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.
Asia Pacific dominated the market for automotive plastics and accounted for the largest revenue share of over 45.0% in 2020. 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 the manufacturing base and increasing investments in advanced technologies for vehicular production is expected to bring about a new era of automobiles, positively influencing the market for automotive plastics. Consumers in Europe and APAC are highly conscious regarding fuel-efficiency. This has also driven the demand for sustainable plastics.
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