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I AgreeAnalysis of Automotive Composites Market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Fact.MR’s automotive composites industry analysis reveals that global market was valued at US$ 6.35 Billion in 2021, and is projected to top US$ 20 Billion by 2032, 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 Billion, with that for carbon composites is set to balloon at 12%.
Report Attribute |
Details |
---|---|
Anticipated Base Year Value (2021) |
US$ 6.35 Billion |
Expected Market Value (2022) |
US$ 7.04 Billion |
Projected Forecast Value (2032) |
US$ 20 Billion |
Global Growth Rate (2022-2032) |
11% CAGR |
Expected Market Share of the Asia Pacific Market (2032) |
47% |
Anticipated CAGR of Europe (2022-2032) |
12% |
Major Automotive Composites Service Providers |
|
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As per Fact.MR - a market research and competitive intelligence provider, the global market for automotive composites progressed at a CAGR of 9% from 2017 to 2021, reaching a valuation of US$ 5.72 Billion 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.
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Demand for increasing manufacturing efficiency driving market growth
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.
Demand for reducing vehicle weight shaping market landscape
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.
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Expensive nature of composite materials hindering market growth
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.
Automotive composites Market | Automotive composites Market |
CAGR (2022-2032) | 6% |
Market Value (2032) | US$ 20 Billion |
Growth Factor | Advancement in automobile manufacturing is bolstering the demand for automotive composites. |
Opportunity | Stringent regulations by government to curb emissions across the globe is creating lucrative opportunities for automotive composites. |
Automotive composites Market | Automotive Relay Market |
CAGR (2022-2032) | 5.1% |
Market Value (2032) | US$ 26.5 Billion |
Growth Factor | Adoption of advanced & automated electrical safety systems in vehicles is creating lucrative opportunities for automotive relay. |
Opportunity | Integration of new technologies in automotive relays is fueling the growth of automotive relay market. |
Automotive composites Market | Automotive Tail Light Market |
CAGR (2022-2032) | 6% |
Market Value (2032) | US$ 22 Billion |
Growth Factor | The usage of rear combination lamps for vehicles has catered plentiful benefits such as better brightness, energy, and cost-saving and also presents enhanced safety is boosting sales for automotive tail light. |
Opportunity | Investment in research and development for integrating technology ans sensors in tail lights is advancing the use of automotive tail lights. |
Carbon reduction targets set by government benefitting market growth
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.
Lower material rates boosting adaption of automotive composites
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 | CAGR |
China |
8% |
India |
6% |
Germany |
9% |
Superior attributes of glass fiber attracting manufacturers to invest in the same
Glass fiber accounts for the largest share of around strong>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.
Use of automotive composites in exteriors of car boosting market growth
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.
Key start-up players in the automotive composites market are 9T, Boston Materials, Rein4ced, Weav3D and Solerial Matusions
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
Report Attribute |
Details |
---|---|
Market Value in 2022 |
US$ 7.04 Billion |
Market Value in 2032 |
US$ 20 Billion |
Growth Rate |
CAGR of 11% from 2022 to 2032 |
Base Year for Estimation |
2021 |
Historical Data |
2017-2021 |
Forecast Period |
2022-2032 |
Quantitative Units |
Revenue in USD Billion and CAGR from 2022-2032 |
Report Coverage |
|
Segments Covered |
|
Regions Covered |
|
Key Countries Profiled |
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Key Companies Profiled |
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Customization |
Available Upon Request |
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As of 2021, the automotive composites market was worth US$ 6.35 Billion
Fact.MR foresees automotive composites demand to reach US$ 7.04 Billion in 2022
From 2022-2032, Fact.MR expects automotive composites revenue to flourish at a 11% CAGR
In 2032, automotive composites market worth is poised to reach US$ 20 Billion
Europe is projected to expand at a CAGR of 12% across forecast period.
Asia Pacific is expected to account for 47% share of global revenue from automotive composites.
China, India and Germany will flourish at a CAGR of 23% combined until 2032
Glass fiber is expected to account for the largest share of around 75% of the overall market.
Exterior application of automotive composites accounts for 55% in terms of value and 50% in terms of volume, of the overall market.