The Bric Automotive Plastics Market is estimated to be valued at Us$ 26,020.09 Mn in 2022 and is expected to exhibit a CAGR Of 8.5% over the forecast period from 2022 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive plastics are extensively used in interior and exterior automotive parts like bumpers, instrument panels, door panels, seats and others due to properties like lightweight, durability, resistance to corrosion and easy manufacturing. They help in weight reduction which improves vehicle's performance and fuel efficiency. They also provide better design flexibility.
Market key trends:
One of the key trends driving the growth of BRIC automotive plastics market is increasing vehicle production in BRIC countries. Asia Pacific countries like China, India, Brazil are witnessing rising disposable incomes which is boosting automotive demand. According to OICA, in 2021, China produced 25.27 million vehicles, India produced 3.29 million vehicles and Brazil produced 1.98 million vehicles. This high and growing vehicle production is augmenting consumption of automotive plastics for various interior and exterior automotive applications.
Porter’s Analysis
Threat of new entrants: Low start-up costs and expertise barriers allow new companies to easily enter the market. However, strong competitive pressures from existing large players make it difficult for new entrants to gain market share.
Bargaining power of buyers: Car manufacturers form the bulk of buyers in this market. Their large order volumes give them strong negotiation power over pricing and supply agreements with plastics producers.
Bargaining power of suppliers: A few large multinational companies dominate the global polymer supply market. This allows suppliers to influence prices in their favor.
Threat of new substitutes: Alternate lightweight materials like aluminum and composites pose a threat, though plastics still offer better value.
Competitive rivalry: Intense competition among major automotive plastics producers.
SWOT Analysis
Strengths: Growing automotive sector in BRIC nations and strict fuel efficiency norms boosting plastics demand. Wide range of engineering plastics available for varying applications.
Weaknesses: Volatility in raw material prices raises input costs. Changing emissions regulations can impact product development cycles.
Opportunities: Increased focus on weight reduction and durability presents scope for advanced plastics. Emerging application areas like electric vehicles offer new avenues.
Threats: Economic slowdowns impacting vehicle sales in key target markets. Trade barriers and geopolitical risks affecting supply chains.
Key Takeaways
The global BRIC Automotive Plastics Market is expected to witness high growth, exhibiting CAGR of 8.5% over the forecast period, due to increasing adoption of stringent fuel efficiency and emissions norms in BRIC nations. Lightweight plastics help automakers comply with these regulations through weight reduction in vehicles.
Regional analysis: The BRIC automotive plastics market is dominated by China, accounting for around half of the region's total demand. China is also the fastest growing market, supported by the country's large automotive production capacities and focus on new energy vehicles. Brazil is another major market, though its growth outlook is constrained by prevailing economic challenges.
Key players: Key players operating in the BRIC Automotive Plastics market are Bayer Material Science, Lyondell Basell, Dow Chemicals Company, Polyplastics Group, Sibur, China XD Plastics Company Ltd., and Saudi Basic Industries Corporation (SABIC). Players are focusing on developing advanced engineering thermoplastics and collaborating with automakers to strengthen product pipelines.
Read More : https://www.newswirestats.com/the-bric-automotive-plastics-market-growth/
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