Market Challenges And Opportunities

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.

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.