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

The automobile industry is putting a lot of emphasis on rigorous rules for carmakers, such as the Corporate Average Fuel Efficiency (CAFE) standards and the European Emission Standards (EES), which are set by the governments of the United States and Europe, respectively. According to the Environmental Protection Agency of the United States (EPA). The United States government has made it a priority for automakers to adhere to an average miles per gallon standard for their vehicles, and as a result, automakers in the United States are focusing more heavily on the production of lightweight vehicles in order to reduce battery weight and improve vehicle fuel efficiency. The adoption of composites in the automotive industry has been aided by the strict government regulations, lightweight properties, and high safety associated with these materials.

In a competitive market, it’s difficult to break through with a new product that has a higher market price than the competition. The Automotive Composite Market faces a similar market predicament, as automotive composites are prohibitively expensive when compared to other viable alternatives. Automotive composites have acquired significant acceptance in locations like as Europe and North America due to rigorous emission norms and regulations, but they are still suffering in nations such as the APAC and MEA regions, owing to the high processing and manufacturing costs of composites. Furthermore, the cost of raw resources such as carbon fibers and thermoplastic resins is exorbitant, thus despite their numerous advantages over traditional materials like steel and aluminum, their use in the automotive sector is limited.

Composites’ progress in the automobile sector is being hampered by the significant financial expenditure required to manufacture them. Vehicles are one of the most significant sources of air pollution; hence there is a pressing need to minimize vehicular emissions as soon as possible. As a result, governments all over the world have set tough regulations for OEMs to follow when it comes to CO2 emission management from their vehicles. If the OEMs fail to meet these government standards, they may face penalties for excessive emissions. As a result, OEMs are putting a lot of effort into improving the fuel efficiency of their vehicles by designing lightweight cars with longer battery life. OEMs have viewed composite materials as the greatest replacement for traditional heavyweight materials like steel and aluminum in order to produce lightweight, fuel-efficient, and impact-resistant vehicles, creating a profitable opportunity for the Automotive Composite Market.

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

Based on Application, The market is segmented into Interior, Exterior, Power train, and Chassis. During the forecast period, the Exterior application is expected to account for the largest share of the Automotive Composite Market. Because important components of a car body, such as the bumper beam, fender, front end module, door panels, and hood, are constructed of composite materials, the exterior application accounts for a large portion of the Automotive Composite Market. Furthermore, the usage of composites in exterior parts such as fenders, hoods, bumper beams, deck lids, and other areas increased vehicle durability, resulting in a longer lifecycle and cheaper maintenance costs.

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