Automotive Composites Market Research, 2032
The global automotive composites market was valued at $7.4 billion in 2022, and is projected to reach $16.4 billion by 2032, growing at a CAGR of 8.3% from 2023 to 2032. The rise of electric vehicles is creating new opportunities for composites. EV manufacturers are particularly interested in lightweight materials to extend battery range and improve performance.
Automotive composites are materials used in vehicles, comprising different substances combined to enhance performance. Typically, they consist of fibers such as carbon or glass, embedded within a matrix such as epoxy or thermoplastic resin. This composition results in lightweight, strong components for body panels, chassis, and structural reinforcements. As compared to traditional materials such as steel, automotive composites offer advantages in weight reduction, fuel efficiency, and safety. They are utilized extensively in modern vehicle manufacturing to meet stringent regulatory standards, improve durability, and reduce environmental impact, aligning with industry trends toward sustainability and advanced engineering solutions.
Key Takeaways:
- The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
- The automotive composites market is fragmented in nature among prominent companies such as Toray Industries, Inc., SGL Carbon SE, Teijin Limited, Hexcel Corporation, Owens Corning, Mitsubishi Chemical Holdings Corporation, Gurit Holding AG, Solvay S.A., TenCate Advanced Composites, and Huntsman Corporation.
- The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), key regulation analysis, pricing analysis, and Porter’s Five Force Analysis across North America, Europe, Asia-Pacific, LAMEA regions.
- Latest trends in global automotive composites market such as undergoing R&D activities, regulatory guidelines, and government initiatives are analyzed across 16 countries in 4 different regions.
- More than 3,400 automotive composites-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for global automotive composites market.
Market Dynamics:
Lightweighting is one of the most significant drivers of the automotive composites market. With stringent regulations globally to reduce carbon emissions and improve fuel efficiency, automakers are increasingly turning to lightweight materials to make vehicles lighter. Composites offer a high strength-to-weight ratio, enabling manufacturers to reduce vehicle weight while maintaining structural integrity and safety standards.
Moreover, as governments tighten emission standards, automakers are under pressure to produce vehicles that consume less fuel and emit fewer pollutants. Lightweight composites contribute to improved fuel efficiency by reducing vehicle weight, thereby lowering fuel consumption and emissions. This factor is especially crucial in electric vehicles (EVs), where reducing weight directly translates to extended battery range.
In addition, automotive composites offer superior performance characteristics as compared to traditional materials. They can be engineered to exhibit specific mechanical properties, such as high tensile strength, stiffness, and impact resistance, making them ideal for various automotive applications, including chassis, body panels, and structural components. Enhanced performance contributes to better driving dynamics, safety, and overall vehicle quality.
However, one of the primary restraints impacting the automotive composite market is the high cost associated with composite materials as compared to traditional metals such as steel and aluminum. The manufacturing processes involved in producing composite materials, including molding, curing, and finishing, are often complex and capital-intensive. In addition, the cost of raw materials used in composites, such as carbon fibers and resins, remains relatively high. As a result, automakers face challenges in justifying the higher upfront investment required for integrating composites into vehicle structures.
On the contrary, sustainability has become a key factor across industries, including automotive manufacturing. Composites offer environmental benefits as compared to traditional materials, such as reduced energy consumption during production and lower greenhouse gas emissions over the product lifecycle. Moreover, advancements in recyclable and bio-based composite materials present opportunities for manufacturers to align with sustainable practices and cater to eco-conscious consumers. Developing innovative recycling technologies and incorporating renewable feedstocks into composite production processes can further enhance the sustainability credentials of automotive composites.
Segment Overview:
The automotive composites market is segmented on the basis of fiber type, resin type, application, and region. On the basis of fiber type, the market is categorized into glass fiber, carbon fiber, and others. By resin type, the market is classified into thermosets and thermoplastics. By application, the market is divided into exterior, interior, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
In 2022, the carbon fiber segment was the largest revenue generator, and is anticipated to grow at a CAGR of 8.5% during the forecast period. Carbon fiber composites are much lighter than traditional materials like steel or aluminum. This reduction in weight can improve fuel efficiency and overall performance of vehicles, especially in terms of acceleration, handling, and braking. Furthermore, stricter emissions standards such as Bharat stage (BS-V and BS-VI) and fuel efficiency requirements are pushing automakers to explore lightweight materials like carbon fiber to reduce vehicle weight and meet regulatory standards. Lighter vehicles generally produce fewer emissions and consume less fuel.
In 2022, the thermoset segment was the largest revenue generator, and is anticipated to grow at a CAGR of 8.1% during the forecast period. Thermoset resins offer excellent mechanical properties such as high strength, stiffness, and dimensional stability, which are crucial for automotive applications. These resins provide durability and resistance to heat, chemicals, and fatigue, making them suitable for various components in vehicles. Moreover, thermoset composites can be molded into complex shapes, allowing for innovative designs and integration of multiple functionalities into a single component. This flexibility enables automakers to optimize the design of automotive parts for performance, aesthetics, and functionality.
By application, the exterior segment dominated the global market in 2022, and is anticipated to grow at a CAGR of 8.4% during the forecast period. Composites offer a significant weight reduction compared to traditional materials like steel or aluminum. This weight reduction improves fuel efficiency, handling, and overall performance of vehicles, making composites particularly attractive for exterior components where reducing weight is crucial. Additionally, composites can be molded into complex shapes with ease, allowing for innovative and aerodynamic designs. This flexibility enables automakers to create distinctive exterior designs that not only enhance the vehicle's aesthetics but also improve aerodynamics, contributing to better fuel efficiency and performance.
The Asia-Pacific automotive composites market size is projected to grow at the highest CAGR of 9.0% during the forecast period and accounted for 33% of automotive composite market share in 2022. The Asia-Pacific region is a major hub for automotive manufacturing, with countries like China, Japan, South Korea, and India leading the production. As the automotive industry in these countries continues to expand, there is a growing demand for lightweight materials like composites to improve fuel efficiency, meet regulatory standards, and enhance vehicle performance. Furthermore, with the growing emphasis on reducing greenhouse gas emissions and transitioning towards electric and hybrid vehicles, there is an increasing demand for lightweight materials that can help extend the range and improve the efficiency of these vehicles. Composites are well-suited for use in electric and hybrid vehicles due to their lightweight properties and design flexibility.
Competitive Analysis:
The global automotive composites market profiles leading players that include Toray Industries, Inc., SGL Carbon SE, Teijin Limited, Hexcel Corporation, Owens Corning, Mitsubishi Chemical Holdings Corporation, Gurit Holding AG, Solvay S.A., TenCate Advanced Composites, and Huntsman Corporation.
Other key players involved in the manufacturing of automotive composites include Magna, Mar-Bal, Plasan, UFP Technologies, Base Group, 3B Fiberglass, Delphi Auto, and others. The global automotive composites market report provides in-depth competitive analysis as well as profiles of these major players.
Recent Developments in Automotive Composites Industry:
- December 2023, Mitsubishi Chemial Group acquired CPC, a leading Italian manufacturer of cabon fiber composite components to the automotive industry. This strategic acquisition has enhanced the product offerings of Mitubishi Chemical Group for automotive composites.
- June 2023, Michelin acquired Flex Composite Group, a leading manufacturer of composites for various end-use sectors. This strategic acquisition has stregthened Michelin's composite offerings for automotive sector.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the automotive composites market analysis from 2022 to 2032 to identify the prevailing automotive composites market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the automotive composites market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global automotive composites market trends, key players, market segments, application areas, and market growth strategies.
Automotive Composites Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 16.4 billion |
 Growth Rate | CAGR of 8.3% |
 Forecast period | 2022 - 2032 |
 Report Pages | 710 |
 By Fiber Type |
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 By Resin Type |
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 By Application |
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 By Region |
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 Key Market Players | Hexcel Corporation, Huntsman Corporation, TEIJIN LIMITED., Solvay S.A., SGL Carbon SE, Gurit Holding AG, TORAY INDUSTRIES, INC., Owens Corning, Teijin Limited, Mitsubishi Chemical Holdings Corporation, TenCate Advanced Composites |
Analyst Review
According to the CXOs of leading companies, The automotive composites market is experiencing a transformative shift driven by a convergence of factors ranging from regulatory mandates and technological advancements to consumer preferences and sustainability imperatives. These drivers collectively shape the trajectory of the market, influencing material selection, manufacturing processes, and industry dynamics. As the automotive industry evolves, the adoption of composite materials continues to accelerate.
One of the primary drivers of the automotive composites market is the relentless pursuit of fuel efficiency and emissions reduction. Regulatory mandates worldwide compel automakers to improve the environmental performance of vehicles, driving the demand for lightweight materials like composites. By reducing vehicle weight, composites contribute to enhanced fuel economy and reduced greenhouse gas emissions, aligning with stringent regulatory requirements and sustainability goals.
Additionally, the imperative of weight reduction remains a central focus in the automotive industry, necessitated by the pursuit of higher performance, improved handling, and enhanced safety. Composite materials offer a compelling solution to this challenge, delivering a superior strength-to-weight ratio compared to traditional materials like steel or aluminum. By incorporating composites into vehicle structures, automakers can achieve significant weight savings without compromising structural integrity, thereby enhancing overall vehicle performance and efficiency.
The increasing adoption of electric vehicles (EVs) represents another significant driver of the automotive composites market. As the shift towards electrification accelerates, EV manufacturers prioritize lightweight materials to offset the weight of batteries and extend driving range. Composites play a pivotal role in achieving these objectives, enabling EVs to maximize energy efficiency and optimize battery performance. As the EV market expands, the demand for automotive composites is poised to grow exponentially, underscoring the pivotal role of composites in shaping the future of sustainable mobility.
Technological advancements in composite materials and manufacturing processes drive innovation and cost reduction, further accelerating the adoption of automotive composites. Advanced manufacturing techniques such as automated fiber placement, resin transfer molding, and thermoplastic composites enhance production efficiency, scalability, and material properties. These technological advancements not only improve the performance and quality of composites but also contribute to cost competitiveness, making composites increasingly attractive to automakers seeking to enhance their competitive edge.
Safety considerations also drive the adoption of automotive composites, as automakers prioritize crashworthiness and occupant protection. Composite materials exhibit excellent energy absorption properties, reducing the risk of injury in the event of a collision. By incorporating composites into vehicle structures, automakers can enhance safety performance and meet stringent crash test requirements, thereby bolstering consumer confidence and regulatory compliance.
Furthermore, the design flexibility and styling freedom offered by composites appeal to automakers and consumers alike, enabling innovative vehicle designs and aerodynamic enhancements. Composites can be molded into complex shapes, allowing for distinctive aesthetics and improved performance characteristics. As consumers increasingly value unique design features and advanced technologies in their vehicles, the demand for automotive composites is expected to rise, driving further innovation and differentiation in the market.
Rise in demand for lightweight vehicles, stringent regulations, technological advancements, and increasing adoption of electric vehicles are the upcoming trends of Automotive Composites Market in the world.
Exterior is the leading application of Automotive Composites Market.
Asia-Pacific is the largest regional market for Automotive Composites.
The global automotive composite market was valued at $7.4 billion in 2022 and is estimated to reach $16.4 billion by 2032, exhibiting a CAGR of 8.3% from 2023 to 2032.
The global automotive composites market profiles leading players such as Toray Industries, Inc., SGL Carbon SE, Teijin Limited, Hexcel Corporation, Owens Corning, Mitsubishi Chemical Holdings Corporation, Gurit Holding AG, Solvay S.A., TenCate Advanced Composites, and Huntsman Corporation.
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