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DUBLIN--(BUSINESS WIRE)--Oct 31, 2022--
The "Global Electric Vehicle Plastics Market by Type (ABS, PU, PA, PC, PVB, PP, PVC, PMMA), Application & Component (Dashboard, Seat, Trim, Bumper, Body, Battery, Engine, Lighting, Wiring), Battery Type & Material, Vehicle Type and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The electric vehicle plastics market is expected to grow from USD 3.7 billion in 2022 and is poised to reach USD 12.6 billion in 2027, at a CAGR of 27.9% during the forecast period.
BEVs are likely to drive demand for plastics due to their growing popularity
The BEV segment is estimated to showcase the fastest-growing vehicle segment for plastics during the forecast period. BEVs have showcased a faster adoption compared to other EV types and one of the reasons can be that these are clean and comparatively low cost compared to HEVs/PHEVs. With advancements in weight-reduction technologies and improved range, the demand for battery electric vehicles is expected to increase further in the coming years.
This would drive the demand for lightweight plastics such as polypropylene. Polyurethanes (PU) have excellent manufacturability and are preferred material options for automotive seating solutions. Higher demand for interior comfort drives PU demand in EVs. Polypropylene (PP) has a lower density than other plastic materials; hence it has opened new opportunities to reduce vehicle weight. PP also has good recyclability, allowing it to be reused as raw material and reducing plastic waste. Thus, increased adoption of BEV vehicles amongst other EV vehicle types is likely to drive the demand for plastic components used in these vehicles.
Interior trim application to boost plastic blended fabrics for aesthetically pleasing plastic components
OEMs introduce advanced seating solutions as customers of luxury electric vehicles and premium electric SUVs prefer superior ride quality. These seating solutions are a new growth opportunity for OEMs to reduce vehicle weight while providing a quality interior experience.
For current generation customers, interior aesthetics are one of the primary factors while purchasing a vehicle. OEMs that can deliver a wide range of interiors will likely gain market share in the future. The design flexibility of plastics can be used to improve aesthetics in vehicle interiors. Therefore, due to increased demand for safety features in the market and aesthetically pleasing interiors, the demand for advanced interior trim components will likely increase during the forecast period.
Europe is the second largest market for EV plastics owing to faster-growing EV sales
According to IEA, the split between BEV and PHEV is 55/45, with 5.5 million electric vehicles on the road as of 2021 in Europe. This results from changes in EV tax incentive schemes and shift towards electric mobility to reduce CO2 emissions and prevent climate change.
Germany is a global hub for automotive design and innovation. With companies like BASF leading the charge in innovative plastic solutions, the country's demand for higher, more aesthetically pleasing interiors has risen. The country is one of the biggest markets for premium vehicles, making it a focal point for adopting lightweight, high-performance plastic. France is at the center of luxury business in the world. It is one of the top countries with high demand for luxury vehicles and SUVs.
The growing demand for luxury EVs is next as top companies shift their focus to low carbon mobility. Luxury interiors and higher-quality seating will drive the demand for better-quality plastic products. In Sweden, according to IEA, the share of electric vehicles sold in 2021 was 42% of all the vehicles sold in the country, one of the highest numbers in the European region. This is indicative of the increasing customer awareness and the rising government support in the form of new schemes toward electric mobility.
In Europe, the EV sales are primarily driven by mature charging infrastructure, customer awareness and attractive government incentives. Demand for higher quality interiors to drive the plastic market in this region.
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KEYWORD:
INDUSTRY KEYWORD: CHEMICALS/PLASTICS AUTOMOTIVE AUTOMOTIVE MANUFACTURING EV/ELECTRIC VEHICLES MANUFACTURING ALTERNATIVE VEHICLES/FUELS
SOURCE: Research and Markets
Copyright Business Wire 2022.
PUB: 10/31/2022 11:31 AM/DISC: 10/31/2022 11:31 AM
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