Global Automotive Plastics Market Driven by Need to Minimize CO2 Emissions
Global Automotive Sector to Inflate Demand for Sustainability Goals to Minimize CO2 Emissions Over Next 3-5 Years, Says Frost & Sullivan
SAN ANTONIO, August 1, 2022 /PRNewswire/ — For every kilogram reduced in vehicle weight, plastics reduce a car’s carbon dioxide (CO2) emissions by approximately 20 kilograms over its life cycle. Strict regulations imposed on OEMs to meet sustainability goals will boost the automotive plastics sector. Frost & Sullivan’s recent analysis, Global Automotive Plastics Growth Opportunities, reveals that original equipment manufacturers (OEMs) need lightweight materials to accelerate the automotive plastics industry. This market will probably reach $45.07 billion by 2028 from $31.29 billion in 2021, a slight increase at a compound annual growth rate (CAGR) of 5.3%.
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“The transition to electric vehicles (EVs) involves replacing conventional components under the hood, such as the engine and fuel, with batteries and other components,” said Brian Balmer, Polymers & Composites Program Manager at Frost & Sullivan. “This should increase the demand for conventional plastics in under-hood applications and drive the need for other plastics for new EV applications and components.”
Balmer added: “As sustainability and decarbonization gain prominence in the global automotive sector, the industry will inflate demand for greener alternatives to minimize CO emissions.2 emissions in the next 3 to 5 years. For this reason, established OEMs will advance recycling technologies collaboratively or acquire recycling companies to ensure security of supply.”
To reap the benefits of expanding global automotive plastics industry:
- Plastic producers offering PBT (Polybutylene Terephthalate) and PA (Polyamide) must realize the gains by collaborating with equipment manufacturers to develop and scale plastic-based components, especially battery boxes.
- Resin suppliers must partner with component manufacturers develop recycled grades that guarantee performance equivalent to that of components made from virgin resin.
- To allow autonomous vehicle technology, plastics producers need to ensure zero to minimal signal interference and transparent signal transmission and reception.
- Polymer companies are expected to create growth opportunities by developing hybrid or thermoplastic composites for create lighter components without significantly increasing costs.
Global Automotive Plastics Growth Opportunities is the latest addition to Frost & Sullivan’sChemistry, Materials & Nutrition research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous stream of growth opportunities to succeed in the unpredictable future.
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Global Automotive Plastics Growth Opportunities
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SOURCE Frost & Sullivan