Automotive Composites Market Expected to Reach $16.4 Billion by 2032

According to a new report published by Allied Market Research, titled, “Automotive Composites Market," The automotive composites market was valued at $7.4 billion in 2022, and is estimated to reach $16.4 billion by 2032, growing at a CAGR of 8.3% from 2023 to 2032.

Introduction

Automotive composites are advanced materials utilized in vehicle manufacturing, amalgamating fibers such as carbon or glass with resin matrices. These materials offer superior strength-to-weight ratios as compared to conventional options. Commonly employed in body panels, chassis, and structural elements, they enhance performance, durability, and safety. By reducing vehicle weight and improving stiffness, automotive composites contribute to enhanced fuel efficiency and reduced emissions. They play a crucial role in meeting stringent regulatory standards and advancing sustainability goals in the automotive industry. With their versatility, automotive composites enable innovative design solutions, driving the development of next-generation vehicles that prioritize efficiency, safety, and environmental responsibility. 

Composites provide designers with greater freedom in shaping vehicle components as compared to conventional materials. They can be molded into complex shapes, allowing for innovative designs and aerodynamic efficiency. Moreover, composites offer opportunities for customization, enabling automakers to differentiate their products in a competitive market by creating visually appealing and unique vehicles that resonate with consumers. 

Moreover, while composites have been associated with high manufacturing costs, advancements in materials technology and production processes have helped reduce costs over time. Automation, improved resin infusion techniques, and innovative manufacturing methods have lowered the overall cost of composite components. In addition, composites often require fewer manufacturing steps as compared to metal fabrication, resulting in increased efficiency and reduced assembly time. 

Furthermore, sustainability concerns have become paramount in the automotive industry, driving the adoption of recyclable and eco-friendly materials. Many composite materials are recyclable and offer a more sustainable alternative to traditional materials such as steel and aluminum. Furthermore, advancements in composite recycling technologies are making it easier to recover and reuse composite materials, reducing waste and environmental impact throughout the vehicle lifecycle. 

Market Dynamics

Limited production efficiency and scale as compared to conventional materials is another significant restraint for the automotive composite market. Mass production of automotive components using composites is often constrained by longer cycle times and intricate manufacturing processes. High-performance composites require careful quality control measures to ensure consistent material properties, further adding to production complexities. Achieving economies of scale in composite manufacturing remains a challenge, as the infrastructure for large-scale production is still developing, resulting in higher per-unit costs.   

On the contrary, the automotive industry is witnessing rapid advancements in manufacturing technologies, including additive manufacturing (3D printing), automated fiber placement (AFP), and robotic assembly processes. These technologies enable precise and cost-effective production of complex composite components, allowing for customization, rapid prototyping, and mass production. By leveraging advanced manufacturing techniques, stakeholders in the automotive composites market can streamline production workflows, reduce lead times, and achieve greater design freedom, thereby capitalizing on emerging opportunities in the automotive sector. 

Segments Overview

The automotive composite market is segmented on the basis of fiber type, resin type, application, and region. By fiber type, the market is segregated into glass fiber, carbon fiber, and others. The carbon fiber segment accounted for the highest share in terms of revenue. Carbon fiber composites offer excellent strength-to-weight ratio, stiffness, and fatigue resistance. This can lead to improved safety, durability, and performance of automotive components, contributing to better overall vehicle quality and customer satisfaction. Moreover, carbon fiber composites can be molded into complex shapes, allowing automakers greater freedom in vehicle design. This flexibility enables the creation of innovative and aerodynamic designs that can enhance vehicle aesthetics and performance. 

By resin type, the market is classified into thermosets and thermoplastics. The thermoset segment accounted for the highest share in terms of revenue. 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. Moreover, advances in manufacturing technologies and economies of scale are lowering the production costs of thermoset composites, making them more competitive with traditional materials. As a result, automakers are increasingly adopting thermoset composites to achieve cost-effective lightweighting solutions without compromising performance. 

By application, the market is divided into exterior, interior, and others. The exterior application segment dominated the global market, in terms of revenue in 2022 with 48.0% share in the global market. Composites offer opportunities for customization and personalization of exterior components through various surface finishes, textures, and color options. This allows automakers to differentiate their vehicles in the market and meet the diverse preferences of consumers. Additionally, vehicles with composite exterior components often convey a sense of modernity, innovation, and luxury, enhancing the brand image and perception of automakers. As consumers increasingly value sustainability and advanced technology in vehicles, the use of composites in exterior applications can attract more discerning buyers. 

Regional Analysis

Region-wise, the automotive composite market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific automotive composite market size is projected to grow at the highest CAGR during the forecast period and accounted for a major market share in 2022.  Many countries in the Asia-Pacific region have implemented stringent emissions and fuel efficiency regulations to address environmental concerns and reduce dependency on fossil fuels. Automotive manufacturers are turning to lightweight materials such as composites to meet these regulations by reducing vehicle weight and improving fuel economy. Moreover, the Asia-Pacific region has a strong manufacturing base and expertise in advanced materials and technologies. Technological advancements in composite materials, manufacturing processes, and design capabilities are driving the adoption of composites in automotive applications across the region.  

Key players operating in the global automotive composite market 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.    

Key Findings of the Study 

• By fiber type, the carbon fiber segment is estimated to display the highest growth rate, in terms of revenue, from 2023 to 2032. 
• By resin type, the thermoset segment is estimated to display the highest growth rate, in terms of revenue, from 2023 to 2032.  
• By application, the exterior segment is the most lucrative segment, in terms of revenue during the forecast period.  
• By region, Asia-Pacific garnered the highest share in 2022, in terms of revenue, growing at a CAGR of 9.0%.