Automotive Plastics Market 2030: Electric Vehicles Spark New Demand

Automotive Plastics Market Summary

The global automotive plastics market was valued at USD 30.44 billion in 2023 and is projected to reach USD 43.77 billion by 2030, expanding at a CAGR of 5.3% from 2024 to 2030. Market growth is primarily driven by the increasing demand for lightweight materials in vehicle manufacturing, aimed at improving fuel efficiency and reducing emissions.

Rising environmental sustainability awareness has accelerated the adoption of eco-friendly and recyclable plastic materials in the automotive industry. Additionally, continuous advancements in polymer technology and the growing emphasis on interior aesthetics and design are expected to further boost market expansion.

The rapidly evolving automotive sector in China is a major contributor to global demand, as automakers increasingly use plastics to comply with stringent environmental and emission regulations while reducing overall vehicle weight. The country’s strong industrial base, abundant petrochemical resources, and availability of skilled labor are attracting leading manufacturers to establish production facilities there. Furthermore, the Chinese government’s subsidies to automotive manufacturers and incentives for electric vehicle buyers are supporting market growth, particularly amid the global transition toward electric mobility.

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Key Market Trends & Insights

• Asia Pacific dominated the global market in 2023, accounting for over 46.0% of total revenue.
• The automotive industry in China continues to drive regional market growth.
• By process, the injection molding segment held a leading share of over 56.0% in 2023.
• By application, interior furnishing accounted for over 44.0% of market revenue in 2023.
• By product, polypropylene (PP) resin led the market with a share exceeding 32.0% in 2023.

Market Size & Forecast

• 2023 Market Size: USD 30.44 Billion
• 2030 Projected Market Size: USD 43.77 Billion
• CAGR (2024–2030): 5.3%
• Largest Market (2023): Asia Pacific

Key Companies & Market Share Insights

Leading companies in the automotive plastics market have increasingly integrated their raw material sourcing and distribution operations to ensure consistent quality and strengthen regional presence. This vertical integration provides a cost advantage, enhancing profit margins and market competitiveness.

Ongoing research and development (R&D) activities are focused on creating innovative plastic materials that combine strength, durability, and sustainability, aligning with evolving automotive requirements. Strategic partnerships are also being pursued to foster innovation.

For instance, in March 2023, BASF SE partnered with Zhejiang REEF Technology to develop advanced recycled polymer formulations for the automotive, packaging, and consumer sectors. Under this collaboration, BASF provides its IrgaCycle solutions and technical expertise, with the formulations being tested at BASF’s facilities.

Key Automotive Plastics Companies

• Akzo Nobel N.V.
• BASF SE
• Covestro AG
• Evonik Industries AG
• Adient plc
• Magna International, Inc.
• Momentive Performance Materials, Inc.
• SABIC
• Dow, Inc.
• Borealis AG
• Hanwha Azdel Inc.
• Grupo Antolin
• Lear Corporation
• Owens Corning
• Quadrant AG
• Royal DSM N.V.
• TEIJIN LIMITED

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Conclusion

The automotive plastics market is set for steady growth through 2030, supported by the global shift toward lightweight, energy-efficient, and sustainable vehicle designs. The increasing integration of recyclable polymers, coupled with government incentives for electric vehicles, will continue to shape industry dynamics—especially in Asia Pacific, where China remains a pivotal hub for production and innovation. With advancements in material science and growing investment in R&D, automotive plastics will play an increasingly critical role in achieving environmental targets and improving vehicle performance worldwide.