Electric Vehicle Plastics Market worth 1.49 Bn USD by 2021

Thursday 3 November 2016, Amsterdam

The report, now available on ASDReports, "Electric Vehicle Plastics Market by Material (PP, PE, ABS, PU, PVC, PA, PC, PVB & Other Engineering Resins), Application (Interior, Exterior, Lighting/Electric Wiring & Under the hood), & Region and ICE Passenger Cars by Material - Global Forecast to 2021", The electric vehicle plastics market is projected to grow at a CAGR of 27.82%, to reach a market size of USD 1.49 Billion by 2021. The market is driven by factors such as stringent emission regulations leading to lightweighting of passenger cars, and government policies encouraging the adoption for electric vehicles.

“Polyurethanes to be the largest material segment used in electric vehicles”
Polyurethanes is expected to dominate the electric vehicle plastics market. The growth of this market can be attributed to the advantages offered by polyurethanes, such as high strength, flexibility, and resistance to temperature, weather, and radiation. The key applications of polyurethanes are seating, electric wiring, and hard plastic parts. The average percentage of polyurethanes employed in a passenger car is around 15%–20%, according to MarketsandMarkets analysis. Many automotive plastic manufacturers, such as BASF SE (Germany) and The Dow Chemical Company (U.S.), have a wide range of polyurethane products for the automotive industry.

“Battery electric vehicles to be the fastest growing segment in the electric vehicle plastics market”
The Battery Electric Vehicle (BEV) segment is projected to grow at the highest CAGR during the forecast period. The primary difference in the plastics employed in a BEV compared to a Hybrid Electric Vehicle (HEV) is the under hood components. The growth of this market is driven by factors such as increasing innovation, environmental concerns, and stringent emission regulations. To promote the growth of BEVs, governments are introducing various tax and non-tax incentives for electric vehicle owners. This in turn supplements the growth of the plastics employed in these BEVs.

“Asia-Oceania to be the largest market for electric vehicle plastics market”
Asia-Oceania is estimated to dominate the electric vehicle plastics market, and is projected to grow at the highest CAGR during the forecast period. The region has emerged as a hub for electric vehicles in recent years, with China and Japan as the frontrunners. Governments in Asia-Oceania are also trying to provide incentives to support the demand for electric vehicles. For instance, in Japan, electric vehicles are exempted from acquisition tax and tonnage tax, and have a 50% exemption from automobile tax.

The electric vehicle plastics market is dominated by a few global players, and comprises several regional players. Some of the key manufacturers operating in the market are BASF SE (Germany), The Dow Chemical Company (U.S.), INEOS Capital Limited (Switzerland), SABIC (Saudi Arabia), and Lyondellbasell Industries Holdings B.V. (The Netherlands).