Industry: Chemicals and Materials
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 139
Report ID: PMRREP4368
The automotive composites market is estimated to reach a valuation of US$48 billion by 2031, at a CAGR of 16% from 2024 to 2031.
Key Highlights of the Market
|
Market Size (2024) |
US$7.4 Bn |
|
Market Size (2031) |
US$15 Bn |
|
Forecast Growth Rate (CAGR 2024 to 2031) |
10.6% |
|
Historical Growth Rate (CAGR 2018 to 2023) |
11.2% |
Asia Pacific is Responsible for More than 1/4th of Revenue Generation
|
Region |
Market Value Share 2023 |
|
Asia Pacific |
26% |
The Asia Pacific region is the largest and most rapidly expanding market in terms of the number of vehicles, particularly in nations such as China, India, and Thailand.
Furthermore, it is anticipated that India, Indonesia, Thailand, and China will have the highest volume of cars on their roads. Additionally, India and China boast the largest market for four-wheelers, which will contribute significantly to the expansion of the automotive composites.
Governments Pivot Growth of North America and Europe
In North America, the market for energy-saving automobile composites, such as natural fiber composites, is distinguished by significant government assistance. Moreover, a significant level of awareness among the population in the region is anticipated to sustain the market for natural composites.
The growth prospects of the European automotive composites industry will be determined by the utilization of environmentally friendly automotive composites.
In addition, several original equipment manufacturers (OEMs) in Europe are prioritizing the use of natural composites in order to align with government policies.
Prospects in Developing Regions Upbeat
The Latin America, and Middle East & African markets are now in the growth stage of their life cycle and are expected to increase their market share during the projection period.
The anticipated expansion of the automotive industry in these regions is projected to drive the market. As a result, the market in these regions is expected to experience more appealing growth throughout the projected timeframe.
Glass Fiber Dominant with over 1/3rd Market Share
|
Market Segment by Fiber |
Market Value Share 2023 |
|
Glass |
34% |
Based on fiber, the automotive composites market is further classified into glass, carbon and natural automotive composites, where the glass segment dominates the market.
Glass fiber composites are mostly utilized in the automotive sector due to their notable characteristics, including exceptional strength, rigidity, flexibility, and resistance to chemical damage.
In recent years, there has been a significant growth in demand for lightweight materials in order to improve fuel efficiency and meet the requirement for reducing emissions.
Due to its lower cost compared to carbon and natural fiber, glass fiber composites are extensively utilized in the automotive sector.
In addition, natural fiber composites are utilized in the production of vehicle body elements such as engine hood, storage tank, and dashboard. This is done to minimize the reliance on metals like steel and aluminium while also expanding the usage of bio-based materials in the automotive sector.
Thermoset Resins Accounts for the Lion’s Share in Global Market
|
Market Segment by Resin |
Market Value Share 2023 |
|
Thermoset |
65% |
Based on resin type, the automotive composites is further divided into thermoset and thermoplastic, where the thermoset segment dominates the market share.
Thermoset materials find extensive use in various car applications, including headlamp housing, under the hood components, electrical components, heat shielding components, as well as exterior and interior structural parts.
Furthermore, thermoset resins exhibit a low coefficient of thermal expansion, great impact strength, exceptional dimensional stability, and numerous other composite qualities.
Moreover, the primary benefit of thermoplastic resin compared to thermoset resins is its toughness, superior recyclability, and ability to facilitate rapid manufacturing. However, the infusion process may result in inadequate impregnation due to the higher melt viscosity of thermoplastic resin compared to thermoset.
Automotive composites are lightweight materials typically utilized in trucks, cars, and other vehicles, predominantly in the engine compartment and cabin. Composites are the preferred materials for reducing the weight of automobiles, making them ideal for a wide range of interior and exterior applications in the automotive industry.
The automotive sector has seen a rise in the utilization of composite materials in recent years, mostly because of their exceptional dimensional stability.
The desirable characteristics of composites, such as their ability to maintain their shape, low thermal expansion coefficient, resistance to corrosion in both dry and wet situations, ease of manufacture, and lightweight nature, make them highly favoured materials.
The automobile industry has prioritized the weight of vehicles due to its direct influence on driving dynamics and fuel consumption. The utilization of expensive lightweight materials in the automotive industry has been restricted due to the significant expense and consumers' reluctance to pay for weight reduction.
The global automotive composites market experienced robust growth from 2019 to 2023, driven by several key factors including increasing demand for lightweight materials, stringent environmental regulations, and advancements in composite technologies.
In 2019, the market began its upward trajectory, supported by rising awareness among automakers regarding the benefits of composites such as reduced vehicle weight, improved fuel efficiency, and enhanced durability.
Major automotive manufacturers started integrating composites into various vehicle components, including body panels, chassis, and interior parts, aiming to meet emission standards and consumer demand for more sustainable vehicles.
In 2023, the market continued its expansion trajectory with a focus on technological advancements.
Key developments included the introduction of novel composite materials with enhanced mechanical properties and recyclability, addressing both performance and sustainability concerns.
The integration of composites into electric and autonomous vehicles gained momentum, supported by favourable regulatory frameworks and increasing consumer preference for lightweight, eco-friendly vehicles.
Evolving Consumer Preferences
Changing consumer preferences towards vehicles that offer superior performance, safety, and fuel efficiency have also driven the demand for automotive composites.
Consumers are increasingly prioritizing vehicles that are lighter, more fuel-efficient, and environmentally friendly. Lightweight composites contribute to enhanced vehicle dynamics, improved driving experience, and reduced operational costs over the vehicle's lifetime.
Moreover, the growing popularity of electric vehicles (EVs) and hybrid vehicles has further boosted the demand for automotive composites. Composites play a crucial role in EVs by reducing vehicle weight to extend battery range and improve overall efficiency, aligning with the growing shift towards sustainable mobility solutions globally.
Industry Collaborations, and Partnerships
Collaborations between automotive OEMs, material suppliers, research institutions, and government bodies have accelerated innovation and adoption of automotive composites.
Strategic partnerships enable stakeholders to leverage complementary expertise in materials science, manufacturing technologies, and regulatory compliance to develop advanced composite solutions tailored to the automotive industry's specific requirements.
These collaborations foster knowledge exchange, facilitate technology transfer, and promote joint research and development initiatives aimed at overcoming technical challenges and scaling up production capabilities.
Such partnerships are pivotal in driving continuous advancements in composite materials, processes, and applications, ensuring that automotive composites remain at the forefront of technological innovation in the automotive sector.
Technological Advancements
Technological advancements in composite materials and manufacturing processes have been instrumental in driving the adoption of automotive composites.
Over the years, significant progress has been made in enhancing the mechanical properties, durability, and cost-effectiveness of composites such as carbon fiber reinforced polymers (CFRP) and glass fiber reinforced polymers (GFRP).
Advanced composite technologies have enabled automakers to integrate composites into a wider range of vehicle components, including body panels, chassis, interiors, and structural reinforcements.
Innovations in resin systems, fiber reinforcements, and manufacturing techniques have contributed to the development of lightweight yet strong composites that meet the stringent performance requirements of modern vehicles.
Moreover, the evolution of composite recycling technologies has addressed sustainability concerns associated with end-of-life composites, making them increasingly attractive from an environmental standpoint.
High Cost of Raw Materials and Manufacturing
One of the major challenges for the automotive composites market is the high cost associated with raw materials and manufacturing processes. Composite materials such as carbon fiber reinforced polymers (CFRP), glass fiber reinforced polymers (GFRP), and other advanced composites are generally more expensive than traditional materials like steel and aluminium.
Carbon fibers, resins, and other composite materials used in automotive applications often require specialized manufacturing processes and high-quality standards, which contribute to their elevated costs.
Carbon fibers, in particular, are derived from complex precursor materials and undergo intensive processing steps, making them expensive compared to conventional metals.
The manufacturing processes for automotive composites, such as moulding, curing, and finishing, are generally more complex and time-consuming than those for metal components. This complexity not only increases production costs but also requires specialized equipment and skilled labour, adding to overall manufacturing expenses.
The high cost of composite materials translates into higher vehicle manufacturing costs, which can deter automakers from widespread adoption, especially in price-sensitive market segments. Consumers may also perceive vehicles with composite components as more expensive, affecting their purchasing decisions.
Electric and Autonomous Vehicles
The rise of electric vehicles (EVs) and autonomous vehicles presents significant opportunities in front of market players. EVs benefit greatly from lightweight materials to extend battery range, while autonomous vehicles require structural components that are lightweight yet strong to accommodate advanced sensor technologies.
Industry participants can capitalize on developing composite materials specifically tailored for the unique requirements of electric and autonomous vehicles. This includes composites that offer electromagnetic shielding, thermal management properties, and structural integrity necessary for EV battery protection and autonomous vehicle safety.
As governments worldwide incentivize the adoption of EVs and autonomous technologies, automakers are increasingly integrating composites into vehicle designs to achieve performance goals while meeting regulatory mandates. This market trend opens new avenues for growth in the automotive composites industry.
The automotive composites market is characterized by intense competition among key players striving to innovate and expand their market presence. The competitive landscape is shaped by factors such as technological advancements, product innovation, strategic partnerships, and geographic expansion strategies.
The competitive landscape of the market is dynamic and characterized by continuous innovation, strategic partnerships, and global expansion initiatives.
Key players are poised to capitalize on opportunities presented by technological advancements, sustainability trends, and the increasing adoption of lightweight materials in automotive manufacturing.
As competition intensifies, companies that demonstrate agility, innovation, and a strong commitment to customer-centric solutions are best positioned to thrive in this rapidly evolving market.
Recent Industry Developments
In June 2023, Solvay recently disclosed the new titles for the next separate publicly traded firms that will emerge as a result of its intended division into two prominent industry frontrunners, SOLVAY and SYENSQO.
In February 2022, Teijin Automotive Technologies announced that it had started operating its new manufacturing facility in Wujin National Hi-Tech Industrial Zone, China. In addition, the company announced the establishment of a third manufacturing facility in Shenyang, China, in response to the rapidly increasing demand for electric vehicles.
|
Attributes |
Details |
|
Forecast Period |
2024 – 2031 |
|
Historical Data Available for |
2018 – 2023 |
|
Market Analysis |
US$ Billion for Value |
|
Key Regions Covered |
|
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Key Companies Profiled |
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Pricing |
Available upon request |
By Fiber
By Resin
By Application
By Region
To know more about delivery timeline for this report Contact Sales
The global market is estimated to exhibit a CAGR of 10.6% during the forecast period.
North America is the leading region in the market.
The global automotive composites market is segmented based on fiber, resin and application.
Toray Industries Inc., Gurit Holding AG, Solvay Group, SGL Carbon SE, and Teijen Limited are some of the major key companies in the market.
Glass fibers are mostly used in automotive composites.
