The automotive plastics market is slated to witness robust growth by 2027 driven by the strong bounce-back of automotive sales out of the tail-end of the coronavirus pandemic. While the peak pandemic year of 2020 still saw tremendous vehicle sales, with the IEA quoting the number to be around the 73 million mark, a more distinguished demand was witnessed in 2021.
In fact, the numbers have considerably grown since 2021, with Autocar recently reporting strong recovery for new car sales throughout 2021, with approximately seven of the top 10 automobile markets in the world recording higher sales than the 2020.
Even though the outflux of vehicles from assembly plants was severely dampened by the ongoing shortage of semiconductors across the globe, the rising profits are a welcome ray of hope for the industry as it navigates an otherwise dark period of its history.
The overall automotive plastics market is divided into different segments on the basis of product, application, and regional spectrum.
In terms of product, the landscape is further classified into polypropylene, acrylonitrile butadiene styrene, polyvinyl Chloride (PVC), polyurethane, polycarbonate (PC), polyethylene (PE), polyamide (nylon 6, nylon 6,6), polymethyl methacrylate, and others.
Among these, the acrylonitrile butadiene styrene product is anticipated to grow at a CAGR of more than 10.5% through the forecast timeline. The polymethyl methacrylate product segment is anticipated to further outline a distinguished growth by clocking in a CAGR of more than 15% over the analysis time period. The others segment is earmarked to report a notable growth of over 11.5% CAGR through the projected time period.
With respect to the application, the market is classified into power trains, electrical components, interior & exterior furnishings, under the hood, chassis, and others. The other automotive plastics segment includes polystyrene and polyoxymethylene and is estimated to grow at a rate of 8% by the end of the analysis timeline.
From a regional perspective, the APAC automotive plastics market is slated to grow more than 9.5% by the end of the analysis time period. the rapidly expanding construction as well as logistic industries across the Asia Pacific are likely to create strong demand for the product from HCVs.
The MEA automotive plastics market is estimated to grow more than 12% by the end of 2027. Rising annual sales of luxury passenger cars in the region are expected to emerge as the primary factors fostering growth of the industry in the region. Efforts from Middle East countries to diversify their economies away from oil would also create favorable conditions for the market.