Electric Vehicle Plastic Market Expected to Reach $20.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electric Vehicle Plastic Market," The electric vehicle plastic market size was valued at $1.8 billion in 2022, and is estimated to reach $20.3 billion by 2032, growing at a CAGR of 27.8% from 2023 to 2032.

Electric vehicles strive to be more energy-efficient and maximize their driving range. By utilizing lightweight materials like plastic, manufacturers can reduce the overall weight of the vehicle, which helps improve its energy efficiency and extend the battery range. Plastic is a versatile material that offers designers and engineers the freedom to create complex shapes and forms. This flexibility allows for innovative and aerodynamic vehicle designs, which can enhance the overall performance and efficiency of electric vehicles. Plastic is used in the production of various components and parts within electric vehicles. These can include interior trim, seat covers, dashboard elements, door panels, and more. In addition, plastic is often used in the manufacturing of exterior parts, such as bumpers, body panels, and light covers.

The design flexibility offered by plastics is indeed one of the major growth drivers of the electric vehicle (EV) plastic market. Plastics can be molded into various shapes and sizes using different techniques such as injection molding, blow molding, and thermoforming. This versatility allows manufacturers to design and produce complex components with precision, meeting the specific requirements of EVs. Moreover, plastics are generally lightweight compared to traditional materials like metal. This characteristic is particularly important for EVs, as reducing vehicle weight is crucial for optimizing energy efficiency and extending the driving range. The lightweight nature of plastics enables the design of lighter EV components without compromising their structural integrity. Furthermore, plastics offer the ability to integrate functional features directly into the components during the molding process. For example, connectors, brackets, and other functional elements can be integrated into plastic parts, reducing the need for additional assembly steps. This integration enhances the overall design efficiency and reduces production costs. The design flexibility offered by plastics enables manufacturers to create lightweight, aerodynamic, and customized components that contribute to the improved efficiency and performance of EVs.

However, the limited driving range of electric vehicles can create concerns among potential buyers. Range anxiety, the fear of running out of battery power before reaching a charging station, is a significant barrier to EV adoption. This perception can influence consumer confidence and their willingness to invest in electric vehicles. Therefore, the overall demand for EVs might be affected, indirectly impacting the demand for plastic components used in EV manufacturing. Moreover, despite the increasing availability of charging stations, the charging infrastructure for EVs is not as widespread or convenient as traditional refueling options for internal combustion engine vehicles. The need for frequent charging, especially during long trips, can bother some consumers and deter them from considering EVs as a viable option. This limitation can have a ripple effect on the demand for EVs and, subsequently, on the demand for plastic components used in their production.

Electric vehicles rely on lightweight components to reduce overall vehicle weight and increase energy efficiency. Plastics, especially reinforced composites like carbon fiber reinforced polymers (CFRP), offer a high strength-to-weight ratio, making them ideal for lightweighting various EV components. Plastic manufacturers can develop and supply these lightweight materials to automotive manufacturers for applications such as body panels, chassis, interior parts, and battery casings. Moreover, by reducing the weight of EV components, manufacturers can extend the vehicle's range, which is a critical factor for consumers. Plastic manufacturers can contribute to range extension by providing lightweight materials that help reduce the weight of key components like the battery, motor, and power electronics. These factors are anticipated to boost the growth for eElectric Vehicle Plastic Market Forecast period.

The electric vehicle plastic market share is segmented on the basis of material, vehicle, application, and region. By material, it is classified into polypropylene (PP), polyurethane (PUR), acrylonitrile butadiene styrene (ABS), polyvinyl chloride (PVC), polyoxymethylene (POM), polystyrene (PS), polycarbonate (PC), polyamide (PA), acrylic (PMMA), and others. By vehicle, it is classified into hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). By application, it is classified into interior furnishing, exterior furnishing, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the electric vehicle plastic market analysis report include BASF SE, SABIC, LyondellBasell Industries Holdings B.V., Evonik Industries, Covestro AG., DUPONT, Sumitomo Chemicals Co. Ltd., LG Chem Ltd, Asahi Kasei, and LANXESS.

The report offers a comprehensive analysis of the global electric vehicle plastic market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Electric Vehicle Plastic Industry

• The pandemic led to disruptions in global supply chains, affecting the production and distribution of electric vehicles and their components, including plastic parts. Factory shutdowns, travel restrictions, and reduced workforce availability hampered the supply chain, causing delays and shortages of EV plastic components. With fewer EVs being sold, the demand for plastic components used in their manufacturing also decreased, affecting the EV plastic market.
• The pandemic brought about a shift in consumer priorities, with health and safety concerns taking precedence. This shift reduced consumer interest in EVs, diverting attention towards more immediate needs. Consequently, the demand for plastic components used in EV manufacturing have been affected.
• Many governments around the world implemented stimulus packages and policies to boost economic recovery during the pandemic. Some countries prioritized sustainable transportation and offered incentives for EV adoption. Such measures indirectly influenced the demand for plastic components in the Electric Vehicle Plastic Market.
• Despite short-term disruptions, the electric vehicle market has shown resilience and continued growth. As the global economy recovers, and governments and consumers increasingly prioritize sustainable transportation, the demand for EVs is expected to rebound in the post-pandemic period. This, in turn, is projected to positively impact the demand for plastic components used in EV manufacturing.

Key Findings of the Study

• Based on material, the polyurethane (PUR) sub-segment emerged as the global leader in 2022 and the polypropylene (PP) sub-segment is anticipated to be the fastest growing during the forecast period.
• Based on vehicle, the battery electric vehicles (BEVs) sub-segment emerged as the global leader in 2022 and the plug-in hybrid electric vehicles (PHEVs) is predicted to show the fastest growth in the upcoming years.
• Based on application, the exterior furnishing sub-segment emerged as the global leader in 2022 and the interior furnishing sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and North America is predicted to show the fastest growth in the upcoming years.