Published Date : 17 Jan 2023
The global electric vehicles engineering plastics market size is expected to be worth around USD 92.83 billion by 2032 from USD 9.39 billion in 2022 with a CAGR of 25.80% from 2023 to 2032.
Engineering plastics for electric cars are mostly used in these vehicles because they lighten their weight and enable them to go farther between recharges. The technical plastics used in electric car construction also provide exceptional heat resistance, making it possible to build battery compartments and cooling systems while maintaining the strength and safety of electric vehicles.
Engineering plastics are being sought after more and more by original equipment manufacturers (OEMs) and electric vehicle (EV) manufacturers to satisfy the demanding mechanical and chemical property requirements for different EV components. Notably, the development of lighter-weight electric cars will greatly increase their range, spurring demand for these vehicles.
Massive income streams are being generated by the strict mechanical and chemical property requirements for EV components. The usage of polymers in several components, including the dashboard, interior trim, bumpers, lights, electric motor and powertrain, connections, and cables, may be linked to the need.
Production of electric vehicles has accelerated significantly in several economies throughout the world. Strong policy support and governmental incentives, such as purchasing incentives, are crucial pillars for promoting electromobility in the transportation industry. Engineering plastics are being used more frequently as EV manufacturers put more emphasis on satisfying the safety, durability, and other performance standards of cars.
Research and development into high-performance polymer compounds has been sparked by growing trends in electrification and weight reduction in cars. Additionally, chemical firms in the market for engineering plastics for electric vehicles are rapidly tailoring their goods to satisfy the needs of polymers for internal and exterior car components, broadening the scope of the industry.
Electric Vehicles Engineering Plastics Market Report Scope
|Market Size in 2023||USD 11.76 Billion|
|Market Size by 2032||USD 92.83 Billion|
|Growth Rate from 2023 to 2032||CAGR of 25.80%|
|Forecast Period||2023 to 2032|
|Segments Covered||By Resin, By Components and By Vehicle Type|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
In terms of volume, Asia accounted for the largest portion of the global plastics market for electric vehicles in 2020. During the predicted period, a CAGR of 28.4% is anticipated. The principal nations in the region are China, Japan, India, and South Korea. Asahi Kasei, LG Chem, Daikin, AGC, and JSR Corporation are the principal businesses in this area. Geographically, sales of electric vehicles are greatest in Asia. Asia now has the largest and fastest-growing market for polymers used in electric vehicles.
By vehicle and application, the market for plastics for electric vehicles in Asia is anticipated to be worth USD 387 million in 2020 and USD 1,353 million by 2025, growing at the highest CAGR of 28.4% throughout that time. Due to growing government regulations to encourage the use of electric vehicles, decreasing total car weight, and increased environmental concerns, China is anticipated to dominate the Asian plastics market for electric vehicles over the projected period.
The demand for thermally stable plastic and the rising trend of weight reduction in PHEV, HEV, and BEVs, along with growing concern about carbon footprint reduction, are the main factors driving the market's growth rate. The increasing demand for replacing metals with plastics in interior components and the decrease in overall weight of the cars are the factors that are anticipated to restrain market growth for engineering plastics used in electric vehicles during the forecast period.
Further expected to temper the expansion of the overall market are the government's favourable policies toward the adoption of electric vehicles and the strict emission regulations.
Manufacturers of electric vehicles place a premium on consumer safety. Systems are therefore created to be dependable and to produce the least amount of performance variance possible. Aluminum and steel are being replaced by plastic because it is lighter and has qualities that are comparable to those of the metals, but there are also safety concerns. Many users have expressed worries about plastic's capacity to maintain its form and physical properties under stressful usage conditions.
Additionally, the usage of polymers in autos is under danger due to worldwide plastic pollution levels. Due to the significant capital costs and infrastructure requirements for re-engineering, the plastic recovered from discarded automobiles typically ends up in landfills. Additionally, technological limitations on the recycling of designed and durable plastic components are a significant barrier to the market for engineering plastic for electric vehicles.
Several nations have acknowledged the necessity of switching to electric cars in light of the need to safeguard the environment and alternatives for fossil fuel-powered automobiles. However, the US and China are already making preparations for electric automobiles. As a result, major market participants as well as several governments throughout the world are heavily investing in technology research, decreasing wright due to the need for high heat resistant plastic, as well as the manufacturing of electric cars (EVs).
For instance, BASF began construction on its first plant and debuted its smart Verbund project in Zhanjiang situated in the province of Guangdong, China, in 2019. It is a significant accomplishment for the organization's USD $10 billion investment initiatives announced in July 2018.
On the other hand, the development of the market for engineering plastics for electric vehicles is anticipated to be hampered by the high cost of capital and infrastructure. The market's overall expansion is anticipated to be hampered by the unstable pricing of raw materials combined with the strict regulatory environment.
In Zhanjiang which is located in the province of Guangdong, China, BASF debuted its smart Verbund project and started constructing its first plant this year. It is an important step in the company's USD 10 billion investment programme, which was first announced in July 2018. The initial factories will produce thermoplastic polyurethane (TPU) and engineering plastics in order to meet the growing demands of various Asia-wide emerging industries in southern China.
Covestro has created a new composite technology for 2020 that enables the industrial-scale fabrication of parts that are extremely thin, light, strong, and aesthetically pleasing. It is branded as MaezioTM which is based on Continuous Fiber-Reinforced Thermoplastic Polymers. Its base material is thermoplastic and the reinforcing is made of glass fibers or carbon.
In 2019, activities at the 50:50 joint venture between KOLON PLASTICS and BASF in Gimcheon, Korea, began. The joint venture was created in 2016. The world's largest POM manufacturing facility, with a combined annual capacity of 150,000 metric tonnes, is created by the new production, which has a capacity of 70,000 metric tonnes, and the current POM production capacity of 80,000 metric tonnes at KOLON PLASTICS. The around USD 220 million plant's construction got underway in April 2016.
Major Key Players
By Vehicle Type
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