The adoption of Euro 6 standards in major markets such as the US, UK, China, and India, aimed at reducing particulate matter and nitrogen oxide emissions from on-road vehicles, is significantly propelling the demand for plastics. These materials are valued in the automotive sector for their lightweight, cost-effectiveness, and versatile mechanical properties. Notably, plastics are extensively used not only in automotive applications but also in industries like packaging and construction.
These factors fuel the demand for plastics, noted a recent report by Technavio. According to the study, the global plastics market for passenger cars is expected to witness significant growth, projecting an increase of $22,024.22 million from 2023 to 2027, with a compound annual growth rate (CAGR) of approximately 10%.
The APAC region, driven by high automotive production and sales in China, Japan, and South Korea, is a significant contributor to the market growth. Advanced plastics are increasingly being incorporated in luxury car cabins, and emerging markets such as India and Southeast Asia are expected to further boost this growth.
Environmental Impact And Technological Innovations
The shift towards sustainable materials is evident with the increasing use of bioplastics made from renewable sources such as corn starch, vegetable oil, and food waste. Technological advancements in manufacturing processes like injection moulding, thermoforming, and blow moulding have also facilitated the production of innovative and efficient automotive parts.
Prominent industry players include Iber Resinas and providers of CirculenRenew polymers, which focus on cost-effective and sustainable polymer solutions. The market outlook remains positive with an increasing emphasis on lightweight materials that contribute to fuel efficiency and emission reductions in passenger vehicles.
Challenges
Despite the promising growth, the market faces challenges such as fluctuating petrochemical prices and the high initial investment in new technology. However, the industry is poised for transformative growth with a strong focus on recyclable and innovative polymer solutions that enhance vehicle performance and environmental sustainability.
In conclusion, the plastics market for passenger cars is on a robust growth trajectory, driven by global environmental policies and technological advancements, positioning it as a critical component in the future of automotive manufacturing and sustainable industry practices.
Courtesy: Technavio. NB: Photo is representational; courtesy: Iber Resinas.
Also Read: