July 18, 2024

The Bric Automotive Plastics Market Is Estimated To Witness High Growth Owing To Rising Automotive Production

Market Overview:

Automotive plastics are increasingly being used in automotive interior and exterior applications such as dashboards, door panels, bumpers, headlamps, and others to reduce vehicle weight and improve fuel efficiency. These plastics are used in the form of polypropylene, Polyurethane, polyvinyl chloride, polyamide, and acrylonitrile butadiene styrene. They offer excellent strength to weight ratio, corrosion resistance, and design flexibility which helps automobile manufacturers to reduce vehicle weight and improve fuel efficiency.

Market Dynamics:

The growth of the BRIC automotive plastics market is attributed to rising automotive production in BRIC countries. For instance, according to data published by Organisation Internationale des Constructeurs d’Automobiles (OICA), vehicle production in Brazil grew from 2.6 million units in 2015 to 3.1 million units in 2019, recording a CAGR of 3.4% during the period. Similarly, in India, vehicle production increased from 3.9 million units in 2015 to 4.5 million units in 2019, exhibiting a CAGR of around 3%. Such rapid growth in automotive production is driving demand for automotive plastics in BRIC nations. Stringent fuel efficiency and emission norms introduced by governments in BRIC countries are also propelling demand for lightweight automotive plastics which help lower vehicle weight and increase fuel efficiency. However, fluctuating raw material prices may hamper market growth over the forecast period.

SWOT Analysis
Strength: The BRIC Automotive Plastics Market is witnessing strong growth due to rising automotive production and sales in BRIC nations. Plastics help reduce weight and increase fuel efficiency of vehicles. Strict regulations regarding vehicular emissions are propelling automakers to use plastics.
Weakness: High costs associated with plastics molding technology limits their use in certain applications. Dependence on crude oil price volatility affects plastic production costs.

Opportunity: Increasing consumer demand for lightweight and fuel-efficient vehicles provides major opportunities to utilize automotive plastics. Development of new lightweight and high-strength plastic materials increase their use in more vehicle components.

Threats: Slowing economic growth in BRIC nations weakens automotive sales and thereby plastic demand. Volatility in crude oil and raw material prices increases plastic production costs.

Key Takeaways

The Global BRIC Automotive Plastics Market Demand is expected to witness high growth, exhibiting ss over the forecast period, due to increasing automotive production in BRIC nations. Plastics help reduce vehicle weight and increase fuel efficiency.

Regional analysis: Brazil dominates the BRIC Automotive Plastics Market and is expected to grow at a CAGR of 9.1% during the forecast period. India is the fastest growing market accounting for 25% of the overall BRIC market share due to rising vehicle ownership and manufacturing in the country.

Key players: Key players operating in the BRIC Automotive Plastics include Bayer Material Science, Lyondell Basell, Dow Chemicals Company, Polyplastics Group, Sibur, China XD Plastics Company Ltd., and Saudi Basic Industries Corporation. These leading players are focusing on new product development and partnerships to strengthen their market position.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it