Composites in the Global Automotive Market Trends and Forecasts
Lucintel finds that the future of the composites in the global automotive material market looks promising with opportunities in interior, exterior, power train system, chassis systems, electrical and electronics, and under body system applications. Composites in the global automotive market is expected to reach an estimated $13 billion by 2031 with a CAGR of 4% from 2024 to 2031. The major growth driver in this market is rise in demand for vehicles that are fuel efficient and have low carbon emissions and corrosion resistivity and low thermal expansion.
The polymer matrix-based composites employed in the global automotive market consist of thermosetting resins such as epoxy, polyester and thermoplastic like polypropylene, nylon that is reinforced with fiber such as glass, carbon and aramid to make them strong and durable. The addition of additives improves properties leading to light weight components with high strength that enhance fuel efficiency and performance. These types of composites which include glass-fiber-reinforced polymers (GFRP) are cheaper than advanced carbon-fiber-reinforced polymers (CFRP). In spite of having a high initial cost compared to aluminum and steel, composites result in long-term savings due to their lightweight design and improved mileage. Composites are gradually becoming competitive in vehicle manufacturing owing to technological advancements during production process and economies of scale.
• Lucintel forecasts that powertrain system will remain the largest application segment and is also expected to witness the highest growth over the forecast period.
• SFT expected to witness the largest segment and CFT is expected to witness the highest growth over the forecast period.
• APAC and ROW is expected to remain the largest region by value and volume also due to higher penetration of composites in automotive in this region than other region.
Country wise Outlook for the Composites in the Global Automotive Market
Composites in the global automotive market is witnessing substantial growth globally. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major composites in the global automotive producers in key regions/countries: the USA, Germany, China, India, and Brazil.
Emerging Trends in Composites in the Global Automotive Market
The global automotive market is undergoing significant transformation, driven by advancements in technology, sustainability initiatives, and changing consumer preferences. Composites, known for their lightweight and high-strength properties, are increasingly being integrated into vehicle designs to enhance performance and fuel efficiency. As automakers strive to meet stringent emissions regulations and consumer demand for eco-friendly vehicles, several emerging trends are shaping the use of composites in the automotive sector. These trends not only reflect the industry‘s response to environmental challenges but also highlight innovations that are redefining vehicle manufacturing and design.
• Lightweight Materials: The shift towards lightweight materials is crucial for improving fuel efficiency and reducing emissions. Composites, such as carbon fiber and fiberglass, are being adopted to replace heavier metals, leading to lighter vehicles that consume less fuel and produce fewer emissions. This trend is particularly significant as automakers aim to meet increasingly stringent fuel economy standards.
• Electric Vehicle Integration: With the rise of electric vehicles (EVs), composites are playing a vital role in battery housing and structural components. Their lightweight nature helps offset the weight of heavy batteries, enhancing overall vehicle performance and range. As the EV market expands, the demand for composite materials is expected to grow, driving innovation in material science and manufacturing processes.
• Sustainability Focus: The automotive industry is increasingly prioritizing sustainability, leading to a rise in bio-based composites made from renewable resources. These materials not only reduce reliance on fossil fuels but also lower the carbon footprint of vehicle production. This trend aligns with consumer preferences for environmentally friendly products and supports automakers‘ sustainability goals.
• Advanced Manufacturing Techniques: Innovations in manufacturing processes, such as 3D printing and automated fiber placement, are revolutionizing how composites are produced and integrated into vehicles. These techniques allow for more complex designs, reduced waste, and faster production times. As these technologies mature, they will enable automakers to create more efficient and customized composite components.
• Enhanced Safety Features: Composites are increasingly being used to improve vehicle safety through the development of impact-resistant structures. Their ability to absorb energy during collisions makes them ideal for safety applications. This trend not only enhances passenger safety but also meets regulatory requirements for crashworthiness, making vehicles more appealing to safety-conscious consumers.
The emerging trends in the global automotive market are reshaping the landscape of vehicle design and manufacturing. The integration of lightweight materials, the focus on electric vehicles, sustainability initiatives, advanced manufacturing techniques, and enhanced safety features are all contributing to a more efficient, eco-friendly, and innovative automotive industry. As these trends continue to evolve, they will play a pivotal role in defining the future of mobility.
Recent Developments in Composites in the Global Automotive Market
The global automotive market is undergoing significant transformations, particularly with the increasing integration of composite materials. Composites, known for their lightweight and high-strength properties, are becoming essential in enhancing vehicle performance, fuel efficiency, and sustainability. As manufacturers strive to meet stringent regulations and consumer demands for greener vehicles, recent developments in composite technologies are reshaping the industry landscape. This outline highlights five key developments that are influencing the automotive sector, showcasing how these advancements are paving the way for a more innovative and sustainable future in vehicle manufacturing.
• Increased Adoption of Carbon Fiber: The automotive industry is increasingly adopting carbon fiber composites due to their superior strength-to-weight ratio, which significantly enhances fuel efficiency and performance. Major manufacturers are investing in carbon fiber technologies to reduce vehicle weight, leading to lower emissions and improved handling.
• Advancements in Manufacturing Techniques: Innovations in manufacturing processes, such as automated fiber placement and resin transfer molding, are streamlining the production of composite components. These advancements reduce production costs and time, making composites more accessible for mass production in the automotive sector.
• Development of Bio-based Composites: The rise of bio-based composites, made from renewable resources, is gaining traction in the automotive market. These materials not only reduce reliance on fossil fuels but also contribute to lower carbon footprints, aligning with the industry‘s shift towards sustainability and eco-friendly practices.
• Enhanced Recycling Methods: New recycling technologies for composite materials are being developed, addressing the environmental concerns associated with composite waste. Improved recycling processes enable the recovery of valuable materials, promoting a circular economy and reducing the environmental impact of automotive manufacturing.
• Collaboration Between Automakers and Material Suppliers: Strategic partnerships between automakers and composite material suppliers are fostering innovation and accelerating the development of advanced composite solutions. These collaborations enhance research and development efforts, leading to the creation of tailored composite materials that meet specific automotive requirements.
These developments in the automotive composites market are driving significant changes in vehicle design and manufacturing. The increased use of lightweight materials, advancements in production techniques, and a focus on sustainability are not only improving vehicle performance but also aligning the industry with global environmental goals. As these trends continue, the automotive market is poised for a more efficient and sustainable future.
Strategic Growth Opportunities for Composites in the Global Automotive Market
The global automotive market is undergoing a significant transformation, driven by advancements in technology, sustainability initiatives, and changing consumer preferences. Composites, known for their lightweight, strength, and durability, are increasingly being integrated into various automotive applications. This shift not only enhances vehicle performance and fuel efficiency but also aligns with the industry‘s push towards greener solutions. As manufacturers seek to innovate and meet regulatory standards, several strategic growth opportunities are emerging within key applications of composites in the automotive sector. Here are five key growth opportunities:
• Lightweight Structures: The demand for lightweight materials is surging as automakers aim to improve fuel efficiency and reduce emissions. Composites offer a viable solution, enabling manufacturers to create lighter vehicles without compromising safety or performance.
• Electric Vehicle Components: With the rise of electric vehicles (EVs), there is a growing need for lightweight and high-performance materials. Composites are ideal for battery enclosures, structural components, and interior parts, contributing to overall vehicle efficiency and range.
• Interior Applications: The automotive interior market is evolving, with consumers seeking enhanced aesthetics and comfort. Composites can be used in dashboards, door panels, and seating, providing design flexibility and weight reduction, which enhances the overall driving experience.
• Safety Features: Composites are increasingly being utilized in safety-critical components such as bumpers and crash structures. Their ability to absorb impact energy while maintaining structural integrity makes them essential for improving vehicle safety ratings.
• Sustainable Manufacturing: As sustainability becomes a priority, the automotive industry is exploring bio-based composites and recycling methods. This shift not only reduces environmental impact but also opens new markets for manufacturers focused on eco-friendly solutions.
The strategic growth opportunities in the automotive composites market are reshaping the industry landscape. By leveraging lightweight structures, catering to the electric vehicle segment, enhancing interior applications, improving safety features, and embracing sustainable manufacturing practices, companies can position themselves for success in a rapidly evolving market. These opportunities not only drive innovation but also contribute to a more sustainable and efficient automotive future.
Composites in the Global Automotive Market Drivers and Challenges
The global automotive market is significantly influenced by various technological, economic, and regulatory factors that drive growth and present challenges. As the industry evolves, the integration of advanced materials, changing consumer preferences, and stringent regulations shape the landscape for automotive composites. Understanding these drivers and challenges is crucial for stakeholders aiming to navigate the complexities of this dynamic market. This analysis will explore the key drivers propelling the market forward and the challenges that could hinder its progress.
The key drivers for this market include:
• Technological Advancements: Continuous innovations in composite materials, such as carbon fiber and thermoplastics, enhance vehicle performance, reduce weight, and improve fuel efficiency, making them increasingly attractive to manufacturers.
• Growing Demand for Lightweight Vehicles: As consumers and manufacturers prioritize fuel efficiency and sustainability, the demand for lightweight vehicles rises, driving the adoption of composites that help reduce overall vehicle weight.
• Increased Electric Vehicle Production: The shift towards electric vehicles (EVs) necessitates the use of lightweight materials to offset battery weight, leading to a surge in composite usage in EV manufacturing.
• Regulatory Pressure for Emission Reductions: Stricter emissions regulations worldwide compel automakers to adopt lighter materials, such as composites, to meet fuel economy standards and reduce greenhouse gas emissions.
• Enhanced Performance and Safety Features: Composites offer superior strength-to-weight ratios, contributing to improved vehicle safety and performance, which are critical factors for consumers and manufacturers alike.
The challenges facing this market include:
• High Production Costs: The manufacturing processes for advanced composites can be expensive, which may deter some manufacturers from fully adopting these materials, impacting overall market growth.
• Limited Recycling Options: The lack of established recycling methods for composite materials poses environmental concerns and may hinder their acceptance in the automotive industry, affecting sustainability goals.
• Supply Chain Constraints: Disruptions in the supply chain, particularly for raw materials used in composites, can lead to delays and increased costs, challenging manufacturers‘ ability to meet production demands.
The global automotive market for composites is shaped by significant drivers such as technological advancements, demand for lightweight vehicles, and regulatory pressures, which collectively foster growth. However, challenges like high production costs, limited recycling options, and supply chain constraints pose risks that could impede progress. Stakeholders must navigate these dynamics to leverage opportunities while addressing the challenges to ensure sustainable growth in the automotive composites sector.
List of Automotive Companies in the Global Composites Market
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 composites in the global automotive cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the composites in the global automotive companies profiled in this report include.
• BASF
• Advent International
• Dupont
• SABIC
• Lanxess
• Syensqo
• Teijin
• IDI Composites
• Hanwha Advanced Materials
• Celanese Corporation
• JNC Corporation
These companies have established themselves as leaders in composites in the global automotive market, 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 the composites in the global automotive market are evolving, with the entry of new players and the emergence of innovative composites in the global automotive market technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Composites in the Global Automotive Market by Segment
Key segments of composites in the global automotive market showing growth include carbon fiber composites, favored for light weighting in luxury and high-performance vehicles to enhance fuel efficiency. Glass fiber composites continue to expand in mainstream vehicles, offering cost-effective weight reduction and improved durability. Natural fiber composites are gaining traction due to their sustainability advantages, used increasingly in interior components and non-structural applications. Thermoplastic composites are in demand for their recyclability, shorter production cycles, and compliance with stringent automotive standards. Hybrid composites, combining various fibers and resins, are gaining popularity for their ability to deliver optimal performance and cost-efficiency across diverse automotive applications.
By Compound Material [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• SMC
• BMC
• GMT
• LFT
• CFT
• SFT
By Application [Volume (M lbs.) Analysis for 2019 – 2031]:
• Interior
• Exterior
• Power Train System
• Chassis Systems
• Electrical and Electronics
• Under Body System
• Other Applications
By Fiber [Volume (M lbs.) Analysis for 2019 – 2031]:
• Glass Fiber
• Carbon Fiber
By Resin Group [Volume (M lbs.) Analysis for 2019 – 2031]:
• Thermoset Resin
• Thermoplastic Resin
By Region [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• North America
• Europe
• Asia Pacific & Rest of The World
Features of Composites in the Global Automotive Market
• Market Size Estimates: Composites in the global automotive market size estimation in terms of value ($M) and volume (M lbs.)
• Trend and Forecast Analysis: Market trends (2019-2024) and forecast (2025-2031) by various segments and regions.
• Segmentation Analysis: Market size by compound material, application, fiber, resin group, and region.
• Regional Analysis: Composites in the Global Automotive market breakdown by North America, Europe, and Asia Pacific & Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different compound material, application, fiber, resin group, and region for composites in the global automotive market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the composites in the global automotive market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the composites in the global automotive market size?
Answer: The composites in the global automotive market is expected to reach an estimated $13 billion by 2031.
Q2. What is the growth forecast for composites in the global automotive market?
Answer: The composites in the global automotive market is expected to grow at a CAGR of 4% from 2024 to 2031.
Q3. What are the major drivers influencing the growth of the composites in the global automotive market?
Answer: The major growth driver in this market is rise in demand for vehicles that are fuel efficient and have low carbon emissions and corrosion resistivity and low thermal expansion.
Q4. What are the major applications for composites in the global automotive market?
Answer: Others and powertrain system are the major applications for composites in the global automotive market.
Q5. What are the emerging trends in composites in the global automotive market?
Answer: Emerging trends, which have a direct impact on the dynamics of the composites in the global automotive market, includes lightweight materials, electric vehicle integration, sustainability focus, and advanced manufacturing techniques.
Q6. Who are the key composites in the global automotive market companies?
Answer: Some of the key composites in the global automotive market companies are as follows:
• BASF
• DSM
• Dupont
• SABIC
• Lanxess
• Syensqo
• Teijin
• IDI Composites
• Hanwha Advanced Materials
• Celanese Corporation
• JNC Corporation
Q7.Which composites in the global automotive market material segment will be the largest in future?
Answer: Lucintel forecasts that, SFT is expected to be the largest compound material and continuous fiber thermoplastic (CFT) composites segment is expected to witness the highest growth in the forecast period.
Q8: In composites in the global automotive market, which region is expected to be the largest in next 7 years?
Answer: Europe is expected to remain the largest region and Asia Pacific and Rest of the World witness the highest growth over next 7 years.
Q9. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 11 key questions:
Q.1 What are some of the most promising potential, high growth opportunities for the composites in the global automotive market by compound material (SMC, BMC, GMT, LFT, CFT, and SFT), application (exterior, interior, power train system, chassis system, electrical and electronics, under body system, and other applications), fiber (glass fiber and carbon fiber), resin group (thermoset resin and thermoplastic resin), and region (North America, Europe, and Asia Pacific & Rest of the World)?
Q. 2 Which segments will grow at a faster pace and why?
Q.3 Which regions will grow at a faster pace and why?
Q.4 What are the key factors affecting market dynamics? What are the drivers and challenges of the market?
Q.5 What are the business risks and threats to the market?
Q.6 What are the emerging trends in this market and the reasons behind them?
Q.7 What are the changing demands of customers in the market?
Q.8 What are the new developments in the market? Which companies are leading these developments?
Q.9 Who are the major players in this market? What strategic initiatives are being implemented by key players for business growth?
Q.10 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.11 What M & A activities have taken place in the last 5 years in this market?