AUTOMOTIVE INDUSTRY
Plastics use to surge over next few years – report / Design changes to support further resin demand / European component makers report profitability concerns / Employment growth in EV parts underperforming expectations
The rebound in the automotive industry is expected to boost plastics demand in the sector nearly 50% by the end of the decade, according to US consultant Grand View Research (San Francisco, California; www.grandviewresearch.com).
In its report on resin use in the sector, the company said the global automotive plastics market is expected to balloon to over USD 44 bn (EUR 40.2 bn) from USD 29.5 bn last year. The consultants forecast a compound annual growth rate of 5.2% for plastics from this year to 2030.
“Globally, recovery in the automotive sector, improved vehicle design capabilities, and an increasing focus on vehicle weight reduction and emission control are the key factors boosting the growth of the market for automotive plastics,” the report said. The consultant noted that lightweighting will help drive the increased use of plastics in vehicles.
Related: EU passenger vehicle sales jump in February on base effects
Grand View Research announced expectations of a major increase in the industry’s appetite for PU: “The polyurethane product segment is anticipated to witness significant growth over the forecast period owing to its ability to infuse the characteristics of both plastics and rubber at a lower weight compared to metal and other plastic materials.” It cited increased demand from automakers for use in refrigeration insulation, interior trim, and seat cushions.
“In September 2021, Adient, a pioneer in automotive seating systems, and Covestro confirmed a strategic alliance. The company will integrate cardyon, a polyol made utilising Covestro’s CO2 technology as a self-sustaining material in the manufacturing of hot cure-shaped polyurethane foam utilised as cushioning in automotive seating systems.”
The consultant noted that the power train segment was expected to experience the fastest expansion over the forecast period. “The rising application of plastics in powertrain engineering is expected to support market growth in the coming years. It helps the manufacturers of vehicles reduce weight and integrate complex parts, which ultimately boosts performance, delivers higher productivity, and saves cost.”
Grand View added that polypropylene is the most-used resin in the car industry, with sales at more than 32%. Injection moulding holds the lead as the top processing method, with a 56% revenue share, it said.
The report comes at a time when the global automotive industry is caught in the throes of a paradigm shift driven by the rise of electric vehicles (EV), with European suppliers to the sector saying they expect such vehicles to comprise half of production this year.
In its report on resin use in the sector, the company said the global automotive plastics market is expected to balloon to over USD 44 bn (EUR 40.2 bn) from USD 29.5 bn last year. The consultants forecast a compound annual growth rate of 5.2% for plastics from this year to 2030.
“Globally, recovery in the automotive sector, improved vehicle design capabilities, and an increasing focus on vehicle weight reduction and emission control are the key factors boosting the growth of the market for automotive plastics,” the report said. The consultant noted that lightweighting will help drive the increased use of plastics in vehicles.
Related: EU passenger vehicle sales jump in February on base effects
Grand View Research announced expectations of a major increase in the industry’s appetite for PU: “The polyurethane product segment is anticipated to witness significant growth over the forecast period owing to its ability to infuse the characteristics of both plastics and rubber at a lower weight compared to metal and other plastic materials.” It cited increased demand from automakers for use in refrigeration insulation, interior trim, and seat cushions.
“In September 2021, Adient, a pioneer in automotive seating systems, and Covestro confirmed a strategic alliance. The company will integrate cardyon, a polyol made utilising Covestro’s CO2 technology as a self-sustaining material in the manufacturing of hot cure-shaped polyurethane foam utilised as cushioning in automotive seating systems.”
The consultant noted that the power train segment was expected to experience the fastest expansion over the forecast period. “The rising application of plastics in powertrain engineering is expected to support market growth in the coming years. It helps the manufacturers of vehicles reduce weight and integrate complex parts, which ultimately boosts performance, delivers higher productivity, and saves cost.”
Grand View added that polypropylene is the most-used resin in the car industry, with sales at more than 32%. Injection moulding holds the lead as the top processing method, with a 56% revenue share, it said.
The report comes at a time when the global automotive industry is caught in the throes of a paradigm shift driven by the rise of electric vehicles (EV), with European suppliers to the sector saying they expect such vehicles to comprise half of production this year.
European component makers on the ‘warn’ path
Manufacturers selling to the car industry are continuing to suffer from changes in the sector, according to the European Association of Automotive Suppliers (Clepa, Brussels; www.clepa.eu).
The group said the share of members with operational profitability – defined as EBIT of 5% or more – has fallen again, and 77% of companies were below that mark last year. Additionally, 23% reported losses in 2022, Clepa said, a significant increase from 3% in 2019.
Furthermore, it reported that foreign direct investment in Europe declined for the second consecutive quarter in the final three months of 2022, the trade surplus for Europe’s automotive suppliers plummeted a billion euros last year, and job creation in the sector has fallen significantly.
The group said the share of members with operational profitability – defined as EBIT of 5% or more – has fallen again, and 77% of companies were below that mark last year. Additionally, 23% reported losses in 2022, Clepa said, a significant increase from 3% in 2019.
Furthermore, it reported that foreign direct investment in Europe declined for the second consecutive quarter in the final three months of 2022, the trade surplus for Europe’s automotive suppliers plummeted a billion euros last year, and job creation in the sector has fallen significantly.
 Though European suppliers expect electric vehicles to comprise half of production in 2023, Clepa said employment growth in the sector is underperforming (Photo: PantherMedia/kasto) |
In response to a Plasteurope.com query, a Clepa spokesperson said the group does not track separate data on individual materials, but they noted that some sector development has disappointed. “Employment growth in EV components is underperforming expectations so far. This also applies to, for instance, battery chemicals.”
“The transformation of our industry is losing momentum, while other regions are becoming more competitive,” Clepa secretary general Benjamin Krieger said. “To keep up, we need a holistic industrial policy that builds on the strengths of the single market and recognises the importance of maintaining global value chains. In addition to easing regulatory burden, there needs to be a review of state aid rules to ensure support in scaling the production of innovative and sustainable technologies and production processes.”
20.04.2023 Plasteurope.com [252613-0]
Published on 20.04.2023
German version of this article...