Global Automotive Market to Grow 5.3% Annually for Next Five Years

(Credit: Frost & Sullivan)

The global automotive sector will be inflated as automotive companies work to minimize CO2 emissions in the next three to five years, says Frost & Sullivan. 

The stringent regulations for OEMs to meet sustainability targets will drive the automotive plastics sector. Frost & Sullivan’s recent analysis, Global Automotive Plastics Growth Opportunities, finds that original equipment manufacturers (OEMs) need for lightweight materials expedites the automotive plastics industry. This market will likely reach $45.07 billion by 2028 from $31.29 billion in 2021, an uptick at a compound annual growth rate (CAGR) of 5.3%.

The study analyzes the global automotive plastics market based on material, application, powertrain, and region. The study focuses on 10 key material segments: polypropylene, polyamide, ABS, polycarbonate, PVC, HDPE, polyurethane, thermoplastic elastomer, high-performance plastics, and other plastics comprising polyoxymethylene, polybutylene terephthalate, polyvinyl butyral, modified polyphenylene oxide, and polymethyl methacrylate. The consumption of each material is assessed across four automotive applications (interior, exterior, powertrain and structural, and lighting and electrical and electronics) and two powertrain segments (electric and internal combustion engine). The study also provides an overview of regional consumption in the Americas, Europe, Asia-Pacific, and the Middle East, Africa, and South Asia.

To reap the benefits of expanding the global automotive plastics industry, Frost & Sullivan offers these suggestions:

• Plastic producers offering PBT (Polybutylene Terephthalate) and PA (Polyamide) should materialize gains by collaborating with OEMs to develop and scale plastic-based components, especially battery housings.
• Resin suppliers should partner with component manufacturers to develop recycled grades that ensure performance on a par with components made from virgin resin.
• To enable autonomous vehicle technology, plastics producers should ensure zero-to-minimal signal interference and seamless signal transmission and receipt.
• Polymer companies should create growth opportunities by developing hybrid or thermoplastic composites to create lighter components without significantly increasing costs.

Another recent study about supply demands that will affect the automotive industry found that global copper demand will nearly double over the next decade, from 25 million metric tons today to about 50 million metric tons by 2035, driven mainly by the push to transition to electric vehicles. The record-high level of demand would be sustained and continue to grow to 53 million metric tons in 2050 — more than all the copper consumed in the world between 1900 and 2021.