The anticipated size of the automotive composites market in 2022 was USD 7.2 billion and is estimated to be USD 8.3 billion in 2023. Robust growth in environmental concerns and demand for pollution control norms have forced automotive manufacturers for controlling automotive emissions.
Curb weight is considered one of the most critical factors that affect fuel efficiency and vehicular emission. A fall in the curb weight can acutely raise fuel efficiency which, might reduce vehicular pollution.
Future Market Insights has mentioned in its reports that the automotive composites market is estimated to expand at a CAGR of 12.1% between 2023 and 2033, totaling around USD 26.1 billion by 2033.
The burgeoning affluence of lightweight vehicles and passenger cars across the globe is fuelling the demand for automotive composites. Despite volatility in economic conditions, the growing production of automotive vehicles is aiding the growth of the automotive composites market.
Moreover, with increasing efforts to reduce vehicle weight and for the production of energy-efficient vehicles, the sales of automotive composites are anticipated to surge over the upcoming decade.
| Attributes | Details |
|---|---|
| Projected Forecast Value (2022) | USD 7.2 billion |
| Projected Forecast Value (2023) | USD 8.3 billion |
| Projected Forecast Value (2033) | USD 26.1 billion |
| Growth rate | 12.1% CAGR |
| Forecast period | 2023 to 2033 |
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The global automotive composites market grew at a CAGR of 11.3% between 2018 and 2022. Growth forecasts remain optimistic, with the market predicted to exhibit a CAGR of 12.1% from 2023 and 2033.
Overall sales of automotive composites across the globe are projected to increase by 1.5x, registering year-on-year (YoY) growth of 5.10% in 2022. Growing demand for fuel-efficient and light-weight vehicles is encouraging the key players to increase the production of lightweight components as per Future Market Insights (FMI).
The surging production of automotive vehicles, coupled with the stringent regulations on emission control, is encouraging carmakers to use lightweight vehicle components. Governments across the United States the United Kingdom, and Germany have laid down strict regulations on emission control due to rising air pollution and global warming.
Growing Trend of Light-Weight and Energy-Efficient Vehicles to Boost Automotive Composites Market
OEMs in the automotive industry are increasingly focusing on stringent regulations imposed by governments on carbon emissions. Environmental Protection Agency of the United States mentions that the transportation sector accounts for over 29% of greenhouse gas emissions.
Reduction in carbon emissions, the United States government imposed strict policies, enhancing the production of lightweight vehicles. The usage of lightweight vehicles also improves the battery mileage and fuel efficiency, lowering the maintenance cost of the vehicle. The adoption of glass fiber composites and carbon fiber composites has increased as they are high in quality and have low labor and maintenance costs.
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Lack of Technological Advancements and Low Recyclability of Composites to Hinder the Growth
Strict carbon emission laws in automotive composites have gained immense popularity across North America, Western Europe, and even South East Asia. Raw materials of automotive composites such as thermoplastic resins and carbon fiber composites are high in cost.
Lack of technological advancements in certain Middle East countries, the use of these composites is limited. Manufacturers in Latin America and South Asia are, hence, using traditional materials such as steel and aluminum, despite the advantageous attributes of thermoplastic resins and glass fiber.
The expectation of limiting the growth of automotive composites in the Middle East and Latin America. Sales of automotive composites in the Middle East and Latin America are expected to contribute nearly 2.1% and 6.9% of the demand share in 2022, respectively.
Growing Acceptance of Electric Vehicles to Steer the Adoption of Composites in the Automotive Industry
The automotive industry in the Asia Pacific is said to hold a market share of 7.8% whereas Australia is said to expand at a CAGR of 4.5% . Automotive industry in India is witnessing robust expansion over the past half-decade contributing a market share of 6.89%. Decline in sales of automotive vehicles, during the FQ-20, the wide acceptance of electric vehicles has kept the automotive sector afloat.
India Brand Equity Foundation (IBEF), in 2020, India was the 5th largest automotive industry and in FY-21, sales of passenger cars reached 2.3 million units and the trend is likely to continue over the upcoming decade.
Rapid urbanization and improved standard of living are providing a strong impetus to the adoption of electric vehicles and luxury passenger cars in the country. Sales of luxury passenger cars exceeded 8,500 units in a span of 2 months.
Capitalizing on the growing demand for electric vehicles and luxury passenger cars, OEMs in India are investing extensively in newer technology and energy-efficient engines.
Demand for lightweight engine components, interior and exterior materials have surged.
Leading manufacturers across the globe are eyeing the India’s market to increase their revenues. Leading automakers are establishing their manufacturing facilities in India to cater to the growing demand, thereby, propelling the sales of automotive composites in the country.
Tesla, in January 2021, established its research and development center in Bengaluru and registered its subsidiary as Tesla India Motors and Energy Private Limited.
The Trend for Aesthetic and Stylish Interior Features Push the Adoption of Carbon and Glass Fiber Composites
North America is expected to be the second most dominant automotive composites market holding a market share of 38.6%. Rapid technological advancements and increasing production of electric vehicles in the country are propelling the demand in the market.
The United States is said to hold a major portion of the North American market with a value share of 23.8% burgeoning adoption of luxury passenger cars and electric vehicles in the United States, demand for stylish and aesthetic interior car features will boost the sales of glass fiber composites and carbon fiber composites.
Leading automakers such as General Motors, Ford Motor Company, and others are rebranding their respective car models with aesthetic features and natural components to enhance the look. Sales of natural and glass fiber composites in the United States are expected to increase over the forecast period.
Presence of Tier-1 Automotive Composites Players in China to Boost the Market
FMI estimates, China might witness strong growth in the automotive composites market, accounting for more than 19% of the market share. The strong presence of automotive manufacturing companies in the country will aid the growth of the market.
Significant changes in the production of recreational vehicles had a positive impact on the sales of automotive composites. While the sales of automotive vehicles decreased, the demand for lightweight vehicles surged, fuelling the sales of automotive composites. The surging need for fuel efficiency and stylish interior designs will boost the demand for glass fiber composites in the country.
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Glass Fiber Composites to Hold a Notable Position
Glass fiber composites segment is expected to account for a dominant market share of 49.8%. Demand for glass fiber composites is increasing on the back of their cost-effectiveness and high structural strength.
Lightweight and have high resistance to heat and moisture, which makes it the most preferred choice of material among automakers. Natural fiber composites are gaining immense popularity in the designing and manufacturing of seat backs, bolsters, and door panels of passenger cars.
Passenger Car Contributes Increase in Sales
The passenger car segment is anticipated to witness robust growth due to the rising adoption of luxury cars and electric vehicles. Expansion of the agriculture sector and ongoing advancements in the industry, the agricultural segment is estimated to witness humongous growth with a market share of 62.8%.
Exterior Application Holds Major Position in the Market
The exterior segment is anticipated to witness dominant growth over the assessment period, followed by the interior segment. The growing trend of lightweight and stylish vehicles is fuelling the growth in the segment with a market share of 44.3%.
Exterior application is expected to contribute maximum revenue in the global automotive composites market. Increasing the adoption of glass fiber composites and carbon fiber composites for the manufacturing of fenders, door panels, bumper beams, and other car components will boost the market.
To ensure the durability and long lifecycle of the vehicle, automakers are extensively using thermoset resins in the production of composites. FMI predicts, thermoset resins will account for over 3/5th of demand share, surpassing USD 5 billion in 2022.
Sales of Thermoplastic Resins Lead to Growth in the Market
Thermoplastic resins are recyclable than thermoset, sales of thermoplastic are expected to outpace the demand for thermoset resins and thus raise the sales of the market with a value share of 36.1%
Some of the prominent players in the global market are:
Some of the important developments of the key players in the market are:
| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 12.1% from 2023 to 2033 |
| Market value in 2023 | USD 8.3 billion |
| Market value in 2033 | USD 26.1 billion |
| Base Year for Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | USD billion for Value and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By Country, By Material, By Application, By Vehicle Type, By Resins |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Rest of Latin America, Germany, The United Kingdom, France, Spain, Italy, Rest of Western Europe, Poland, Russia, Czech Republic, Romania, Rest of Eastern Europe, India, Bangladesh, Australia, New Zealand, Rest of South Asia and the Pacific, China, Japan, South Korea, GCC Countries, South Africa, Israel, Rest of the Middle East and Africa |
| Key Companies Profiled | Toray Industries Inc.; Gurit Holding AG; Solvay Group; SGL Carbon SE; Teijen Limited; Mitsubishi Chemical Holding; Owen Corning; E.I. du Pont de Nemours & Co.; UFP Technologies Inc.; Quantum Composites |
| Customisation Scope | Available on Request |
The growing innovations and advanced technology integration are fueling the demand in the United States.
The rising adoption of lightweight materials is upsurging Europe market.
The growing trends of aesthetic interior features have necessitated automotive composites.
The United States hold a share of 23.8% of the global market by 2033.
North America to witness lucrative growth opportunities through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material 5.1. Glass Fiber Composites 5.2. Natural Fiber Composites 5.3. Carbon Fiber Composites 5.4. Aramid Fiber Composites 5.5. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Interior 6.2. Exterior 6.3. Underbody 6.4. Chassis 6.5. Power Train 6.6. Engine Components 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Resin 7.1. Thermoplastic 7.2. Thermoset 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 8.1. Passenger Cars 8.1.1. Compact 8.1.2. Luxury 8.1.3. Mid-Size 8.1.4. SUVs 8.2. LCVs 8.3. HCVs 8.3.1. Straight Trucks 8.3.2. Dump Trucks/Garbage Trucks 8.3.3. Semi-Trailers 8.3.4. Fire Trucks 8.3.5. Others 8.4. Agricultural 8.4.1. Tractors 8.4.2. Tillers 8.4.3. Rotavators 8.4.4. Harvesters 8.4.5. Threshers 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
Automotive
February 2024
REP-BR-81
306 pages
Chemicals & Materials
February 2023
REP-GB-16665
361 pages
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Automotive Composites Market
