Automotive Plastics Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Polypropylene, Polyurethane, Polyamide, Polyvinylchloride, Acrylonitrile Butadiene Styrene, Polycarbonate, Polyethylene, and Others), By Application (Interior, Exterior, and Under Bonnet), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 47.64 Billion
CAGR (2026-2031)	5.41%
Fastest Growing Segment	Polypropylene
Largest Market	Asia Pacific
Market Size (2031)	USD 65.35 Billion

Market Overview

The Global Automotive Plastics Market will grow from USD 47.64 Billion in 2025 to USD 65.35 Billion by 2031 at a 5.41% CAGR. Automotive plastics are advanced polymeric materials utilized in vehicle manufacturing to reduce weight and enhance fuel efficiency while maintaining structural integrity. The market is primarily supported by distinct drivers such as stringent global emission regulations necessitating vehicle lightweighting and the rapid expansion of the electric vehicle sector which requires lighter components to offset battery mass. According to the American Chemistry Council, in 2024, data indicated that a midsize electric vehicle contains approximately 45% more plastic than a similarly sized internal combustion engine vehicle.

Despite these favorable conditions, the market faces a significant challenge regarding the volatility of raw material prices particularly for resins derived from crude oil feedstocks. This dependency subjects manufacturers to unpredictable cost fluctuations and supply chain instabilities which can severely impede sustained production planning and profitability within the global automotive supply chain.

Key Market Drivers

Stringent government regulations regarding vehicle emissions and fuel efficiency act as a primary catalyst for the adoption of automotive plastics. Regulatory bodies globally are finalizing aggressive targets to curtail greenhouse gas emissions, compelling manufacturers to substitute heavy metal components with lightweight polymeric alternatives to improve fuel economy. According to the United States Environmental Protection Agency, March 2024, in the 'Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles' final rule, the administration established standards projected to reduce fleet-wide average greenhouse gas emissions by 56 percent by 2032 compared to the existing 2026 requirements. This regulatory pressure necessitates the extensive integration of high-performance plastics in chassis and powertrain applications to achieve the required weight reductions without compromising safety or structural integrity.

The rapid expansion of the electric vehicle market requiring lightweight solutions further propels the demand for advanced polymeric materials. As automakers strive to maximize driving range and offset the substantial weight of battery packs, they increasingly utilize thermoplastics and composites for battery housings, connectors, and thermal management systems. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', sales of electric cars are projected to remain robust, reaching approximately 17 million units by the end of 2024. To support this surging production volume, the industry is witnessing significant demand for raw materials. According to the European Automobile Manufacturers’ Association, February 2024, new car registrations in the European Union rebounded with a 13.9 percent expansion in volumes for the full year of 2023, signaling a recovered manufacturing environment that directly fuels the consumption of automotive plastics across both electric and internal combustion segments.

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Key Market Challenges

The volatility of raw material prices, particularly for resins derived from crude oil feedstocks, poses a substantial barrier to the stability of the automotive plastics market. Since the cost of polymer production is intrinsically linked to global oil markets, sudden price surges result in immediate operational variability for component manufacturers. This unpredictability complicates long-term contracts and budget allocation, often forcing companies to operate with reduced capital efficiency to mitigate financial exposure. Consequently, manufacturers may delay the mass production of lightweight components essential for modern vehicle assembly, effectively stalling supply chain momentum.

This disruption in the supply chain negatively correlates with overall market output and manufacturing consistency. Sustained high input costs discourage the scaling of operations required to meet rising automotive demand, leading to reduced material availability. The impact of this economic strain is quantifiable within the broader industry. According to Plastics Europe, in 2024, the association reported that European plastics production fell by 8.3% compared to the previous year, a decline attributed significantly to sharp increases in raw material and energy prices. This contraction highlights how sensitive the market remains to feedstock cost volatility, directly limiting the industry's ability to maintain consistent growth trajectories.

Key Market Trends

The accelerating adoption of bio-based and recycled interior plastics is fundamentally reshaping material sourcing strategies as manufacturers transition toward a circular economy model. This trend is driven by corporate sustainability mandates to lower the carbon footprint of vehicle production, distinct from tailpipe emission regulations, by integrating renewable feedstocks into cabin components like dashboards, seats, and carpets. Automakers are aggressively validating these secondary materials to ensure they meet aesthetic and durability standards comparable to virgin polymers. According to Volvo Cars, March 2024, in the 'Annual and Sustainability Report 2023', the company has formalized its commitment to the circular economy by establishing a target to integrate 25 percent recycled and bio-based content in all new car models by 2025.

The utilization of high-performance engineering plastics in EV battery housings is emerging as a critical technical evolution to enhance thermal management and safety beyond simple weight reduction. Manufacturers are replacing traditional metal enclosures with advanced thermoplastics that offer superior electrical insulation, corrosion resistance, and the functional integration of cooling channels directly into the structural protection of the battery pack. This shift addresses the complex engineering challenges of protecting high-voltage systems while optimizing assembly efficiency. According to SABIC, June 2024, in the 'SABIC Unveils its New Thermoplastic Solutions for EVs' press release, the company's newly developed multi-material battery pack enclosure successfully reduces component weight by 20 percent compared to a standard all-aluminum design.

Segmental Insights

Polypropylene is currently recognized as the fastest-growing segment in the global automotive plastics market, primarily driven by the industry-wide mandate for vehicle lightweighting. Automotive manufacturers favor this material for its ability to reduce overall vehicle weight, thereby ensuring compliance with rigorous emission standards established by organizations such as the European Commission and the Environmental Protection Agency. Beyond regulatory adherence, polypropylene offers notable versatility and chemical resistance, making it suitable for various interior and exterior applications. Consequently, the shift toward fuel-efficient engines and electric vehicles continues to accelerate the adoption of this cost-effective polymer.

Regional Insights

Asia Pacific holds the leading position in the Global Automotive Plastics Market, driven by substantial vehicle production volumes in major manufacturing hubs like China, India, and Japan. The region’s dominance is reinforced by the rapid expansion of the electric vehicle sector, where manufacturers increasingly utilize advanced plastics to reduce weight and enhance battery range. Strict emission mandates enforced by regulatory bodies, such as China’s Ministry of Ecology and Environment, further compel automakers to adopt lightweight polymer solutions for improved fuel efficiency. This convergence of high industrial output and stringent environmental compliance sustains the region’s market superiority.

Recent Developments

• In February 2025, the Global Impact Coalition, in partnership with major industry players such as BASF, Covestro, and LyondellBasell, launched the world’s first Automotive Plastics Circularity pilot. This groundbreaking initiative was designed to address the challenges of recycling plastics from end-of-life vehicles by testing new approaches for dismantling, shredding, and sorting plastic fractions. The pilot project aimed to demonstrate the technical and economic feasibility of closed-loop recycling for automotive plastics on a commercial scale. By uniting stakeholders across the value chain, the consortium sought to increase the supply of recycled materials and support the automotive sector’s sustainability targets.
• In November 2024, Covestro announced an expanded collaboration with the recycling company Ausell to accelerate the recovery of plastics from end-of-life vehicles in China. Building on a previous partnership that focused on polycarbonate water barrels, this initiative aimed to recycle discarded automotive components, such as headlamps, into high-quality post-consumer recycled polycarbonates. These recycled materials were intended for use in new automotive engineering applications, effectively closing the loop for plastic waste within the sector. The agreement underscored the company’s strategy to enhance resource efficiency and reduce the carbon footprint associated with vehicle manufacturing by fostering cross-industry value chain cooperation.
• In September 2024, BASF Coatings introduced a new generation of automotive refinish clearcoats at the Automechanika Frankfurt trade fair. These products, marketed under the premium Glasurit and R-M brands, were the first to utilize the company's proprietary chemical recycling technology to incorporate recycled feedstock derived from waste tires. By replacing a portion of fossil-based resources with recycled materials through a mass balance approach, these clearcoats significantly reduced carbon emissions and minimized waste. The launch demonstrated the company’s dedication to supporting the automotive industry’s transition toward a circular economy while maintaining high standards of efficiency and productivity for body shops.
• In June 2024, Borealis launched a new glass-fiber reinforced polypropylene compound known as Borcycle GD3600SY, which incorporated 65% post-consumer recycled polymer content. This innovative material was developed as part of the company’s portfolio of mechanically recycled polyolefins intended for demanding applications. It was successfully implemented in the production of center console carriers for the new Peugeot 3008, marking the first time a compound with such high recycled content was used for a large automotive interior component. The development resulted from a strategic partnership with a thermoplastic injection specialist and the automotive manufacturer Stellantis, highlighting a shared commitment to advancing circularity in the sector.

Key Market Players

• Teijin Limited
• BASF SE
• Borealis AG
• DuPont de Nemours, Inc.
• Koninklijke DSM N.V.
• Evonik Industries AG
• Exxon Mobil Corporation
• Mitsubishi Chemical Group Corporation
• LG Chem, Ltd.
• LyondellBasell Industries N.V.

By Type	By Application	By Region
Polypropylene Polyurethane Polyamide Polyvinylchloride Acrylonitrile Butadiene Styrene Polycarbonate Polyethylene Others	Interior Exterior Under Bonnet	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Plastics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Plastics Market, By Type:

• Polypropylene
• Polyurethane
• Polyamide
• Polyvinylchloride
• Acrylonitrile Butadiene Styrene
• Polycarbonate
• Polyethylene
• Others

• Automotive Plastics Market, By Application:

• Interior
• Exterior
• Under Bonnet

• Automotive Plastics Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE