- To meet the emissions regulations and policies, OEMs are trying to reduce the weight of automobiles by employing lightweight composites. Composites have been adapted as the primary strategy. High-speed production, accuracy, stability, strength to weight ratio, better finish, and simple assembly are some of many reasons to employ composite materials. However, high costs associated with carbon fiber composites, and glass fiber composites is hindering the growth of the market, as their usage in low-cost vehicles could drastically increase the prices of such vehicles. OEMs are investing in R&D to develop inexpensive methods to make the composites available to a wide range of customers.
- Presently, composite materials, like thermoplastics and reinforced glass, have drawn the attention of carmakers, making them focus on sourcing better, tensile, and lighter components in the manufacture of automobile units.
- Germany ranked 1st in the world for car exports. Other leading importers of German manufactured vehicles are North and South America. Volkswagen group topped a ranking of the leading manufacturer based on global sales, with almost 11 million units sold worldwide in 2019. Around 3.6 million passenger cars were sold in Germany, in the year 2019, which was a slight year on the increase from 2018.
Key Market Trends
Increasing Application of Lightweight Materials
With sufficient technological advancements, German manufacturers are expected to see a rise in demand for car exports, which intern will increase demand for composite materials as manufacturers are looking to reduce car weight to keep up with emission norms across the world.
With the introduction of electric automobiles in the market, the growth rate is expected to grow during the forecasted period. As Germany is racing towards reducing energy usage, the automotive composites market will have a positive impact. The automotive industry has been focusing on vehicle weight for decades as vehicle weight has a direct effect on driving dynamics and fuel consumption.
Due to the high cost of potential lightweight solutions and consumers’ limited willingness to pay for weight reduction in automotive, the use of costly lightweight materials has so far been limited. As governments from around the world are implementing stringent emission regulations and even are planning to set even higher emissions standards in the coming years, the importance of lightweight materials will increase. In a typical automobile, the use of fibers is 50% by volume, while adding just 10% to the weight. As per the US Department of Energy (DOE), reducing the weight of vehicles by 10% yields an increase of 6-8% in fuel economy. As a result, companies have started using materials like carbon fiber and glass fiber composites to make vehicles lightweight and fuel-efficient. The usage of glass fiber composites aids in reducing vehicle by 25%. EU emission regulations mandate a mere 95 g/Km of CO2 by 2021, with another 15% reduction by 2025, and in 2030, a further 30% reduction from 2021.
According to European directives and standards (2000/53/EC-End Life 0f Vehicles), US Department of Transportation, the automotive manufacturing industry has to follow certain norms in regarding environmentally friendly recycling and dismantling of vehicles, higher fuel efficiency standards, and increase in the use of recyclable materials which offers high potential for the composites market to grow during the forecasted period. A slowdown in global economic growth and structural change in the automotive industry are hurting this market, but during the forecasted period, the composites market is expected to grow.
Technological Advancements To Drive the Market
With the increase in the shortage of natural resources and costs, manufacturers are looking to produce low-cost products around the world. The Cost-effectiveness of the composite components is expected to propel the market towards growth during the forecasted period. Composite parts not only benefit businesses but also help in reducing raw material requirements, energy consumption, and increasing flexibility in prices. It also plays a role in achieving sustainability. The higher standards (which are for controlling the emissions) are, in turn, dependent on the weight, combustion, and fuel efficiency of the vehicle and thus are difficult to achieve. Demand for customized cars is on the rise globally, with the younger population showing a keen interest in customizing their vehicles, as sports and racing cars.
In the manufacture of racing cars and luxury sports cars, the thermoset composites have already been widely in use for many years. As technology improves in a few years from now, the cost is most likely to go down by 15% to 30% and the manufacturing cost by 15% to 20%.
Increasing consumer confidence, improving quality, durability, and advancement of technology together, these factors are expected to drive the market for automobile composites toward exponential growth in the future.
The Germany automotive composites market is consolidated. Industry participants are expected to expect intensive competition owing to aggressive strategies, including acquisitions, pricing, merges, and new product development. Significant players in the market are Hexcel Corporation, Mitsubishi Chemical Carbon Fiber and composite Inc, SGL carbon, and Toray Industries Inc. Companies are trying to invent new composites that can reduce the total weight of the vehicle to much lower proportions.
- On July14, 2020 Toray Industries Inc has announced that they have concluded an agreement with Lilium GmbH to supply carbon fiber composite materials.
- On April 21, 2020 SGL carbon received contract for battery enclosure from BMW group.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 Hand Layup
5.1.2 Resin Transfer Molding
5.1.3 Vacuum Infusion Processing
5.1.4 Injection Molding
5.1.5 Compression Molding
5.2 By Material Type
5.2.1 Thermoset Polymer
5.2.2 Thermoplastic Polymer
5.2.3 Carbon Fiber
5.2.4 Glass Fiber
5.3 By Application
5.3.1 Structural Assembly
5.3.2 Power train Component
6.2 Company Profiles
6.2.2 Base Group
6.2.4 Cytec Industries
6.2.6 Johns Manville
6.2.7 Toray Industries
6.2.8 Teijin Limited
6.2.9 SGL Group
6.2.10 Nipposn Sheet Glass Co. Ltd.
6.2.12 Jushi Group Co. Ltd.
6.2.13 Owens Corning