Automotive Composites: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2018-2028

Market Definition

A composite is made up of a high-performance fibre (such carbon or glass) and a matrix material (epoxy polymer), which when combined, has better qualities than the constituent parts alone. Although they weigh roughly one-fifth as much as steel, carbon-fiber composites are just as stiff and strong as steel.

Market Insights

The global automotive composite market stood at 3.89 billion pounds in 2022 and the market is anticipated to grow at a CAGR of 7.56% during forecast period. Due to their remarkable qualities, such as their low weight, high strength, high-temperature resistivity, environmental abrasion, and so on, composite materials are growing in popularity in the automotive sector. The most recent use of carbon fibre and composite materials are in high-end automobiles like those made by BMW.  In order to surpass Tesla and grab the lead in the electric vehicle market, BMW is in the research and development stage of employing carbon fibre in electric automobiles. In addition, the K50 electric vehicle, which has a carbon fibre body and costs about a third less than the BMW i8, is being produced by Qiantu Motor, China’s largest auto design business.

In 2020 an agreement was signed between SGL Carbon and a North American automobile OEM for the production of carbon fibre top and bottom layers in high volume for battery enclosures for electric vehicles. Additionally, it agreed to supply small-volume bottom layers for batteries made of carbon fibre to a producer of sports cars in Europe. Additionally, SGL is contacting automakers to promote the usage of carbon fibre battery covers for electric vehicles.

The automotive composites market was dominated by passenger cars and other light vehicles in 2022, accounting for over 68% of total consumption. However, because composites are becoming more prevalent in the heavy truck and bus sub-segments, these two sub-segments are expanding more quickly than light vehicles.

The majority of exterior uses are for exterior body panels. About 60.5% of the external market’s total volume of composites were consumed in 2022. Given that the transition to composites is further along in exterior body panels than in certain other sub-segments, the consumption of composites in this area is anticipated to develop a little more slowly than the segment as a whole. Body panels will still make up 61% of all exterior composite uses in 2030, though. With a consumption of more than 2 billion pounds, Asia dominated the global market in 2022.

The automotive industry employs extruded tubes, multi-hole profiles, door beams, and bumper systems to lighten the weight of automobiles. The extruded product market is fragmented, with a significant number of small to medium-sized businesses and only a few bigger players, due to low technological and capital intensity.

Due to COVID-19 pandemic effects, the global automotive composites market experienced a drop in 2020. The automotive sector was severely impacted in 2020 when production ceased, and manufacturing facilities were closed. This has a detrimental effect on numerous countries’ growth rates. Still, production moves slowly. Instead of producing fresh stock, businesses are attempting to destock. However, growth in the manufacturing sector more than offset market slowdowns. In 2020, the automotive sector had a 15% decrease.

Decreases in the sector were also brought on by difficulties with the cross-border shipping of parts. Moderate recovery is anticipated. The automotive industry is currently experiencing production halts and lockdowns. The value chain-wide declines in revenue and profitability have had a significant influence on this business.

The primary responsibility in the automobile sector is to provide employees with the essential safety. Production has been slowed down by employee absences due to illness, production declines, and the requirement to maintain social distance on production room floors.

Market Dynamics: Drivers

Growth in the Use of Composite Materials in Automotive Industry

The automobile sector has been growing quickly. Global sales of motor vehicles have increased in response to the high demand for them. Automobile manufacturers increase the effectiveness of their supply chains by producing a variety of vehicles, in a variety of variations, at a single location, minimising downtime and maximising output, as well as enhancing quality, cutting costs, enhancing responsiveness, and eventually cutting time to market. The market’s companies are also working to increase the effectiveness and use of alternative energy engines. Additionally, shared mobility, connection services, and feature improvements are what propel them forward. Increasing the use of technology, such as cutting-edge user interfaces, and switching from electric to lightweight autonomous vehicles are two ongoing developments in the automotive industry.

Market Dynamics: Challenges

High Cost of Material

High cost is a significant barrier to greater utilisation of fibre and resin. These materials are more expensive than more conventional ones. When compared to other materials, composite materials are more expensive since they require intricate processing techniques. Formulated composite materials for use in composite matrices are produced via a multi-step process that results in expensive final goods. The cost of the equipment and raw materials required to generate these materials is a factor in the high cost of the finished product. The supply chain is constrained by this high price, which is also preventing the rise of composite materials in the automotive industry.

The rise in per capita income of individuals around the world is the cause of the rise in demand for new vehicles. In comparison to other nations, China and the U.S. have relatively high automotive sales. Automotive sales are currently growing rapidly in the UK, Japan, Germany, and India due to rising transportation needs. According to the current situation, factory closures and COVID-19 lockdowns caused the automobile sector to see a decline in 2020. Future customer hesitation to forego using transport services will lead to an increase in demand for autos.

Market Segmentation

• Based on Application, the Global Automotive Composites market is segmented into
  • Under the hood
    • Engine parts
    • Suspension systems
    • Intake manifolds
    • Cylinder housings
    • Battery packs
    • Rocker covers
    • Crankshaft covers
    • Catalytic converters
    • Transmission covers
    • Heating/AC equipment
    • Valve covers
    • Reservoirs
    • Electronic equipment
  • Interior
    • Air bag doors
    • Consoles
    • Instrument panels
    • Seats
    • Floors
    • Packaging shelves
    • Knee bolsters
  • Exterior
    • Body panels
    • Radiators/grilles
    • Fenders
    • Bumper systems
    • Side molding trim
• Based on End Use, the Global Automotive Composites market is segmented into
  • • Passenger Cars
    • Heavy Trucks
    • Light Trucks
    • Busses
• Based on Application, the Global Automotive Composites market is segmented into
  • • Unsaturated polyesters
    • Phenolics
    • Polyurethanes
    • Vinyl esters
    • Epoxies
    • Thermoplastic
    • Polyamides
    • Polypropylene
    • Polyesters (thermoplastic)
    • Not elsewhere classified
    • Polymer alloys/blends
• Based on Geography, the Global Automotive Composites market is segmented into
  • • • Asia-Pacific
      • North America
      • Europe
      • Latin America
      • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Automotive Composites Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Automotive Composites Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Automotive Composites Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Automotive Composites Market study?