TAGS: Automotive Electrical & Electronics
The plastics for electric vehicle market is projected to grow at a CAGR of 26.9% to reach a market size of USD 2,621 Mn by 2025 from 797 million in 2020. The rising trend of weight reduction in PHEV/ HEV and BEV is estimated to increase the demand of high-performance plastics. Additionally, the interior application is estimated to account for majority of plastic demand in an electric vehicle and the trend is projected to continue during the forecast period.
The Largest Market Value: Polyurethane
Polyurethane materials are widely used by car manufacturers which offers benefits in terms of comfort, safety, lightweight and longevity with design freedom. Polyurethane (PU) is a strong and light material that helps designers and manufacturers design seating that can be assembled, disassembled and recycled. Also, polyurethane is used in interior parts manufacturing such as dashboard, and as TPU in door handles and instrument panels has reduced the weight of vehicles.
Also, high versatility and easy mold ability of the product enables the automobile manufacturers to produce various shapes and design for the vehicles. Polyurethane are most durable and can be recycled as well and hence find considerable adoption in electric vehicles.
Fastest Growing Market by Application: Lighting and Electric Wiring
Electric components are being increasingly used in electric cars, which have increased the need for wires, cables, and connectors. The onboard chargers are used to convert AC into DC while charging. These chargers work at voltage levels that help to avoid overheating. Connectors, cables, and hoses are used to supply power from the battery to other parts of the electric car. These components should sustain the high temperature arising from the battery during its charging or use. Hence, plastics are suitable material for these components as they can resist high temperatures and offer electrical insulation.
Components made of polymers such as ABS, polycarbonate, PBT, and polyamide are preferred. In Europe, due to increase in addition of advanced safety features, the electronic components such as circuits, sensors etc. associated with it add more electronic components which in turn increases the use of plastic in electric vehicle. Also, front and rear headlamp wiring, rear-view camera modules and 360-degree camera (in some cases) likely to have crucial role in market growth. Thus, demand is estimated to increase for plastics components which are used to make connectors, lamp housings components and electrical and electronic components required for electric vehicle.
The Largest Market Size: Asia
Asia is estimated to account for the largest share of the plastics for electric vehicle market. The high sales of electric vehicle in this region is the main driving factor for the growth of the plastics for electric vehicle market. Also, the presence of major plastic suppliers and rising government mandates to promote the adoption of electric vehicle are expected to drive the market. Furthermore, the development of manufacturing facilities by major electric vehicle OEMs is likely to create opportunities for plastic suppliers and thereby increasing the demand for plastic for electric vehicle during the forecast period.
Source: MarketsandMarkets