Rising concerns related to enhancing the performance, built, safety, and functionality of automobiles is steering the demand for automotive plastics. These plastics provide corrosion resistance, operational flexibility, and optimally space utilization. Additionally, plastic-based car parts are built using efficient thermal insulation and noise reduction techniques making them highly resilient in terms of safety.
Car weight reduction is directly related to fuel consumption. To this end, an average reduction of 10% in the car weight will coherently decrease the fuel usage by 7% to 8%, approximately. The escalating demand for lightweight materials, vehicle electrification, and increasing sales are expected to augur well for the automotive industry. Moreover, in the span of 5 years, the market is forecasted to expand by 5% with an incessant rise in sales of 100 million units.
By the end of 2026, the automotive plastics industry is predicted to reach a market worth of US$ 68.6 Bn from US$ 48.7 Bn in 2018. Subsequently, this exhibits a stellar CAGR of 7.7% which provides ample growth opportunities for the market players.
In 2020, polypropylene (PP) emerged as the most sought-after automotive plastics, and the value of this market segment is expected to touch US$13.5 Bn by 2026, growing with a CAGR of 7.8%.
North America and Europe are flourishing with several growth opportunities, backed by government support. The governments in these regions are drafting rigorous policies and providing monetary assistance for the sustainable development of automobiles. Thus, the market for automotive plastics in these counties is driven by tightening regulations to prevent CO2 emissions, adoption of turbocharged engines, and vehicle electrification.
The key players in the global automotive plastics market are: SABIC (Saudi Arabia), Borealis AG (Austria), BASF SE (Germany), Evonik Industries AG (Germany), Solvay (Belgium), LG Chem (South Korea), LyondellBasell Industries Holdings BV (Netherlands), DuPont (US), Arkema SA (France), and Covestro AG (Germany).