PUBLISHER: Grand View Research | PRODUCT CODE: 1726241
PUBLISHER: Grand View Research | PRODUCT CODE: 1726241
The global post-consumer recycled plastics in automotive market size is anticipated to reach USD 22.32 billion by 2030 and is anticipated to expand at a CAGR of 11.1% during the forecast period, according to a new report by Grand View Research, Inc. Environmental regulations play a pivotal role in driving the adoption of post-consumer recycled (PCR) plastics in the automotive industry. The European Union's End-of-Life Vehicle (ELV) Directive requires 95% of vehicle materials to be recoverable, pushing manufacturers such as Volvo and BMW to incorporate PCR plastics in components such as seat cushions, dashboard insulation, and wheel arch liners. Similarly, California's proposed recycled content mandates are compelling North American automakers to follow suit, with Ford committing to use at least 20% recycled plastic content across its vehicle lineup by 2025.
Consumer demand for eco-friendly vehicles has become another significant driver for the market. Significant number of car buyers consider sustainability features important in purchasing decisions. This has prompted companies such as Toyota to highlight their use of PCR materials in marketing campaigns for models such as the Prius, where recycled PET bottles are transformed into sound-proofing materials and seat fabric. Mercedes-Benz has responded to this trend by developing their "Ambition 2039" sustainability roadmap, which includes increasing recycled material usage across their vehicle portfolio.
Cost considerations have evolved from a barrier to an incentive for adoption of PCR. Historically, virgin plastics were cheaper, but supply chain disruptions and petrochemical price volatility since 2021 have narrowed the price gap. Renault's "Circular Economy" program demonstrates how recycled materials can create financial resilience, as their use of PCR polypropylene in bumpers and fender liners provides cost savings compared to virgin alternatives. Advanced sorting and cleaning technologies have also improved PCR quality, addressing previous concerns about mechanical performance limitations.
Corporate sustainability goals have accelerated PCR plastic adoption as automotive companies seek to reduce their carbon footprint. Jaguar Land Rover's initiative to use ECONYL, a nylon made from recovered fishing nets and fabric scraps, in their vehicle components such floor mats and trims has resulted in a 90% reduction in CO2 emissions compared to traditional nylon production. These examples underscore how PCR plastics have become essential to automotive companies' strategies to meet increasingly ambitious sustainability targets.