Automotive Plastics Market Size, Share & Trends Analysis Report By Product, By Application (Powertrain, Interior/Exterior Furnishings, Electrical Components), By Process, By Region, And Segment Forecasts, 2023 - 2030

Automotive Plastics Market Size, Share & Trends Analysis Report By Product, By Application (Powertrain, Interior/Exterior Furnishings, Electrical Components), By Process, By Region, And Segment Forecasts, 2023 - 2030

Automotive Plastics Market Growth & Trends

The global automotive plastics market size is expected to reach USD 43.44 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.2% from 2023 to 2030. A rising preference for high-performance plastics to substitute conventional metals and rubber is expected to impel the market growth.

The COVID-19 pandemic negatively impacted automotive plastics manufacturers by halting automotive production and reducing vehicle demand due to global financial instability. The outbreak disturbed the entire automotive supply chain on a worldwide scale. Since the market for automobiles is entirely dependent on vehicle sales, this outbreak affected this market significantly. However, the market grew substantially in 2021 primarily due to the increased electric vehicle sales and is therefore expected to stimulate the market growth over the forecast period.

The polyurethane product segment is anticipated to witness significant growth over the forecast period owing to its ability to infuse the characteristics of both plastics and rubber at a lower weight compared to metal and other plastic materials. Increasing product demand from the automotive industry for use in refrigeration insulation, interior trims, and seat cushioning is expected to boost product demand over the forecast period. In September 2021, Adient, a pioneer in automotive seating systems, and Covestor confirmed a strategic alliance. The company will integrate cardyon, a polyol made utilizing Covestro's CO2 technology as a self-sustaining material in the manufacturing of hot cure-shaped polyurethane foam utilized as cushioning in automotive seating systems.

The power train application segment is expected to witness the fastest growth over the forecast period. The rising application of plastics in powertrain engineering is expected to support market growth in the coming years. It helps the manufacturers of vehicles reduce weight and integrate complex parts, which ultimately boosts performance, delivers higher productivity, and saves cost. According to research conducted by E. I. du Pont de Nemours and Company, currently, plastics penetration stands at 110-120 kilograms per car depending on the engine size and region, while manufacturers are still exploring other new opportunities for the usage of plastics.

In Asia Pacific, the market is expected to register the fastest CAGR during the forecast period. The growing automotive industry, coupled with the rising population and increasing disposable income of middle-class families in the emerging economies of the region, is likely to be the primary driving factor in the coming years. Moreover, strong government support and initiatives and increasing investment by the government are propelling the growth of the automotive industry in the region, which, in turn, is anticipated to fuel the demand for the product in the region. In November 2021, the Indian Oil Corporation (IOC) and two other public sector oil companies declared plans to build 22,000 charging stations for electric vehicles over the next three to five years.

Automotive Plastics Market Report Highlights

• Increasing integration of in-car entertainment and communication systems, engine electronics, advanced safety, and advanced driver-assistance systems is boosting the demand for electrical components application, which, in turn, is fueling the growth of the market in North America
• The polypropylene product segment accounted for the largest revenue share of more than 32.0% in 2022 and is estimated to maintain its lead over the forecast period
• The interior furnishings application segment is expected to be the largest segment over the forecast period owing to the rising product usage for interior furnishings in automobiles including body and light panels, seat covers, steering wheels, and fascia systems
• Various strategic initiatives were recorded over the past few years in order to boost the growth of the market. For instance, in May 2019, Covestro AG announced its plan to expand the production capacity of polycarbonate films at its Dormagen site in Germany. The site, which is expected to come on stream by the end of 2020, will manufacture PC films for applications such as automotive interiors, security cards, medical devices, and automotive displays

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