Automotive Composites Market Introduction 

Automotive composites are materials made from two or more constituent materials with different physical and chemical properties, which when combined, produce a new material with improved properties such as strength, stiffness, and durability. Automotive composites are widely used in the automotive industry to manufacture lightweight and fuel-efficient vehicles, which help to reduce carbon emissions and meet stringent regulatory standards.The use of composites in the automotive industry has been growing rapidly over the past few years due to the increasing demand for lightweight vehicles and the need to improve fuel efficiency. Automotive composites are used in various applications, including body panels, chassis, interiors, and engine components. The most commonly used composites in the automotive industry are carbon fiber, glass fiber, and natural fiber composites.The automotive composites market is highly competitive, with several established players and new entrants competing for market share. The market is also characterized by rapid technological advancements and changing customer preferences. In response to these trends, companies are investing in research and development activities to develop new and innovative automotive composite materials that can meet the evolving needs of the market.

Automotive Composites Market Size

The global automotive composites market size was valued at USD 5.2 billion in 2020 and is expected to reach USD 9.8 billion by 2028, with a CAGR of 8.1% during the forecast period (2021-2028). The increasing demand for lightweight and fuel-efficient vehicles, stringent government regulations for fuel economy and emissions, and the growing trend of electric vehicles are the key factors driving the growth of the automotive composites market.The body panels application segment is expected to hold the largest share of the automotive composites market, owing to the high demand for lightweight and durable body panels in the automotive industry. The chassis application segment is also expected to witness significant growth during the forecast period, due to the increasing use of composites in suspension components and structural parts of vehicles.Geographically, Asia Pacific is expected to dominate the global automotive composites market during the forecast period, owing to the presence of several leading automotive manufacturers in the region and the growing demand for lightweight vehicles. North America and Europe are also expected to witness significant growth in the market, driven by the increasing demand for electric vehicles and the need to meet stringent regulatory standards for fuel economy and emissions.

Automotive Composites Market Share

The global automotive composites market is highly competitive and fragmented, with several major players accounting for a significant share of the market. Some of the key players operating in the market include Toray Industries Inc., Teijin Limited, SGL Carbon, Mitsubishi Chemical Holdings, Gurit, Owens Corning, Hexcel Corporation, Koninklijke Ten Cate BV, Solvay, and Huntsman Corporation.In terms of market share, Toray Industries Inc. is one of the leading players in the global automotive composites market, accounting for a significant share of the market. The company offers a wide range of automotive composites, including carbon fibers, thermoplastic composites, and hybrid materials, for various applications in the automotive industry.Teijin Limited is another major player in the market, offering a range of lightweight and high-performance materials for automotive applications, including carbon fiber-reinforced thermoplastic composites and aramid fiber-reinforced composites. The company has a strong global presence, with operations in Asia, Europe, and North America.Other key players in the market include SGL Carbon, a leading manufacturer of carbon fiber-based composite materials, and Mitsubishi Chemical Holdings, a global chemical and materials company that offers a wide range of advanced composites for automotive applications.

Automotive Composites Market Trends

The automotive composites market is witnessing several trends that are shaping the industry and driving its growth. Some of the key trends in the market include:

Growing demand for lightweight materials: With increasing pressure to meet fuel efficiency standards and reduce emissions, automotive manufacturers are increasingly turning to lightweight materials such as composites to reduce vehicle weight and improve fuel efficiency. This trend is driving the demand for automotive composites, which are lighter than traditional materials such as steel and aluminum.

Increasing adoption of electric vehicles: The growth of the electric vehicle market is also driving the demand for automotive composites, as these vehicles require lightweight materials to extend their range and improve their performance. Composites are well-suited to the unique design requirements of electric vehicles, which often have unique shapes and sizes compared to traditional combustion engine vehicles.

Advancements in composite materials: The development of new composite materials and manufacturing processes is also driving the growth of the automotive composites market. For example, the use of thermoplastic composites is growing due to their superior mechanical properties, recyclability, and lower manufacturing costs compared to traditional thermoset composites.

Increasing use of composites in interior applications: While composites are most commonly used in structural applications such as body panels and chassis components, there is growing interest in using composites for interior applications such as dashboards, seats, and door panels. This trend is being driven by the desire for lightweight, durable, and aesthetically pleasing interior components.

Growth in the luxury car segment: The luxury car segment is a key driver of demand for automotive composites, as these vehicles often have higher performance requirements and are more likely to use advanced materials. The growth of the luxury car market, particularly in emerging markets such as China, is expected to drive demand for automotive composites in the coming years.

Automotive Composites Market Driving Factors

The automotive composites market is driven by several factors, including:

Lightweighting requirements: The automotive industry is under increasing pressure to reduce vehicle weight in order to improve fuel efficiency and reduce emissions. Composites offer a lightweight alternative to traditional materials such as steel and aluminum, making them an attractive option for automakers.

Growing demand for electric vehicles: The market for electric vehicles (EVs) is growing rapidly, and composites are an important material for lightweighting EVs in order to extend their range and improve their performance. As the market for EVs continues to grow, demand for automotive composites is expected to increase.

Increasing use in structural applications: Composites are increasingly being used in structural applications such as body panels and chassis components, as they offer superior strength-to-weight ratios compared to traditional materials. This trend is being driven by the desire for lightweight, high-performance vehicles.

Advancements in composite materials: The development of new composite materials and manufacturing processes is driving the growth of the automotive composites market. For example, the use of thermoplastic composites is growing due to their superior mechanical properties, recyclability, and lower manufacturing costs compared to traditional thermoset composites.

Stringent regulations: Regulations around emissions and fuel efficiency are becoming increasingly stringent, and automakers are under pressure to meet these requirements. Composites offer a way to meet these requirements by reducing vehicle weight and improving efficiency.

Increasing demand for luxury vehicles: The market for luxury vehicles is growing, particularly in emerging markets such as China. Luxury vehicles often have higher performance requirements and are more likely to use advanced materials such as composites. As the market for luxury vehicles continues to grow, demand for automotive composites is expected to increase.

Automotive Composites Market Regional Analysis

The automotive composites market can be analyzed on a regional basis, considering factors such as the demand for lightweight and fuel-efficient vehicles, the presence of major automobile manufacturers, and government regulations promoting the use of lightweight materials.

North America: The region is expected to witness significant growth due to the increasing demand for lightweight materials, rising fuel efficiency standards, and the presence of major automobile manufacturers in the region.

Europe: Europe is expected to hold a significant share of the market due to the increasing demand for lightweight and high-performance materials and the stringent regulations regarding fuel efficiency and emissions.

Asia-Pacific: The region is expected to witness substantial growth due to the increasing demand for lightweight materials, the presence of major automobile manufacturers, and the growing demand for fuel-efficient vehicles in emerging economies such as China and India.

Middle East & Africa: The market is expected to witness moderate growth due to the increasing demand for lightweight materials and the presence of major automobile manufacturers in the region.

Latin America: The market is expected to witness moderate growth due to the increasing demand for lightweight materials and the presence of automobile manufacturers in the region.

Overall, the automotive composites market is expected to witness significant growth in the coming years, driven by the demand for lightweight and high-performance materials and the increasing need for fuel-efficient vehicles.

Automotive Composites Market Forecasts 2030 

The global automotive composites market is expected to grow significantly in the coming years, with a CAGR of around 9% from 2021 to 2030. The market size is expected to reach USD 13.5 billion by 2030, up from USD 6.7 billion in 2020.The growth of the market can be attributed to various factors such as the increasing demand for lightweight and high-performance materials, the rising demand for fuel-efficient vehicles, and the stringent government regulations regarding emissions and fuel efficiency. The increasing adoption of electric vehicles is also expected to drive the demand for lightweight materials, as the reduced weight can lead to increased range and better performance.In terms of material type, the demand for carbon fiber composites is expected to witness significant growth, driven by their high strength and stiffness-to-weight ratio. The demand for glass fiber composites is also expected to increase, driven by their cost-effectiveness and ease of manufacturing.In terms of application, the interior segment is expected to witness the highest growth, driven by the increasing use of composites in seats, dashboards, and other interior components. The exterior segment is also expected to witness significant growth, driven by the increasing demand for lightweight body panels and other exterior components.In terms of region, Asia-Pacific is expected to witness the highest growth, driven by the increasing demand for lightweight materials and the presence of major automobile manufacturers in the region. North America and Europe are also expected to witness significant growth, driven by the increasing demand for fuel-efficient vehicles and the stringent regulations regarding emissions and fuel efficiency.Overall, the automotive composites market is expected to witness significant growth in the coming years, driven by the demand for lightweight and high-performance materials and the increasing need for fuel-efficient vehicles.

Automotive Composites Market Key Industry Players

Some key players in the automotive composites market include Toray Industries, Inc., Mitsubishi Chemical Holdings Corporation, Owens Corning, SGL Carbon, Solvay S.A., Koninklijke Ten Cate B.V., Gurit Holding AG, Teijin Limited, Hexcel Corporation, and BASF SE.