Plastics for Electric Vehicle Market Size, Trends and Growth Analysis by 2027

The global market for plastics used in electric vehicles was valued at approximately US$ 966.09 million in 2019 and is anticipated to grow significantly, reaching around US$ 4,021.72 million by 2027. This growth represents a compound annual growth rate (CAGR) of 19.7% from 2020 to 2027.

Plastics serve dual functions in electric vehicles, acting both as electrical conductors and insulators. The versatility of thermoplastic polymers allows them to be molded into various shapes and designs tailored to the specific needs of electric vehicles. Utilizing plastics contributes to a reduction in vehicle weight, which in turn enhances the driving range between charges. Additionally, plastics exhibit excellent heat resistance, making them suitable for constructing battery compartments and cooling systems without compromising the durability and safety of electric vehicles.

The market for plastics in electric vehicles is categorized by plastic type, including acrylonitrile butadiene styrene (ABS), polyamide (PA), polycarbonate (PC), polyvinyl butyral, polyurethane (PU), polypropylene (PP), and others. In 2019, the polypropylene segment was the market leader. Polypropylene (PP) is a thermoplastic addition polymer created by polymerizing propylene monomers. Its rigid and crystalline nature makes it ideal for producing a variety of items, including packaging trays and medical devices. As a key member of the polyolefin resin family, polypropylene can be molded and extruded into various forms that require flexibility, toughness, lightweight properties, and heat resistance.

Geographically, the market for plastics in electric vehicles is divided into regions such as North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. In 2019, the Asia-Pacific region held the largest market share, followed closely by Europe. Asia is recognized as a leading region for manufacturing, with China being the dominant player in the market, followed by Japan, India, Vietnam, South Korea, Thailand, Malaysia, and Indonesia. These countries are experiencing a growing demand for lightweight plastics in electric vehicles. The automotive sector in Asia has shown consistent and robust growth over the past year, driven by ongoing innovations in the production of various vehicle components, which in turn propels the demand for plastics in electric vehicles.

The COVID-19 pandemic, which was first identified in Wuhan, China, in December 2019, has had a profound impact on global economies and industries. By June 2020, countries such as the US, Russia, India, Spain, Brazil, Italy, France, and Germany were among the hardest hit in terms of COVID-19 cases and fatalities. The pandemic has led to significant disruptions across various sectors, including the chemicals and materials industry, due to lockdowns, travel restrictions, and business closures. As China is a major global manufacturing hub and a primary supplier of raw materials, the lockdowns in the country have severely affected global supply chains, hindering the manufacturing and sales of numerous chemical and material products. Consequently, the overall impact of the pandemic has been a constraint on the growth of the plastics market for electric vehicles.

Key players in the global plastics for electric vehicles market include BASF SE, Solvay SA, DuPont de Nemours, Inc., The Dow Chemical Company, LG Chem Ltd., Lanxess AG, Sabic, Covestro AG, Asahi Kasei Corporation, and Lyondellbasell Industries Holdings B.V..

The size of the plastics for electric vehicles market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the findings and gain deeper analytical insights. Participants in this research included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the plastics for electric vehicles sector.