by The Bric Automotive Plastics Market is estimated to be valued at Us$ 23,642.09 Mn in 2022 and is expected to exhibit a CAGR Of 8.5% over the forecast period 2022 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive plastics are polymers that are used in vehicle manufacturing for various applications such as interior, exterior, under the hood, and electrical components. They help reduce the weight of the vehicle and consequently improve fuel efficiency. Common types of plastics used include polypropylene, polyurethane, polyvinyl chloride, polyethylene, and polycarbonate. Brazil, Russia, India, and China represent major automobile markets globally owing to rising disposable incomes and availability of affordable vehicle financing options.
Market Dynamics:
The BRIC automotive plastics market is witnessing significant growth owing to rising vehicle production in the region to cater to the increasing demand. For instance, according to the International Organization of Motor Vehicle Manufacturers, over 33 million vehicles were produced in 2021 in BRIC nations, up from 25 million in 2016. Additionally, there is growing focus among vehicle manufacturers towards reducing the weight of vehicles to improve fuel efficiency and meet stringent emission norms. Automotive plastics help lower the overall weight of the vehicles compared to other traditional materials such as steel. This is expected to drive the demand for plastics in the automotive production over the forecast period. Furthermore, increasing penetration of electric vehicles is also augmenting the market growth as plastic components reduce the weight of EVs, extending their driving range.
Segment Analysis
The BRIC automotive plastics market is dominated by polypropylene segment which holds around 30% market share. Polypropylene is extensively used in automotive applications such as dashboards, door panels, inner and outer parts due to its characteristics such as lightweight, high mechanical strength and resistance to heat and chemicals. The other major segments include polyurethane, polyvinyl chloride, polyethylene, acrylonitrile butadiene styrene, polycarbonate and polymethyl methacrylate. Among these, polyurethane segment is witnessing fastest growth on account of increasing usage of polyurethane in instrument panels, interior panels and bumpers of cars owing to benefits such as flexibility, resistance to radiations and weathering.
PEST Analysis
Political: The governments in BRIC nations are supporting domestic automotive industry through favorable policies and regulations which is positively impacting the automotive plastics market. For instance, Government of India has implemented schemes like FAME and production linked incentives to boost automotive manufacturing and electric vehicles.
Economic: Growing economy and rising disposable income in BRIC countries has increased the sales of passenger cars and commercial vehicles which is driving the demand for automotive plastics. Improving infrastructure is another important economic factor.
Social: Changing lifestyle and preference of people towards luxury and advanced vehicles is influencing the automotive plastics market. Safety and low emission norms are also prompting use of advanced lightweight plastics.
Technological: Developments in production technologies of automotive plastics allowing greater design flexibility. Advanced plastics with improved properties are enabling applications in new areas like electric vehicles.
Key Takeaways
The BRIC Automotive Plastics Market size was valued at US$ 23,642.09 Mn in 2021 and is expected to reach US$ 45,674.32 Mn by 2030, expanding at a CAGR of 8.5% during the forecast period.
The automotive production in BRIC nations have been growing steadily over the past decade on account increasing domestic demand for passenger and commercial vehicles. Brazil is expected to witness high growth owing to increasing vehicle manufacturing under the Mercosur trade bloc agreement.
Key players operating in the BRIC automotive plastics market are Bayer Material Science, Lyondell Basell, Dow Chemicals Company ,Polyplastics Group, Sibur, China XD Plastics Company Ltd., and Saudi Basic Industries Corporation (SABIC). Key players are focusing on developing advanced and specialty plastics to tap opportunities in electric vehicles and lightweighting trends.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
