Automotive Composites Estimated USD 21.03 Billion Market Size by 2032

Overview

The global automotive composites market is projected to grow significantly, reaching USD 21.03 billion by 2032. The market is expected to achieve a double digit CAGR of 10.76% during the forecast period, starting from USD 8.39 billion in 2022.

Unlock Infinite Advantages: Subscribe to Annual Membership

• This growth is driven by increased awareness among Original Equipment Manufacturers (OEMs) about strict government regulations for emissions control and fuel efficiency.
• Automotive composites offer several benefits, such as lightweight, high strength-to-weight ratio, and resistance to weather conditions, making them attractive for various automotive applications.
• The COVID-19 pandemic has had a negative impact on the market in the short term, disrupting composite material production due to lockdown measures and social distancing protocols.
• Decreased vehicle sales during this period have further reduced market prospects for composites in vehicle structures.
• Looking ahead, increasing demand for lightweight materials in the automotive sector and a focus on fuel economy are expected to drive market growth.
• However, the high cost of carbon fiber and glass fiber composites presents a challenge to market expansion, particularly in integrating them into low-cost vehicles.
• The limited recyclability of composites, especially in entry-level passenger vehicles, also hampers market penetration.
• Collaborations between OEMs and suppliers, driven by the demand for fuel-efficient cars and the growth of the lightweight electric vehicle segment, suggest significant market potential in the future.
• Major automotive players like BMW and Nissan are exploring substituting metal parts with composite fibers to enhance vehicle performance and efficiency.
• Composite materials such as thermoplastics and reinforced glass are gaining attention from car manufacturers, indicating a shift towards sourcing advanced materials for automobile production.

Driving Trends Shaping the Automotive Composites Market

This section covers the major market trends shaping the Automotive Composites Market according to our research experts:

Shift Towards Lightweight Materials Meeting Demand in the Automotive Industry

• The automotive industry's emphasis on vehicle weight influences driving dynamics and fuel consumption.
• Lightweight solutions are expensive, and consumers are unwilling to pay for weight reduction.
• Lightweight materials are becoming increasingly important as governments throughout the world implement stricter emission laws.
• Fibre contributes just 10% to the weight of a conventional car.
• US laws require that fuel economy standards reach 54.5 miles per gallon by 2025.
• India is an excellent market for composites due to the requirement for improved fuel economy.
• Research and development expenses might limit market growth.
• The carbon fibre composites market is expected to grow fast in developing economies.

Asia-Pacific leading the Automotive Composite Market

• Asia-Pacific dominates the automotive composites market, followed by Europe and North America.
• The need for lightweight materials steadily increases as the automotive industry expands and pollution rules tighten.
• Rising consumer affluence in India is driving demand for lighter automobiles.
• India is the fifth-largest manufacturer of light and commercial vehicles and the second-largest producer of two-wheelers.
• The increasing expansion of manufacturing in India will likely stimulate demand for carbon fiber composites.

Emission Regulations and the Rise of Customized Car Demand

• Emission law in the United States and Europe limits car exhaust emissions. 
• European automobiles comply with Euro 6 standards, impacting weight, combustion, and fuel efficiency.
• There is a growing global market for bespoke automobiles, particularly sports and racing cars.
• Thermoset composites are utilised in racing and premium sports cars. • The automotive composites business is expected to increase exponentially.

Overview of the Automotive Composites Industry

• In June 2021, Mitsubishi Chemical Co., Ltd. introduced a new carbon fiber prepreg for automobile engines.
• In March 2021, Hexcel joined the ASCEND Project, a collaborative endeavour aimed at improving high-rate production and processing procedures. The project, with its ambitious goal to create lightweight innovative composite materials, holds significant potential for automotive and aerospace applications. Hexcel's participation could [accelerate the development of these materials and contribute to more efficient, sustainable vehicle designs].
• BMW and Audi combine carbon fibre reinforced plastic in a mixed-materials design for their A8 luxury sedan. The space frame's rear wall, which accounts for 40% of the vehicle's torsional rigidity, is 50% lighter than its metallic predecessor and well-suited to CFRP production.

Automotive Composites Market Leaders

• Mitsubishi Chemical Carbon Fiber and Composites, Inc.
• Hexcel Corporation
• mouldCAM Pty Ltd.
• SGL Carbon
• Toho Tenex (Teijin Ltd)
• Toray Industries Inc
• Nippon Sheet Glass Company, Limited
• Solvay
• Nippon Carbon Co., Ltd.
• Sigmatex

Latest Updates on Driving Innovation in the Automotive Composites Market

• In April 2021, Solvay has launched Amodel Supreme PPA, a high-performance polyphthalamide chemical intended for e-mobility and metal replacement applications. This innovative material has excellent thermal, mechanical, and electrical qualities, making it ideal for high-temperature automotive components such as e-motors, power electronics, and electrical connections. It also fits the demands of electric and electrical devices, as well as telecommunications equipment, which require high heat resistance. Solvay's launch highlights the company's dedication to innovation and meeting the demands of developing sectors.
• In February 2021, Hexcel Corporation partnered with NaCa Systems to develop a lightweight carbon fiber prepreg and wood fiber composite sports vehicle seat back. The collaboration aims to test a short-cycle manufacturing approach for Carbon Fiber Reinforced Polymer (CFRP) and wood fiber composite components using quick press molding techniques. This collaboration seeks to enhance productivity and reduce manufacturing times for automotive manufacturers. The joint effort aims to revolutionize the production of lightweight car interior parts by combining Hexcel's innovative materials with NaCa Systems' expertise in natural fiber composites.
• Sigmatex announced the launch of a new recycled carbon fiber non-woven fabric in September 2020. Manufactured from high-quality carbon fiber waste, this fabric offers excellent mechanical and isotropic properties. Available in area weights ranging from 100gsm to 600gsm, it simplifies processing using pre-preg processes. This new non-woven fabric represents a significant advancement in carbon fiber sustainability, delivering improved performance and efficiency for various applications.
• Mitsubishi Chemical Advanced Materials, Inc. and R3 Composites Corp. formed a strategic alliance in September 2020 to provide comprehensive solutions to North American clients. Specializing in the design, development, and manufacturing of innovative carbon-based composites, particularly for mobility applications, the collaboration aims to address evolving market demands and deliver cutting-edge solutions by leveraging combined resources and complementary skills.
• In August 2020, SGL Carbon secured a multi-year contract with Koller Kunststofftechnik GmbH to produce novel carbon fiber profiles for windscreens for a high-volume BMW Group vehicle. These profiles, made from highly flexible fiber tows pre-impregnated with thermoplastic resin, are designed for serial manufacturing and will be used in various sizes, showcasing SGL Carbon's expertise in novel materials for next-generation automotive applications.
• In February 2020, SGL Carbon unveiled the new composite battery enclosure, driven by the need for flexible chassis platforms. Based on carbon fiber, the battery enclosure offers enhanced lightweight and structural rigidity. Additionally, the company introduced its leaf spring made of glass fiber composite, further expanding its portfolio of innovative automotive components.

Automotive Composites Market Segmentation Insights

Composites are being considered to make lighter, safer and more fuel-efficient vehicles. A composite is composed of a high-performance fiber (such as carbon or glass) in a matrix material (epoxy polymer) that when combined provides enhanced properties compared with the individual materials by themselves.

Market Segmentation

By Application

• Structural Assembly
• Powertrain Component
• Interior
• Exterior

By Material

• Thermoset Polymer
• Thermoplastic Polymer
• Carbon Fiber
• Glass FibeR

By Geography

• North America
  • United States
  • Canada
  • Rest of North America
• Europe
  • Germany
  • United Kingdom
  • France
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Rest of Middle East and Africa