance, the boom in the usage of polymers in electric cars in the United States is mostly owing to an increase in the adoption and sales of these vehicles. Further, the stringent government regulations to encourage the usage of electric vehicles, are also anticipated to contribute to the market growth in the region. In addition, the region's government plans to improve the EV charging infrastructure over the next years, which is also anticipated to boost the market growth during the forecast period.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing government regulations for the adoption of electric vehicles. For instance, the government of the region is encouraging the owners of diesel vehicles to transition to plug-in electric vehicles, by offering subsidies to them. In addition, some automakers in the area are heavily investing in increasing their facilities for manufacturing, which is also anticipated to boost market growth during the forecast period.
BASF SE teamed up with Shanshan to serve the worldwide consumer electronics and energy storage markets. The joint venture is expected to largely concentrate on the fast-expanding electric vehicle (EV) industry.
Saudi Basic Industries Corporation introduced thermoplastic solutions for essential EV battery technologies, to aid the sector in enhancing the performance of electric cars (EVs). Further, the company has developed a plastic-intensive EV battery pack concept, to fulfill the crucial industrial demands for flexible design, superior performance, increased safety, and better economics.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Growing demand of charging infrastructure, and rising usage of polymers are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~72% over the forecast period, i.e., 2023 – 2035.
Ans: Exorbitant cost of polymers, and varying prices of raw material are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Asahi Kasei Corporation, LG Chem Ltd., Lanxess AG, Celanese Corporation, Solvay S.A., Covestro AG, DuPont de Nemours, Inc., Saudi Basic Industries Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, component, application, and by region.
Ans: The engineering plastics segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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