The BRIC Automotive Plastics Market is estimated to be valued at US$ 27832.06 Mn or in 2023 and is expected to exhibit a CAGR of 8.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Automotive plastics are used in various interior and exterior automotive parts such as instrument panels, interior trim, bumpers, and body panels to replace heavier metal parts. They help reduce vehicle weight, improve fuel efficiency, and enhance the aesthetic appeal and comfort of vehicles. Major plastics used in automotive applications include polypropylene, polyurethane, polyethylene, polyvinyl chloride, polyamide, acrylonitrile butadiene styrene, and polycarbonate.

Market Dynamics:
Stringent emission regulations and fuel efficiency norms have increased the need to reduce vehicle weight and improve overall fuel economy. Additionally, automakers are focusing on making vehicles lighter by incorporating more plastic parts which is driving market growth. Another factor fueling the demand for automotive plastics is the increasing penetration of premium and luxury vehicles which utilizes higher-value plastic components for interior trim and decorative parts. However, fluctuations in raw material prices remain a key challenge for market players.
 

Segment Analysis
The BRIC automotive plastics market is dominated by the powertrain, electrical & electronics, interior & exterior furnishings and under the hood sub-segments. The powertrain segment accounts for over 30% of the market share owing to extensive use of plastics in engine covers, transmission components, brake lines and many more parts. The demand for plastics is high in this segment as it helps reduce vehicle weight and thereby increase fuel efficiency.

PEST Analysis
Political: The governments in BRIC nations like India and China offer various incentives and policies to promote local manufacturing of automotive components including plastics. This is boosting investments in the industry.
Economic: Strong economic growth over the past decade in BRIC countries has led to rising disposable incomes. This has increased vehicle ownership which is a key driver for the use of automotive plastics.
Social: Changing lifestyle and rising aspirations are fueling demand for private vehicles in developing BRIC nations. Plastics help automobile manufacturers launch affordable vehicles catering to this social trend.
Technological: Material scientists are developing novel lightweight plastics with superior properties over metals. Also, 3D printing technology is enabling complex shapes and designs in various plastic components improving vehicle performance.

Key Takeaways
The Global BRIC Automotive Plastics Market Demand is expected to witness high growth, exhibiting CAGR of 8.5% over the forecast period, due to increasing vehicle production and sales in developing economies of Brazil, Russia, India and China. Within the BRIC nations, India and China are anticipated to be the fastest growing and most lucrative markets for automotive plastics due to massive investments by global automakers in these countries.

Regional analysis
China dominates the BRIC automotive plastics market with a share of over 40% owing to the country being the largest vehicle manufacturer. It produces around 25 million vehicles annually. India is poised to be the fastest growing regional market registering a CAGR of 12% during the forecast period on account of pro-manufacturing initiatives of the Indian government like 'Make in India'.

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. The key players are focusing on capacity expansion, new product launches, and mergers & acquisitions to strengthen their global foothold and benefit from the high growth opportunities in BRIC nations.

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