The Automotive Composites Market size was valued at USD 7.1 Billion in 2023 and is expected to reach USD 19.5 Billion by 2032 and grow at a CAGR of 11.9% over the forecast period of 2024-2032.
Rising demand for lightweight materials in automotive manufacturing.
The demand in the automotive industry is one of the main drivers of the automotive composites market. The U.S. Department of Energy stated that a 10% decrease in vehicle weight improves gas mileage by 6% to 8%. In addition, governments worldwide implement more and more regulations to reduce vehicle emissions, thus fostering the use of composites. For example, the EU countries are expected to cut carbon emission from vehicles by 55% by 2030 and by 100% by 2035 and some of them even have the task to reduce the CO2 emission by 95% from 2019 to 2050. This, in turn, will encourage automotive producers to stop using traditional materials, such as steel, and shift to more lightweight composites. The tendency to push automotive producers into using composites will strengthen in the future, particularly, after the Biden administration pledged to invest $174 billion in electric vehicle infrastructure and innovation.
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Rising demand for electric vehicles drives the market growth.
One of the notable drivers of the growth of the automotive composites market is the inflating demand for electric vehicles. With the worldwide pressure from governments to adopt cleaner transportation solutions, vehicle manufacturers are striving to develop electric vehicles that will be both lighter and more efficient. Both of these demands are linked to the requirement of meeting stringent emission regulations and satisfying the customers by enabling longer driving ranges. Carbon Fiber Reinforced Polymers 2 and glass fiber composites enable reaching this aim because they both decrease the overall weight of the vehicle. The decrease in weight also affects the efficiency of the battery and lowers the consumption. There has been a report from the International Energy Agency stating that in 2022, the sales of electric vehicles across the world have surpassed 10 million units, which constituted a 55% growth compared to the previous year. A similar tendency has been reported in sales and will likely be only accelerated in the U.S. and China as each of these countries has to support EV adoption by subsidizing these types of vehicles.
Recent Developments
· In August 2024, August 2024: Teijin Limited announced a new partnership with a major European automaker to supply advanced carbon fiber-reinforced polymer (CFRP) composites for lightweight vehicle production, aiming to reduce the vehicle weight by 25%.
· In July 2024, Toray Industries, Inc. expanded its production capacity for automotive composite materials in Southeast Asia, responding to the growing demand for lightweight solutions in electric vehicle manufacturing.
Segment Analysis
By Fiber Type
Glass fiber held the largest market share around 55% in 2023. Glass fiber leads the automotive composites market by fiber type due to its widespread use in vehicle components, affordability, and excellent strength-to-weight ratio. Glass fiber composites are extensively utilized in parts like body panels, engine covers, and interior components because they offer a balance between performance and cost-effectiveness. The lower cost of glass fiber compared to carbon fiber makes it a popular choice for mass-market vehicles, especially as automakers seek to reduce production costs while still meeting weight reduction targets.
By Application
In 2023, the exterior, sub-segment parts of cars will continue to represent the largest share of the automotive composites market, comprising almost 60% of the worldwide revenue. The reason is that automotive composites feature high impact resistance, tensile strength as well as resistance to chemicals and abrasion. These characteristics are indispensable for exterior components as they have to meet rigid requirements to manufacture cars. Thus, they guarantee that a car’s exterior will withstand bumps and scrapes and not deteriorate from weather conditions.
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Regional Insights
Asia Pacific held the largest market share around 75.8% in 2023. The government is behind such a significant showing of fuel-efficient cars and electric vehicles. With more than 26 million vehicles produced and forecasted in 2023, China is a global leader in car manufacturing, Reports from the China Association of Automobile Manufacturers reveal. Amidst the high number of vehicles produced, China’s government has set an ambitious goal of 40% of all vehicles sold to be electric in about 8 years from now. As a result, the demand for lightweight technologies and composite materials is likely to increase at this time. The concept is not restricted to China since countries such as Japan and South Korea are other leading contributors. This combination of strong automotive production, government support, and the rising adoption of EVs has cemented Asia-Pacific’s position as the leading region in the global automotive composites market.
Top of FormKey Takeaways
· Rising demand for lightweight materials is driving the adoption of composites in vehicle manufacturing to improve fuel efficiency and reduce emissions.
· Glass fiber composites lead the market due to their cost-effectiveness, strength-to-weight ratio, and broad application across the automotive sector.
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