Electric Vehicle Plastics Market By Material (PP, PE, ABS, PU, PVC, PA, PC, PVB & Other Engineering Resins), Application (Interior, Exterior, Lighting/Electric Wiring & Under The Hood), & Region And ICE Passenger Cars By Material - Global Forecast To 2021
NEW YORK, Nov. 7, 2016 /PRNewswire/ -- "Supporting government policies and taxation schemes are expected to fuel the demand for electric vehicles" The electric vehicle plastics market is projected to grow at a CAGR of 27.82%, to reach a market size of USD 1.49 billion by 2021. Several countries are trying to shift towards greener transportation solutions. Favorable taxation schemes, direct monetary incentives, and indirect subsidies are driving the sales of electric vehicles. For instance, in France there is a registration tax is for ICE (Internal Combustion Engine) passenger cars, electric vehicles are exempted from such tax. Additionally, subsidies have been provided for achieving set emission targets; for instance, vehicles emitting less than 20 g/km get a bonus of about USD 9400, and vehicles emitting between 21 g/km-50 g/km would get a bonus of about USD 6700. Such factors are driving the electric vehicle plastics market. The factors restraining market growth are lack of charging infrastructure for battery electric passenger cars and the high cost of batteries, which increases the overall cost of electric passenger cars. "Battery Electric Vehicle (BEV) is the fastest growing vehicle type in the electric vehicle plastics market"BEVs are expected to dominate the electric vehicle plastics market. Lightweighting plays a significant role in improving fuel efficiency and increasing the range of the BEV. The amount of plastic used in BEVs is more compared to HEVs, in order to make the vehicle lightweight. According to the European Commission, for an electric vehicle with a range of 200 km and battery capacity of 200 Wh/kg-300 Wh/kg, the permissible weight saving cost is around USD 10/kg. To achieve the mentioned weight saving cost, 40% of lightweighting is required. Thus, given the need to achieve better fuel efficiency and CO2 emission targets, BEVs will be the largest contributor to the plastics market. "Polyurethanes (PU) constitute the largest material segment of the electric vehicle plastics market"Polyurethanes are widely used in the interior applications of passenger cars, and contribute around 15%-20% of total plastics used in a passenger car. According to MarketsandMarkets analysis, Polypropylene (PP) content in passenger cars would increase from 0.041 tons in 2016 to 0.054 tons by 2021. PP is used in automotive parts such as bumpers, seats, armrests, headrest, and the car body. Properties such as improved strength, flexibility, and lightness make the material suitable for automotive applications. "Asia-Oceania: Fastest growing electric vehicle plastics market"Asia-Oceania is estimated to dominate the electric vehicle plastics market, and is projected to grow at the highest CAGR during the forecast period. China and Japan are the largest contributors in the global sales and production of electric vehicles. According to the China Association of Automobile Manufacturers (CAAM), electric vehicle sales in China increased from 74,763 units in 2014 to 247,482 units in 2015, and the government is aiming to reach 5 million electric vehicles on the road by 2020. In order to cater to the increasing demand for electric vehicles, the government is launching taxation schemes and providing subsidies, developing charging infrastructure, and undertaking other initiatives. Thus the increasing sales of electric vehicles will likely drive the market for plastics used in passenger cars.