The demand for the use of bioplastic materials in the automotive industry as a way of reducing dependency on fossil fuels has led to a steady growth in recent years and was valued at over ~US$ 521 Mn in 2019. This is expected to remain the same, with the market thriving at a healthy pace of about 11% during the forecast period between 2019 and 2029. This growth can also be attributed to the increased demand globally to shift away from petroleum based materials from developed countries in North America and Europe in particular.
Popularity of Electric Vehicles to Spur Growth
There has been an increasing preference in recent years coming from consumer inclination for electric vehicles on the back of environmental awareness growing about the negative impact of fossil fuels. With people opting for electric cars in Europe and North America, there have also been incentives offered by governments such as reduced prices have also furthered the adoption of electric cars, and a growing interest in plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV). This has subsequently contributed to the growing demand for the use of bioplastic materials in the automotive industry, in recent years for both interior and exterior components.
Regional Markets within the Global Scenario
The global push for sustainability has had an unprecedented impact on manufacturing across industries globally, including the larger automotive industry. The automotive bioplastics market’s stakeholders are increasingly looking into materials that align with these goals of reduction of carbon emission and reliance on fossil fuels. This is particularly significant in the regional markets in North America and Europe, where there has been steady growth in the use of Bioplastics in the making of vehicles. This is due to the high investments in research and development into the use of Bioplastics, in comparison to other regions in the global landscape.
The use of Bioplastics has extended to beyond the automotive industry to find applications and users in several end-use industries including packaging. There is also increasing interest coming from other developed countries in the Asian market, especially Japan, which has become a front runner in the area when it comes to adoption of Bioplastics in general and automotive industry in particular.
Overview of the Market
The overall global automotive bioplastics market is considered to be largely fragmented with several established and newer companies occupying the landscape. These players are investing heavily in research & development and product innovation that reduces the weight of vehicles, contributing indirectly to the fuel efficiency and reduced fuel consumption. This comes on the back of governments and regulatory authorities globally pushing for lighter vehicles to achieve and improve better fuel efficiency. This trend has also led both manufacturers and OEMs to focus on specific application of newer materials like bioplastics over conventional materials which not only significantly reduce the weight of the vehicle but also have other technological benefits in comparison to other materials
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