The global plastic for electric vehicle market was valued at US$ 966.09 million in 2019 and is projected to reach US$ 4,021.72 million by 2027; it is expected to grow at a CAGR of 19.7% from 2020 to 2027.
Plastics can be an electric conductor and also an insulator. Thermoplastics polymer can be produced in various shapes and designs as per the requirement of electric vehicles due to the high versatility and easy moldability of plastics. The use of plastics for electric vehicles reduces the weight of these vehicles, which provides a greater range between recharges. Plastics offer excellent heat resistance that enables the construction of battery compartments and cooling systems and do not hamper the durability and safety provided by electric vehicles.
Based on plastic type, the plastics for electric vehicle market is segmented into acrylonitrile butadiene styrene (ABS), polyamide (PA), polycarbonate (PC), polyvinyl butyral, polyurethane (PU), polypropylene (PP), and others. In 2019, the polypropylene segment dominated the market. Polypropylene (PP) refers to a thermoplastic “addition polymer” that is produced by combining propylene monomers. It is rigid and crystalline; therefore, it is widely used to make objects such as packaging trays, medical devices, and others. As one of the important family of polyolefin resins, it is molded and extruded into any plastic type that require flexibility, toughness, lightweight and heat resistance.
By region, the plastic for electric vehicle market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. Asia Pacific held the largest share of the market in 2019, followed by Europe. Asia has ranked highest amongst medicinal producing regions. China is dominating the regional market, followed by Japan, India, Vietnam, Korea, Thailand, Malaysia, and Indonesia. These countries are witnessing rising demand for plastics for electric vehicle as it is lightweight. Asia’s automotive industry has been maintaining a steady and healthy growth over the past year. Increasing innovations in the production of various parts of the vehicle drives the growth of the plastic for electric vehicle market.
The COVID-19 pandemic was first reported in Wuhan (China) in December 2019. As of June 2020, the US, Russia, India, Spain, Brazil, Italy, France, and Germany are among the worst-affected countries in terms of the COVID-19 positive cases and reported deaths. The outbreak is adversely affecting economies and industries due to lockdowns, travel bans, and business shutdowns. Chemicals and materials is one the world’s major industries suffering serious disruptions in the form of supply chain disruptions, technology events cancellations, and office shutdowns. China is the global manufacturing hub and the largest raw material supplier for various industries across the world, and it is also one of the worst-hit countries by the COVID-19 pandemic. The lockdown of various plants and factories in China is restricting the global supply chains, and manufacturing and sales of various chemicals and materials products. The overall impact of the pandemic is consequently restraining the growth of the plastic for electric vehicle market.
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. are among the players operating in the global plastic for electric vehicle market.
The plastic for electric vehicle market size has been derived in accordance with to both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data as well as to gain more analytical insights into the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the plastic for electric vehicle market.