BRIC AUTOMOTIVE PLASTICS MARKET ANALYSIS

Automotive plastics is a key component of the vehicle and is becoming popular due to the desire for lightweight and low carbon emission vehicles. Automotive plastics is gaining huge demand due to improvement in polymer technology that is capable of delivering high performance and can be used across a range of automotive application such as interior and exterior components and under the bonnet components. Usage of plastics has significantly reduced the weight of the vehicle and enhanced the fuel-efficiency hence contributing to environment sustainability.

BRIC automotive plastics market was valued at US$ 23,642.09 Mn in 2021 in terms of revenue, exhibiting a CAGR of 8.5% during the forecast period (2022 to 2030).

Drivers

Rising expansion of advanced plastics for manufacturing of automotive component is expected to boost the market growth over the forecast period. For instance, Asahi Kasei Corp. launched an Engineering Plastics Technical Center in Europe on February 6, 2017, as a part of a strategic focus, to expand its European automotive-related business. The new Technical Center will enable Asahi Kasei Europe GmbH to swiftly develop engineering plastics compounds and provide technical solutions that meet the needs of European customers in the automotive industry.

Increasing government rules and regulations on vehicular emissions are encouraging automobile manufacturer to introduce lightweight a vehicle which in turn propelling the market growth of the automotive plastics. For instance, in 2016, the ‘Bharat Stage-IV’ vehicle emission regulations and fuel quality standards are projected to be implemented across 50 major cities. These norms will prompt original equipment manufacturers (OEM) to produce more plastics components for application in vehicles.

Due to the effects of COVID-19, there was a downturn in the world economy last year. As a result of these limits on mobility, trade activities have decreased, which has affected the global supply chain for a variety of products. Due to travel restrictions and work-from-home schedules, the automobile industry has been one of the most negatively impacted by the COVID-19 outbreak. This has led to a decline in demand for both new cars and aftermarket parts.

While it will take some time for the automotive industry to return to its pre-pandemic condition, a solid recovery was anticipated in 2021. Nevertheless, compared to the previous five years, this will present greater chances for the sale of automobile plastic.

Among Countries, China dominated the BRIC automotive plastics market in 2021, accounting for 61.8% share in terms of revenue, followed by Brazil and India, respectively

Figure 1. BRIC Automotive Plastics Market Value Share (%), By Country, 2021

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Market Restraints

Fluctuating prices of automotive plastics are expected to hinder market growth over the forecast period. This is due to volatility in availability of the raw materials which leads to disturbance in the demand and supply. Moreover, environmental concerns associated with the recyclability of the plastics is another major factor that is expected to restrict the market growth of BRIC automotive plastics.

Plastics is not good conductors of heat and hence it cannot be used where high thermal conductivity is required. For that plastics are used in combination with metals parts. This factor is expected to hamper the market growth of automotive plastics. Moreover, intense competition from the substitute materials such as steel and aluminium in terms of recyclability and high strength is projected to hinder the market growth of BRIC automotive plastics over the forecast period.

Market Opportunities

An increasing number of partnerships among key players for providing high-performance plastics is expected to foster market growth. For instance, in March 2019, Formosa Plastics Corporation, U.S.A. ("Formosa") and Entec Polymers ("Entec")  announced their partnership to supply the automotive market with Formosa's lineup of highly specified Formolene polyolefin resins. Hence, an increasing number of partnerships is expected to fuel market growth.

The increasing launch of bio-based plastics is expected to boost the market growth of BRIC. For instance, in June 2019, Lyondell Basell joined forces with a Finland-based energy company to manufacture two types of plastics made from renewable sources instead of fossil fuels. The new bio-based polypropylene and low-density polyethylene products are two of the most common types of plastics. Hence, increasing production of bio-based plastics is expected to foster the market growth.

Figure 2. BRIC Automotive Plastics Market Value Share (%), By Application, 2021

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On the basis of Application, in 2021, Interior segment accounted the largest market share of 57% in terms of revenue, followed by Exterior and Under Bonnet.

Recent Developments

• In June 2019, Lyondell Basell, a chemical company has partnership with with a Finland-based energy organization to fabricate two kinds of plastics produced using renewable sources rather than fossil fuels. The new bio-based polypropylene and low-density polyethylene items are two of the most well-known sorts of plastics. Consequently, expanding production of bio-based plastics is supposed to foster the market.
• In June 2021, SIBUR manufactures of polypropylene and polyethylene has launched Vivilen brand. Vivilen brand products contains recycled waste. The Vivilen products combine high-quality primary feedstock and recycled products. This recycled materials incorporated into its production process to manufacture plastic containers for household chemicals and housekeeping needs, cosmetics and other goods packaging, FMCG products (for example, clothes hangers).

Competitive Section

Major players operating in the BRIC automotive plastics market include Bayer Material Science, Lyondell Basell, Dow Chemicals Company, Polyplastics Group, Sibur, China XD Plastics Company Ltd., and Saudi Basic Industries Corporation (SABIC).