Automotive Plastics Market Size By Application (Electrical Components, Power Train, Under the Hood, Chassis, Interior & Exterior Furnishings), By Product (Polyurethane, PVC, Polyethylene, Polypropylene, ABS, Polycarbonate, Polyamide, PMMA), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2015 – 2022
Published Date: March 2016 | 90 Pages | Report ID: GMI110 Report Format: PDF
Automotive Plastics Market size exceeded USD 21 Billion in 2015, at an estimated CAGR over 13% from 2015 to 2022
North America Automotive Plastics Market size, by application, 2012-2022 (USD Million)
Stringent government legislation on fuel consumption along with growing sales of automobiles will drive the automotive plastics market size. CAFÉ (corporate average fuel economy) is a regulatory body in U.S whose purpose is to cut carbon emission by increasing the fuel efficiency of cars and light commercial vehicle. Implementation of CAFÉ regulations has left no alternatives for manufacturers than improving fuel efficiency of their vehicles.
Automobile manufacturers are achieving weight reduction by substituting metal parts with plastic along with changes in vehicle design. Light weight vehicle plays a key role in fulfilling regulations as fuel consumption and vehicle weight are co related. Every 100-kg reduction in weight of vehicle can reduce fuel consumption by about 0.4L/100km from cars and about 0.5L/ 100 km for light trucks. Other benefits offered by plastic auto parts include minimal corrosion allowing for longer vehicle life, flexibility in designing and integrating components along with easy recyclability of product; which will stimulate automotive plastics market demand.
Exterior designs are witnessing revolutionary changes owing to the usage of plastic. Automakers get more liberty to create innovative concept/designs in vehicles which would not be possible with steel and other metals. Plastics makes them possible to combine several complex parts into a single integrated piece. Lower remanufacturing cost associated with usage of plastic car components will propel the automotive plastics market product demand. However, these plastic components are non-biodegradable which are derived from petrochemical sources and raise environmental concerns while manufacturing which can hamper automotive plastics market growth.
Additionally, any fluctuations in crude oil prices may have strong impact on light weight automotive products. Also, evolution of bioplastics components may attract more automotive plastics market participants in the future.
Automotive Plastics Market, By Product
Hardware utilizes almost 13 types of plastics in a single vehicle; however, just three types make up more than 50% of the industry. These three include polypropylene (PP), polyurethane (PU) and Acrylonitrile butadiene styrene (ABS). Polyurethane (PU) market accounted for more than 18% of the 2015 automotive plastics market size, and will grow at CAGR over 14% during the forecast timeframe.
Bumpers, chemical tanks, cable insulation, gas can, carpet fibre are some common applications of polypropylene well as foam insulation panels flexible foam seating’s and suspensions bushings utilize polyurethane. PVC (Poly- Vinyl -chloride) is used to manufacture automobile instrumental parts like sheathing of electrical cables, pipes and doors.
Polymethyl methacrylate (PMMA) market demand will witness highest CAGR of over 14% from 2015 to 2022.
Automotive Plastics Market, By Application
Electrical component applications accounted for more than 34% of the global automotive plastics market. On the other side, interior and exterior applications exceeded 30% of the total demand for 2015, and will witness double digit CAGR during the forecast timeframe.
Power trains will be the fastest growing automotive plastics market application with CAGR of over 15% during the forecast timeframe. Powertrain is one of the most complicated part of car. It refers to a system of bearings shafts and gears that transfers the engines power to the axle. Plastic helps in reducing the quantity of parts required to assemble these components.
Chassis automotive plastics market accounted for more than 8% in 2015 and will grow at CAGR exceeding 12% by 2022. Manufacturers benefit from light weight of plastic chassis as weight savings makes parts easier to transport.
Automotive Plastics Market, By Region
Latin America automotive plastics market will be the fastest growing region and will witness CAGR exceeding 10% during the forecast timeframe. This market will mainly be driven by Mexico which can be attributed to Mexico’s expanding automotive manufacturing industry. It is amongst the top countries in terms of manufacturing and exports.
Major participants like Nissan, Honda and Mazda are opening new manufacturing facilities in Mexico’s central region giving a boost to the automotive plastics market in the region. Mexico’s pursuit of free trade agreements with many countries across North and South America, Europe and Asia has made it an increasingly competitive market for manufacturing. Recently, the country has also joined the trans pacific partnership. Due to its proximity to U.S along with low labour rates, it has become favourite destination for US based manufacturers. Considering demand, more than 2,500 auto part manufacturers are established in the country
LATAM will be followed by Asia pacific and Europe in terms of regional automotive plastics market growth rate. However, Asia pacific was ranked highest amongst the sale of automobiles globally, followed by Central & South America in 2015.
Major exporting countries of 2015 included Germany, U.S, Japan and China. These top four exporting countries accounted for more than 40% of global auto part exports in 2015. Fastest growing plastic automotive parts exporters were Mexico, Thailand, China and Hungary.
Competitive Market Share
Global automotive plastics market is moderately fragmented with top five market participants holding more than half of the total demand in 2014. Automotive plastics manufacturers are focusing more on expanding regional presence and product portfolio to gain market share.
Prominent automotive plastics market players in this industry include Dow chemical, Evonik Industries, AknoNobel N.V., Delphi automotive, Momentive Performance Materials, and Johnson control. Other major companies in automotive plastics market include Borealis AG, GroupoAntolin Irausa SA, Lear corp, Hanwha Azdel, Owens corning, SABIC, and DSM.
Automotive Plastics Industry Background
Synthetic and semi synthetic organic solids are transformed into several useful products, known as plastics. Owing to abundant raw materials availability, ease of manufacture, and low cost, the product has replaced many conventional materials including metals, steel, wood and leather. Increasing demand for durable products in various end user industries is driving over all automotive plastics industry demand.
In current scenario, plastics make up to 50% volume of the car, but contribute only 10% of the cars weight. Automakers make use of variety of materials. The materials chosen depends on their cost, repair ability and durability. Carbon fibre reinforced polymer composites are 50% lighter than conventional steel and 30% lighter than aluminium. Plastic and polymer composites are growing as better option for applications like chassis components owing to their ability to reduce overall vehicle weight while sustaining the performance.
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