Automotive Plastics Market Forecasts to 2024
Significant Growth in All Segments
According to Graphical Research, a business research firm, there is a bright future ahead for the global automotive plastics market driven by rising needs of the automotive industry. The market size is projected to surpass USD 50 billion by 2024.
Improvements in automobile design based on aesthetic design parameters, strict emission control standards and the growing significance of weight reduction to reduce fuel consumption in vehicles are predicted to boost the demand for automotive plastics over the coming years.
USD 50 Billion by 2024
With innovations in vehicle component manufacturing technology, thermoplastic elastomers coupled with high-performance plastics are finding increasing applications in the automobile industry. For example, the power train segment is predicted to have a noticeable growth till 2024 owing to the growing use of automotive plastics for producing internal transmission parts and jolt bolts. A compound annual growth rate (CAGR) of around 10% over 2018-2024 could become reality.
The interior and exterior furnishings application segment, which contributed about 33% of the overall demand in 2017, is expected to increase at a rate of around 9.5% over the forecast time frame. Bumper systems, dashboards, body & light panels, and steering wheels are key parts utilizing automotive plastics.
Also the electrical components, which dominated the application segment in 2017 by contributing over USD 8.5 billion, are anticipated to see a substantial growth over the forecast timeline. Corrosion resistance and lightweight properties of automotive plastics make them an ideal metal substitute in the application. Furthermore, sockets manufactured from high performance plastics can sustain high temperatures without getting degraded.
Over 20 Million Tons by 2024
The automotive plastics industry estimated at 11 million tons in 2017, is projected to surpass 20 million tons by 2024, growing at a CAGR of around 9.5% over the period of 2018-2024. Although automotive plastics provide significant reduction in the weight of vehicles, resulting in fuel efficiency and reduction in greenhouse emissions, the non-biodegradable property of synthetic polymers, along with growing ecological concerns related to carbon emissions from conventional polymers, are anticipated to inhibit the market growth over the coming years.
Bright Perspectives for the Product Segment
According to the press release, there are also bright perspectives for the product segment, which comprises polyurethane, polypropylene, PVC, polyamide, polyethylene, ABS, polycarbonate, and PMMA (Polymethyl methacrylate) products. The polymethyl methacrylate automotive plastics market is expected to see a significant growth over the forecast time frame as a result of its growing use in sidelights. It's share is contributed over 19% of the overall volume in 2014 and a growth around 10% over the forecast time frame. It will reach a CAGR of around 13.5% over 2018-2024.
The polypropylene automotive plastics market, which was worth over USD 7 billion in 2017, will see a substantial surge over the forecast period owing to its wide use as steel substitute for achieving weight and cost reductions.
Good News for the Markets in Central and South America
The MEA automotive plastics market is predicted to see a noticeable growth over the forecast timeline owing to increase in sales of automobiles in the region. UAE and Saudi Arabia will make a significant contribution towards the regional growth.
Same with the Asia Pacific automotive plastics market which was worth over USD 13 billion in 2017. Owing to a shift in automobile production units to countries like Thailand, China, Indonesia, and India as a result of cheap labor costs along with government support, it will also see a significant increase over the forecast time frame. In the case of the Central & South America automotive plastics market, the expected growth is due to an increase in consumer expenditure along with the rise in sales of automobiles. (bf)
About Graphical Research
Graphical Research is a business research firm that provides industry insights, market forecast and strategic inputs through granular research reports and advisory services. It publishes targeted research reports with an aim to address varied customer needs, from market penetration and entry strategies to portfolio management and strategic outlook. They also provide custom reports that are tailored to the exact needs of the customer, with dedicated analyst support across the purchase life cycle.
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