Expected to grow from USD 3.7 billion in 2022 to USD 12.6 billion by 2027, the electric vehicle plastics market is set to experience a CAGR of 27.9%. Key factors driving this expansion include efforts to lower vehicle weight for better driving range and emissions, alongside increasing consumer demand for premium vehicle interiors.

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Polyurethanes and Polypropylene would hold significant market share in EV Plastics.

Car manufacturers widely use polyurethane materials for benefits in terms of comfort, safety, lightweight, and longevity with design freedom. By 2027, the polyurethane demand in the Asia Pacific is projected to be significantly higher than in Europe and North America, respectively, mainly due to increased demand for better seat comfort in vehicles. Polyurethanes are durable, lightweight, and have excellent strength, offering comfort and flexibility in design. These properties allow manufacturers to make higher-quality ergonomic seats.

Polyurethanes are ideal not only for cushioning purposes but also within the bodies of cars, where their insulation properties protect against the engines heat and noise. As polyurethanes provide equal strength as metals or conventional heavy materials and are also lightweight, their use reduces the overall vehicle weight, resulting in greater fuel efficiency and improved environmental performance. Polypropylene is considered the lightest thermoplastic because of its low density. Also, polypropylene costs are comparatively less than ABS, making it popular in cost-conscious markets such as the Asia Pacific. Hence, polypropylene would be one of EVs most preferred lightweight materials.

Interior and Powertrain would be the leading plastic applications in EVs

To achieve a longer range, an electric car must be equipped with high-capacity batteries, which adds to the cars weight. The high-capacity batteries generate heat while charging and discharging. Hence they need heat management systems. Polymer manufacturing companies are focusing on providing new polymers for next-generation battery technologies that dissipate heat effectively and quickly, thus improving battery performance. For instance, Ultramid (polyamide), a polymer offered by BASF, is used in battery casings and cell frames to reduce about 30% of vehicle weight compared to metals. Customers demand more aesthetically pleasing interiors for their vehicles. To provide this, OEMs have shifted focus to high-performance thermoplastics that provide better flowability and higher dimensional stability for easy and economical production of interior components. Plastics have proven to be the ideal material for interior components of premium cars as they are durable and aesthetically pleasing. Additionally, they help reduce NVH levels of electric vehicles.

With the increasing number of on-road EV vehicles, reaching 16.2 million units worldwide in 2021, the demand for plastic applications in battery powertrains and interior components is likely to drive the market.

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Driver: OEMs' inclination toward thermally stable plastics in heat-sensitive applications

The new-generation electric and hybrid vehicles must be lighter and stronger to increase vehicle range. Automotive OEMs focus more on specific application segments of electric vehicles, such as electric motors, battery thermal management, and chassis. Numerous applications for metal replacement in various underhood components using high-performance plastic materials, mainly polyamide-based materials, make these conversions possible, with high tensile strength, high-temperature resistance, and light-weighting benefits.

Thermally conductive plastics in LED enclosures and electric battery housings in electric vehicles can allow higher voltages with safety. Also, they offer greater light weighting options, are more customizable, and can create more uniform thermal management systems.

Polyamides have great opportunities in battery trays and connectors in electric vehicles, as electric cars have many sensors, cameras, and radars. The connectors are molded from polyamide due to their temperature resistance property. Manufacturers such as BASF use special polyamide and polybutylene terephthalate grades that meet the demands for flame retardancy, color stability, and electrical isolation. This allows BASF to save weight and installation space around the battery pack and improve the vehicle's safety. Thus, the demand for thermally stable plastics is increasing in the electric & hybrid vehicle segment.

Restraint: Recycling of plastic materials used in electric vehicles

Plastics play an important role in making vehicles lightweight and fuel-efficient and reducing their environmental impact. Sustainability has become a central driver for innovation and the future of the automotive industry. The sales of electric vehicles are increasing owing to their lower impact on the environment compared to ICE-powered vehicles. However, according to few leading OEMs approximately 30% of the vehicle’s lifetime CO2 emissions are generated due to the materials and their production. Hence, the automotive industry must focus on the sustainability of the materials used in these vehicles and make the production process more environmentally friendly.

To effectively achieve this, the manufacturers should consider the circular pathways for automotive plastics and how materials can be integrated from end-of-life vehicles into new models to make them more sustainable. Hence, the manufacturers are investing in the newest ways to recycle end-of-life automotive materials so that the materials can be reused without hampering the quality of the product. Hence, this factor hinders the growth of the electric vehicle plastics market.

Content Source:

https://www.prnewswire.com/news-releases/electric-vehicle-plastics-market-worth-12-6-billion-by-2027--exclusive-report-by-marketsandmarkets-301642468.html

https://www.openpr.com/news/2262231/plastics-for-electric-vehicle-market-an-emerging-market-with

https://www.marketsandmarkets.com/PressReleases/electric-vehicle-plastic.asp