Market Overview
The Global Automotive Decorative Exterior Trim Plastics Market is expected to reach growing at a CAGR of 4.4% during the forecast period 2024-2031.
Automotive decorative exterior trim plastics are plastic-based products or accessories placed on the exterior of a car or truck to improve the vehicle's aesthetic appeal. Door handle trim, bumper cover, among others, are some of the plastic-based exterior trims available for vehicles. The main cause behind the utilization of decorative exterior trim is to safeguard the vehicle from damage such as scratches, dents and other types of damage that could come from the environment or other vehicles.
Source: DataM Intelligence Analysis (2021)
Market Dynamics
The widespread environmental protection of chlorinated rubber corrosion is a major market driver. Further, the ability of Chlorinated Rubber Coating to be applied on a wide range of surfaces such as concrete, brickwork, steel, among others, also boost their demand in the market. However, the availability of alternative materials restraints the respective market’s growth.
The growing demand for protection and preservation of resale value among the automotive owners
Automotive decorative exterior trim plastics are plastic-based accessories attached to the exterior of an automotive to avail extra protection to the automotive from various external parameters. Since modern automotive customers are extremely peculiar for maintaining the aesthetics of automotive and are cautious in avoiding damages to vehicles to avoid diminishing the resale value of the automotive, the demand for automotive decorative exterior plastics is expected to skyrocket.
Further, the comparatively cheaper price points of plastic-based decorative exterior trims and the ease of installing them also boost the demand for automotive decorative trim plastic among automotive enthusiasts and owners. As a result, the growing demand for protection and preservation of resale value among the automotive owners could be considered a major market driver for the respective market.
Environmental impact of plastics and stringent regulations associated with it
Although automotive decorative exterior trim plastics are inexpensive and offer enhanced protection to the vehicles, they are manufactured from plastic materials such as polypropylene, Polyurethane, polyamide and polyvinyl chloride. The environmental impact of such plastic-based materials is an important factor that must be considered, particularly in modernity, where the demand and awareness associated with environmental protection are at their peak.
The environmental impact of these plastic materials comes primarily in two ways; first, the huge carbon footprint involved in their production. Second is the lack of recyclability and generation of landfill wastes. The respective factors restrict the demand and sales of automotive decorative exterior trim plastics to an extent.
Further, due to the environmental impact of these products, the manufacturers have to go through an intensive network of red tapes to manage or expand production properly. Since these rules force manufacturers to spend more, thereby reducing the profit margins, many new manufacturers restrict themselves from entering the market or maintaining a manufacturing limit. As a result, the production of the respective product is hampered due to the environmental impact of plastics and stringent regulations associated with them.
COVID-19 Impact Analysis
COVID-19 had a negative impact on the global car decorative exterior trim plastics market during its initial waves due to the following factors:
- The manufacture of car decorative exterior trim plastics has been affected due to the unavailability of raw materials, skilled people and production disruptions in the production process, which was greatly impeded by industry lockdowns and the demand for social isolation.
- The global lockdown enforced due to the COVID-19 pandemic hampered the availability of raw materials and the supply of finished products, causing major disruptions in the supply-demand dynamics of the market.
- The downfall of demand and sales in automotive businesses slowed overall activity in the respective market, limiting overall demand for automotive decorative exterior trim plastics.
However, as the effects of the pandemic fade, the global market for vehicle decorative exterior trim plastics is predicted to rise at a rapid pace. The anticipated rebound in sales and demand in the automotive sector post-COVID-19 scenario is a key element in the market's expansion.
Market Segment Analysis
The global automotive decorative exterior trim plastics market is segmented on type, vehicle type, application and region.
Increasing disposable income and growing demand for private transportation help passenger cars to dominate the vehicle type segment of the global automotive decorative exterior trim plastics market.
The global automotive decorative exterior trim plastics market is segmented into passenger cars, commercial vehicles, heavy trucks, buses, and others based on vehicle type. The passenger cars segment dominates the vehicle type segment of the global automotive decorative exterior trim plastics market due to the extensive growth in sales as well as production of passenger cars to meet the growing demand for private transportation, especially among the middle class as well as the upper-middle class, supplemented by growth in median disposal income.
For instance, as per data provided by the Global Organization of Motor Vehicle Manufacturers, the number of passenger cars produced globally in the first three quarters of 2021 was 4,00,90,794. Compared to this massive number, the number of light commercial vehicles, heavy commercial vehicles and buses were 1,37,21,531, 33,11,348 and 33,11,348, respectively. The data itself is an indicator of the dominance of the passenger cars segment compared to others.
Source: DataM Intelligence Analysis (2021)
Market Geographical Share
The rapid growth in construction and automotive markets in the Asia-Pacific helps it to dominate the region's segment of the global automotive decorative exterior trim plastics market
The Asia-Pacific is expected to assert its dominance in the global automobile decorative exterior trim plastics market in terms of market share over the projected period. Significant vehicle production to meet the transportation needs of the region's rising population, particularly in emerging nations such as China and India, is a key component that contributes to the region's dominance and vast revenue generation. Furthermore, the area's dominance is likely to be enhanced by growing disposable income and increasing desire for improved car aesthetics across the region.
Additionally, due to strong production, demand, and well-established premium luxury automobile players in the region, Europe is predicted to grow with the fastest CAGR among the other regions.
Source: DataM Intelligence Analysis (2021)
Competitive Landscape
Based on the number and size of global and local players, the global car decorative exterior trim plastics market is very dynamic and competitive. The market could be termed fragmented because a few coatings manufacturers control the majority of the market share. The extreme competition in the market is associated with excessive growth attained by the automotive industry and its associated demand growth in the global market. The important major stakeholders in the market deploy market initiatives such as mergers, acquisitions, product launches, contributions and collaborations to achieve a competitive edge and recognition in the respective market. Some of the significant market players include BASF SE, AISIN CORPORATION, Evonik Industries AG, Solvay, Arkema SA, LG Chem, LyondellBasell, SABIC, DuPont and 3M.
BASF SE
Overview: BASF SE is a global chemical company that produces chemicals for various industries. The company has over 700,000 investors and it is one of the world's largest publicly traded companies. Transportation, chemicals, construction, electronics & electricity, energy & resources, furniture & wood, home care and cleaning, agriculture and other industries are among the company's 13 product categories. While BASF SE has 6 global locations 241 additional industrial sites in over 90 countries, more than 30 BASF SE Group companies are based in Ludwigshafen. In the year 2020, the BASF Group generated around US$ 68,625.85 million.
Product Portfolio:
- Elastolit R and COLO-FAST R: The company’s portfolio includes a diverse selection of plastic materials for the exterior of automobiles. Elastolit R and COLO-FAST R are polyurethane solutions for flat and complex-shaped components such as glass roofs, body panels and structural components.
Key Development:
For instance, on May 14, 2021, BASF SE introduced Exterior Trim Film FPO9101JH. The product is a cost-effective alternative to stamped stainless steel, allowing more design flexibility and weight savings. Further, it offers an effective design element for visual impact and brand distinction and allows finish matching on pieces created from various substrates. The product is capable of avoiding long-term outside weathering and harsh automobile environments.
Why Purchase the Report?
- To visualize the global automotive decorative exterior trim plastics market segmentation by type, vehicle type, sales channel, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the global automotive decorative exterior trim plastics market by analyzing trends and co-development.
- Excel data sheet with numerous data points of automotive decorative exterior trim plastics market-level with four segments.
- PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping available as excel consisting of key products of all the major market players
The global automotive decorative exterior trim plastics market report would provide approximately 69 tables, 75 figures and almost 180 pages.
Target Audience 2024
- Automotive Decorative Exterior Trim Plastics Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
- Logistics companies
- Distributors/ Suppliers
