Polymers Powering EV Growth: Market To Surge At 18.1% CAGR By 2029

(MENAFN- GlobeNewsWire - Nasdaq) "As the Global Automotive Industry Accelerates Toward Green Mobility, High-Performance Polymers, Especially Engineering Plastics and Elastomers - Gain Momentum in EV Applications for Their Lightweight, Cost-Effective, and Thermally Resilient Properties"

Boston, July 16, 2025 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research,“ Global Market for Polymers Used in Electric Vehicles, ” is expected to grow from $10.4 billion in 2024 to $23.8 billion by the end of 2029, at a compound annual growth rate (CAGR) of 18.1% from 2024 to 2029.

This report provides a detailed analysis of the market segments by polymer type, covering engineering plastics like PP, PU, PVC, PA, PE, ABS, and elastomers such as silicone and rubber, highlighting their roles in EV manufacturing. Applications are categorized into interior, exterior, and powertrain components. The study also breaks down the market by vehicle type, including BEVs, PHEVs, and HEVs, and by region: Asia-Pacific, Europe, North America, and the Rest of the World, with further analysis by country. This structured approach helps identify the trends, opportunities, and regional dynamics shaping the future of polymers in the EV industry.

This report is particularly relevant today due to two major trends shaping the electric vehicle (EV) industry. First, the global EV market's rapid growth, driven by strong government support, rising fuel prices, increased private investment, and a global push for decarbonization. Second, EV manufacturers are increasingly turning to lightweight, cost-effective materials like polymers to enhance vehicle efficiency, safety, and range. Polymers help reduce vehicle weight, improve battery performance, and lower production costs, making them essential to the future of EV design and manufacturing.

The factors driving the market's growth include:

Rapid Growth in EV Sales: EV adoption is booming worldwide due to government incentives, rising fuel prices, and environmental concerns. This surge is increasing the need for polymers in EV components.

Demand for Lightweight and Electrification-Friendly Materials: To improve range and efficiency, EVs require lightweight materials. Advanced polymers replace heavier metals while offering excellent insulation and heat resistance for electrical systems.

Sustainable and Cost-Effective Solutions: Plastics are less expensive to produce and help reduce vehicle weight, which boosts energy efficiency. Their recyclability and durability also support long-term sustainability goals.

Focus on Circularity and Bioplastics: Automakers are turning to recycled plastics and bio-based materials to reduce environmental impact. This shift supports circular economy practices and enhances the green image of EVs.

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Report Synopsis

Report Metric	Details
Base year considered	2023
Forecast period considered	2024-2029
Base year market size	$9.1 billion
Market size forecast	$23.8 billion
Growth rate	CAGR of 18.1% from 2024 to 2029
Segments covered	Polymer Type, Application, Vehicle Type, and Region
Regions covered	Asia-Pacific, Europe, North America, and Rest of the World (RoW)
Countries covered	China, Japan, South Korea, France, Germany, Spain, Mexico, Canada, and the U.S.
Market drivers	Unprecedented growth in EV sales. Proliferating need for advanced polymers supporting light weighting and electrification trends. Sustainability and cost-effectiveness offered by plastics to EVs. Growing emphasis on plastic circularity and bioplastics.

Interesting facts:

• EV makers such as Kia, Polestar, and Volvo, are shifting their focus toward providing sustainable transportation. One growing trend is the use of recycled plastics in making EV parts. Another promising area is the use of bioplastics, which could help the market grow further.

• EV manufacturers and plastic suppliers are exploring eco-friendly materials like PHAs, biobased polyethylene, and composites made from starch and cellulose. However, these materials still face limitations in areas like heat resistance, insulation, and vibration control. Meanwhile, newer materials such as polyamides (PA), polyester and its blends, polyurethane (PU), carbon-based composites, and graphene-based materials are also being developed for EV applications.

Emerging startups

• Banyan Nation
• Cirplus

The report addresses the following questions:

What is the projected size and growth rate of the market?

• The size of the market for polymers used in Evs is projected at $23.8 billion by the end of 2029. The CAGR is 18.1%.

What factors are driving the growth of the market?

• Key drivers include:

• Unprecedented growth in EV sales.
• Proliferating need for advanced polymers supporting lightweighting and electrification trends.
• Sustainability and cost-effectiveness offered by plastics to EVs.

What market segments are covered in the report?

• Type, application, vehicle, and region.

Which vehicle segment will be dominant through 2029?

• The BEV segment will continue to dominate the market through 2029 and beyond.

Which region has the largest market share?

• Asia-Pacific has the largest market share with China a key contributor to demand. The region's growth is further supplemented by increasing government support and growing investments in EV manufacturing capacities in China and other emerging economies.

Market leaders include:

• AGC INC.
• ARKEMA
• BASF
• CELANESE CORP.
• CHT GERMANY GMBH
• COVESTRO AG
• DAIKIN INDUSTRIES LTD.
• EVONIK INDUSTRIES AG
• LANXESS
• LG CHEM
• LYONDELLBASELL INDUSTRIES HOLDINGS B.V.
• SABIC
• SOLVAY
• SUMITOMO CHEMICAL CO. LTD.
• WACKER CHEMIE AG

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