Automotive Composite Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application Type (Structural Assembly, Powertrain Component, Interior, Exterior), By Material Type Thermoset Polymer, Thermoplastic Polymer, Carbon Fiber, and Glass Fiber), By Region, By Competition, 2019-2029F
Published Date: March - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationAutomotive Composite Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application Type (Structural Assembly, Powertrain Component, Interior, Exterior), By Material Type Thermoset Polymer, Thermoplastic Polymer, Carbon Fiber, and Glass Fiber), By Region, By Competition, 2019-2029F
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 9.50 Billion |
| CAGR (2024-2029) | 10.28% |
| Fastest Growing Segment | Structural Assembly |
| Largest Market | Asia Pacific |
| Market Size (2029) | USD 17.08 Billion |
Market Overview
The Global Automotive Composite Gun market accounted for USD 9.50 Billion in 2023 and is expected to reach USD 17.08 Billion by 2029 with a CAGR of 10.28% over the forecast period.
The automotive composite market globally is experiencing high growth due to growing demand for lightweight and high-performance composites to make vehicles more efficient and lower emissions. The electrification of the automotive market has sped up the use of composites in electric vehicles (EVs) to maximize weight reduction and enhance battery performance. Applications like chassis, body frames, and suspension parts are experiencing strong growth as a result of the better strength-to-weight ratio of advanced composites like carbon fiber-reinforced polymers (CFRPs) and glass fiber-reinforced polymers (GFRPs). Strict environmental regulations and fuel efficiency requirements are also driving producers to substitute conventional materials with composites, which is driving innovation in the market.
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New trends in the automotive composite market are the creation of cost-efficient production processes, like resin transfer molding (RTM) and automated fiber placement, that allow for mass production without sacrificing material performance. The advent of hybrid composites, with various types of fibers, provides customized solutions for particular automotive uses. Lightweighting programs are pushing innovation in thermoset and thermoplastic composites, with increasing emphasis on recyclability to meet end-of-life vehicle regulations. The opportunities are immense in electric and autonomous vehicles, where the requirement for lightweight materials to maximize range and accommodate advanced sensor systems is paramount.
In spite of its accelerated growth, the market is plagued by issues such as high cost of production, complicated manufacturing processes, and recyclability challenges in some composite materials. The necessity for sophisticated equipment and technology may drive up the cost of operations, which becomes a hindrance for small and medium-sized industries. The issues related to the environmental consequences of non-recyclable composites and raw material scarcity, like carbon fibers, further complicate matters. Nevertheless, increased research and development on sustainable materials and processing efficiency improvements should counteract these hurdles, opening the door to continued market expansion.
Market Drivers
Demand for Lightweight Materials
Automakers increasingly emphasize reducing vehicle weight to improve fuel efficiency and performance, especially in the context of tightening global emissions standards. Composites such as carbon fiber-reinforced polymers (CFRPs) and glass fiber-reinforced polymers (GFRPs) have emerged as ideal solutions due to their exceptional strength-to-weight ratios. Compared to metals like steel or aluminum, composites provide equivalent or superior structural integrity while being significantly lighter. This weight reduction translates to better acceleration, handling, and fuel economy, particularly crucial for electric vehicles (EVs) and hybrid vehicles. Automakers are also leveraging lightweight composites to counterbalance the added weight of modern safety features and infotainment systems. As the demand for more efficient and sustainable transportation grows, lightweight composites are becoming indispensable in vehicle design.
Growth of Electric Vehicles (EVs)
The transition to EVs has accelerated the adoption of advanced composites in automotive manufacturing. Lightweight materials are critical for improving EV range by reducing the overall weight of the vehicle and, consequently, the energy required to propel it. Beyond weight considerations, composites also contribute to thermal management in battery enclosures and structural components, addressing the unique design and safety challenges posed by EVs. Additionally, the use of composites enables the design of sleek, aerodynamic shapes that further enhance efficiency. As the global EV market expands, driven by consumer demand and government incentives, the integration of composites in EV production is expected to grow exponentially. For instance, as per the International Energy Agency report, In 2023, global electric car sales approached 14 million units, with 95% of these sales occurring in China, Europe, and the United States. The total number of electric vehicles registered worldwide reached 40 million, following the addition of nearly 14 million new electric cars in 2023. This figure represents an increase of 3.5 million units compared to 2022, marking a 35% rise year-on-year. This growth is more than sixfold compared to the sales figures from 2018, just five years prior.
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Advancements in Manufacturing Technologies
Technological innovations in composite manufacturing have significantly improved the feasibility of mass production. Processes like resin transfer molding (RTM), automated fiber placement, and out-of-autoclave curing techniques allow manufacturers to produce high-quality components more efficiently. These advancements have reduced production costs and improved consistency in composite parts, encouraging their adoption across the automotive sector. As automation continues to optimize production lines, the scalability of composite manufacturing will expand, making these materials accessible for both luxury and mass-market vehicles.
Key Market Challenges
High Production Costs
The cost of producing composites, particularly CFRPs, remains a significant barrier to widespread adoption. Carbon fibers, a primary component in many advanced composites, require energy-intensive production processes that drive up costs. Manufacturing composite parts often involves specialized equipment and skilled labor, which increases capital and operational expenses. This cost factor is especially problematic for manufacturers targeting the mass market, where affordability is critical. Efforts to develop cost-effective raw materials and processes are ongoing but have yet to fully address this challenge.
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Recycling and Sustainability Issues
Despite their advantages, composites face challenges regarding end-of-life disposal and recycling. Thermoset composites, which are widely used for their rigidity and durability, are particularly difficult to recycle because they cannot be remelted or reshaped. This creates a waste management issue, especially as environmental regulations tighten. While thermoplastic composites offer better recyclability, their adoption is still limited due to their higher costs and performance trade-offs in certain applications. Finding sustainable solutions for recycling composites is crucial to ensuring their long-term viability.
Complex Manufacturing Processes
Producing composite materials and components often involves intricate processes that require advanced machinery and highly trained personnel. Techniques like resin infusion and curing are time-consuming and sensitive to errors, which can lead to higher rejection rates and production inefficiencies. For automakers accustomed to faster and more streamlined production cycles with metals, integrating composite manufacturing can disrupt workflows and increase costs. Simplifying and standardizing composite production techniques is essential to overcoming this hurdle.
Key Market Trends
Rise of Hybrid Composites
Hybrid composites, which combine different types of fibers or materials, are emerging as a solution to balance performance, cost, and application-specific requirements. For example, combining carbon and glass fibers can achieve a compromise between strength, weight, and affordability. Hybrid composites are being tailored to meet the diverse needs of automotive applications, such as impact resistance in bumpers or stiffness in suspension components. This trend reflects the industry’s focus on creating versatile materials for a wide range of vehicles.
Adoption in Electric and Autonomous Vehicles
The rise of electric and autonomous vehicles is driving the integration of lightweight composites. These materials help reduce battery loads and improve range in EVs while also supporting the structural integrity needed for advanced sensor systems in autonomous vehicles. Composites are being engineered to address specific challenges, such as shielding sensors from environmental interference and integrating seamlessly with electronic systems. This trend underscores the importance of composites in shaping the future of mobility.
Focus on Recyclable Composites
Thermoplastic composites and bio-based materials are gaining traction as sustainable alternatives to traditional thermosets. Thermoplastics can be reshaped and recycled, addressing key environmental concerns and aligning with regulatory pressures for sustainability. Bio-based composites, derived from renewable sources like natural fibers, offer an eco-friendly option without compromising performance. The development of these recyclable materials represents a significant step toward achieving a circular economy in automotive manufacturing. For instance, In 2024, as sustainability becomes increasingly important to consumers, Renault has opted to address this demand by equipping its new all-electric vehicle with low-CO2 materials sourced from Forvia (formerly known as Faurecia). These materials, which include NAFILean-R and Ecorium, feature recycled polypropylene (PP) and polyethylene terephthalate (PET), as well as natural components like hemp fiber. Developed in collaboration with recyclers Veolia and APM, and supplied by Materi’act, this innovative material achieves a 73% reduction in CO2 emissions and a 20% decrease in weight, all while adhering to rigorous standards for durability, crash safety, and cabin air quality.
Segmental Insights
Application Type
The market for automotive composites globally is divided on the basis of application type into powertrain components, structural assembly, interior, and exterior, each with its own distinct opportunities for integration and development. Structural assembly involves the use of composites in key components such as suspension systems, body frames, and chassis. Such applications advantage from the strength-to-weight ratio of advanced composites and offer improved crash performance, rigidity, and light weighting benefits. The corrosion resistance and durability of materials such as carbon fiber and glass fiber composites make them well suited to provide structural support while enhancing vehicle dynamics and fuel efficiency.
Powertrain components are an expanding area of application for composites because they require high thermal stability and wear resistance. Materials such as polymer matrix composites are employed in engine covers, oil pans, and transmission systems to minimize weight without affecting performance. Composites in powertrain applications also play a role in noise, vibration, and harshness (NVH) reduction, overall vehicle refinement. In electric and hybrid vehicles, composites are being used more to maximize thermal management in battery enclosures and electric motor parts, meeting efficiency and safety needs.
Interior uses include the application of composites in door panels, dashboards, and seat structures to enhance aesthetics, comfort, and weight savings. Natural fiber composites are becoming increasingly popular for interior applications because of their sustainable nature and capacity to provide a luxury finish. They help achieve sustainability objectives while providing the required structural integrity and acoustic performance. The flexibility of composites allows for the creation of complex geometry and smooth integration with electronic systems, boosting the functionality and attractiveness of vehicle interiors.
External applications utilize composites in body parts like bumpers, fenders, and roofs to attain aerodynamic performance and strength. The materials possess high resistance to environmental conditions such as corrosion and UV degradation, qualifying them for prolonged usage under harsh conditions. Sheet molding compounds (SMCs) and glass fiber composites are popular for external parts, providing design freedom and impact resistance. Lightweight composite panels are also contributing to enhancing vehicle fuel efficiency and range by cutting drag and overall weight. As manufacturers focus on new designs and material efficiency, composites' exterior uses keep expanding to meet the design and functional requirements of contemporary vehicles.
Region Insights
In 2023, Asia-Pacific was a leading region in the world automotive composite market, led by its established automotive production base and major material innovation progress. The strong automotive industry of the region, combined with a push for lightweight and performance improvement, has made it a major consumer and producer of automotive composites. Countries such as China, Japan, and India lead the pack, using their large manufacturing capacity and well-trained workforce to serve both local and foreign markets. The sheer volume of car production, especially for passenger cars and commercial vehicles, has galvanized the use of composites to address efficiency, safety, and sustainability objectives.
The increasing availability of electric vehicle (EV) production in Asia-Pacific has further stimulated the use of advanced composites. They play a crucial role in lowering vehicle weight, thus improving battery efficiency and driving range—elements that are crucial in the EV market. Governments in the region have introduced encouraging policies and incentives for EV adoption, which in turn stimulates the use of composites in structural and battery parts. In addition, growing consumer perception of fuel economy and environmental protection has prompted the auto industry to use lightweight composites in products.
Asia-Pacific's high R&D focus has resulted in innovative composite materials and manufacturing processes. The region's nations are allocating funds to automate and adopt inexpensive production processes like resin transfer molding (RTM) and thermoplastic processing to address high demand for advanced automotive parts. These advances in technology allow producers to reconcile performance, price, and sustainability, being competitive in international markets. Additionally, access to raw materials such as carbon fibers and resins improves the region's capability to accommodate mass production.
The growth of middle-class communities and growing car ownership in the emerging nations have also made Asia-Pacific take over the automotive composite market. Customers are demanding cars that have a balance of performance, cost, and eco-friendliness, which has led manufacturers to embrace advanced materials. In addition, more stringent government regulations regarding fuel emissions and fuel efficiency requirements are compelling manufacturers to use lightweight composites in order to be compliant without a loss of performance. With its robust industrial platform, creative material solutions, and growing emphasis on sustainability, the Asia-Pacific region remains at the forefront of the global automotive composite market in 2023.
Recent Developments
- In 2024, Hyundai Motor Group entered into a strategic cooperation agreement with Toray Industries Inc., This partnership aims to enhance the development of lightweight and high-strength materials intended for environmentally sustainable and high-performance vehicles. The collaborative research and development efforts will focus on carbon fiber-reinforced polymer (CFRP) components, which are anticipated to enhance the performance of electric vehicle (EV) batteries and motors.
- At JEC World 2023, Toray Advanced Composites showcased innovations including a spoiler panel from the Airbus Wing of Tomorrow, made by FACC with Toray Cetex® TC1225 LMPAEK thermoplastic tape featuring lightning strike protection. They also presented a linerless Liquid Oxygen (LOX) tank for the HyImpulse space launch vehicle, created by Adamant Composites using Toray's thermoset materials. Additionally, Toray highlighted its AmberTool® composite tooling prepregs, known for high quality and durability. The new HX56 and HX42 systems provide robust 990gsm reinforcement for efficient, cost-effective production of carbon composite tools suitable for aerospace and high-performance automotive applications.
- In 2023, an innovative 3D printing technique has been established for the creation of bio-based composite materials. The German Institutes of Textile and Fiber Research (DITF) in Denkendorf, in collaboration with Arburg GmbH + Co KG based in Loßburg, Germany, have developed a process that is both energy-efficient and material-efficient for producing sustainable, bio-based fiber-reinforced composites. The outcome of the research conducted by DITF and Arburg is the production of 3D-printed fiber composite components, which feature continuous cellulose fibers embedded within a cellulose-based matrix.
Key Market Players
- Toray Industries, Inc.
- SGL Carbon
- Hexcel Corporation
- Mitsubishi Chemical Carbon Fiber and Composites, Inc.
- mouldCAM Pty Ltd.
- Nippon Sheet Glass Co., Ltd
- Sigmatex
- Solvay
- Magna International Inc.
- Plasan Sasa Ltd.
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