Plastics provides considerable weight reduction for the automobiles resulting in low fuel consumption and emission thereby increasing the overall vehicle efficiency. Strict norms set by CAFÉ (Corporate Average Fuel Economy) have forced the automobile manufacturers to improve vehicle design fulfilling (complying with) weight reduction, low fuel consumption, and emission control norms. Mass reduction helps in enhancing the total vehicle performance in terms of smooth ride, noise reduction, acceleration, and vibrations. Owing to the growing market competition, designers are focusing on vehicle designs that have aesthetic value. Plastics provides the designers with the design versatility to design various vehicle components, thus improving the visual/aesthetic appeal of the vehicle. This, in turn, is predicted to boost the demand for automotive plastics.
As per the Global Market Insights Inc. report, “the global automotive plastics market is predicted to reach USD 53.8 billion mark by 2022 at a CAGR of 13.5% over the period of 2015-2022.” Rise in demand for automobiles, changes in vehicle designs, and the growing mass reducing trends to enhance fuel efficiency are few of the factors predicted to drive the market growth in the coming seven years.
Electrical components applications segment worth USD 6.5 billion in 2014 and leading the applications segment, is predicted to witness a noticeable surge in coming years. Sockets manufactured from high performance plastics, having key properties such as thermal stability, lightweight and corrosion resistance, makes them an ideal metal substitute in these applications.
Europe automotive plastics market Size, by product, 2012-2022 (Kilo Tons)
Power trains applications are expected to grow at a CAGR of 10% over the period of 2015-2022 due to the growing use of automotive plastics in the production of jolt bolts and transmission units. Interior & exterior furnishing applications segment contributed towards 32% of the overall automotive plastics demand in 2014 and is expected to grow at a rate of 9% over the period of 2015-2022. Body & light panels, fascia systems, and steering wheels are the key parts of the application using automotive plastics.
The Polymethyl methacrylate (PMMA) automotive plastics market size is predicted to grow at a CAGR of 12% over the period of 2015-2022 due to its growing use/application in rear lights. Polypropylene (PP) dominated the automotive plastics market having had a worth of USD 4.8 billion in 2014. These products are widely used as metal & steel substitutes owing to their weight reducing property which in turn helps in cost reduction.
The Polyurethane (PU) automotive plastics market, contributing about 17% of the overall size in 2014, is anticipated to record a CAGR of 10% over the period of 2015-2022. PU foam provides automobile designers & manufacturers the means to manufacture seats of vehicles without adding any weight to it. Furthermore, the transport sector is the biggest user of reaction injection-molded PU components.
The Asia Pacific automotive plastics market share worth USD 9.5 billion in 2014, is predicted to witness a significant growth in next few years. Shifting of automobile production units to India, Thailand, China, and Indonesia by key manufacturers due to government initiatives and the availability of affordable manpower is expected to stimulate the regional growth.
The Central & South America automotive plastics market is projected to grow at a CAGR of 10.5% over the period of 2015-2022. The MEA automotive plastics market is likely to witness a substantial growth owing to the increase in automobile sales in this region. Countries like UAE and Saudi Arabia are predicted to drive the regional growth. The Latin America market size is expected to record a CAGR of 10.6% over the period of 2015-2022 owing to the increase in purchasing capacity of the consumer and rise in vehicle sales.
Key industry participants include Evonik Industries, Delphi Automotive, BASF, Johnson Controls, The Dow Chemical Company, and AkzoNobel N.V. These market players will try to increase their share by enhancing their product portfolios and expanding their regional presence.
Written By : Dhananjay Punekar