“The electric vehicle plastics market value was US$ 2.1 billion in 2023 and is likely to grow at an impressive CAGR of 27.8 % in the long run to reach US$ 20.3 billion in 2032.”
Market Dynamics
Introduction
EV plastics therefore refers to the kinds of plastics that are used in the manufacturing of electric vehicles to lighten the load of the cars to make them more energy efficient, and generally to make the vehicles run better. These plastics are used in various subassemblies; these include battery cases, interior/exterior panels, wiring harnesses, and connectors. In place of metallic content, EV plastics tend to have a lower density that, if deployed in automobiles, would ease the strain on batteries and lower energy use. Besides, EV plastics possess such characteristics as durability, corrosion resistance, and design freedom that may contribute to the use of these materials in the modern market of electric vehicles that strive to reduce CO2 emissions as well as improve the efficiency level.
As EVs’ driving range and energy efficiency are pushed by consumer preferences and governments, lightweight vehicle plastics, especially in the packaging of batteries and electric motors, are also in high demand. Plastics being strong and having high durability with the added advantage of being light make them ideal when automakers are trying to shed some more weight off their cars to ensure better battery life. This is because there is a growing number of electric automobiles being imported globally as a result of high standards in environmental conservation and efforts to embrace environmentally friendly products also lead to the demand for EV plastics. Also, the rise in the use of advanced polymers as cases and internal components of batteries as well as circuits, contributes to the market expansion as it boosts safety and flexibility. PP is considerably lighter than traditional vehicle body components, which leads to weight reduction of EVs and better AER performance. PP is cheaper than most of the other engineering plastics and this makes it so suitable for large-scale production of parts for EVs. PP can have a rather broad usage as battery covers, inner trims, bumpers, and outer panels of electric cars so its usage in EV manufacturing is very diverse. PP has good chemical stability and this is desirable where the component comes into contact with different fluids including coolants and battery trays. Ency, and enhances overall vehicle performance. These plastics are employed in various components, such as battery enclosures, interior and exterior parts, wiring, and connectors. By replacing traditional materials like metal, EV plastics help lower the vehicle's weight, increasing the driving range and reducing energy consumption. Additionally, EV plastics offer advantages such as durability, corrosion resistance, and design flexibility, making them essential for the evolving electric vehicle industry focused on sustainability and efficiency.
The electric vehicle (EV) plastics market is driven by the increasing demand for lightweight materials to improve energy efficiency and extend the driving range of EVs. As automakers focus on reducing vehicle weight to enhance battery performance, plastics have become a preferred choice due to their strength, durability, and ability to replace heavier materials like metal. The rising adoption of electric vehicles globally, driven by stringent environmental regulations and a shift toward sustainability, further accelerates the demand for EV plastics. Additionally, the growing development of advanced polymers for battery housings, interior components, and electrical systems supports market growth by improving safety and design flexibility.
Recent Market JV and Acquisition:
- In December 2021, SABIC, announced that the company has selected Bamberger Polymers – a global market leader in plastics distribution – as an authorized SABIC distributor in the Americas to provide customers with its engineering thermoplastics (ETP) and polyolefins. This strategic partnership will also help SABIC to boost its market coverage for these products and benefit from Bamberger's effective marketing and distribution channels in the American region. Originally EV makers tended to use plastic as outer parts of the car including bumpers, body panels, and hoods to ensure lighter vehicles for better energy utilization and better mileage. An automobile plastic like polypropylene and other plastics like polycarbonate used in car exterior parts are highly impact-resistant and durable.t to damage by water at elevated temperatures. This material can provide safety for sensitive electronics in extremely challenging environments.
- In June 2022, Sabic launched NORYL. This resin is a product well suited for insulation film used in electric vehicle (EV) battery modules to help improve protection against short circuits and fire propagation. Resin’s ability to meet the UL94 V0 standard at 0.25 mm means it can provide a high level of flame retardance at a thinner film gauge than PC or PP.
- In October 2021, Lyondellbasell launched CirculenRenew. CirculenRenew polymers offer a variety of polypropylene (PP) and polyethylene (HDPE and LDPE) grades that are equivalent to virgin resin quality while reducing fossil feedstock use and helping to reduce CO2 over the product life cycle. These renewable-based polymers offer the same properties in terms of product performance and regulatory approvals. This product helps the company reduce its raw material cost of engineering plastic products.
- In December 2021 SABIC announced that the company has selected Bamberger Polymers – a global market leader in plastics distribution – as an authorized SABIC distributor in the Americas to provide customers with its engineering thermoplastics (ETP) and polyolefins. This strategic collaboration will further expand SABIC’s market presence for these products and utilize Bamberger’s successful marketing and distribution network in the Americas.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Plastic-Type Analysis
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PA, PP, PC, and Others
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PP is expected to be the demand generator in the coming years.
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Application Analysis
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Interior, Exterior, Powertrain/Underhood, and Lighting & Electric Wiring
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Exteriors are expected to dominate the future market.
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Region Analysis
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North America, Europe, Asia-Pacific and Rest of the World
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Asia-Pacific is expected to maintain its reign over the forecast period.
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By Plastic Type
“PP is expected to remain the dominant plastic type in the market during the forecast period”.
- The electric vehicle plastics market is segmented into PA, PP, PC, and Others.
- PP is a lightweight material, contributing to vehicle weight reduction, which improves EV energy efficiency and driving range.
- PP is relatively inexpensive compared to other engineering plastics, making it a cost-effective option for mass production of EV components.
- PP can be used in a wide range of applications, including battery covers, interior trim, bumpers, and exterior panels, making it highly versatile in EV manufacturing.
- PP offers excellent resistance to chemicals, which is crucial for components exposed to various fluids, such as coolant reservoirs and battery casings.
By Application
“Exteriors are expected to remain the dominant application in the market during the forecast period”.
- The market is segmented into interior, exterior, powertrain/underhood, lighting & electric wiring.
- EV manufacturers prioritize lightweight materials like plastics for exterior parts such as bumpers, body panels, and hoods to improve energy efficiency and extend vehicle range.
- Plastics used in exterior applications, such as polypropylene and polycarbonate, offer excellent impact resistance and durability, making them ideal for parts exposed to harsh conditions.
- Plastics offer great design freedom, allowing car makers to mold complicated, smooth shapes that enhance car performance and looks.
- Plastics used in exterior components of EVs are usually not susceptible to corrosion and environmental conditions such as moisture as metals therefore the chances of the parts degrading are reduced.
Regional Analysis
“Asia-Pacific is expected to remain the largest market for electric vehicle plastics during the forecast period”.
- Asia-Pacific, particularly China, is the global leader in EV production, with a high concentration of EV manufacturers, driving significant demand for EV plastics.
- Strong government policies and incentives promoting EV adoption in countries like China, Japan, and South Korea are boosting the demand for lightweight materials like plastics to improve EV efficiency.
- The region has a well-established plastics manufacturing industry with lower production costs, making it an attractive hub for automotive component manufacturing, including EV plastics.
- The rapid increase in EV sales across Asia-Pacific, driven by consumer demand for eco-friendly transportation, further fuels the demand for plastics used in electric vehicles.
Key Players
The following are the key players in the electric vehicle plastics market.
Here is the list of the Top Players (Based on Dominance)
- BASF SE
- Lyondellbasell Industries Holdings B.V.
- Sabic
- Dow
- Dupont
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global electric vehicle plastics market is segmented into the following categories.
Electric Vehicle Plastics Market, by Plastic Type
- PA (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- PP (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- PC (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Electric Vehicle Plastics Market, by Application
- Interior (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Exterior (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Powertrain/ Underhood (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Lighting & Electric Wiring (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Electric Vehicle Plastics Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s electric vehicle plastics market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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- Detailed profiling of additional market players (up to three players)
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- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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