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BRIC Automotive Plastics Market Will Grow At Highest Pace Owing To Rising Vehicle Production

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gauri kanale


The BRIC automotive plastics market comprises plastics used to manufacture interior and exterior automotive components. Some key applications of automotive plastics include instrument panels, bumpers, seat components, door panels, and airbags. Plastics are increasingly being used by automobile manufacturers due to their lightweight and durable properties, as they help improve fuel efficiency and reduce vehicle weight. It has been estimated that plastics account for 10-15% of the total weight of a modern vehicle. The growing automotive industry in BRIC nations driven by rising consumer spending is fueling demand for plastics in the sector.

The Global BRIC Automotive Plastics Market is estimated to be valued at US$ 32062.54 Mn   in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the BRIC automotive plastics are Unilever, Procter & Gamble, Reckitt Benckiser, Henkel AG & Co. KGaA, Church & Dwight Co. Inc., Wipro Enterprises Limited, Colgate-Palmolive Company, C.Johnson & Son Inc., Godrej Consumer Products, Kao Corporation, L'Oreal S.A., The Clorox Company, Seventh Generation, Inc., Natura &Co, Weleda Group, Patanjali Ayurved Limited, Hain Celestial, EO Products, Indus Valley, Prairie Rose. The increasing demand for lightweight and fuel-efficient vehicles is propelling the need for plastics in the automotive industry. Technological advancements such as development of advanced bioplastics, recycled plastics, and sustainable plastics are further expanding the applications of plastics in automobiles.

Market Trends

Green plastic adoption: Strict emission regulations and rising environmental concerns have increased the demand for green automotive plastics derived from renewable resources. Global Automotive Plastics Market Size help reduce carbon footprint of vehicles.

Recycled plastic usage: Automakers are focusing on using recycled plastic resins to manufacture certain interior and under-the-hood components. This aids in waste reduction.

Market Opportunities

Development of biodegradable plastics: Innovation in bioplastics that can completely break down at the end of vehicle life opens up new avenues.

Expanded usage of reinforced plastics: Integration of natural or artificial fibers in plastics can further strengthen lightweighting potential.

Impact of COVID-19 on BRIC Automotive Plastics Market Growth:

The COVID-19 pandemic has significantly impacted the growth of the BRIC automotive plastics market. In the initial months of 2020, the automotive manufacturing facilities were forced to shut down completely due to lockdown restrictions imposed by governments to control the spread of the virus. This led to a substantial decline in new vehicle production. With reduced vehicle production, the demand for automotive plastics also witnessed a sharp decline during this period. Moreover, disruptions in the global supply chain networks further aggravated the situation. However, with gradual easing of lockdown measures from mid-2020, the automotive industry started recovering slowly. The automakers ramped up production to fulfill the pending order backlogs. This provided some support to the demand for automotive plastics. Going forward, mass vaccination drives and adaptation to new safety protocols are expected to aid a steady recovery in automotive production volumes. This will bring the BRIC automotive plastics market back on the growth trajectory over the forecast period. However, continuous monitoring of the COVID situation will be crucial.

Regions with Highest Concentration of BRIC Automotive Plastics Market:

In terms of value, the BRIC automotive plastics market is highly concentrated in the regions having strong automotive manufacturing bases. Among them, China accounts for the lion's share primarily because it is the largest vehicle producer globally as well as home to headquarters of many key automakers. The country's automotive plastics demand is led by the enormous production volumes of passenger and commercial vehicles catering to both domestic as well as international markets. Brazil is another prominent regional market backed by its sizable automotive industry and growing vehicle parc. flourishing middle-class population is increasing motorization in the country.

Fastest Growing Region in the BRIC Automotive Plastics Market:

India is anticipated to witness the highest growth in the BRIC automotive plastics market during the forecast period. It is emerging as a major automotive manufacturing hub globally, with Government initiatives like 'Make in India' attracting huge investments. Domestic automakers as well as numerous global OEMs have set up or expanded manufacturing plants in the country. Along with rising vehicle output, factors like growing consumption of passenger cars and commercial carriers will fuel the demand for automotive plastics from the Indian automotive industry. Furthermore, projects like dedicated freight corridors are augmenting commercial vehicle demand. If India sustains its economic growth momentum, the automotive plastics consumption is set to rise substantially.

 

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