The Automotive Plastics Market Size was valued at USD 29.5 Billion in 2022. The Automotive Plastics industry is projected to grow from USD 30 Billion in 2023 to USD 42 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.4% during the forecast period (2024 - 2032). Automotive plastics are the materials used in the manufacturing of vehicle components. These plastics provide similar properties as the metal in automobiles. The few properties of these plastics are abrasion resistance, toughness, stiffness, and flame retardancy. The versatility and flexibility are the superior characteristics of plastics which is boosting technological advancements to enhance automobile designs. For an average car, polymers have around 10% of the weight. Mainly to reduce the weight of vehicles, polymers are used in automobiles which results in accelerating fuel efficiency and reducing carbon emissions.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Improved vehicle design capabilities, recovery in the automotive sector, and a rising focus on vehicle weight reduction and emission control are the major factors driving the market growth of automotive plastics. Rising demand for fuel-efficient automobiles and surging demand for passengers and commercial vehicles are boosting the automotive plastics market. Increasing adoption of lightweight materials owing to the stringent emission and fuel economy regulations is fostering market growth. By using plastics in automobiles, the weight of the vehicles is reduced as well as increased fuel efficiency and also aids in the reduction of greenhouse gas emissions. Moreover rising automotive plastic repairs is also fostering the market growth. Growing demand for electric vehicles is escalating the market growth.
Additionally, Increasing the technological innovations in the automotive plastics market like reducing the vehicle’s weight, and boosting the overall performance is pushing the vendors to go for PMMA plastics. A surge in the demand for long fiber reinforced thermoplastics (LFRT) and lightweight reinforced thermoplastic components in the automotive industry propels the market growth in the coming years. It is expected that the rise in demand for bioplastics in various automotive applications is increasing the automotive plastics market growth as they work on renewable sources of energy, are lightweight, and have higher efficiency than conventional vehicles.
The Automotive Plastics market segmentation, based on Type, includes polypropylene, polyurethane (PU), polyvinyl chloride (PVC), Acrylonitrile-Butadiene-styrene (ABS), polyamide, polycarbonate, polymethyl methacrylate, and others. Among them, polypropylene is holding the largest automotive plastics market share due to massive demand in end-user industries like packaging, electrical & electronics, consumer products, automotive, and construction.
Based on Application, the Automotive Plastics market segmentation includes interior, exterior, under the hood, powertrain, drivetrain, instruments panel, electronics, and others. As growing plastics usage in light displays, steering wheels, rear package shelves, ABS composites, and fascia systems, interior furnishing applications are expected to be the fastest-growing segment in the plastics market.
Figure 2: Automotive Plastics Market, by Application, 2023 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific dominated the market and accounted for a revenue share of over 45.0% in 2021. Shifting production bases from developed regions to emerging economies of Asia Pacific, particularly in China, India, Thailand, Vietnam, and Indonesia, is expected to boost the market growth. Expanding manufacturing base and increasing investments in advanced technologies for vehicular production are expected to bring about a new era of automobiles, positively influencing the market for automotive plastics. Consumers in Europe and APAC are highly conscious of fuel efficiency. This has also driven the demand for sustainable plastics. For instance, 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.
Figure 3: AUTOMOTIVE PLASTICS MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe was the second-largest market for automotive plastics in 2021. Automobile manufacturers in Europe are using high-performance plastics as these materials are energy-efficient and help in the weight reduction of the vehicle. Strict emission standards in the region have forced automakers in European countries to shift from diesel engines to electrified motors. This is also expected to augment product demand over the forecast period.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Automotive Plastics market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive Plastics industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Automotive Plastics. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Automotive Plastics industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Automotive Plastics industry to benefit customers and expand the market sector. The Low-Profile Additives market has recently given medicine some of the most important advantages. Major Automotive Plastics market players, including Teijin Ltd (Japan), AkzoNobel N.V (Netherland), Evonik Industries (Germany), Johnson Controls (U.S.), and others, are attempting to increase market demand by funding R&D initiatives.
Teijin is a company that engages in the materials, healthcare, and IT businesses. It develops and manufactures aramid products, carbon fibers, film sheets, resins, flame retardants, additives, composite molding materials, etc. In addition, the company offers pharmaceutical products, home healthcare devices, orthopedic implantable devices, and functional food ingredients, as well as inventory management systems.
Also, AkzoNobel is a company that manufactures paints and coatings. It offers products such as decorative paints, automotive, specialty, marine, protective, yacht, industrial, and powder coatings. The company operates a number of brands, such as AkzoNobel, Alabastine, Alba, Apla, Cetol, Coral, Dulux, Flexa, Glitsa, Herbol, and Lesonal.
LyondellBasell, a global innovation leader, is pleased to announce its participation in a ground-breaking value chain partnership aimed at repurposing end-of-life maritime waste into new polymers. This collaboration combines a well-known German OEM and a recycling company that specializes in mechanically recycling plastic waste. Traditionally, the automobile industry has only used recycled oceanic plastic as fibers for new vehicle components.
Innovate UK's "resource efficiency for materials and manufacturing" (REforMM) program will award roughly £600,000 to a partnership led by sustainable technology pioneer Sonichem (previously Bio-Sep, Southampton, U.K.) in 2024. The financing will expedite the development of the unique Sonichem ultrasonic technology as well as the manufacturing of renewable, cost-effective alternatives to routinely used petrochemicals.
January 2022, Braskem will be enhancing its feedstock optionality for supplying propylene to its own polypropylene manufacturing unit based in Marcus Hook, Pa. This will enable the company to leverage arbitrage opportunities with respect to competitive propylene overseas. Braskem-owned Marcus Hook unit manufactures 415 kilotons of polypropylene every year, which have applications in automotive, medical, appliance, and food packaging. Braskem’s alliance with Repauno offers the former higher flexibility as well as optionality for the import of propylene especially when prices are extremely competitive.
August 2023, LG Chem announced the development of a new lightweight composite material for automotive applications. The new material is said to be made from recycled plastics and is said to offer a weight savings of up to 50% compared to traditional materials.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD Â 29.5 Billion |
| Market Size 2023 | USD 30 Billion |
| Market Size 2030 | USD 42 Billion |
| Compound Annual Growth Rate (CAGR) | 4.4% (2023-2030) |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Teijin Ltd (Japan), AkzoNobel N.V (Netherland), Evonik Industries (Germany), Johnson Controls (U.S.), Magna International (Canada), Momentive (U.S.), Covestro AG (Germany), The Dow Chemical Company (U.S.), BASF SE (Germany), SABIC (Saudi Arabia) |
| Key Market Opportunities | Rising focus on bringing down the vehicles’ weight and boosting the overall performance is prompting vendors to go for PMMA plastics. |
| Key Market Dynamics | Adoption of lightweight materials due to stringent emission and fuel economy regulations. |
Automotive Plastics Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Plastics market size was valued at USD 29.5 Billion in 2022.
The Automotive Plastics market is projected to grow at a CAGR of 4.4% during the forecast period, 2024 - 2032.
Asia Pacific had the largest share of the Automotive Plastics market.
The key players in the Automotive Plastics market are Teijin Ltd (Japan), AkzoNobel N.V (Netherland), Evonik Industries (Germany), Johnson Controls (U.S.), Magna International (Canada), Momentive (U.S.), Covestro AG (Germany), The Dow Chemical Company (U.S.), BASF SE (Germany), SABIC (Saudi Arabia)
The polypropylene and polyurethane categories dominated the Automotive Plastics market in 2023.
The interior had the largest share in the market for Automotive Plastics.
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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