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Automotive Composites Market - Forecasts from 2022 to 2027

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  • 128 Pages
  • July 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5649207
The automotive composites market was evaluated at US$6.032 billion for the year 2020 and is projected to grow at a CAGR of 7.13%, reaching a market size of US$9.768 billion by the year 2027.

Automotive composites are light and compact materials mainly employed under the hood and in the interiors of trucks, cars, and other vehicles. Composites are employed for numerous vehicle interior and exterior applications because they are favoured materials for weight reduction in autos. Because of their outstanding dimensional stability, composite materials have become more prevalent in the automotive sector in recent years. Composites are desirable materials because of their shape retention, low coefficient of thermal expansion, corrosion resistance for performance in dry and wet situations, the convenience of manufacturing, & low weight to reduce overall vehicle mass.

The requirement for lightweight components in automobile parts to improve fuel efficiency and lower emissions to comply with EU legislation is driving the market for automotive composites. Compared to traditional structural metallic materials such as steel, iron, and aluminium, composites offer weight reduction benefits of 15-20% for glass fibre and 25-40% for carbon fibre composites. Moreover, many public-private partnership programs in EU member states have already been developed to boost the use of composites in the automotive sector. The creation of composites and automotive lightweight materials innovation clusters, as well as collaborations with the automotive and chemical industries to support the investment through supply chain analysis of the automotive carbon fibre composites market, are examples of such initiatives.

Furthermore, the market for automotive composites is being driven by an increase in demand for electric vehicles. Electric vehicles, according to several experts, will allow for higher prices per kilo of weight saved in vehicle weight reduction measures. Typical IC engine automobiles can only afford to spend a couple of dollars for each kilogram of weight saved, whereas electric vehicles can save 7-8 dollars per kilogram. In conventional driving cycles, general cars waste more energy while accelerating, but they can also recover more kinetic energy through brake energy recovery. A lighter car body enables battery downsizing while preserving range in electric vehicles. Reducing the weight of the vehicle body and battery pack has a compounding effect on overall vehicle weight reduction by allowing other systems like the brake system and driving the train to be downsized. At the same drivetrain power and torque levels, the decreased weight cuts pollutants and enhances performance in ICE vehicles.

However, recycling issues in the automotive composites sector are not as easy as recycling challenges in the metals market. The reason for this is that fibre reinforcement pieces are frequently joined to other elements, such as metal fixings. The difficulty of disassembling, separating, and de-bonding vehicles to be recycled is the biggest roadblock. Furthermore, even if the parts can be separated, extracting individual components from the composite is challenging. This is because composites are made up of various components that cannot be melted down and recovered. As a result, the market is hampered by numerous recycling rules on the plastic and composites market, as well as their inefficient recycling process.

Based on fiber type, owing to features such as high strength, stiffness, flexibility, and chemical resistance, glass fibre composites are widely employed in the automotive industry and are expected to dominate the market. In recent years, there has been a significant growth in the need for lightweight materials to improve fuel efficiency and reduce emissions. Glass fibre composites are widely employed in the automotive industry since they are less expensive than carbon and natural fibre composites. Furthermore, natural fibre composites are used to make vehicle body sections like engine hoods, storage tanks, and dashboards, reducing the use of other metals like steel.

During the projection period, the exterior segment is expected to grow at a significant CAGR. Exterior automobile applications for automotive composites include headlamps, heat shielding components, and more. Many automakers are likewise emphasizing composites in their vehicle bodywork. For example, recent research indicates that reinforced thermoplastics could become the next big wave. The BMW i3 is the world's first mass-produced automobile with a thermoplastic composite exterior element. As an alternative to glass fibre as a light-weighting solution, the automobile industry is increasingly adopting natural composites in the interior portions of vehicles.

The Asia Pacific is expected to take the lead in terms of market share. Due to the highest number of automobiles present in this region, particularly in China, India, and Thailand, Asia Pacific is the largest and fastest-growing region. Furthermore, India, Indonesia, Thailand, and China are predicted to have the greatest number of cars on the road, as well as the largest markets for four-wheelers, fueling the market's expansion. As per the India Brand Equity Foundation (IBEF), India's automotive industry was the fifth largest in 2020, with passenger car sales reaching 2.3 million units in FY-21, a trend that is expected to continue in the future decade. Furthermore, top manufacturers worldwide are looking to the Asian market to boost their profits. Some of the world's largest automakers are developing manufacturing facilities in India to meet rising demand, boosting the country's automotive composites sales. Tesla, for example, built a research and development center in Bengaluru in January 2021 and incorporated a company called Tesla India Motors and Energy Private Limited.

Recent Development

Mitsubishi Chemical Co., Ltd. announced the development of a novel carbon fiber prepreg for use in vehicle engines in June 2021.

Hexcel joined the ASCEND Project in March 2021 to improve high-rate production and processing techniques in developing lightweight revolutionary composite materials for the automotive and aerospace industries.

Teijin Ltd. announced the deployment of a glass fibre sheet moulding compound unit at its automotive composites business, Benet Automotive s.r.o, in February 2021. Teijin invested in fulfilling increased demand for its composite parts from European automakers.

SGL Carbon announced a US$4.5 million investment at its Arkansas facility to enhance the manufacturing of carbon composites for electric vehicles in January 2021. Carbon and glass fiber reinforced products for automotive applications are manufactured by the firm.

COVID-19 Impact

The COVID-19 pandemic has impacted the market negatively. The global implementation of strict lockdown and social distance regulations has had a significant impact on composite material production. The market possibility for composites to be employed as diverse structures in automobiles has been completely diminished due to the reduced quantity of vehicle sales worldwide. However, with increased demand for electric vehicles, the market is anticipated to rebound.


By Fiber Type

  • Polymer Matrix
  • Glass Fiber
  • Natural Fiber
  • Carbon Fiber
  • Ceramic Matrix
  • Metal Matrix

By Application

  • Exterior
  • Interior
  • Structural
  • Chassis and Powertrain

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Middle East and Africa
  • Saudi Arabia
  • Israel
  • Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Taiwan
Frequently Asked Questions about the Automotive Composites Market

What is the estimated value of the Automotive Composites Market?

The Automotive Composites Market was estimated to be valued at $6.03 billion in 2020.

What is the growth rate of the Automotive Composites Market?

The growth rate of the Automotive Composites Market is 7.1%, with an estimated value of $9.77 billion by 2027.

What is the forecasted size of the Automotive Composites Market?

The Automotive Composites Market is estimated to be worth $9.77 billion by 2027.

Who are the key companies in the Automotive Composites Market?

Key companies in the Automotive Composites Market include Toray Industries, Solvay, Owens Corning, Johns Manville, BASF SE, Teijin Ltd., Mitsubishi Chemical Corporation, SGL Carbon, UFP Technologies, Inc. and Sabic.

Table of Contents

1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. Automotive Composites Market Analysis, by Fiber Type
5.1. Introduction
5.2. Polymer Matrix
5.3. Glass Fiber
5.4. Natural Fiber
5.5. Carbon Fiber
5.6. Ceramic Matrix
5.7. Metal Matrix
6. Automotive Composites Market Analysis, by Application
6.1. Introduction
6.2. Exterior
6.3. Interior
6.4. Structural
6.5. Chassis and Powertrain
6.6. Others
7. Automotive Composites Market Analysis, by Geography
7.1. Introduction
7.2. North America
7.2.1. USA
7.2.2. Canada
7.2.3. Mexico
7.3. South America
7.3.1. Brazil
7.3.2. Argentina
7.3.3. Others
7.4. Europe
7.4.1. United Kingdom
7.4.2. Germany
7.4.3. France
7.4.4. Italy
7.4.5. Spain
7.4.6. Others
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. Israel
7.5.3. Others
7.6. Asia Pacific
7.6.1. China
7.6.2. Japan
7.6.3. India
7.6.4. South Korea
7.6.5. Indonesia
7.6.6. Thailand
7.6.7. Taiwan
7.6.8. Others
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. Toray Industries
9.2. Solvay
9.3. Owens Corning
9.4. Johns Manville
9.5. BASF SE
9.6. Teijin Ltd.
9.7. Mitsubishi Chemical Corporation
9.8. SGL Carbon
9.9. UFP Technologies, Inc.
9.10. Sabic

Companies Mentioned

  • Toray Industries
  • Solvay
  • Owens Corning
  • Johns Manville
  • Teijin Ltd.
  • Mitsubishi Chemical Corporation
  • SGL Carbon
  • UFP Technologies, Inc.
  • Sabic