The automotive industry is a major consumer of polymers worldwide, with plastics being used in a variety of components in passenger vehicles such as seats, door panels, bumpers, and tires. However, with advancements in technology and changes in consumer behavior, the demand for plastics in vehicle manufacturing is undergoing significant changes.
Wood Mackenzie’s recent report on polymer demand trends in the transport sector highlights the impact of key drivers on future plastics demand in the automotive industry. Factors such as electrification and lightweighting are driving increased demand for plastics in car manufacturing. The shift towards electric vehicles (EVs) is incentivizing the use of lighter materials like aluminum and polymer composites to offset the weight of batteries used in EVs.
While the trend towards electrification is expected to increase polymer demand in the long run, challenges such as lower than expected EV sales and the rise of public transit and shared vehicle pool services could impact overall passenger vehicle production. Additionally, the focus on sustainability is leading to initiatives aimed at recycling plastic components in vehicles, which could reduce the demand for virgin polymers in the future.
An accelerated sustainability scenario could further impact polymer demand in the auto industry, with factors such as electrification, lightweighting, and recycling being key drivers. Assessments on electrification, lightweighting, and recycling scores are being used to evaluate the potential rate of EV adoption, the trend of using plastics in EV components, and the impact of recycled content targets on auto industry demand for specific virgin polymers across different regions.