Global automotive plastics market to exceed $50 billion by 2024: report
The size of the North American automotive plastics market shows steady gains, the report from Global Market Insights Inc said, and is expected to exceed US$5 billion by 2024.
Driven by the increased production of passenger cars along with consumer demand for fuel-efficient, durable and lightweight vehicles, the demand for plastics in the global automotive industry is expected to surpass US$50 billion by 2024 – representing more than 20 million tons of material – a new report says.
According to the “Automotive Plastics Report” by research firm Global Market Insights Inc., rapid industrialization and urbanization in India, Japan and China will boost demand for commercial vehicles, SUVs, hybrids and passenger cars. Rising per capita income and improving living standards will create demand for stylish vehicles driving industry growth.
The primary polymer raw materials used in the manufacture of vehicles include PU, ABS, PMMA, PVC and PP. The PVC -based automotive plastics market demand is likely to surpass $1.9 billion during the timeframe. These are mainly used in underbody coatings, sealants, door panels, seating, dashboards, arm rests, window sealing profiles, weather stripping and body side protection. Increasing environmental concerns regarding carbon emissions coupled with rising consumer awareness of safety may act as a contributing factor for industry growth.
The only downside, the report noted, was a lack of standardization of plastic materials along with sustainability issues, which will be a “major challenge and may impact industry growth.”
The size of the North American automotive plastics market shows steady gains, the report said, and is expected to exceed US$5 billion by 2024 thanks to a rise in consumer preferences for lightweight and fuel-efficient vehicles. “Rising OEM demand for reduced vehicle weight and more cost-effective solutions may have a positive influence on regional growth,” the report said. “Stringent government requirements, such as the CAFE standard, regarding CO2 emissions and fuel economy, has resulted in OEMs searching for other methods to reduce vehicular weight to improve fuel efficiency.”
In Europe, the automotive plastics market size – driven by Germany, Russia, the UK, and France – is poised to exceed US$14 billion over the projected timeframe. “Stringent government guidelines by EU Commission regarding End of Life vehicles along with reducing greenhouse gas emissions may favor regional industry growth,” the report said. “Strong focus on R&D spending with OEM’s manufacturers are engaged in designing less expensive product leading to fuel efficiency and reducing overall production costs may favor industry growth in the region.”
In China, meanwhile, the automotive plastics market size should register gains close to 10 per cent owing to rapid industrialization and increasing number of passenger cars produced. “Rising foreign investment along with increasing demand for passenger vehicles may stimulate industry growth in the region,” the report said. “Automotive OEMs are focusing on the online retail channels in the near future, to help maintain a direct relationship with the buyers.”
In the UK, the automotive plastics market demand for polypropylene (PP) may register substantial growth of about nine per cent during the projected period. “The product has wide usage in cable insulation, petrol cans, carpeting, battery boxes and bumpers. PP is about 15 to 20 per cent lighter than other materials, which is beneficial in automobile weight, thereby resulting in fewer CO2 emissions and lower fuel consumption,” the report said.
And in India, the automotive plastics market size for electrical component applications may expect consumption of over 380 kilo-tons by 2024 due to an increase in passenger vehicle production and consumer willingness to spend on stylish cars, the report said. “The Indian government encourages foreign direct investment in the automotive sector and plans to invest in eco-friendly cars in the future, thereby promoting automotive plastics market growth,” it said.
For more information on the report, click on this link.