ASEAN Automotive Composites Market Trends and Forecasts
Lucintel finds that future of the ASEAN automotive composites intermediate material market looks promising with opportunities in exterior, interior, power train systems, under body systems, and electrical and electronics application. The ASEAN automotive composites material market is expected to grow with a CAGR of 6% 2024 to 2031. The major driver for this market is the domestic consumption by government, NGOs, and civic bodies.
Automotive composites are made from a wide range of raw materials which include primarily of resins like unsaturated polyester resins, epoxy resins and vinyl ester resins that play a role as the binding agents. Among these are glass fibers, carbon fibers, natural fibers (such as jute or hemp), and aramid fibers used to reinforce this resin so that it withstands better loads. Likewise, fillers such as calcium carbonate talc or mica can be incorporated in order to improve mechanical properties and reduce costs. The pricing of automotive composites is influenced by factors like raw material costs, manufacturing complexity and market demand trends. In general terms, composites compare favorably with conventional materials such as metals because they are ‘lightweight’, thereby contributing to improved fuel economy and performance although specific price comparisons depend on applications and regional market conditions.
• Lucintel forecasts that SFT will remain the largest segment by value and volume and will experience the highest growth over the forecast period because it offers corrosion resistance, insulation properties, low susceptibility to moisture and high mechanical properties.
• Power train system industry will remain the largest application and under body system is expected to witness the highest growth over the forecast period due to increasing demand for composite components in automotive industry.
Country wise Outlook for the ASEAN Automotive Composites Market
The ASEAN automotive composites market is witnessing substantial growth in ASEAN market. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major ASEAN automotive composites producers in key regions/countries: the Malaysia, Indonesia, and Thailand.
Emerging Trends in ASEAN Automotive Composites Market
The ASEAN automotive composites market is experiencing significant growth driven by increasing demand for lightweight materials, sustainability initiatives, and advancements in manufacturing technologies. As the automotive industry shifts towards more efficient and environmentally friendly solutions, composites are becoming essential for enhancing vehicle performance and reducing emissions. This market is characterized by innovation and adaptation, with manufacturers exploring new materials and processes to meet evolving consumer preferences and regulatory requirements. The following are five key trends shaping the ASEAN automotive composites market, each contributing to a transformative landscape in automotive manufacturing and design.
• Lightweight Materials: The shift towards lightweight materials is crucial for improving fuel efficiency and reducing emissions in vehicles. Composites, such as carbon fiber and glass fiber, are increasingly used to replace traditional metals, leading to lighter vehicles that consume less fuel. This trend not only enhances performance but also aligns with global sustainability goals, making it a priority for manufacturers in the ASEAN region.
• Sustainability Initiatives: There is a growing emphasis on sustainability within the automotive sector, prompting manufacturers to adopt eco-friendly composite materials. Biodegradable composites and recycled materials are gaining traction, as companies seek to minimize their environmental impact. This trend reflects a broader commitment to sustainable practices, appealing to environmentally conscious consumers and meeting regulatory standards.
• Advanced Manufacturing Technologies: Innovations in manufacturing technologies, such as 3D printing and automated processes, are revolutionizing the production of automotive composites. These technologies enable faster prototyping, reduced waste, and greater design flexibility. As manufacturers adopt these advanced methods, they can produce complex composite structures more efficiently, enhancing competitiveness in the market.
• Increased Investment in R&D: The ASEAN automotive composites market is witnessing increased investment in research and development. Companies are focusing on developing new composite materials and improving existing ones to enhance performance and reduce costs. This trend is essential for driving innovation and ensuring that manufacturers can meet the evolving demands of the automotive industry, particularly in terms of safety and durability.
• Collaboration and Partnerships: There is a notable trend towards collaboration between automotive manufacturers, material suppliers, and research institutions. These partnerships aim to accelerate the development of advanced composite materials and technologies. By pooling resources and expertise, stakeholders can drive innovation more effectively, leading to the creation of superior products that meet market needs.
These emerging trends are reshaping the ASEAN automotive composites market by promoting lightweight solutions, sustainability, and technological advancements. As manufacturers adapt to these changes, they are not only enhancing vehicle performance but also aligning with global environmental standards. The focus on innovation and collaboration will continue to drive growth and competitiveness in this dynamic market.
Recent Developments in the ASEAN Automotive Composites Market
The ASEAN automotive composites market has been experiencing significant growth due to increasing demand for lightweight materials, advancements in manufacturing technologies, and a shift towards sustainable practices. As automotive manufacturers seek to enhance fuel efficiency and reduce emissions, composites have emerged as a viable solution. Recent developments in this sector reflect the industry's response to evolving consumer preferences, regulatory pressures, and technological innovations. This outline highlights five key developments that are shaping the future of the ASEAN automotive composites market, emphasizing their implications for manufacturers and consumers alike.
• Increased Investment in R&D: Major automotive companies are investing heavily in research and development to innovate composite materials, leading to enhanced performance and durability. This investment is crucial for developing next-generation composites that meet stringent automotive standards, ultimately driving market growth.
• Adoption of Sustainable Materials: There is a growing trend towards using bio-based and recycled composites in automotive manufacturing. This shift not only reduces the environmental impact of production but also appeals to eco-conscious consumers, positioning companies as leaders in sustainability and enhancing brand loyalty.
• Technological Advancements in Manufacturing: Innovations such as 3D printing and automated composite layup processes are revolutionizing the production of automotive components. These technologies improve efficiency, reduce waste, and lower production costs, making composites more accessible to manufacturers and expanding their application in the automotive sector.
• Regulatory Support for Lightweight Vehicles: Governments in the ASEAN region are implementing regulations that encourage the use of lightweight materials to improve fuel efficiency and reduce emissions. This regulatory support is driving demand for automotive composites, as manufacturers seek to comply with these standards while maintaining vehicle performance.
• Collaboration Between Industry Players: Strategic partnerships between automotive manufacturers and composite material suppliers are becoming more common. These collaborations facilitate knowledge sharing and accelerate the development of innovative composite solutions, enhancing the competitive edge of companies in the ASEAN automotive market.
These developments are significantly impacting the ASEAN automotive composites market by fostering innovation, promoting sustainability, and enhancing collaboration among industry players. As manufacturers adapt to these changes, the market is poised for continued growth, driven by the increasing demand for advanced composite materials in the automotive sector.
Strategic Growth Opportunities for ASEAN Automotive Composites Market
The ASEAN automotive composites market is experiencing significant growth driven by increasing demand for lightweight materials, enhanced fuel efficiency, and stringent environmental regulations. As automotive manufacturers seek to innovate and improve vehicle performance, composites are becoming essential in various applications. This market is poised for expansion as companies explore new technologies and materials to meet consumer expectations and regulatory standards. The following are five key growth opportunities across different applications within the ASEAN automotive composites market.
• Lightweight Structures: The shift towards lightweight vehicles is creating demand for composites that reduce overall weight, leading to improved fuel efficiency and lower emissions.
• Interior Components: Composites are increasingly used in automotive interiors for their aesthetic appeal and durability, enhancing the overall consumer experience and vehicle value.
• Exterior Panels: The use of composites in exterior panels offers advantages such as corrosion resistance and design flexibility, allowing manufacturers to create more innovative vehicle designs.
• Electric Vehicle Components: With the rise of electric vehicles, composites are being utilized in battery enclosures and structural components, contributing to weight reduction and improved performance.
• Sustainability Initiatives: The growing focus on sustainability is driving the development of bio-based composites, which appeal to environmentally conscious consumers and align with regulatory trends.
These growth opportunities are significantly impacting the ASEAN automotive composites market by fostering innovation, enhancing vehicle performance, and promoting sustainability. As manufacturers adapt to these trends, the market is likely to see increased investment and development in composite technologies.
List of ASEAN Automotive Composites Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies ASEAN automotive composites companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the ASEAN automotive composites companies profiled in this report include
• Hanwha
• Mitsubishi Chemical Group
• Polynt Group
• Syensqo
• SABIC
• Avient
These companies have established themselves as leaders in ASEAN automotive composites industry with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within ASEAN automotive composites market are evolving, with the entry of new players and the emergence of innovative technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
ASEAN Automotive Composites Market by Segment
The ASEAN automotive composites market is witnessing significant growth across several key segments. Carbon fiber composites are in high demand due to their ability to reduce vehicle weight while enhancing fuel efficiency and performance, particularly in lightweight vehicles. Glass fiber composites continue to expand, valued for their cost-effectiveness and versatility in various automotive applications. Thermoplastic composites are gaining traction for their recyclability, impact resistance, and suitability for complex automotive components. With the rise of electric vehicles (EVs), there is a growing integration of composites to reduce vehicle weight and increase battery efficiency, supported by regional incentives and environmental regulations. Moreover, advancements in manufacturing technologies such as resin transfer molding (RTM) and automated processes are enhancing production efficiency and enabling the production of high-quality automotive composites in the ASEAN region. These trends underscore a dynamic shift towards lightweight, sustainable, and technologically advanced materials in ASEAN's automotive sector
By Application [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Exterior
• Interior
• Power Train System
• Under Body System
• Electrical and Electronics
• Other Applications
By Material Type [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• SFT
• LFT
• SMC
• BMC
• GMT
• Other Material Types
By Fiber Composites Type [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Glass Composites
• Carbon Composites
• Natural Composites
By Resin Type [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• PP Composites
• PA Composites
• PBT Composites
• Polyester Composites
• Vinyl Ester Composites
• Other Resin Types
By Resin Group [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:• Thermoplastic composites
• Thermoset composites
By Country [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Malaysia
• Thailand
• Vietnam
• Indonesia
• Others
Features of ASEAN Automotive Composites Market
• Market Size Estimates: ASEAN automotive composites market size estimation in terms of value ($M) and volume (M lbs.).
• Trend and Forecast Analysis: Market trends (2019-2024) and forecast (2025-2031) by various segments.
• Segmentation Analysis: Market size by application, material type, fiber composites type, resin type, resin group, and country.
• Growth Opportunities: Analysis of growth opportunities in different application, material type, fiber composites type, resin type, resin group, and country for the ASEAN automotive composites market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the ASEAN automotive composites market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in ASEAN automotive composites market or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the growth forecast for ASEAN automotive composites market?
Answer: The ASEAN automotive composites market is expected to grow at a CAGR of 6% from 2024 to 2031.
Q2. What are the major drivers influencing the growth of the ASEAN automotive composites market?
Answer: The major drivers for growth in this market are increasing demand for lightweight parts with high performance benefits in the automotive industry.
Q3. What are the major applications or end use industries for ASEAN automotive composites market?
Answer: Power train and interior are the major applications for ASEAN automotive composites.
Q4. What are the emerging trends in ASEAN automotive composites market?
Answer: Emerging trend, which have a direct impact on the dynamics of the industry, include integration of smart composites, electric vehicle integration, adoption of advanced manufacturing technologies, sustainability initiatives, lightweight materials.
Q5. Who are the key the ASEAN automotive composites companies?
Answer: Some of the key the ASEAN automotive composites companies are as follows:
• Hanwha
• Mitsubishi Chemical Group
• Polynt Group
• Syensqo
• SABIC
• Avient
Q6.Which ASEAN automotive composites material type segment will be the largest in future?
Answer: Lucintel forecasts that SFT is expected to remain the largest material type segment by volume over the forecast period because it offers corrosion resistance, insulation properties, low susceptibility to moisture and high mechanical properties.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 10 key questions:
Q.1 What are some of the most promising potential, high growth opportunities for the ASEAN automotive composites market by application (exterior, interior, power train systems, under body systems, electrical and electronics, and other applications), material type (SFT , LFT, SMC, BMC, GMT, and other material types), fiber composites type (glass fiber, carbon fiber, and natural fiber), resin type (PP, PA, PBT, polyester, vinyl ester, and other resin types), resin group (thermoplastic and thermoset), and country (Malaysia, Thailand, Vietnam, Indonesia, and other countries)?
Q. 2 Which segments will grow at a faster pace and why?
Q.3 What are the key factors affecting market dynamics? What are the drivers and challenges of the market?
Q.4 What are the business risks and threats to the market?
Q.5 What are the emerging trends in this market and the reasons behind them?
Q.6 What are the changing demands of customers in the market?
Q.7 What are the new developments in the market? Which companies are leading these developments?
Q.8 Who are the major players in this market? What strategic initiatives are being implemented by key players for business growth?
Q.9 What are some of the competitive products and processes in this area and how big of a threat do they pose for loss of market share via material or product substitution?
Q.10 What M & A activities have taken place in the last 5 years in this market?