Global Automotive Composite Market Size By Fiber-Type (Carbon, Glass), By Resin-Type (Thermoplastic, Thermoset), By Application (Interior, Exterior), By Geographic Scope And Forecast

Automotive Composite Market Size And Forecast

Automotive Composite Market size was valued at USD 13.61 Billion in 2024 and is projected to reach USD 28.73 Billion by 2031, growing at a CAGR of 10.80% from 2024 to 2031.

Due to the general rising need for lightweight and fuel-efficient automobiles, the Automotive Composite Market is experiencing substantial expansion. Other factors driving market expansion include the adaptation of zero-emission electric vehicles in response to deteriorating environmental conditions, as well as the imposition of rigorous regulatory regulations. The Global Automotive Composite Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Automotive Composite Market Drivers

The market drivers for the Automotive Composite Market can be influenced by various factors. These may include

• Growing Need for Lightweight Vehicles In order to increase fuel economy and lower emissions, the automobile industry is under pressure to build lighter vehicles. Composites are perfect for lightweighting applications since they are substantially lighter than conventional materials like steel and aluminium. Examples of these materials are carbon fibre reinforced polymers (CFRP) and glass fibre reinforced polymers (GFRP).
• Stricter Environmental restrictions To lower vehicle emissions and increase fuel efficiency, governments all around the world are putting stronger restrictions into place. In order to comply with the laws, automakers are compelled to use innovative materials, such as composites. Notable examples include the US CAFE (Corporate Average Fuel Economy) standards and the EU’s CO2 emission objectives.
• Enhanced Performance PropertiesComposite materials provide better performance properties such increased durability, corrosion resistance, and a high strength-to-weight ratio. These qualities are very helpful in vital automobile parts, which encourages the industry to use them more frequently.
• Expanding Electric Vehicle (EV) industry One of the key factors propelling the automotive composite industry is the increasing popularity of electric vehicles (EVs). Lightweight materials are quite advantageous for EVs because they can help increase battery life and range. The need for composites rises in tandem with the growth of the EV market.
• Technological Developments in Manufacturing The cost-effectiveness and production efficiency of composite materials have increased thanks to technological developments in composite manufacturing, including automated fibre placement, resin transfer moulding, and 3D printing. The use of composite materials in car designs is now more practical for automakers thanks to these developments.
• A Greater Attention to Safety and Crashworthiness Composite materials have superior energy-absorbing qualities that improve the safety and crashworthiness of automobiles. The use of composite materials in automotive structures and components is motivated by the desire to raise safety requirements in automobiles.
• Growing Customer Need for High-Performance Automobiles Customers are becoming more and more interested in high-performance automobiles that provide excellent handling, acceleration, and overall driving enjoyment. These performance attributes are made possible in part by composites, which is why sports cars, luxury automobiles, and other high-end automotive applications use them.
• Partnerships and Collaborations The creation and uptake of novel composite solutions are being expedited by partnerships between suppliers of composite materials and automakers. These collaborations boost market expansion and make it easier to incorporate cutting-edge materials into the manufacturing of automobiles.
• Cost-Reduction Efforts The goal of ongoing research and development is to lower the price of composite materials and the production processes that use them. Composites are becoming more affordable and appealing as a result of these declining costs, which encourages the automotive industry to embrace them more widely.
• Sustainability TrendsThe usage of recyclable and environmentally friendly materials is being encouraged by the car industry’s push towards sustainability. It is possible to engineer composites to satisfy these sustainability standards, supporting the industry’s transition to more environmentally friendly methods.

Global Automotive Composite Market Restraints

Several factors can act as restraints or challenges for the Automotive Composite Market. These may include

• High Cost of Composite Materials The high cost of composite materials, particularly sophisticated composites like carbon fibre reinforced polymers (CFRP), is one of the main issues. Due to their higher cost compared to more conventional materials like steel and aluminium, these materials may not be widely used, especially in mass-market automobiles.
• Complicated Manufacturing Procedures Creating composite materials frequently calls for labor-intensive, complicated manufacturing procedures. Higher production costs and longer cycle times result from the need for specialised equipment and experienced labour for techniques like resin transfer moulding (RTM) and autoclave curing.
• Problems with Recycling and Disposal Composite materials present substantial recycling and disposal issues, in contrast to metals, which are readily recycled. The recycling process is made more complex by the challenge of separating the fibres from the resin matrix, which can pose significant environmental and legal issues.
• Limited Production Capacity At the moment, there is a limited capacity for producing high-performance composites, especially those made of carbon fibre. It can be difficult to scale up production to satisfy the automobile sector’s rising demand since it involves a substantial investment in new manufacturing facilities and technologies.
• Lack of Standardisation Variations in quality and performance may result from the lack of industry-wide standards for composite materials and their use in the automobile sector. The automobile sector may find it more difficult to use composites widely if there is a lack of standardisation.
• Design and Engineering Challenges Traditional engineering methods must be drastically altered in order to incorporate composite materials into vehicle design. Different material features, such as anisotropy and variations in thermal expansion, must be taken into consideration by engineers. This can make the design process more difficult and necessitate the use of specialised knowledge and equipment.
• Problems with Maintenance and Repair Composite materials frequently need for specific tools and methods of repair. This can make car maintenance and repairs more expensive and complex, which makes it difficult for them to be widely adopted, especially in areas with underdeveloped auto service infrastructure.
• Competition from Conventional Materials Metals, including aluminium and high-strength steel, are still developing and becoming more affordable than composites while providing better performance attributes. Adoption of composites may face competition from continued developments in these conventional materials, especially in price-sensitive automobile markets.
• Economic Uncertainty and Market VolatilityThese factors have the potential to affect car sales and, in turn, the demand for cutting-edge materials like composites. Consumers and producers may place a higher priority on cost savings than the use of innovative materials during uncertain economic times.
• Constraints in the Supply ChainThe composite materials supply chain is intricate and prone to interruptions. Geopolitical unrest, logistical difficulties, and raw material shortages are a few of the problems that might affect the timely and economical supply of composites to the automobile sector.

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Global Automotive Composite Market Overview

Cars are getting a makeover, thanks to stricter rules from governments around the world. In the US, the government says car companies must make their vehicles more fuel-efficient. So, they're working hard to make cars lighter, which helps save gas. Europe is also getting tough on car emissions. This means companies have to control how much pollution their cars release. Lightweight materials like composites come in handy here. They're strong enough to keep cars safe but light enough to reduce weight and save fuel. These government regulations are giving composites a boost in the car industry. After all, they're lightweight, safe, and help meet those strict rules.

In a crowded market, it's tough to make a splash with a new product that's pricier than the rest. That's exactly what's happening in the world of automotive composites, a lightweight and durable material that's out of most car buyers' reach. While fancy cars in Europe and North America are flaunting these composites to meet strict pollution rules, they're still a no-go in places like Asia and the Middle East because they're too darn expensive to make. And it's not just the manufacturing costs that are a pain in the neck. The materials themselves, like carbon fibers and fancy plastics, cost an arm and a leg. Despite all their perks over traditional materials like steel and aluminum, their use in cars is still very limited.

"Making cars with special materials called composites can help cut down on air pollution. But doing so costs a lot of money. That's a problem because cars are a big source of pollution, and governments are getting stricter about how much pollution automakers can create. If automakers don't meet these rules, they could face fines. So, they're working hard to make cars that use less gas. These cars are often lighter and have longer-lasting batteries. Automakers have found that composites can be a great replacement for heavy materials like steel and aluminum. Composites make cars lighter, more fuel-efficient, and stronger. This creates a great opportunity for companies that make composites, as automakers see these materials as the key to meeting government regulations and building greener cars."

Global Automotive Composite Market Segmentation Analysis

The Global Automotive Composite Market is Segmented on the basis of Fiber-Type, Resin-Type, Application, And Geography.

Automotive Composite Market, By Fiber-Type

• Carbon
• Glass
• Others

Based on Fiber-Type, The market is segmented into Carbon, Glass, and Others. The Automotive Composite Market was dominated by Glass-Fiber Type. Glass fiber reinforced composites (GFRP) are made up of a large number of small glass fibers that are woven together and kept tightly in place by a plastic polymer resin. It is utilized in composites as a reinforcing ingredient. Glass fiber is a preferred material for automobile composite makers due to its exceptional properties such as strength, durability, flexibility, stability, lightweight, and resistance to heat, temperature, and moisture.

Automotive Composite Market, By Resin-Type

• Thermoplastic
• Thermoset

Based on Resin-Type, The market is segmented into Thermoplastic and Thermoset. The Global Automotive Composite market is dominated by Thermoset Resin-type segment. The use of thermoset compound goods is increasing, and Mar-Bal, a leader in thermoset compound products, matches the advanced needs of this highly-engineered industry. Thermoset compounds are used on exterior and interior vehicle parts, and they provide original equipment manufacturers lower weight, durability, and a slew of other advantages (OEMs).

Automotive Composite Market, By Application

• Interior
• Exterior
• Power train
• Chassis

When it comes to where these composites are used in cars, the largest chunk of the market goes to the exterior. Think about the bumper beam, fender, front end module, door panels, and hood. These are all key parts of a car's body, and they're increasingly being made from composite materials. Why? Because composites make these parts stronger and more durable. This means that cars last longer and maintenance costs are lower. In fact, using composites for exterior parts like fenders, hoods, bumper beams, deck lids, and other areas has been shown to increase vehicle durability, leading to a longer lifespan and cheaper upkeep.

Automotive Composite Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

On the basis of Geography, The Automotive Composite Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. In the future years, the Asia Pacific is likely to lead the Global Automotive Composite Market. Due to the presence of important manufacturers in major economies such as China, India, and Japan, the region is one of the most lucrative places for the automobile industry. The regional market is expected to increase due to competitive advantages in terms of low raw material and production costs, as well as consistent expansion in car production.

Key Players

The “Global Automotive Composite Market” study report will provide a valuable insight with an emphasis on the global market including some of the major players such as UFP Technologies, Inc., Plasan Carbon Composites, Mitsubishi Chemical Corporation, SGL Group, Toray Industries, Inc., Solvay S.A., Toho Tenax Co., Ltd., Koninklijke Ten Cate B.V., Continental Structural Plastics Inc., and Gurit.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In January 2020, SGL Carbon has expanded its production capabilities by opening a new production hall for graphite-based vehicle components at its Bonn location. This growth and modernization of graphite automobile components cost the company roughly Euro 25 million.
• In September 2020, Mitsubishi Chemical Advanced Materials, Inc. formed a strategic agreement with R3 Composites Corp., a compression molded thermoset product supplier, to offer clients in North America comprehensive solutions combining both companies’ experience. The cooperation will focus on the design, development, and production of innovative carbon-based composites for a variety of applications, including mobility.

Report Scope