GLOBAL ELECTRIC VEHICLE PLASTICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Global Electric Vehicle Plastics Market Size and Trends

Global electric vehicle plastics market is expected to reach US$ 22.49 Billion by 2031, from US$ 4.09 Billion in 2024, at a CAGR of 27.6% during the forecast period. Electric vehicles (EVs) rely heavily on plastics for various parts due to their light weight and potential cost savings as compared to other materials. Plastics play an important role in an EV's body, chassis, interior, powertrain, and electrical systems. For the body, thermoplastics such as polypropylene (PP), polyamide (PA), and acrylonitrile butadiene styrene (ABS) are commonly used due to their strength and impact resistance properties. PP is often utilized for energy-absorbing bumpers while PA finds application in durable running boards, pivoting door hinges, and other structural components.

Global Electric Vehicle Plastics Market- Trends

• Use of recycled plastics in electric vehicles: The use of recycled plastics in electric vehicles is having a significant impact on the electric vehicle plastics market. As electric vehicle production ramps up globally to meet climate targets, automakers are under increasing pressure to reduce the carbon footprint and boost sustainability of their manufacturing processes. Using recycled plastics allows automakers to partially offset the emissions from raw material extraction and plastic production. It can also help electric vehicle manufacturers to meet proposed regulations in Europe and other regions that mandate a minimum percentage of recycled content in vehicles. In 2022, Tesla, an U.S.-based automaker, announced that Model Y SUVs produced in Giga factory Texas contain over 350 pounds of recycled plastic packaging and trim. This represents a significant amount of plastic waste being diverted from landfills.
• Development of bio-based and renewable plastics: The rising trend of using bio-based and renewable plastics in the automotive industry is having a significant impact on the electric vehicle plastics market. As environmental sustainability has become a top priority, electric vehicle manufacturers are under increasing pressure to reduce the carbon footprint of their vehicles over the entire lifecycle. Bio-based plastics derived from plant-based materials like sugarcane, corn, switch grass, and agricultural waste offer an environmentally-friendly alternative to conventional petroleum-based plastics. These have similar physical and mechanical properties as traditional plastics but are more sustainable. Several electric vehicle OEMs have started employing bio-based plastics produced from bio plastics manufacturers in various interior and exterior components to lower the fossil fuel dependence of their EVs. For instance, in 2020, Ford Motor Co. announced that it will use plant-based materials like soy foam and bio plastics for seats, headrests, and door panels in their all-electric F-150 Lightning truck launching in 2022.