The global automotive additive market size is expected to grow from USD 7.46 billion in 2020 to USD 10.50 billion by 2026 at a CAGR of 5.9%.
The report divides the market by plastic additives, automotive application, plastic type, and vehicle type based on the regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
Increasing demand for lightweight vehicles throughout the ecosystem has boosted the growth of the market for plastic automotive additives worldwide. The growing trend for EVs is also a major factor that has contributed to the growth of this market. Electrical installations in developing countries such as China and India drive the market for automotive additives. The use of plastics in electric vehicles is large compared to passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). Electricity installations in cars are increasing due to the lightweight of the plastics and compliance with stricter power outages. Increased use of plastic improves vehicle power management. Improving energy efficiency and fuel efficiency are key factors in the development of lightweight electric vehicles. However, there are some obstacles in the market as the use of plastics can also have an impact on health. The market is also challenging due to strict CAFE exit rules.
The interior application segment is estimated to have significant growth potential, and will also increase the demand for the automotive additives market. This increase may be due to the need for automotive additives in interior installations due to the widespread use of plastics. OEMs plan to focus on consumer needs such as beauty, safety, comfort, bright colors, quality, and durability.
Plastic polypropylene segment is estimated to be leading segment in the automotive additives market, in the form of plastic, during the forecast period. The high market demand for polypropylene additives can be attributed to the wider use of polypropylene plastics than other plastics such as polyurethane, poly-vinyl chloride, and others.
Passenger cars are estimated to be leading the market for automotive additives, by vehicle type. This is because the market is shifting to luxury passenger cars with improved aesthetics, comfort, safety, and durability.
The Asia-Pacific region is estimated to be the largest market for automotive additives during the forecast period, while China is the largest market for automotive additives in the region. In addition, automotive electrical installations also drive the market for automotive additives in the region.
The automotive additives market consists of various additives manufacturers such as ExxonMobil Corporation (US), BASF SE (Germany), The Dow Chemical Company (US), Covestro AG (Germany), Sabic (Saudi Arabia), and Akzo Nobel N.V. (Netherlands) among others.