Surging Demand for Lightweight Vehicles Fueling Automotive Thermoplastic Sales

The mushrooming popularity of lightweight and fuel-efficient vehicles is pushing up the worldwide demand for automotive thermoplastics. This is because thermoplastic components are extensively used for reducing the weight of the automobile, which, in turn, causes a sharp rise in its fuel economy. Moreover, as thermoplastics are heavily used in various applications in the automobile industry, the expansion of this industry, owing to the burgeoning manufacturing and sales of automobiles, especially in the Asia-Pacific (APAC) region, is driving their demand across the world. 

Automotive Thermoplastics Market Outlook

According to the Organisation Internationale des Constructeurs d'Automobiles, 77,971,234 automobiles were sold all over the world in 2020. Furthermore, as per the India Brand Equity Foundation (IBEF), the automotive industry in India is predicted to witness its value rise to Rs. 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. These materials are being increasingly used in the manufacturing of several automobile parts, such as bearing parts, vehicle-body, and battery frames. Due to these factors, the value of the global automotive thermoplastics market will surge massively in the coming years.

For instance, according to the estimates of the IBEF, the automobile industry in India will exhibit huge expansion in 2021–2022. Additionally, the country will witness a sharp surge in the sales of electric vehicles, particularly two-wheelers, in 2021–2022. One of the major trends currently being witnessed in the automotive thermoplastics market is the growing adoption of carbon fiber reinforced plastics (CFRP), produced from thermoplastics, in racing and luxury vehicles. 

This is attributed to the various beneficial characteristics of these parts and the several advantages of using them over the conventionally used plastics. For example, the use of CFRP-based components assists vehicle manufacturers in producing lightweight and high strength-exhibiting vehicles. BASF SE, Toray Industries Inc., Nippon Sheet Glass Co. Ltd., Quickstep Holdings Ltd., Celanese Corp., Gurit Holding AG, Jushi Group Co. Ltd., Saudi Basic Industries Corp. (SABIC), Teijin Ltd., and Dow Chemical Co. Ltd. are some of the leading automotive thermoplastic producing companies across the world. 

Thus, it can be said with confidence that the demand for automotive thermoplastics will explode in the coming years, mainly because of the growing requirement for lightweight vehicles and the expansion of the automotive industry across the world.