Automotive Plastics Market

Factors such as surge in demand for lightweight materials owing to the implementation of fuel standards such as Corporate Average Fuel Economy (CAFÉ) and stringent emission regulations coupled with rapid growth in vehicle electrification will drive the demand for automotive plastics.

The global automotive plastics market is expected to be valued at US$ 68.6 Bn by the end of 2026, wherein interior and exterior applications will account for around 70% of the total market.

In 2020, Asia Pacific held the highest share and will continue to hold around half of the automotive plastics demand by 2026. With the rise in per capita income levels and automotive industry on move, India and Southeast Asia will offer huge growth opportunities.

Mature market such as Europe and North America are showing huge growth for vehicle electrification and hybridization. Furthermore, these regions are also adopting stringent measures to limit CO2 emissions and fuel efficiency, thus expanding the usage of plastics in automotive.

Companies are developing innovative products that can withstand higher temperature levels, especially in under the hood applications. Furthermore, with goals towards sustainability companies are entering into strategic collaborations with plastic recyclers and technology providers.