Automotive plastics are type of polymers adopted in the production of automobiles. Generally, four types of plastics are used such as polyurethane, PVC, polypropylene, and polyamides. The plastics are mostly used to reduce the vehicle weight that lead to better fuel consumption and performance.
This has disrupted the supply chain and reduced the procurement of raw materials across the globe. This is expected to negatively impact the market growth in the near future. The automotive sector is facing unprecedented loss owing to the declining sales and high availability of inventory. Additionally, the onset of the novel coronavirus has led to a complete halt in the production activities of several industries, including automotive.
The global automotive plastics market size is expected to hit USD 53.85 billion by 2027. This is attributable to the rising automotive sector and the growing demand for additive manufacturing in automotive sector during the forecast period. The report further observes that the market stood at USD 40.91 billion in 2019 and is likely to exhibit a CAGR of 5.3% between 2020 and 2027.
Adoption of Advanced Technologies to Favor Growth
The increasing adoption of 3D printing technology to develop lightweight and advanced plastic products is expected to drive the demand for advanced automotive plastics across the globe. In addition to this, high disposable income and the improved living standards of the people globally is driving the sales of automotive that will contribute to the growth of the global automotive polymers market during the forecast period. The growing demand for fuel-efficient automobiles is propelling the manufacturers to adopt advanced technologies such as additive manufacturing.
Exterior Segment Held 28.1% of Market Share in 2019
The exterior segment, based on application, held a market share of about 28.1% in 2019 and is likely to gain momentum backed by the surging adoption of automotive plastics in the exterior of vehicles to prevent corrosion and deformation of components.
North America to Remain Dominant; Increasing Demand for Automotive Polymers to Aid Growth
The market in Asia-Pacific is expected to showcase an exponential growth backed by the increasing adoption of automotive plastics in the production of automobiles in the region between 2020 and 2027.
Among all the regions, North America is expected to remain dominant and hold the highest position in the global automotive plastics market during the forecast period. This is attributable to the increasing demand for automotive polymers owing to their superior properties such as excellent heat resistance, low density, and corrosion inhibition in the region. North America stood at USD 5.93 billion in 2019.
Key Players Focus on Facility Expansion to Strengthen Their Market Positions
The global automotive polymersmarket is consolidated by the presence of key players that are focusing on expanding their production facilities to cater to the growing demand for advanced automotive plastics. Furthermore, other key players are adopting strategies such as merger and acquisition, the introduction of new product, and partnership that is anticipated to bode well for the market growth during the forecast period.
Key Industry Development:
October 2020 – Teijin announces its partnership with AZL Partner Network, a cross-industry network for joint business development organized by AZL Aachen GmbH. The company joins the wide network to develop multi-material automotive plastics for electric vehicles.
About the Author
Name: Shridhar Patil
Shridhar Patil is part of a talented team of content writers working at Fortune Business Insights™, one of the promising market research firms in the industry. With quality experience in developing content, he is actively involved in writing articles, press releases, and blogs for the company. He is highly motivated and works towards seeking knowledge from every possible source, with a penchant for updating himself to valuable information around him.
