The plastic component market involves the manufacturing of various plastic parts and components used across industries such as automotive, consumer goods, healthcare, electrical and electronics, packaging and others. Plastic components are advantageous due to their lightweight, durability and resistance to corrosion. Plastic raw materials such as polypropylene, polycarbonate, acrylonitrile butadiene styrene and nylon are injection molded or thermoformed to create components of various shapes and sizes. These plastic components help reduce vehicle weight and improve fuel efficiency in automobiles.
The Global Plastic Component Market is estimated to be valued at US$ 520.20 Bn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Plastic Component Market Companies are Lanxess India Private Limited, Tata Autocomp Systems Limited, Elringklinger Automotive Components (india) Privat, Pennar Industries Limited, Minda Industries Limited, Samvardhana Motherson Group, Varroc Engineering Limited, Sona BLW Precision Forgings Limited, Sundram Fasteners Limited, Anand Group, Pricol Limited, Rane Group, Endurance Technologies Limited, Minda Corporation Limited, Sandhar Technologies Limited, Machino Plastics Limited, Lumax Industries Limited, Fiem Industries Limited, and Minda Kyoraku Limited. The key players are focusing on developing sustainable and recyclable plastic components to cater to the growing environmental concerns of OEMs.
The growing demand for lightweight components in automotive sector to achieve higher fuel efficiency is fueling the growth of plastic component market. The stringent regulations regarding vehicle emission and fuel economy are prompting automakers to use more plastic parts instead of metal parts in vehicles. The adoption of plastic is expected to grow further with advancements in engineering plastics with superior performance.
The plastic component market is expanding globally with the increasing automobile production across countries such as China, India, Mexico and Brazil. The manufacturers are shifting their production facilities to different regions in order gain advantages of lower costs and be nearer to the target markets. The market players are also focusing on mergers and acquisitions for business expansion in international markets.
Market key trends
Sustainability and waste management are the major drivers being witnessed in the Plastic Component Market Demand. The Original Equipment Manufacturers (OEMs) are pressurizing the market players to use recyclable plastic materials and reduce the usage of virgin plastics. Many companies have started using recycled plastic content in their components. Technologies such as design for disassembly are being adopted to increase the recycling rate of plastic vehicle parts at their end-of-life. The regulatory push for adopting sustainable practices and circular business models is expected to drive more innovations in plastic component recycling.
Porter’s Analysis
Threat of new entrants: Low entry barriers due to availability of technology and supplier networks make this market prone to new entrants.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to the availability of substitutes and possibility of backward integration.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated nature of raw materials and supplier concentration in few regions.
Threat of new substitutes: Threat of substitution exists from alternative material options like aluminum and engineering thermoplastics.
Competitive rivalry: Intense.
Geographical Regions
North America accounts for the largest share of the global plastic components market, in terms of value. Growth in the automotive industry along with presence of major OEMs driving the demand for plastic components.
Asia Pacific region is expected to witness the fastest growth during the forecast period. Countries like China, India, Japan and South Korea are major automotive manufacturers with growing domestic demand and export opportunities propelling the plastic component market. Increasing investments by global automakers to tap the potential of emerging economies further augment the regional market.
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