The BRIC automotive plastics market is growing at a rapid pace due to increasing demand for lightweight vehicles. Plastics help reduce the overall weight of vehicles, enhancing fuel efficiency. Various types of plastics like polypropylene, polyurethane, polyvinyl chloride, acrylonitrile butadiene styrene, and polyamide are increasingly being used in vehicles instead of conventional materials like metals. Components made using plastics include bumpers, interior dashboards, seats, door panels, and others. Plastics also help improve recyclability and provide design flexibility.
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 Global Automotive Plastics Market Size are Unilever, Procter & Gamble, Reckitt Benckiser, Henkel AG & Co. KGaA, Church & Dwight Co. Inc., Wipro Enterprises Limited, Colgate-Palmolive Company, C.Johnson & Son Inc., Godrej Consumer Products, Kao Corporation, L’Oreal S.A., The Clorox Company, Seventh Generation, Inc., Natura &Co, Weleda Group, Patanjali Ayurved Limited, Hain Celestial, EO Products, Indus Valley, Prairie Rose. The growing automotive industry in BRIC nations along with rising production of electric vehicles presents significant opportunities for market players. Advances in materials science are leading to development of new lightweight and high-strength plastics suitable for numerous automotive applications.
Market Drivers
Strict emission norms mandating reduction of vehicle weight to enhance fuel efficiency is a major driver for increasing adoption of lightweight plastics in vehicles. As plastic parts can be 30-50% lighter than traditional metals, automakers are extensively using engineered plastics to meet stringent CAFE standards. Growing electric vehicle sector is another key factor boosting plastic consumption as lightweight designs allow extending driving range per charge. Declining prices of plastics relative to metals also encourages substituting conventional materials with engineering thermoplastics.
Current Challenges in BRIC Automotive Plastics Market
The BRIC automotive plastics market is facing challenges owing to volatility in raw material prices and stringent environmental regulations regarding plastic disposal. Plastics are derived from petroleum-based products whose prices are highly dependent on crude oil rates. Fluctuations in crude oil rates impact the production cost of plastics. Additionally, many countries have imposed bans on certain types of plastics due to environmental pollution concerns. There are laws in place regarding recycling and disposal of used plastics from vehicles. Original equipment manufacturers need to find ways to reduce plastic usage and develop sustainable alternative materials while meeting performance benchmarks.
SWOT Analysis
Strength: Growing automotive production in BRIC nations is fueling demand for lightweight and durable plastics in vehicles. Presence of leading automakers in these countries offers opportunities for plastics suppliers.
Weakness: High dependence on crude oil prices exposes the industry to volatility in raw material costs. Regulations restricting certain types of plastics pose challenges.
Opportunity: Push for electric vehicles and hybrid models will accelerate adoption of engineering plastics that help reduce vehicle weight and increase driving range.
Threats: Stringent fuel efficiency norms can reduce plastics content per vehicle. Alternatives such as bio-based and recycled plastics threaten market share of conventional petro-based plastics.
Geographical regions of concentration
China accounts for over 40% of the market value owing to the country being the largest automobile producer in the world. Its low-cost manufacturing environment and growing preference for passenger vehicles attract major investments in the automotive and allied industries in China.
Fastest growing region
India is projected to be the fastest growing market during the forecast period with a CAGR of around 9%. This can be attributed to the Make in India initiative of the government aimed at transforming the country into a global automobile manufacturing hub. Huge population, rapid urbanization and rising disposable incomes will support strong demand for vehicles in India. Local production is gaining momentum with international OEMs setting up manufacturing facilities across various states.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
