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| Global Electric Vehicle Plastics Market Size |
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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Electric Vehicle Plastics Market