Global automotive plastics market boosted by the need to minimize emissions: report
Monica FergusonCleantech Canada Automotive annual growth rate automotive plastics automotive sector CO2 emissions compound annual growth equipment manufacturers Global Automotive Plastics Growth Opportunities
Frost and Sullivan’s recent analysis, Global Automotive Plastics Growth Opportunities, finds that original equipment manufacturers (OEMs) need for lightweight materials expedites the automotive plastics industry. This market will likely reach $45.07 billion by 2028 from $31.29 billion in 2021, an uptick at a compound annual growth rate (CAGR) of 5.3 per cent.
“As sustainability and decarbonization are gaining prominence in the global automotive sector, the industry will inflate the demand for greener alternatives to minimize CO2 emissions in the next three to five years,” said Brian Balmer, Polymers and Composites program manager, Frost and Sullivan. “Due to this, established OEMs will collaboratively advance recycling technologies or acquire recycling companies to ensure supply security.”
For every kilogram reduced from a vehicle’s weight, plastics reduce a car’s carbon dioxide emissions by approximately 20 kg during its operating life cycle. The stringent regulations for OEMs to meet sustainability targets will drive the automotive plastics sector.