Plastic Component Market Trends

Key Emerging Trends in the Plastic Component Market

Meeting Demand: Heavy-Duty Vehicles and Their Impact on the Plastic Component Market

The use of heavy-duty vehicles is closely tied to the activities of various industries. For example, the construction industry's growth is influenced by economic expansion, population increases, favorable interest rates, and ongoing public sector investments. In developing countries experiencing rising immigration and urbanization, there is a need for more residential buildings and proper transport routes, supporting the growth of heavy-duty vehicles used in construction. These vehicles include bulldozers, front loaders, dump trucks, backhoes, graders, trenchers, cranes, excavators, and construction trucks.

In many North American countries, the construction industry significantly contributes to revenue, accounting for approximately 10% of the GDP, particularly in micro and small enterprises in the US. Initiatives like the construction 2020 plan focus on three main areas: promoting open trade in building materials, simplifying recognition of qualifications for foreign architects, and providing increased support services for small and medium-sized construction companies.

Similarly, the agriculture sector is expected to thrive due to rising government initiatives for ensuring food security, a growing population, and increased investments in agricultural infrastructure to meet global food demand. North American countries contribute significantly to agricultural production due to the availability of vast agricultural lands. Manufacturing companies are continuously developing heavy-duty vehicles for the agriculture sector. For example, in 2019, Deere & Company (John Deere) introduced two new models, the 6230R and 6250R, in its lineup of 6R Tractors, designed to offer customers faster, stronger, and smarter tractors suitable for various applications in the agriculture industry.

The growth of the heavy-duty vehicles market is directly linked to the growth of the industries where these vehicles are extensively used, leading to an increased demand for plastic components. The preference for plastic components over metals, aimed at improving vehicle mileage, is anticipated to further boost the demand for plastic components in heavy-duty vehicles. Consequently, the impact of the growing demand for heavy-duty vehicles in various industries on the North America plastic component market for heavy-duty vehicles is expected to shift from moderate to high during the forecast period. The dynamics of these industries, coupled with the focus on efficiency and sustainability, are poised to shape the trajectory of the plastic component market in the heavy-duty vehicle sector in North America.