May 21, 2024
Electric Vehicle Plastics Market

Global Electric Vehicle Plastics Market to Witness High Growth Due to Advancements in Lightweight Engineering

Electric vehicles rely heavily on plastics for various components due to properties such as lightweight, flexibility, durability and heat resistance. Plastics are increasingly being used in electrical components, batteries and interior and exterior parts of electric vehicles to reduce vehicle weight and improve efficiency. However, plastics also need to be stronger and heat resistant to withstand high temperatures from motors and extreme weather conditions. Ongoing advancements in material science and engineering techniques are enabling development of new lightweight plastic formulations to improve performance of electric vehicles.

The Global Electric Vehicle Plastics Market Size is estimated to be valued at US$ 4.09 BN in 2024 and is expected to exhibit a CAGR of 27.% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the global electric vehicle plastics market are LANXESS, INEOS Group, Celanese Corp., AGC Chemicals, EMS-Chemie Holding, Mitsubishi Engineering Plastics Corp., BASF SE, SABIC, LyondellBasell Industries Holdings B.V., Evonik Industries, Covestro AG, Dupont, Sumitomo Chemicals Co. Ltd., LG Chem, Asahi Kasei.

The key opportunities in the electric vehicle plastics market include increasing sales of electric vehicles worldwide driven by stringent emission regulations and rising environmental concerns. Plastics manufacturers are also exploring opportunities to develop new bioplastics and recyclable formulations to support circular economy goals in the automotive industry.

Advancements in lightweight engineering technologies like 3D printing and nanocomposites are enabling development of customized plastic components with improved strength, heat and impact resistance properties. These new materials can help optimize weight and improve performance of various EV parts.

Market Drivers
The major market driver for electric vehicle plastics is the need to reduce vehicle weight to improve driving range. As plastics provide 15-20% weight savings compared to other traditional materials, their usage allows EVs to transport heavier batteries and motors while keeping overall vehicle weight in check. Stringent emission regulations promoting electric mobility is another key factor driving growth of plastics in electric powertrains and battery components.

Current challenges in the Global Electric Vehicle Plastics Market
The electric vehicle plastics market faces various challenges currently. The high cost of electric vehicles and their components continues to hamper mass adoption. Insufficient charging infrastructure is another key issue. Battery technology also needs to advance further to increase vehicle range per charge. The current shortage of critical raw materials like lithium is putting pressure on battery manufacturers and OEMs. Retooling existing automotive facilities for electric vehicles requires huge capital investments from automakers. Changing consumer mindsets and lack of awareness about EVs are major adoption barriers as well.

SWOT Analysis
Strength: Growing regulations promoting EV adoption around the world is driving plastic component demand. Plastics offer weight savings and design flexibility compared to other materials.
Weakness: Plastic components are generally more expensive than conventional materials. Their recyclability also poses technical challenges.
Opportunity: Developing lightweight, durable and affordable specialty plastics tailored for EVs can capture more market share. Growing demand for autonomous and connected vehicles also opens up opportunities for advanced plastics.
Threats: Volatility in crude oil prices affecting plastic feedstock costs. Stringent emissions regulations may reduce vehicle range and favor alternative materials.

Geographical regions with major market concentration
Currently, the Asia Pacific region accounts for a majority of the global electric vehicle plastics market value, led by China. This is due to the presence of a large automotive industry and massive EV sales in China which is the world’s largest market. North America and Europe are other major traditional automotive markets adopting electric vehicles rapidly.

Fastest growing region
The electric vehicle plastics market in Europe is expected to witness the highest CAGR during the forecast period. This is attributed to strict emission regulations and government policies and subsidies promoting electric vehicle adoption across major European countries. Growing charging infrastructure and debut of numerous affordable electric car models will drive the regional plastics demand up.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it