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October 2025
The biodegradable and eco-friendly materials in automotive market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. The biodegradable and eco-friendly materials in automotive market are gaining momentum as awareness of pollution and climate change grows. In addition, governments are instituting strict measures to reduce plastic waste, which drives car makers towards the use of green materials. Emerging technologies in bio-plastics, renewable fibers, and recycled materials are facilitating the transition toward sustainable components.
The biodegradable and eco-friendly materials in automotive market involve the global industry focused on developing and using materials that reduce environmental impact in vehicle production and operation. These include natural fibers, bioplastics, biodegradable composites, and other sustainable polymers designed to replace conventional plastics and non-renewable materials. The market is driven by increasing regulatory pressure to reduce vehicle emissions, growing consumer demand for sustainable mobility, and automotive manufacturers’ initiatives to integrate lightweight, eco-friendly, and recyclable materials in interiors, exteriors, and under-the-hood components.
| Metric | Details |
| Key Market Drivers | - Regulatory pressure for eco-friendly materials - Consumer demand for sustainable vehicles - Innovations in bio-plastics, fibers, and composites |
| Leading Region | Europe |
| Market Segmentation | By Material Type, By Application, By Vehicle Type, By End-User Industry and By Region |
| Top Key Players | BASF SE, DuPont de Nemours, Inc., UPM-Kymmene Corporation, Stora Enso |
The trends in biodegradable and eco-friendly materials in automotive market are partnerships and innovation in products.
The bioplastics segment dominated and captured almost 35% of the total market share because they are the most adopted bio-based plastics alternative to petroleum plastics by car manufacturers. Bioplastics are lightweight, durable, and reduce carbon emissions, so they are ideal materials for panels, trims, and parts found in the vehicle interior of future electrified cars.
The natural fibre composites segment is expected to grow at the fastest rate in the forecasted period, as they provide strength, lightness, and eco-friendliness. Fibres such as jute, hemp, and flax are being used in door panels, dashboards, seatbacks, and other vehicle interiors. These fibres are used to reduce vehicle weight, which is an important vehicle attribute for fuel efficiency and emissions.
The interior components segment dominated and captured almost 40% of the total market share because car interiors involve a high volume of plastic and composite materials that are being replaced
by eco-friendly alternatives. Bioplastics and natural fibres are especially suited to dashboards, seating covers, carpets, and door panels.
The exterior components segment is expected to grow at the fastest rate in the forecasted period because automakers are now focused on lightweight and recyclable materials for bumpers, body panels, and trims. For example, biodegradable composites in the exteriors reduce the overall weight of the car, resulting in improved fuel economy and extended driving range for electric vehicles.
The passenger cars segment dominated and captured almost 45% of the total market share because they are produced in higher volumes than trucks or buses. Automobile manufacturers are putting emphasis on using eco-friendly materials in passenger cars in response to market demand for environmentally friendly cars, as well as stricter emissions regulations.
The electric & hybrid vehicles segment is expected to grow at the fastest rate in the forecasted period, as sustainability is at the center of their design, and consumer appeal for those products is their sustainability in nature. Electric vehicle manufacturers undertake the use of biodegradable plastics, natural fibers, and/or recycled materials to retain their low-carbon presence.
The OEMs segment dominated and captured almost 50% of the total market share as they control the design and material selection in vehicles. Automakers face significant regulatory pressure to use eco-friendly materials directly in their production lines. OEMs, having the facilities and R&D resources, use bioplastics, natural fibres, and recycled materials in vehicle components while they aim to market their vehicles as being sustainable.
The tier-1 & tier-2 suppliers segment is expected to grow at the fastest rate in the forecasted period, as automakers are outsourcing more components of eco-friendly materials from specialized suppliers. These suppliers specialize in parts of the vehicle, such as dashboards, trims, and door panels, designed from bio-based or recycled products. As consumer demand for sustainable vehicles grows, suppliers are significantly scaling production and innovating at a faster rate.
Europe dominated and captured almost 40% of the total market share due to regulatory pressures on carbon emissions and plastic waste. Automotive manufacturers had to incorporate more green materials, not just from regulations, but also due to the preferences of customers. This is a result of a strong research base, along with large automotive manufacturers in Europe, that fully fund bioplastics and natural fibers.
Germany had the advantage of becoming the leader in this sector within Europe, as it contains many of the largest automotive manufacturers, such as BMW, Volkswagen, and Mercedes-Benz. The auto manufacturers in Germany have state-of-the-art research laboratories and large budgets to support sustainable innovations. The use of bioplastics and natural composites is more prevalent in car interiors, while German automakers use these materials extensively in electric vehicles.
Asia-Pacific experienced the strongest growth in the biodegradable, eco-friendly automotive components market due to the increase in car production and growing interest in establishing affordable green vehicles. Countries such as China, India, and Japan invested in electric and hybrid cars, which resulted in greater bioplastics and natural fibre uptake. Rising government initiatives for cleaner modes of transportation, rapid urban expansion, and increasing consumer awareness resulted in opportunities to introduce massive uptake of lightweight eco-materials
China held the top position within the Asia-Pacific region, due to possessing the highest number of global automotive production. The government was a strong advocate of electric vehicles, and while there were initiatives that subsidised and regulated the uptake of eco-friendly materials, the initiatives
were delivered by the Chinese market for vehicles. The approach from local automakers was a cost-efficient method of incorporating bioplastics and recycled materials at mass production, while also being suited to bettering urban pollution problems that were increasing rapidly.
| July 2025 | Announcement |
| Dr. Poonam Kumari, Professor, Department of | Mechanical Engineering. Developed composite can be used for designing components/parts in consumer electronics, automobiles, aerospace, sustainable building materials etc. The product will replace wood/iron/plastic components and will have similar cost and lead to fulfil SGD goals (7,8 and 9). This development is in line with Make in India policy under Green Tech Revolution. |
| April 2025 | Announcement |
| Daniela Manique, President of Solvay Coatis. | Our dedication to our climate roadmap is evident in our actions. Shifting to biofuel for our shipments in Brazil is a substantial move towards reducing our carbon footprint along the value chain. As we progress towards carbon neutrality, we remain steadfast in our commitment to sustainability and innovation. |
The biodegradable and eco-friendly materials in automotive market is highly competitive. Some of the prominent players in the market are BASF SE, DuPont de Nemours, Inc., UPM-Kymmene Corporation, NatureWorks LLC, Stora Enso, Green Dot Bioplastics, Trex Company, Inc., Biome Bioplastics, Mitsubishi Chemical Corporation, Arkema S.A., Evonik Industries AG, Novamont S.p.A., FKuR Kunststoff GmbH, BASF Polyurethanes, and Celanese Corporation.
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By Material Type
By Application
By Vehicle Type
By End-User Industry
By Region
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