by The automotive plastics market in the BRIC region is witnessing significant growth due to the increasing vehicle production and sales in the countries including Brazil, Russia, India, and China. Automotive plastics provide advantages such as weigh reduction, design flexibility, corrosion resistance, and durable nature. Key applications of automotive plastics involve interior, exterior, and under-the-hood components.
The Global BRIC Automotive Plastics Market is estimated to be valued at US$ 32062.54 Mn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the BRIC automotive plastics market include Unilever, Procter & Gamble, Reckitt Benckiser, Henkel AG & Co. KGaA, Church & Dwight Co. Inc., Wipro Enterprises Limited, Colgate-Palmolive Company, C.Johnson & Son Inc. These players are focusing on capacity expansion and new product launches to cater to the growing demand.
The demand for automotive plastics is growing owing to the increasing vehicle production in BRIC nations to fulfill the rising consumer spending. Lightweighting of vehicles using plastic helps in meeting stringent fuel efficiency and emission norms.
The Global Automotive Plastics Market Size is expanding on account of growing vehicle fleet, rapid urbanization, and changing lifestyles in BRIC countries. Leading automakers are localizing their plastic component manufacturing to BRIC nations, driven by availability of raw materials and affordable labor costs.
Market Key Trends
Electrification of vehicles is one of the key trends in the global automotive industry. Automotive plastics play a vital role in electric vehicles by reducing weight and enabling better performance and range. Leading automakers in BRIC region are introducing more electric vehicles in their lineups to strict emission regulations, growing consumer awareness on environmental protection. This will drive the demand of engineering plastics and composites in electric vehicles production over the forecast period.
Porter’s Analysis
Threat of new entrants: Low as Automotive industry requires large investments and economies of scale for manufacturing. Automotive plastics are specialized materials requiring technical expertise and established supplier relationships in the industry.
Bargaining power of buyers: Moderate as large automotive OEMs have significant buyer power to negotiate on price and quality standards. However, specialized automotive plastics have limited substitutes.
Bargaining power of suppliers: Moderate as well-established automotive plastics manufacturers have specialized product portfolio. However, OEMs can identify alternative suppliers to avoid dependency on any single supplier.
Threat of new substitutes: Low as no direct substitute exists for various automotive plastics in terms of functionality,weight reduction and production cost advantages over other materials.
Competitive rivalry: High among global automotive plastics manufacturers to gain market share and establish long-term supply relationships with automotive OEMs. Price competition also exists between manufacturers.
In terms of value, North America holds the leading share in the BRIC automotive plastics market currently owing to large automotive production in countries like the US and Canada.
Asia Pacific region is expected to be the fastest growing region during the forecast period driven by increasing automotive production and sales in China and India alongside growing use of plastics in electric vehicles produced in the region. Shift towards lightweight vehicles is also propelling the demand of automotive plastics.
Geographical Regions:
Currently, in terms of value, North America holds the leading share in the BRIC automotive plastics market owing to large automotive production in countries like the US and Canada. The region has dominant presence of global automotive OEMs producing maximum number of vehicles annually.
Asia Pacific region is expected to be the fastest growing region during the forecast period. Factors such as increasing automotive production and sales in major economies like China and India alongside growing usage of plastics in electric vehicles produced in the region will drive the market growth. Other factors include stringent fuel efficiency and emission norms enforcing automakers to shift their focus towards lightweight materials like plastics for achieving reduced vehicle weight. This shift towards lightweight vehicles is also propelling the demand of automotive plastics in vehicle components.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
