North American Automotive Composites Market Trends and Forecasts
Lucintel finds that future of the North American automotive composites intermediate material market looks promising with opportunities in the exterior, interior, power train system, chassis system, under body system, electrical and electronics, and chassis system. The North American automotive composites market is expected to reach an estimated $3 billion by 2031 with a CAGR of 3% 2024 to 2031. The major growth drivers for this market are increase in production of passenger cars and light commercial vehicles are expected to boost composites material materials in the automotive industry in the next five years and increase usage of composites in chassis, insulating panels, casing, mufflers, and sound insulation parts of the vehicles.
Automotive composites are crafted from a diverse array of raw materials, primarily including resins such as unsaturated polyester resin (UPR), epoxy resin, and vinyl ester resin, which serve as binding agents. These resins are reinforced with materials like glass fibers, carbon fibers, natural fibers such as jute or hemp, and aramid fibers, providing strength and durability. Additionally, fillers like calcium carbonate, talc, or mica are often added to enhance mechanical properties and reduce costs. The pricing of automotive composites varies based on factors like raw material expenses, manufacturing complexity, and market demand dynamics. Generally, composites are competitive with traditional materials like metals due to their lightweight nature, which can contribute to improved fuel efficiency and performance, though specific price comparisons depend on application specifics and regional market conditions.
• Lucintel forecasts that short fiber thermoplastic (SFT) North American automotive composites is expected to remain the largest segment and continuous fiber thermoplastic (CFT) composites segment is expected to witness the highest growth in the forecast period.
• Exterior will remain the largest application segment and is also expected to witness the highest growth over the forecast period due to its increasing usage in automotive industry.
Country wise Outlook for the North American Automotive Composites Market
The North American automotive composites market is witnessing substantial growth. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major advance composite producers in key regions/countries: the USA, Canada, and Mexico.
Emerging Trends in North American Automotive Composites Market
The North American automotive composites market is experiencing significant transformation driven by advancements in technology, sustainability initiatives, and changing consumer preferences. As automakers seek to enhance vehicle performance while reducing weight and emissions, composites are becoming increasingly integral to vehicle design and manufacturing. This report identifies five key trends shaping the market, reflecting the industry's response to environmental concerns, regulatory pressures, and the demand for innovative materials that improve efficiency and safety. Understanding these trends is crucial for stakeholders aiming to navigate the evolving landscape of automotive composites effectively.
• Lightweight Materials: The shift towards lightweight materials is accelerating as manufacturers aim to improve fuel efficiency and reduce emissions. Composites, such as carbon fiber and glass fiber, are being increasingly utilized in vehicle structures, leading to lighter vehicles that consume less fuel and produce fewer emissions. This trend not only enhances performance but also aligns with regulatory requirements for lower carbon footprints, making it a critical focus for automakers.
• Sustainability Initiatives: There is a growing emphasis on sustainability within the automotive sector, prompting manufacturers to adopt eco-friendly composite materials. Bio composites and recycled materials are gaining traction as companies strive to minimize their environmental impact. This trend is reshaping supply chains and encouraging innovation in material development, ultimately leading to more sustainable production practices and products that appeal to environmentally conscious consumers.
• Advanced Manufacturing Techniques: The adoption of advanced manufacturing techniques, such as 3D printing and automated fiber placement, is revolutionizing the production of automotive composites. These technologies enable more efficient and precise manufacturing processes, reducing waste and production costs. As automakers increasingly integrate these techniques, they can produce complex composite structures that enhance vehicle performance and design flexibility, driving competitiveness in the market.
• Increased Investment in R&D: Investment in research and development is surging as companies seek to innovate and improve composite materials. This trend is fostering the development of new composites with enhanced properties, such as improved strength-to-weight ratios and better thermal resistance. As R&D efforts intensify, the market is likely to see the introduction of next-generation materials that can meet the evolving demands of the automotive industry, further driving growth.
• Collaboration and Partnerships: The automotive composites market is witnessing a rise in collaborations between manufacturers, material suppliers, and research institutions. These partnerships are essential for sharing knowledge, resources, and technology, facilitating the development of innovative composite solutions. By working together, stakeholders can accelerate the commercialization of advanced materials and technologies, enhancing their competitive edge in the market.
These emerging trends are reshaping the North American automotive composites market by driving innovation, enhancing sustainability, and improving manufacturing efficiency. As the industry adapts to these changes, stakeholders must remain agile and responsive to capitalize on the opportunities presented by these developments.
Recent Developments in the North American Automotive Composites Market
The North American automotive composites market has been experiencing significant growth and transformation in recent years, driven by advancements in technology, increasing demand for lightweight materials, and a shift towards sustainable practices. As automakers strive to enhance fuel efficiency and reduce emissions, composites have emerged as a viable solution due to their strength-to-weight ratio and versatility. This report outlines five key developments that are shaping the market landscape, highlighting their implications for manufacturers, consumers, and the environment.
• Increased Adoption of Carbon Fiber: The automotive industry is increasingly incorporating carbon fiber composites into vehicle designs, leading to lighter and more fuel-efficient cars. This shift not only enhances performance but also meets stringent regulatory standards for emissions, positioning manufacturers favorably in a competitive market.
• Advancements in Manufacturing Techniques: Innovations such as automated fiber placement and resin transfer molding are streamlining the production of composite materials. These advancements reduce manufacturing costs and time, making composites more accessible to a broader range of automotive applications, thus expanding market opportunities.
• Growth in Electric Vehicle Production: The rise of electric vehicles (EVs) has spurred demand for lightweight materials, as reducing weight is crucial for maximizing battery efficiency. Composites play a vital role in achieving this goal, leading to increased investments in composite technologies by EV manufacturers.
• Sustainability Initiatives: There is a growing emphasis on sustainability within the automotive sector, prompting manufacturers to explore bio-based composites and recycling methods. This trend not only addresses environmental concerns but also appeals to eco-conscious consumers, enhancing brand loyalty and market share.
• Strategic Collaborations and Partnerships: Key players in the automotive composites market are forming strategic alliances to leverage each other's expertise and resources. These collaborations facilitate innovation and accelerate the development of new composite materials, driving competitive advantage and market growth.
These developments are significantly impacting the North American automotive composites market by fostering innovation, enhancing sustainability, and driving the adoption of advanced materials. As the industry continues to evolve, these trends will likely shape the future of automotive design and manufacturing, leading to more efficient and environmentally friendly vehicles.
Strategic Growth Opportunities for North American Automotive Composites Market
The North American automotive composites market is experiencing significant growth driven by the increasing demand for lightweight materials that enhance fuel efficiency and reduce emissions. As automotive manufacturers seek to innovate and comply with stringent regulations, composites are becoming essential in various applications. This report identifies five key growth opportunities across different automotive applications, highlighting their potential impact on the market and the overall automotive industry. By leveraging these opportunities, companies can position themselves strategically to capitalize on the evolving landscape of automotive composites.
• Lightweight Structures: The shift towards lightweight structures is crucial for improving fuel efficiency. Composites enable manufacturers to reduce vehicle weight without compromising safety, leading to enhanced performance and lower emissions.
• Interior Components: The demand for aesthetically pleasing and durable interior components is rising. Composites offer design flexibility and superior finish, allowing manufacturers to create innovative interiors that enhance consumer appeal and comfort.
• Exterior Panels: The use of composites in exterior panels is growing due to their resistance to corrosion and impact. This not only extends the lifespan of vehicles but also reduces maintenance costs, making them an attractive option for manufacturers.
• Electric Vehicle Applications: With the rise of electric vehicles (EVs), composites play a vital role in battery enclosures and lightweight structures. Their properties help improve range and efficiency, making them essential for the future of EV design.
• Safety Features: Composites are increasingly used in safety features such as crash structures and energy-absorbing components. Their ability to absorb impact energy enhances vehicle safety, aligning with consumer demand for safer vehicles.
The strategic growth opportunities in the North American automotive composites market are significantly shaping the industry. By focusing on lightweight structures, interior components, exterior panels, electric vehicle applications, and safety features, manufacturers can enhance vehicle performance, safety, and consumer appeal. These developments not only drive market growth but also contribute to a more sustainable automotive future.
List of North American 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 North American automotive composites companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the North American automotive composites companies profiled in this report include.
• BASF
• DuPont
• SABIC
• RTP Company
• Celanese
• Teijin
• Lanxess
• Core Molding Technologies
• IDI Composites
• LyondellBasell
These companies have established themselves as leaders in North American automotive composites industry with extensive product portfolios, regional 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 North American 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.
North American Automotive Composites Market by Segment
Several segments of the North American automotive composites market are experiencing notable growth. Carbon fiber composites are seeing increased demand due to their exceptional strength-to-weight ratio, particularly in luxury vehicles and high-performance sports cars where weight reduction is critical for enhancing performance. Glass fiber composites continue to expand in mainstream vehicles, valued for their cost-effectiveness, versatility, and ability to reinforce various automotive components. Thermoplastic composites, such as polypropylene (PP) and polyamide (PA), are gaining traction for their recyclability, impact resistance, and ease of processing, meeting the industry's sustainability goals. The electric vehicle (EV) segment is driving significant growth in composites usage to reduce vehicle weight and improve battery efficiency, supporting the burgeoning EV market across North America. Additionally, composites are increasingly utilized in interior applications like dashboards, door panels, and seating components, offering design flexibility, weight savings, and aesthetic benefits. These trends underscore a dynamic shift towards lightweight, sustainable, and technologically advanced materials in the North American automotive sector.
By Resin Type [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• PP Composites
• PBT Composites
• PA Composites
• Vinyl Ester Composites
• Epoxy Composites
• Polyester Composites
• Phenolic Composites
• Other Resin Types
By Application [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Exterior
• Interior
• Under the body systems
• Electrical and Electronics
• Chassis System
• Power Chain System
• Other Applications
By Resin Group [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Thermoplastic Composites
• Thermoset Composites
By Fiber Type [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• Glass Fiber Composites
• Carbon Fiber Composites
• Natural Fiber Composites
By Country [Value ($M) and Volume (M lbs.) Analysis for 2019 – 2031]:
• USA
• Mexico
• Canada
Features of North American Automotive Composites Market
• Market Size Estimates: North American 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 material type, resin type, application, resin group, fiber type, and countries
• Growth Opportunities: Analysis of growth opportunities in different material type, resin type, application, resin group, fiber type, and countries for the recycled carbon fiber market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the material type, resin type, application, resin group, fiber type, and countries market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the North American automotive composites market size?
Answer: The global North American automotive composites market is expected to reach an estimated $3 billion by 2031.
Q2. What is the growth forecast for North American automotive composites market?
Answer: The North American automotive composites market is expected to grow at a CAGR of 3% from 2024 to 2031.
Q3. What are the major drivers influencing the growth of the North American automotive composites market?
Answer: The major drivers for this market are increase in production of passenger cars and light commercial vehicles are expected to boost composites material materials in the automotive industry in the next five years and increase usage of composites in chassis, insulating panels, casing, mufflers, and sound insulation parts of the vehicles.
Q4. What are the major applications for North American automotive composites?
Answer: Power train system and exterior are the major applications for North American automotive composites.
Q5. What are the emerging trends in North American automotive composites market?
Answer: Emerging trends, which have a direct impact on the dynamics of the industry, includes integration of hybrid and multi-material composites, increasing uses of lightweighting initiatives, adoption of advanced manufacturing technologies, recycling and sustainability, and smart materials
Q6. Who are the key North American automotive composites companies?
Answer: Some of the key North American automotive composites companies are as follows:
• BASF
• DuPont
• SABIC
• RTP Company
• Celanese
• Teijin
• Lanxess
• Core Molding Technologies
• IDI Composites
• LyondellBasell
Q7. Which North American automotive composites material type segment will be the largest in future?
Answer: Lucintel forecasts that short fiber thermoplastic (SFT) North American automotive composites is expected to remain the largest segment and continuous fiber thermoplastic (CFT) composites segment is expected to witness the highest growth in the forecast period.
Q8. 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 North American automotive composites market as by material type (SMC, BMC, LFT, SFT, GMT, and CFT), resin type (PP composites, PBT composites, PA composites, polyester composites, vinyl ester composites, epoxy composites, phenolic composites, and other resin types), application (interior, exterior, power train system, under body system, electrical and electronis, chassis system, and other applications), resin group (thermoset composites and thermoplastics composites), fiber type (glass fiber composites, carbon fiber composites, and natural fiber composites), and Countries (US, Canada, and Mexico)?
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?