Vantage Market Research
May 03, 2022
From the period 2022 to 2028, the Global Electric Vehicle Plastic Market is expected to reach USD 3862.1 Million in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 26.30%.
The tendency of lightweight plastic applications as a manufacturing section is primarily driving the size of the electric vehicle plastics market. The use of lightweight plastics in electric vehicles improves fuel efficiency while also expanding the range of battery vehicles. Battery electric vehicles are expected to be the leading provider of electric vehicle plastics, which will drive the growth of the electric vehicle plastics market. The electric vehicle plastics industry is also expected to grow due to its superior presentation experience when compared to metal. While metal is the most commonly used material in the production of various automotive components, the resulting increase in vehicle weight has prompted automakers to seek alternatives to improve overall vehicle efficiency. As a result, plastics have surpassed metals as the most commonly used standard materials for the construction of various vehicle components. The rising trend of weight reduction in PHEV/ HEV/ BEV, combined with the increasing demand for thermally stable plastic, is expected to drive the demand for plastic in the electric vehicle market.
Key Highlights from the Report
- The market is divided into four applications: Powertrain System/Under Bonnet, Exterior, Interior, and Lighting & Electric Wiring. The growing trend of replacing metals in interior components with plastics is driving up demand for plastics in the interior trim segment. Because plastics act as an absorbing body, replacing metal parts with plastics reduces risk during a crash or accident, particularly on the legs of vehicle occupants during a crash. Furthermore, the use of plastics improves the aesthetics of the vehicle while providing the necessary strength.
- The market is divided into two segments based on vehicle type: BEV and PHEV/ HEV. Stringent emission regulations and government policies encouraging the use of electric vehicles are the primary factors driving electric vehicle sales and, as a result, increasing demand for plastics used in electric vehicles. Furthermore, BEV manufacturers are working to reduce overall weight, which will likely increase electric vehicle range. To reduce vehicle weight, automotive OEMs are focusing on metal-to-plastic conversion and injection-molded plastic parts.
- Asia Pacific is the fastest regional segment in terms of growth. Asia Pacific dominates the Electric Vehicle Plastic Market and has emerged as an electric vehicle hub in recent years, with China and Japan leading the way. Governments in APAC are also attempting to provide incentives to encourage the use of electric vehicles. Increasing demand for electric vehicles as a result of rising environmental consciousness, aided by innovation, government initiatives, and OEM investments, has resulted in a technological revolution in the global automobile industry. Concerns about the environment are expected to increase demand for electric vehicles, propelling the electric vehicle plastics market over the forecast period.
Some of the key players in the Electric Vehicle Plastic Market include BASF (Germany), SABIC (Saudi Arabia), Dow (US), Lyondellbasell Industries Holdings B.V (Netherlands), DuPont de Nemours Inc.(US), Covestro (Germany), Solvay (Belgium), LANXESS (Germany), LG Chem (South Korea), Asahi Kasei (Japan) and others.
With a shift toward producing automobiles that emit fewer greenhouse gasses and are more fuel efficient, almost all of the major automobile manufacturers are producing electric vehicles and variants, with improved year on year sales of electric vehicles directly influencing the growth of the electric vehicle plastics market. The decrease in the prices of raw materials used in the manufacture of electric vehicles is another factor driving the market growth. One of the major factors contributing to the growth of the electric vehicle plastics market is the increasing use of plastics as raw materials in the manufacture of automotive parts and supplies.
The trend in lightweight plastic applications as a manufacturing element is driving the plastics market for electric vehicles. The use of lightweight plastics in electric vehicles improves fuel efficiency as well as battery electric vehicle (BEV) range. BEV is expected to be the largest contributor to the electric vehicle plastics industries, fueling global electric vehicle plastics demand growth. Plastic benefits such as lower carbon emissions and less reliance on petroleum drive the plastics market for electric vehicles.
The electric vehicle plastics market in North America is thriving as a result of the growing popularity of non-polluting vehicles as a mode of transportation. With a shift in consumer demand toward automobiles that contribute to lower greenhouse gas emissions, almost all major automakers are producing highly fuel-efficient electric vehicles and their variants, owing to improved year-on-year sales of this product, directly influencing the development of the electric vehicle plastics market. Another factor is the decrease in the prices of raw materials used in the production of electric vehicles.