Automotive Plastics Market Trends

Growth Drivers

• Rising Middle Income of Population - With the increase of middle income, people are turning towards adopting upgraded version of vehicles for more comfort. Automotive plastics which are useful component for manufacturing lightweight vehicles with fuel-efficient properties and enhanced on-road performance are preferred option for the population. Thus, with the rising income levels, the adoption rate of automotive plastics is anticipated with the expansion of the automotive plastics market. According to World Bank, the total population with middle income in the world rose from 5.51 Billion in 2015 to 5.86 Billion in 2021.
• Escalation of Vehicles Production -  As per Organization of Motor Vehicle Manufacturers, the global production of vehicles was 80 million units in 2021. This is a rise from 77 million units in 2020.
• High Demand of Electric Cars by Population -  A latest report by the International Energy Agency stated the number of electric cars on the road was 16.5 million in 2021.
• Increased Number of Vehicles on the Worldwide Roads – A recent report estimated that there were approximately 2 billion vehicles on roads across the globe by the end of first quarter of 2022.

Challenges

• High Cost of Capital and Infrastructure
• Increasing Concerns Regarding Plastic Recyclability
• Rising Governmental Policies Regarding Pollutants Emission