PLASTIC COMPONENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)
The global plastic component market is estimated to be valued at USD 520.20 billion in 2024 and is expected to reach USD 798.34 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031.
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There is growing demand for plastic components from various end-use industries such as automotive, packaging, electronic, and medical devices. The light weight and durability properties of plastic make it an ideal material for manufacturing components. The increasing use of specialty plastics such as engineering plastics that are heat and chemical resistant is further driving the demand. Rising environmental concerns and stringent regulations regarding fuel efficiency are propelling automakers to manufacture lightweight vehicles using plastic components. Additionally, the demand for plastic components is expected to increase with growing investments in the medical devices sector.
Market Driver - Growth in automotive industry
The automotive industry has experienced strong growth in recent years, particularly in developing economies across Asia Pacific and Latin America. As vehicle ownership rates continue to increase in these emerging markets, the demand for plastics in automotive applications has risen substantially. Plastics are increasingly being used to manufacture both the interior and exterior components of modern vehicles due to their light weight and ability to be molded into complex designs. Things like door panels, dashboards, bumpers, trims, and other non-structural parts are being produced using engineering-grade thermoplastics like polypropylene and nylon.
The shift towards smaller and more fuel-efficient vehicles has also boosted plastic consumption in the automotive sector. Carmakers are focusing on reducing vehicle weight through the use of lightweight materials to maximize fuel economy and meet stringent emission standards. Plastic components can help reduce weight by up to 30% compared to traditional steel parts. Moreover, automakers desire enhanced design flexibility which plastics beautifully fulfill. The aesthetics and functionality of vehicle cabins are being improved through innovative applications of plastic composites. All these factors have encouraged OEMs around the world to incorporate more plastic content in their new vehicle models.
Electric vehicles in particular rely extensively on plastics owing to their higher part count compared to diesel or gasoline counterparts. Requirements for enhanced design, ease of manufacturing, and superior insulation properties make plastics an ideal material for EV components such as battery casings, connectors, sensors, and electronic modules. The sustained policy support for eco-friendly mobility solutions bodes well for plastic demand emanating from the proliferating global EV industry.
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Rise in construction industry
The construction sector has been on an upward trajectory in recent times mainly due to rapid urbanization and infrastructure development activities across both developed and developing economies. Mega projects in areas like transportation, utilities, commercial buildings, and residential complexes have kept the industry humming with activity. These construction booms naturally translate to higher volumes of plastic consumption since various building materials and piping systems increasingly utilize plastic raw materials.
One of the major drivers of plastic usage in the construction sector has been the replacement of traditional materials like wood, concrete, and metals by innovative plastic variants. Composites made from polymer resin reinforced with fibers offer compelling advantages over conventional construction elements. Plastic pipes, windows, doors, and roofing sheets are lighter, more durable, flexible, and require lower maintenance. They can withstand corrosion and last longer through harsh environmental conditions without deterioration. Additionally, plastic molding enables architects to give unique aesthetic shapes and designs to structures that were not possible before.
Sustainability practices have also stimulated plastic adoption in the built environment sphere. Recovering and recycling plastic construction waste is relatively easier than other materials. Moreover, plastic polymers made from bio-based inputs are helping brandish the eco-friendly credentials of the industry. This momentum towards green building solutions ensures rising importance of plastics in the construction vertical looking ahead. Expansion in infrastructure to cope with rapid urbanization especially in developing regions will keep fueling the demand for plastic construction components.
Key Takeaways from Analyst:
The market is primarily driven by the increased adoption of plastics in various end-use industries such as automotive, consumer goods, packaging, and electronics. Plastics offer advantages such as lightweight, durability, and design flexibility which is increasing its preference among manufacturers.
Growing automobile production along with rising demand for fuel-efficient and lightweight vehicles is propelling the demand for plastic components in the automotive industry. Another key growth driver is the expanding packaging sector owing to rising e-commerce activities.
However, stringent environmental regulations regarding non-biodegradable plastics may hinder the market growth. Developing bio-based and recyclable plastics to overcome this challenge could create new opportunities. North America currently dominates the global market and is expected to maintain its leading position during the forecast period. This can be attributed to the presence of emerging economies with rapidly growing end-use industries. Asia Pacific is projected to witness notable growth and remain the second largest market owing to high demand from well-established automotive and consumer goods industries in the region.
Market Challenge - Stringent environmental regulations
The global plastic component market is facing challenges due to stringent environmental regulations passed by various governments around the world which aims to reduce the usage of plastics. Governments are concerned over the effects of plastic wastes polluting the environment and harming wildlife. Many countries have either banned or imposed levy on specific plastic products like bags, straws, and cutlery. Manufacturers are finding it difficult to cope up with the frequent changes in regulations. The norms are also requiring plastic product makers to use recycled content in their products. This is increasing the cost of procurement of raw materials. Firms have to invest heavily in research and development of alternatives to virgin plastics and modify their existing manufacturing processes to integrate the recycled plastic content. The regulatory difference across nations also creates compliance issues for companies operating globally. Overall, the stringent rules over plastics pose operational and cost challenges for the plastic component producers.
Market Opportunity - Emergence of bio-plastics for market
The growth of bio-plastics market opens new opportunities for the global plastic component market. Bio-plastics are plastics derived from renewable biomass sources like corn, sugarcane, or cellulosic materials rather than from fossil fuel sources. They are biodegradable and sustainable alternatives to conventional plastics. With the pressing need to shift towards eco-friendly options, more companies are investing in the R&D of bio-plastics. This has led to advancement in bio-plastic technologies, wider availability of bio-plastic raw materials, and fall in their costs. Plastic component makers can leverage the emerging bio-plastic market by developing new products using bio-plastics or replacing a portion of the content with bio-plastics. This will help them comply with sustainability norms and appeal to environmentally conscious customers. The growth in the production of bio-plastics will support plastic manufacturers to mitigate raw material price volatility risks and access sustainable alternatives, allowing them to tap opportunities in both existing and new market segments.
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Insights by type of plastic: Versatility and durability
In terms of type of plastic, Polypropylene (PP) is expected to contribute 29.5% share of the market in 2024. Polypropylene or PP plastic has established itself as the leading type of plastic used in components due to its diverse range of applications. PP is light yet durable, making it well-suited for applications that require impact resistance like automotive bumpers and packaging. It can be easily molded into complex shapes without losing structural integrity. Compared to other plastics, PP has excellent chemical and corrosion resistance allowing it to safely hold contents longer.
PP plastic also performs well at both low and high temperatures. It remains flexible even at very cold temperatures, avoiding embrittlement. At the same time, its melting point is relatively high so it can withstand higher working temperatures than PE or PVC. This temperature stability opens up more end uses than other plastics. PP is commonly used for pipes, fittings and furniture as it retains its shape in varied climates.
Being non-toxic, PP plastic can be used for food packaging and consumer products without the risk of chemical leaching. It resists stains and odors, keeping contents fresh longer. The plastic also takes paints and inks well for branding purposes. PP components have little maintenance needs and their light weight means lower transportation costs. All these versatility advantages have made PP preferred over other plastics for a wide array of plastic components. Innovation in PP production is further expanding its use across sectors.
Insights by application: Large-scale production of vehicles and regulatory focus on fuel-efficiency
In terms of application, automotive is expected to contribute 38.8% share of the market in 2024. The automotive sector is by far the largest end user of plastic components globally. Modern vehicles contain numerous interior and exterior plastic parts that have replaced traditional materials like metal to reduce weight. Plastics account for around 10-15% of a typical vehicle's mass but the components are ubiquitous. Automakers use plastics extensively in bumpers, dashboards, door panels, and others to meet stringent fuel efficiency and emission targets. Lightweighting with plastics allows engines to use less fuel.
Growing vehicle ownership and manufacturing volumes in populous developing nations is a key driver for plastic component demand. As incomes rise, more people can afford personal vehicles and commercial transportation fleets expand. This lifts overall automotive production figures year-on-year. Additionally, tough mileage and pollution norms instituted by regulatory bodies compel automakers to pursue ongoing weight-savings. Plastics enable compliance through mass reduction while maintaining strength and performance characteristics. The combined effect of the two factors ensures a consistent requirement for plastic components from the automotive industry worldwide. Innovation in engineering-grade plastics continues opening new in-vehicle applications that augment share.
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North America has established itself as the dominant region in the global plastic component market over the years. The region is expected to hold 37.7% of the market share in 2024. This can primarily be attributed to the strong presence and market position of major plastic manufacturers within the region. The U.S. is home to several industry giants that have led technological advancements as well as driven consolidation in the market. This has enabled them to gain significant control over the value chain and establish robust supply networks catering to both domestic as well as export demand. Additionally, North America has traditionally been at the forefront of industries such as automotive, healthcare, and consumer goods - which are major end users of plastic components. This robust demand from diverse end-use sectors further strengthens North America's leadership position. Moreover, ongoing investments by component producers in the region towards capacity expansion and new product development initiatives allow them to consistently innovate and better serve the dynamic needs of customers.
The Asia Pacific region has emerged as the fastest growing market for plastic components globally. Rapid economic development, growing industrial and manufacturing capability, and rising expenditure power of the burgeoning middle class are some of the key factors driving the Asia Pacific market. In particular, countries, such as China and India, have demonstrated great potential due to their huge populations and improving manufacturing ecosystems. The availability of relatively lower production costs compared to developed nations has attracted several global plastic manufacturers to establish production and sourcing hubs within key Asian countries. Meanwhile, Asia Pacific is also fast becoming an important exporter of plastic components to other regions. The regional market is further augmented by the expansion of many end-use industries facilitated by the region's manufacturing-led growth models. Overall, Asia Pacific's robust economic outlook and manufacturing-friendly environment make it an attractive proposition for future growth in the global plastic component landscape.
Plastic Component Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 520.20 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 6.3% | 2031 Value Projection: | US$ 798.34 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Lanxess India Private Limited, Tata Autocomp Systems Limited, Elringklinger Automotive Components (india) Privat, Pennar Industries Limited, Minda Industries Limited, Samvardhana Motherson Group, Varroc Engineering Limited, Sona BLW Precision Forgings Limited, Sundram Fasteners Limited, Anand Group, Pricol Limited, Rane Group, Endurance Technologies Limited, Minda Corporation Limited, Sandhar Technologies Limited, Machino Plastics Limited, Lumax Industries Limited, Fiem Industries Limited, and Minda Kyoraku Limited |
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| Restraints & Challenges: |
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*Definition: The global plastic component market refers to the manufacturing industry of various parts and components made from plastic resins and polymers. These plastic components are used across industries like automotive, electronics, construction, medical devices, packaging and consumer goods. Some key plastic components include fasteners, plastic gears, plastic enclosures, plastic bearings, plastic bushings, plastic pulleys, plastic tubing, plastic cables, plastic hoses, plastic fittings and plastic connectors.
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About Author
Vidyesh Swar
Vidyesh Swar is a seasoned Consultant with a diverse background in market research and business consulting. With over 6 years of experience, Vidyesh has established a strong reputation for his proficiency in market estimations, supplier landscape analysis, and market share assessments for tailored research solution. Using his deep industry knowledge and analytical skills, he provides valuable insights and strategic recommendations, enabling clients to make informed decisions and navigate complex business landscapes.
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