The global Automotive Plastics Market size is anticipated to reach USD 38.7 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.4% from 2021 to 2028. A rising preference for high-performance plastics to substitute conventional metals and rubber is expected to impel market growth.
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.
On the basis of application, the market is segmented into powertrain, electrical components, interior furnishings, exterior furnishings, under the hood, and chassis. Among them, 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 cost savings. 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 witness 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 coming years. Moreover, strong government support and initiatives and increasing investment by the government is also propelling the growth of the automotive industry in the region, which, in turn, is anticipated to fuel demand for the product in the region.
Related Press Release@ Automotive Plastics Market Report
Automotive Plastics Market Report Highlights
- In North America, the market was valued at USD 4.8 billion in 2020 and is estimated to witness a CAGR of 3.4% from 2021 to 2028. Increasing integration of in-car entertainment and communication systems, engine electronics, advanced safety, and advanced driver-assistance systems are boosting the demand for electrical components application, which, in turn, is fueling the growth of the market in North America
- The polypropylene segment accounted for the largest revenue share of more than 32.0% in 2020 and is estimated to maintain its dominance over the forecast period owing to rising demand for lightweight automobile parts
- The interior furnishings segment is expected to be the largest application segment over the forecast period owing to 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