The Asia-Pacific automotive plastics market is expected to grow at a moderate rate during the forecast period (2018 - 2023). China is estimated to lead the market owing to the growing demand for new energy vehicles, supported by changing governmental policies. Interior is expected to be the largest application market.
Automotive plastics provide properties such as durability, recyclability, thermal stability, and light weight. They also give car designers flexibility to incorporate complex designs which were not possible with conventional metals like steel and aluminum. Increase in the consumption of plastics in the automotive industry is mainly due to the growing need for improvement in mileage, and increasing government standards for emissions. According to industry experts, the average car will comprise nearly 300 kg of plastics by 2020, up from 180 kg at present. This increase in consumption of plastics in automotive during the forecast period is expected to reduce automotive weight, thereby enhancing the dynamics of the vehicles, reducing energy consumption, and improving fuel economy.
Polypropylene is extensively replacing engineering plastics and metals in the automotive industry to achieve weight reductions and cost saving. Increase in demand for fuel economic vehicles and reduction in emission by achieving lightweight solutions have raised the demand for polypropylene in recent years. In addition, growing need for better properties from plastic materials such as high rigidity, increased impact strength, better fluidity, moldability, and low weight to keep pace with productivity, quality, and low costs is expected to drive the market for polypropylene during the forecast period.
China is projected to dominate the automotive plastics market during the forecast period, owing to the growing demand for new energy vehicles supported by changing governmental policies. The growing middle-class population, coupled with the increase in the number of consumers willing to purchase new cars and pay for after-sales services, has increased the consumption of automotive plastics in the country. In addition, increase in demand for non-traditional vehicles, including sports utility vehicles (SUVs) and new energy vehicles (NEV), coupled with changing governmental policies related to carbon emissions, and provision of subsidy for new energy vehicles, is expected to drive the demand for automotive plastics in China during the forecast period.
Major Players: Azko Nobel N.V., BASF SE, Evonik Industries AG, and Covestro AG, among others.
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