The global automotive composites market size is projected to reach USD 13.5 billion by the end of 2026. The growing demand for lightweight automobile will bode well for the market in the coming years.

According to a report published by Fortune Business Insights, titled “Automotive Composites Market Size, Share & Industry Analysis, By Fiber (Glass, Carbon and Natural), By Resin Type (Thermoset and Thermoplastics), By Application (Exterior, Interior, Structure & Power train, and Other), and Regional Forecast, 2024-20232,” the market was worth USD 7.67 billion in 2018 and will exhibit a CAGR of 7.56% during the forecast period, 2014-2032.

List of Automotive Composites Companies profiled in the report:

  • Teijin Ltd.
  • Mitsubishi Chemical Corporation
  • Toray Industries, Inc.
  • SGL Carbon
  • RTP Company
  • Plasan Carbon Composites
  • Owens Corning
  • Solvay S.A.
  • UFP Technologies, Inc.
  • BASF SE
  • Other Players

What are Automotive Composites?

Automotive composites are materials formed by combining reinforcing fibers, such as glass or carbon fiber, with a polymer resin. These composites offer a unique blend of properties:

  • Lightweight: Composites are significantly lighter than traditional materials like steel, allowing for weight reduction in vehicles.
  • High Strength-to-Weight Ratio: Despite being lightweight, composites offer excellent strength and durability.
  • Design Flexibility: Composites can be molded into complex shapes, enabling greater design freedom for car manufacturers.
  • Corrosion Resistance: Composites are resistant to rust and corrosion, extending the lifespan of vehicle components.

Market Growth and Drivers

The global automotive composites market is expected to witness significant growth in the coming years. Here are some key factors driving this trend:

  • Stricter Emission Regulations: Governments worldwide are implementing stricter regulations to curb automotive emissions. Composites can help car manufacturers meet these regulations by reducing vehicle weight and improving fuel efficiency.
  • Rise of Electric Vehicles (EVs): The growing popularity of EVs is creating a demand for lightweight materials for battery enclosures. Composites offer a significant weight advantage over traditional materials, extending the driving range of EVs.
  • Focus on Performance and Design: Car manufacturers are increasingly focused on creating high-performance vehicles with sleek designs. Composites cater to this need by offering a combination of strength, design flexibility, and weight reduction.

Market Segments and Applications

The automotive composites market is segmented by various factors, including:

  • Fiber Type: Glass fiber, carbon fiber, and other types of fibers are used in automotive composites.
  • Vehicle Type: Passenger cars, commercial vehicles, and two-wheelers are some of the key vehicle segments utilizing composites.
  • Resin Type: Different types of resins are used depending on the desired properties of the composite material.
  • Application: Composites are used in various automotive applications, including exterior body panels, interior components, under-the-hood components, and battery enclosures.

The exterior application segment currently holds the largest market share, but the battery enclosure segment is expected to witness the fastest growth due to the rise of EVs.

Automotive composites are widely used in the manufacture of several body parts of an automobile. The product possesses some exceptional properties that have led to its wide adoption. It is lightweight in nature and has low coefficient of thermal expansion, making it suitable for applications in automotive body parts. The light weight of the material has a direct impact on the overall efficiency of the automobile. Moreover, increased reliability and safety of automobiles equipped with composite body structures will contribute to the growing demand for the product worldwide. Stringent government policies to curb carbon emissions and adverse effects of automobiles on the environment will aid the growth of the overall market in the coming years. Moreover, low cost of the product will encourage manufacturers towards its adoption in automobile body parts and surfaces.

Increasing Number of Company Mergers and Collaborations Will Provide Impetus to Market Growth

The report encompasses several factors that have made a positive impact on the growth of the market in recent years. Along with this, the report discusses the influence of major company collaborations in regional markets, particularly in areas where these companies are primarily operating. In September 2019, Martinrea International Inc. announced that it has signed a deal with Metalsa S.A. The deal is estimated to be around USD 19.5 million. Through this agreement, Martinrea will acquire the structural component manufacturing unit of Metalsa S.A. Through this acquisition, the company will look to strengthen its global footprint and subsequently widen its consumer range across the world.

Regional Automotive Composites Analysis:

Asia Pacific Dominates the Market; Heavy Automobile Use in Emerging Countries to Aid Growth

The report analyzes the ongoing automotive composites market trends across North America, Latin America, Asia Pacific, the Middle East and Africa, and Europe. Among these regions, the market in Asia Pacific is likely to emerge as the dominant region. The increasing use of automobile; driven by constantly rising population in emerging countries across this region will aid the growth of the market. Besides Asia Pacific, the market in North America will also witness considerable growth in the coming years, owing to the presence of several large scale companies in several countries across this region. As of 2018, the market in North America was worth USD 2.30 billion and this value is likely to increase further in the coming years.

Automotive Composites Industry Developments:

September 2019: Martinrea International Inc. announced that it has signed a deal with Metalsa S.A. de C.V. worth US$ 19.5 million. The deal was aimed at buying a unit of the company that makes the structural components for passenger cars.

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