BASF SE (Germany) and Dow Chemical Company (U.S.) are the Most Important Player in the Automotive Additives Market
Growing stringency of emission regulations and increasing demand for lightweight vehicles have changed the market dynamics for the automotive additives market. The automotive additives market is projected to grow at a CAGR of 6.52% during the forecast period, to reach a market size of USD 8.58 Billion by 2022. Asia-Pacific and North America are estimated to be the largest markets for automotive additives in 2017, owing to the increased use of plastics in vehicles in the recent years. For instance, SABIC (Saudi Arabia) has manufactured a heavy commercial vehicle for Scania AB (Sweden), which has been efficient in operating economy by replacing metal with high performance plastic resins. The overall truck weight has been reduced by 40%. Asia-Pacific is estimated to be the fastest growing market for automotive additives owing to the largest passenger car production and growing penetration of electric vehicle in markets such as China and Japan. Alternatively, owing to the electrification of vehicles and inclination toward economic cars with high comfort and aesthetics, the future demand for automotive additives market in countries such as India and South Korea would grow steadily. Also, increased fuel efficiency with the use of lightweight vehicles in countries such as Japan and China, gradually changing buyer’s preferences for aesthetics, safety, comfort, and the upcoming CAFE emission regulations are further set to boost the market for automotive additives in the Asia-Pacific region in the long term.
The top players in the automotive additives market include BASF SE (Germany), ExxonMobil Corporation (U.S.), Covestro AG (Germany), the Dow Chemical Company (U.S.), Sabic (Saudi Arabia), and Akzo Nobel N.V. (Netherlands).
The most important player in the automotive additives market is BASF SE (Germany). The company is one of the key suppliers of additives for the automotive industry. The company provides lightweight plastic material for automotive and transportation industry such as exterior body parts, interior parts, under the hood, and electronics & electrical for passenger aesthetics, comfort, safety, and infotainment. The company’s major customers include leading OEMs in the automotive industry such as General Motors (U.S.), Volkswagen (Germany), Ford Motor Company (U.S.), Alfa Romeo Automobiles S.p.A (Italy), AB Volvo (Sweden) and others. The company is constantly launching state-of-the-art products on a global scale, this has increased its customer base and expanded its presence in the automotive additives market. In January 2017, BASF SE (Germany) developed lightweight front row seats in a Ford Motor Company (U.S.) iconic luxury vehicle-Lincoln Continental. BASF’s plastic material and technical expertise helped to lightweight and optimize the design of the seat pan in order to exceed crash safety standards. The weight of the seating system was reduced by 8%, but the contribution of BASF was 20% weight reduction for the seat pan compared to metal. The project also resulted in a 15% cost savings.
Another important player in this market is the Dow Chemical Company (U.S.), which is one of the major suppliers of automotive additives to OEMs such as Aston Martin Lagonda Limited (U.K.), Ford Motor Company (U.S.), Hyundai Motor America (U.S.) and others. New product development is the key strategy predominantly used by this company. Specflex, a polyurethane foam hood liner material by the Dow Chemical Company is effective in managing the noise produced by turbocharged engines and smaller engine compartments. The company has also been concentrating on developing a robust product line of automotive material such as adhesives, carbon fiber and others.
Related Reports:
Automotive Additives Market by Plastic Additives (Plasticizers, Anti-Scratch, Stabilizers, Antioxidants), Application (Exterior, Interior, Under the Hood), Plastic (PP, PUR, PVC, and ABS), Vehicle Type, EV Type, and Region - Global Forecast to 2022
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