Global automotive plastics market size is anticipated to reach $ 36.5 billion by 2027, registering a CAGR of 3.8 per cent, according to the latest report released by the market research firm ResearchAndMarkets.
The study analysis the automotive plastics market with its size, share and trends as well as Product (PP, PVC), The report also analyse the Application (Powertrain, Interior Furnishings) and Process (Thermoforming, Injection Molding), by Region, and Segment Forecasts for the period, 2020-2027″.
According to the report, increasing preference for high-performance plastics to substitute conventional metals and rubber is anticipated to impel market growth.
The polyurethane (PU) product segment is expected to witness significant growth over the forecast period owing to the ability of PU to infuse the characteristics of both plastic and rubber at a lower weight compared to metal and other plastic materials.
Increasing product demand from the automotive industry for use in interior trims, refrigeration insulation and seat cushioning is expected to boost market growth over the forecast period.
On the basis of application, the market is segmented into power trains, electrical components, exterior furnishings, interior furnishings, under-the-hood components, and chassis. The power train segment is expected to witness the fastest CAGR over the forecast period, said in the report of ResearchAndMarkets
Scope of plastics
The rising application scope of plastics in powertrain engineering is expected to support the segment growth in the coming years.
It helps the manufacturers to reduce the overall vehicular weight and integrate complex parts, which ultimately boosts performance and delivers higher productivity and cost savings.
Though manufacturers are still exploring new applications, according to a research conducted by E. I. du Pont de Nemours and Company, currently, plastics penetration stands at 110 to 120 kilograms per car depending on the engine size.
Demand for automotive plastics in Asia Pacific is likely to witness the fastest CAGR during the forecast period.
The growing automotive industry, increasing population, and rising disposable income levels are the primary factors driving the regional market.
Also, strong government support and initiatives along with increasing investments are propelling the growth of the automotive industry in the region, which, in turn, is expected to increase the product demand.
What are main factors?
The North American market comprising the United States and Canada stood at $ 4.9 billion in 2019 and is estimated to climb further at a CAGR of 2.9% from 2020 to 2027. The industry is increasing the integration of in-car entertainment & communication systems and engine electronics. The demand for advanced safety & advanced driver-assistance systems is also increasing. These factors boosted the demand for electrical components application.
As a result, these developments have fueled the growth of automotive plastics in North America. Interestingly, the Polypropylene (PP) segment plays a major role as it accounts for the largest market share of more than 32% in 2019. The report says this segment is likely to maintain its dominance during the forecast period owing to rising demand for lightweight automobile parts.
Another happening segment is the interior furnishings application segment, which is expected to account for the largest revenue share by 2027. This is because of rising product usage for interior furnishings of automobiles including body & light panels, steering wheels, fascia systems and seat covers,
Interestingly the past five years recorded various strategic initiatives. For instance, Covestro AG announced its plan to expand the production capacity of polycarbonate films at its Dormagen site in Germany in May 2019,. The site that is expected to come on-stream by this year will manufacture PC films for applications including automotive interiors and automotive displays.
(With inputs from Automotive Lead Research Team)
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