The Global Electric Vehicle Plastics Market is Anticipated to Witness High Growth Owing to Increased Electric Vehicle Production
The global electric vehicle plastics market comprises plastics used inside electric vehicles such as battery packs, interior and exterior components, under the hood components and electrical components. Plastics find widespread application in electric vehicles as they help reduce vehicle weight and improve performance. The growing electric vehicle industry has bolstered the demand for specialty plastics that can withstand varied temperatures and provide insulation and heat resistance for electric vehicle components. Major types of plastics used in electric vehicles include Polypropylene (PP), Polyvinyl Chloride (PVC), Polyurethanes (PUR), Acrylonitrile Butadiene Styrene (ABS), Polycarbonate (PC), Polyamide (PA), Polymethyl Methacrylate (PMMA) and others.
The Global Electric Vehicle Plastics Market Size is estimated to be valued at US$ 4.09 BN in 2024 and is expected to exhibit a CAGR of 27.% over the forecast period 2024 to 2031.
Growing stringent environmental regulations regarding vehicle emissions and increasing consumer inclination towards electric vehicles are major factors driving the demand for electric vehicle plastic components.
Key Takeaways
Key players operating in the Global Electric Vehicle Plastics are LANXESS, INEOS Group, Celanese Corp., AGC Chemicals, EMS-Chemie Holding, Mitsubishi Engineering Plastics Corp., BASF SE, SABIC, LyondellBasell Industries Holdings B.V., Evonik Industries, Covestro AG, Dupont, Sumitomo Chemicals Co. Ltd., LG Chem, Asahi Kasei. These companies are focusing on capacity expansion, new product launches and collaborating with automotive OEMs to cater to increasing plastic demand for electric vehicles.
The global electric vehicle plastics market provides opportunities for companies to offer lightweight and durable plastics for battery packs, power electronics and vehicle interior/exterior components. Growing investments in specialty plastic materials by automotive OEMs and suppliers ensure opportunities for innovative product developments.
Major automakers are expanding their electric vehicle production facilities globally to cater to the growing demand. This is augmenting opportunities for plastic component suppliers to establish manufacturing units across strategic automotive hubs and partner with global OEMs for long term supply contracts.
Market drivers and restrain
Increasing vehicle electrification is a major driver as electric vehicles require more plastic components compared to conventional vehicles. Stringent emission norms are forcing automakers to develop electric vehicles which in turn is boosting the plastic consumption. Government subsidies and incentives regarding electric vehicle adoption across nations is encouraging consumer demand and electric vehicle production.
However, high material and manufacturing costs of specialty plastic materials may restraint widespread electric vehicle adoption impacting the component demand. Compliance with varying recycling regulations across regions regarding plastic disposal post vehicle lifetime remain a challenge. Volatility in raw material prices affects the overall component prices.
Segment Analysis
The global electric vehicle plastics market is segmented based on vehicle type, application type, and electric vehicle type. In terms of vehicle type, the passenger vehicle segment currently dominates the market due to the large volume demand for electric passenger vehicles globally. Passenger electric vehicles are becoming more affordable and widespread, driving the dominance of this segment.
In terms of application type, the interior segment constitutes the largest share as plastics are extensively used in dashboards, door panels, seat covers, and other interior components of electric vehicles. The dominance of this segment is owing to the light-weight and durable properties of plastics which make them ideal for interior applications.
When segmented by electric vehicle type, the battery electric vehicle segment holds the major market share and is expected to continue leading during the forecast period. This is because battery electric vehicles require more plastic components compared to hybrid electric or plug-in hybrid vehicles.
Global Analysis
The Asia Pacific region currently dominates the global electric vehicle plastics market and is projected to continue its dominance during the forecast period. This is attributed to the rapidly growing electric vehicle manufacturing and sales in major Asia Pacific countries such as China, Japan, India, and South Korea. China, in particular, leads both electric vehicle production and sales globally, driving the demand for electric vehicle plastics in the region.
Europe is another major regional market and is expected to witness notable growth, owing to stringent emission regulations and significant investments by leading automakers in electric vehicle development. On the other hand, North America is projected to emerge as the fastest growing regional market between 2024 and 2031, due to rising consumer preference for greener vehicles coupled with supportive government policies and investments in electric vehicle infrastructure in the US and Canada.
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