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Global Automotive Plastics Market Highlights 2023-2033
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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Compound Annual Growth Rate |
~5% |
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Base year market size (2022) |
~ $28 billion |
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Forecasted annual market size (2033) |
~ $45 billion |
The global automotive plastics market is expected to garner revenue of approximately $45 billion by the end of 2033, registering a CAGR of approximately 5% during the forecast period, i.e. 2023 to 2033. Moreover, the revenue of this market is expected to touch approximately $28 billion in 2022. The major factor driving the growth of the automotive plastics market during the forecast period is the rapid expansion of the automotive industry. Recent calculations indicate that the global automotive industry is expected to generate revenues of nearly $9 trillion by 2030.
Automakers place high priority on improving designs to reduce vehicle weight. Plastics are easy to produce, can be made from renewable materials, and can be easily processed to improve designs. Hence, automotive plastics are preferred over other plastics in the automotive industry. The rapid growth of the automotive industry has also led to a significant increase in employment in the industry. In FY2018, the Indian automotive industry employed around 2 million people.
Global Automotive Plastics Market: Growth Drivers and Challenges
Growth drivers
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Rising middle-income population – With the increase in the middle-income population, people are turning to upgraded vehicles for more comfort. Automotive plastics are a useful component in manufacturing lightweight vehicles, with energy-saving properties and enhanced road performance, making them a preferred choice. Therefore, with the increase in income levels, the adoption of automotive plastics is expected to expand as the market expands. According to the World Bank, the total number of middle-income people in the world will increase from 5.51 billion in 2015 to 5.86 billion in 2021.
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Increased vehicle production – Global vehicle production was 80 million units in 2021, up from 77 million units in 2020, according to the Organization of Motor Vehicle Manufacturers.
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High demand for electric vehicles among the population – The latest report from the International Energy Agency states that in 2021, the number of electric vehicles on the road was 16.5 million.
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Increase in the number of vehicles on global roads – A recent report estimates that by the end of the first quarter of 2022, there will be approximately 2 billion vehicles on global roads.
challenge
- High capital and infrastructure costs
- There is growing concern about the recyclability of plastics
- Government policies on pollutant emissions continue to strengthen
The automotive plastics market is segmented and analyzed by vehicle type into conventional vehicles and electric vehicles. Among them, the conventional vehicle segment is expected to obtain the highest market share by 2033 due to the growing global demand for passenger vehicles owned by the rapidly growing population. The International Organization of Motor Vehicle Manufacturers (OICA) announced that the global passenger vehicle sales in 2020 were 53 million units, and the production in the same period was 55 million units.
Key macroeconomic indicators that influence market growth
The chemical industry is an important part of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, the value added of chemical products in the U.S. accounted for about 1.9% of GDP. In addition, according to the World Bank, the chemical industry accounted for 16.43% of the added value of manufacturing in the U.S. in 2018. With the growing demand from end users, the market for chemical products is expected to grow in the future. According to the forecast of UNEP (United Nations Environment Program), the sales of chemicals are expected to almost double from 2017 to 2030. In the current situation, the Asia-Pacific region is the largest region for chemical production and consumption. China has the world's largest chemical industry, with annual sales of about more than $1.5 trillion in recent years, accounting for more than one-third of global sales. In addition, the huge consumer base and favorable government policies have also driven investment in China's chemical industry. Easy access to low-cost raw materials and labor, as well as government subsidies and relaxed environmental norms have made it a production base for major global suppliers. On the other hand, according to FICCI (Federation of Indian Chambers of Commerce and Industry), the Indian chemical industry was worth $163 billion in 2019, accounting for 3.4% of the global chemical industry. It ranks sixth in the global chemical production. This statistic shows the lucrative opportunities for investment by companies in Asia-Pacific countries in the coming years.
Regional Overview of Global Automotive Plastics Market
Regionally, the global automotive plastics market is segmented into five major regions namely North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Among these markets, the Asia Pacific market is expected to account for the largest market share by the end of 2033. Growing population and rising income levels have increased the demand for automobiles, thereby expected to offer lucrative growth opportunities for the automotive plastics market. According to statistics released by the International Automobile Organization (OICA), the total automobile production in the region was 46 million units in 2021, while the total sales in the region were 42 million units in 2021. Moreover, the presence of major players and exporters in the region is another factor that is expected to have a positive impact on the market. China, as an Asia Pacific country, is estimated to export about 402,000 commercial vehicles and about 2 million passenger vehicles in 2021.
The global automotive plastics market is further categorized by region as follows:
- North America (United States and Canada) Market Size, Year-on-Year Growth, Market Player Analysis and Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Year-over-Year Growth, Market Player Analysis and Opportunity Outlook
- Europe (UK, Germany, France, Italy, Spain, Hungary, Belgium, Netherlands and Luxembourg, Nordic (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Year-on-Year Growth, Market Player Analysis and Opportunity Outlook
- Asia Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia Pacific) Market Size, Year-on-Year Growth, Market Player Analysis and Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Year-on-Year Growth, Market Player Analysis and Opportunity Outlook
Automotive Plastics Market Segmentation
Our in-depth analysis of the global automotive plastics 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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Classification by vehicle type |
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Top Featured Companies Dominating the Global Automotive Plastics Market
- Arkema
- Company Profile
- Business strategy
- main products
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Developments
- Regional distribution
- SWOT Analysis
- BASF
- Saudi Basic Industries Corporation
- LyondellBasell Industries
- LG Chem
- dupont de nemours
- Covestro AG
- Evonik Industries AG
- Solvay Group
- Borealis
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