North America Automotive Plastics Market Size, Share & Trends Analysis Report By Product (PP, PU), By Application (Interior Furnishings, Power Trains), By Process, By Country,- Industry Analysis, Size, Share, Growth, Trends, and Forecast 2024-2033

North America Automotive Plastics Market Size and Growth

The North America automotive plastics market size was exhibited at USD 5.75 billion in 2023 and is projected to hit around USD 9.19 billion by 2033, growing at a CAGR of 4.8% during the forecast period 2024 to 2033.

North America Automotive Plastics Market Key Takeaways:

• The interior furnishings segment led the industry and accounted for the largest market share of 51.5% in 2023. 
• The Exterior furnishing segment held a substantial market share in 2023.
• The Polypropylene (PP) segment led the market and accounted for the maximum revenue share of 33.03% in 2023.
• The Polyurethane (PU) segment accounted for a significant portion of the market in 2023.
• The Polyvinyl chloride (PVC) segment experienced considerable growth in 2023.
• The Injection Molding segment led the market and accounted for the largest market share of 57.0% in 2023.

Report Scope of North America Automotive Plastics Market

This growth is attributed to the wide use of automotive plastics to enhance fuel efficiency, reduce vehicle weight, and improve driving safety. The stringent regulations imposed by the government to curb vehicular emissions have prompted manufacturers to incorporate plastics in their vehicles, thereby reducing weight and fuel consumption. This trend is expected to stimulate market growth in North America in the coming years.

High-strength nylon fabrics are typically used to manufacture airbags, while advanced automotive plastics are used for seatbelts and child safety seats. The presence of major automobile and OEM manufacturers in the region, coupled with the increasing use of plastics to enhance vehicle performance and safety, is likely to propel the North American market. For example, in March 2023, the American Chemistry Council (ACC) published a report titled "Chemistry and Automobiles", which emphasized the significant role of chemistry and plastics in the automotive industry.

Several North American companies have chosen to invest in the production of electric vehicles due to increasing demand and government subsidies. For instance, General Motors has committed to investing USD 35 billion in the development of Electric Vehicles (EV) and Autonomous Vehicles (AV) by 2025. The company also plans to install 3,500 new EV charging plugs across Canada and the U.S., to triple the number of charging locations. This investment is anticipated to accelerate EV production, which in turn is expected to increase the demand for automotive plastics over the forecast period.

North America Automotive Plastics Market By Application Insights

The interior furnishings segment led the industry and accounted for the largest market share of 51.5% in 2023. The growth is linked to the escalating demand for plastic materials in the automotive industry, used in components such as seat covers, steering wheels, body & light panels, seat bases, rear package shelves, fascia systems, load floors, and headliners. Techniques such as In-mold decoration (IMD) and in-mold labeling process (IML) are gaining prominence due to the increasing production of auto parts coated with decorative films, soft-touch materials, or textiles for aesthetic appeal. The surface finishes of IMD or IML not only enhance the look but also serve protective functions and help reduce vehicle noise levels.

The Exterior furnishing segment held a substantial market share in 2023. Automotive engineers are constantly pushing the boundaries to increase optimization rates and precision in blow and extrusion molding operations, all while aiming to lower the total production costs. These factors are fueling innovations in car assembly processes, leading to the replacement of traditionally heavy and costly materials with plastic compounds.

North America Automotive Plastics Market By Product Insights

The Polypropylene (PP) segment led the market and accounted for the maximum revenue share of 33.03% in 2023. Polypropylene (PP) is a material that has found widespread application in various sectors such as packaging, electrical & electronics, construction, consumer goods, and automotive due to its versatile properties. It exhibits excellent resistance to chemicals and electricity, even at extremely high temperatures. PP is semi-rigid, translucent, and has inherent hinge properties. Compared to other plastic materials, PP is relatively lighter and is extensively utilized in the automotive industry. It contributes to reducing the total weight of vehicles, which subsequently leads to a decrease in fuel consumption and CO2 emissions. Moreover, LGF20, LGF30, and LGF40, which contain 20%, 30%, and 40% long glass fibers respectively, are reinforced with homopolymer-PP thermoplastic composites. These are produced using a pultrusion process where the fiber is melt-impregnated to enhance performance.

The Polyurethane (PU) segment accounted for a significant portion of the market in 2023.  This growth is attributed to its unique ability to combine the properties of both plastics and rubber while being lighter than metal and other plastic materials. The demand for PU has been on the rise in the automotive industry for applications such as refrigeration insulation, interior trims, and seat cushioning. This trend has significantly influenced the growth of this segment in recent years and is expected to persist in the forecast period.

The Polyvinyl chloride (PVC) segment experienced considerable growth in 2023. PVC, a thermoplastic polymer, has been a staple in the automotive industry for many years. It is typically used to manufacture various automotive parts, including interior and exterior trims, instrument panels, door panels, and dashboards. The numerous benefits of PVC make it a preferred material choice for automobile manufacturers.

North America Automotive Plastics Market By Process Insights

The Injection Molding segment led the market and accounted for the largest market share of 57.0% in 2023. The growth in the automotive plastics market can be attributed to the numerous benefits of Injection Molding in the production of plastic parts for vehicles. Injection molding, a common plastic molding technique, is employed to create plastic components such as housing covers, light covers & lenses, engine & lighting clips, wiring harnesses, and connectors.

The process entails the melting of plastic pellets and the injection of the molten substance into a mold of the desired shape. The material is then cooled and solidified, and upon opening the mold, the formed part is emitted.

Blow Molding also accounted for a significant portion of the market in 2023. This technique is used to produce thin-walled, hollow, and custom plastic components for the automotive industry. It is primarily used to create products with a uniform wall thickness, which is crucial when the shape of the final product is important. The process is similar to glassblowing, where the plastic is heated and then air is injected, causing the hot plastic to expand, akin to a balloon.

Country Insights

U.S. Automotive Plastics Market Trends

The Automotive Plastics market in the U.S. accounted for the largest market share of 82.3% in 2023. This growth is attributed to the escalating automobile production in the nation, which is fueling a massive demand for automotive plastics. The U.S., a notable market in North America, is characterized by advancements in plastic formulation techniques and growing consumer consciousness about the health and environmental impacts of plastics. Moreover, the surge in metal prices, curbing fuel consumption, decreasing vehicle weight for fuel efficiency, and mitigating greenhouse gas emissions are the primary factors propelling the automotive plastics demand in the country.

Canada Automotive Plastics Market Trends

Canada Automotive Plastics market held a substantial market share in 2023, due to the strong Canadian dollar enhancing consumer purchasing power. Additionally, the low loan interest rates and moderate gas prices have spurred automotive acquisitions in the country. These elements, combined with the rising government incentive schemes, are anticipated to favorably influence the demand for electric vehicle plastics over the projected period.

Mexico Automotive Plastics Market Trends

The Automotive Plastics market in Mexico experienced considerable growth in 2023. This growth is due to burgeoning automobile production. Moreover, aspects such as the low tax rate, and OEM training programs in the nation are expected to be instrumental in enticing key automobile manufacturers to set up their manufacturing plants in Mexico. Consequently, the increasing automotive manufacturing plants and automobile production in Mexico are projected to create a vast demand for automotive plastics in the forthcoming years.phrase

North America Automotive Plastics Market Recent Developments

• In February 2024, Owens Corning, a global frontrunner in the building and construction materials sector, and Masonite International Corporation, a worldwide supplier of interior and exterior doors and door systems, announced a definitive agreement. Under this agreement, Owens Corning will purchase all outstanding shares of Masonite at $133.00 per share in cash. This represents an approximate 38% premium to Masonite’s closing share price on February 8, 2024, and an approximate 46% premium to Masonite’s 20-day volume-weighted average price. The estimated transaction value is around $3.9 billion, implying a purchase multiple of approximately 8.6x 2023E adjusted EBITDA2 or 6.8x when including synergies of $125 million.
  
  
• In May 2023, Dow and New Energy Blue announced a long-term supply agreement in North America. Under this agreement, New Energy Blue will produce bio-based ethylene from renewable agricultural residues. Dow plans to buy this bio-based ethylene, which will reduce carbon emissions from plastic production, and use it in recyclable applications across transportation, footwear, and packaging. Dow's agreement with New Energy Blue, a team of experts with extensive experience in bio-conversion ventures, marks the first agreement in North America to produce plastic source materials from corn stover (stalks and leaves). This is also Dow's first agreement to use agricultural residues for plastic production in North America.

Some of the prominent players in the North America automotive plastics market include:

• Dow, Inc.
• Hanwha Azdel Inc.
• Lear Corporation
• Owens Corning
• Magna International, Inc.
• Momentive Performance Materials, Inc.
• DuPont de Nemours, Inc.
• Industrias Cazel
• Axiom Group Inc.
• Amra Plastic Moulders Inc.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the North America automotive plastics market

Product

• ABS
• PP

• • PP LGF 20
  • PP LGF 30
  • PP LGF 40

• Others
• PU
• PVC
• PE
• PC
• PMMA
• PA (Nylon 6 & 66)
• Others

Process

• Injection Molding
• Blow Molding
• Thermoforming
• Other

Application

• Power Trains
• Electrical Components
• Interior Furnishing

• • IMD or IML
  • Others

• Exterior Furnishing
• Under the Hood
• Chassis

Country

• North America

• • U.S.
  • Canada
  • Mexico