The plastics for electric vehicle market in North America is expected to grow from US$ 213.50 million in 2019 to US$ 904.89 million by 2027; it is estimated to grow at a CAGR of 20.0% from 2020 to 2027.
The adoption of lightweight materials in an urge to reduce vehicle weight will boost the demand of plastics for electric vehicle in the market. Plastics are considered light weight, durable, versatile, and economical materials, which are used in diversified industrial applications. Further, plastic is known to possess several attributes such as minimal carbon emission along with reduction in the dependency on petroleum, which has significantly driven its demand in production of electric vehicle. Further, electric vehicle parts such as fans, casings, energy recovery devices, pumps, and other non-moving parts are produced using plastics so as to reduce the overall weight of the vehicle without compromising on the performance aspects of the vehicle, which has further propelled the growth of the electric vehicle plastics market in North America. For instance, the weight of the vehicle is reduced up to 40%, when plastics are used in place of other metals. Also, the use of high performance polymers and elastomers assist in effective integration of components and functions. The growing focus toward reduction of carbon emissions or dependence on petroleum is also promoting the demand for plastic in electric vehicles. For instance, stringent emission standards implemented across economies such as the US, Canada, and Mexico, have compelled the automotive manufacturers to produce fuel-efficient vehicles. In order to attain fuel efficiency, it is quite imperative to reduce the weight of vehicles and their components, by using plastics. Therefore, the demand for plastics in electric vehicle is set to rise. The rising demand of electric vehicles is among the other factors expected to positively influence the demand for plastic for electric vehicle market.
The polypropylene segment led the plastic for electric vehicle market based on plastic type in 2019. Polypropylene (PP) refers to a thermoplastic addition polymer that is produced by combining propylene monomers. It is a rigid and crystalline polymer, which is widely used in the manufacture of everyday objects such as packaging trays, household types, and medical devices. As one of the important family of polyolefin resins, it is molded and extruded into any plastic type that require flexibility, toughness, light weight, and heat resistance. It can also be synthesized with ethylene to give rise to an elastic-propylene copolymer. Further, chemical resistance, fatigue resistance, high electric resistance, elasticity and toughness, and transmissivity are some of the beneficial attributes associated with polypropylene which will further increase its demand. One of the best advantages of polypropylene is that it can be manufactured into a living hinge, which are extremely thin plastic pieces that can bend easily without breaking. Thus all these factors will positively impact is growth in the market.
The US has the highest number of confirmed cases of COVID-19, as compared to Canada and Mexico. This is expected to negatively impact the chemical and materials industry in the region, which will affect the supply chain. In addition, the overall manufacturing processes, research, and development activities will also impact market growth.
The overall North America plastic for electric vehicle market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the North America plastic for electric vehicle market with respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the North America plastic for electric vehicle market. BASF SE; Solvay SA; DuPont de Nemours, Inc.; The Dow Chemical Company; LG Chem Ltd.; Lanxess AG; Sabic; Covestro AG; Asahi Kasei Corporation; and Lyondellbasell Industries Holdings B.V. are among the well- established companies in the North America plastics for electric vehicle market.