Automotive Composites Market

Market Snapshot

Fact.MR’s automotive composites industry analysis reveals that global market was valued at US$ 9 Bn in 2020, and is projected to top US$ 20 Bn by 2031, expanding at an impressive CAGR of 11% over the next ten years. Demand for glass fiber composites is projected to surge and reach a valuation of around US$ 11 Bn, with that for carbon composites is set to balloon at 12%.

Key Points Covered in Automotive Composites Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise and Region-wise Analysis
• Competition Mapping and Benchmarking
• Assessment by Product Grade / Purity / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Certifications and Compliance Requirements
• Leading Export - Import Destinations
• Market Share Analysis
• COVID-19 Impact on Sales of Automotive Composites and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Automotive Composites from 2016 to 2020 Vs Demand Outlook for 2021 to 2031

As per Fact.MR - a market research and competitive intelligence provider, the global market for automotive composites progressed at a CAGR of 9% from 2016 to 2020, reaching a valuation of US$ 9 Bn in 2020.

Composites have been used popularly in a range of internal and external automotive components to provide distinct structural and weight advantages. A number of original equipment manufacturers (OEMs) and automakers world over are increasingly using automotive composites, with the primary objective to reduce vehicle weight and cut down on carbon emission.

Start-ups and big automobile manufacturers are actively considering to incorporate carbon fiber composites in trucks and electric vehicles in the forthcoming years.

Apart from this, the adoption of advanced automotive composites has upped the current safety level, reduced the consumption of fuels. In addition, the adoption of automotive composites has helped automotive players to fill in more functional hardware, notably gadgets.

Over the next few years, the market for automotive composites will witness a spate of innovations, with automotive powertrains providing a significant untapped area for growth. Advances in the composite market will offer OEMs better design freedom and function integration. Demand for design innovations in vehicles among customers in various parts of the world will further unlock interesting prospects for market players.

What are the Key Opportunities on Offer for Automotive Composite Manufactures?

Global demand for automotive composites is slated to grow at a sturdy pace over the next decade. Advancements in automobile manufacturing have unravelled several opportunities for growth within the market.

Furthermore, supremacy of automotive composites over their steel counterparts has led the automotive industry to prefer the former.

Vendors in the automobile industry have become reliant on the use of automotive composites in order to increase the efficiency of manufacturing. Therefore, the global market for automotive composites is set to grow to new heights in the years to follow.

Intensifying need for reducing vehicle weight through structural advancements and pressing demand for improving fuel economy are key factors driving demand for automotive composites across regions.

Growing focus on design innovations to enhance vehicle functionalities is bolstering demand for automotive composites made from aluminium and fiber. This is partly attributed to rising consumer demand for stylish and faster cars.

A number of governmental mandates and legislations on reducing carbon emissions in several developing and developed countries is a notable factor stoking demand for automotive composites. Furthermore, focus on improving the fuel economy of vehicles by automakers is expected to accentuate the market.

What are the Restraints being Encountered by Automotive Composite Providers?

Automotive composites are very expensive as compared to other alternatives that are already available in the market. Their high manufacturing cost is acting as a major hindrance for the growth of market.

Also, cost of raw materials such as carbon fibres and thermoplastic resins are high, and thus, even after several advantageous properties over traditional materials such as steel and aluminium, their use gets limited to the automotive industry.

High investment associated with the production of composites is majorly restricting the growth of composites in the automotive industry.

How are Stringent Carbon Emission Regulations in Europe Benefiting Manufacturers of Automotive Composites?

The global market for automotive composites in Europe is projected to expand at a CAGR of 12% across forecast period.

Europe’s automotive sector is one of the major industries operating in the region, and is comparatively larger than any other region.  European Union countries together are amongst the world’s biggest producers of motor vehicles, and the sector represents the largest private investor in research & development.

Stringent regulations imposed by authorities across Europe such as the European Automotive Manufacturers Association (ACEA) and the European Union Automotive Fuel Economy standard have set limits for carbon emissions, which has put pressure on automakers.

For instance, the European Union Commission (EC) has enforced to increase the EU’s GHG (greenhouse gases) reduction target for 2030 from 40% cut in CO2 emission to a cut of 50 or 55%.

Increasing fuel efficiency requirement along with lightweight nature of vehicles has enforced the use of automotive composites in automotive applications, driving demand for the product in the region.

What is the Demand Outlook for Automotive Composites in the Asia Pacific Region?

Asia Pacific dominated the market accounting for 47% share of global revenue from automotive composites.

This high demand is on account of the region being one of the most lucrative destinations for the automotive industry, owing to the presence of key manufacturers in major economies such as China, India, and Japan. Asia Pacific provides a competitive advantage in terms of low raw material and production cost, along with steady growth in automobile production.

Stringent emission regulations implemented by China, India, and Japan are expected to reduce the weight of vehicles, thereby enabling fuel savings. Vehicle weight can be reduced through the replacement of heavy metal components with composites.

Moreover, government initiatives such as “Make in India” are expected to contribute to the automotive industry growth in India, which, in turn, is likely to fuel demand for automotive composites over the coming years.

Country-wise Analysis

Why is the U.S. Expected to Drive Most Demand for Automotive Composites?

The market for automotive composites in the U.S. was estimated at US$ 3 Bn in 2020.

Presence of major automobile manufacturers such as Chrysler, Tesla, Ford Motor Company, and General Motors, along with suitable infrastructure, coupled with high disposable income, are expected to drive the market in the country.

Increasing demand for customized vehicles where composites are utilized to provide desirable specifications and performance is also a major driver for the market.

Category-wise Analysis

Why is Demand for Glass Fiber Composites High from the Automotive Industry?

Glass fiber accounts for the largest share of around 75% of the overall market. Glass fiber-reinforced composites, commonly abbreviated as GFRP, are composed of a large number of tiny glass fibers that are compiled together and held rigidly in place by plastic polymer resin.

It is used as a reinforcing element in composites. Owing to its superior attributes such as strength, durability, flexibility, stability, lightweight, and resistance to heat, temperature, and moisture, glass fiber is a choice of material for automotive composite manufacturers.

Why Does Exterior Application of Automotive Composites Account for Major Share?

Exterior application of automotive composites accounts for 55% in terms of value and 50% in terms of volume, of the overall market.

Exterior application contributes a major share in the automotive market since major components of a car’s body such as bumper beams, fenders, front-end modules, door panels, and hoods, among others, are made of composite materials.

Furthermore, use of composites in exterior parts such as fenders, hoods, bumper beams, deck lids, and others adds to the durability of cars, ensuring long lifecycle and lower maintenance cost.

Competitive Landscape

Manufacturers of automotive composites are entering into collaborations and partnerships with OEMs. Automakers are incorporating composites in their product lines in a move to gain a competitive edge over others. A number of established companies are acquiring small players in a move to further consolidate their market position.

Furthermore, several players are focused on developing advanced structural automotive composites to gain a better foothold in the market.

Some of the key developments are

• In October 2020, Teijin Group strategically partnered with AZL Partner New York for their lightweight production technology. This technology is aimed at transforming their business model to closely realize multifunctional and more lightweight next generation vehicles.
• In August 2020, SGL Carbon, along with joint coordinator Consortium, succeeded in improving the thermal insulation properties for the new composite materials by around 120 % and have made commercially available carbon materials.
• In July 2019, Teijin signed a joint agreement with an Australian venture AEV Robotics for co-development of lightweight automotive components and solutions for next generation transportation which will redefine forms of aging transportation.
• In March 2020, Huntsman International acquired CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives, and coatings markets.  The acquisition of CVC Thermoset Specialties has widened the breadth of Huntsman’s advanced materials portfolio, which in turn, will positively impact the company’s automotive composite business.
• In January 2020, SGL Carbon expanded its production facilities by inaugurating a new production hall at the Bonn site for graphite-based automotive components. The company has invested around Euro 25 million for this expansion and modernization of graphite automotive components.

Automotive Composites Market Report Scope

Market Segmentation as per Automotive Composites Industry Research

• By Fiber:

  • Glass Fiber Automotive Composites
  • Carbon Fiber Automotive Composites

• By Resin:

  • Thermoset Automotive Composites
  • Thermoplastic Automotive Composites

• By Manufacturing Process:

  • Compression Moulding
  • Injection Moulding
  • Resin Transfer Moulding (RTM)

• By Application:

  • Exterior Automotive Composites
  • Interior Automotive Composites
  • Powertrain Automotive Composites
  • Chassis Automotive Composites

• By Vehicle Type:

  • Automotive Composites for Non-electric Vehicles
  • Automotive Composites for Electric Vehicles

Automotive Composites Market- Scope of Report

A recent study by Fact.MR on the automotive composites market offers a 10-year forecast for 2021 to 2031. The study analyses crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering automotive composites.

The study also provides the dynamics that are responsible for influencing the future status of the market over the forecast period. A detailed assessment of value chain analysis, business execution, cost structure analysis, and supply chain analysis across regional markets has been covered in the report.

A list of prominent companies manufacturing automotive composites, along with their product portfolios, key strategies, and SWOT Analysis, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including revenue growth, and revenue generation across the globe.

A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the revenue of automotive composites market during the forecast period.

Key Questions Answered in Report

• Which are the most lucrative markets for automotive composites?
• Which factors will impact the growth of automotive composites market?
• How will changing trends impact the strategies of market players?
• How can market players capture the low-hanging opportunities across regions?
• Which companies are leading the automotive composites industry?
• What are the winning strategies of stakeholders in the market?

Market Size Evaluation

The market has been analysed for each market segment in terms of volume (`000units), and value (US$ Mn).

Market estimates at global and regional levels for automotive composites are available in terms of “US$ Mn” for value and in ‘’’000 units for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the revenue perspective in the global automotive composites market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic and business environment outlook), which are expected to have a momentous influence on the growth of the market during the forecast period.

Country-specific valuation on revenue for automotive composites has been offered for each regional market, along with market scope estimates and forecasts, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value for key countries has also been included in the report.

Competition Analysis

The report sheds light on leading manufacturers of automotive composites, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering automotive composites has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the automotive composites market.