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Automotive Composites Market Size, Share, Growth & Industry Analysis, By Vehicle Type (Passenger Cars, Commercial Vehicles, High-Performance Vehicles), By Fiber Type (Carbon Fiber Composites, Glass Fiber Composites, Natural Fiber Composites), By Application, and Regional Analysis, 2024-2031
Pages: 170 | Base Year: 2023 | Release: February 2025 | Author: Ashim L.
Automotive composites are lightweight materials predominantly utilized in trucks, cars, and other vehicles, primarily for under-the-hood components and interior applications. These composites are highly favored for their ability to reduce vehicle weight, making them ideal for a wide range of automotive interior and exterior uses.
Global automotive composites market size was USD 9.67 billion in 2023, which is estimated to be valued at USD 10.57 billion in 2024 and is projected to reach USD 21.19 billion by 2031, growing at a CAGR of 10.44% from 2024 to 2031.
Rising demand for lightweight and fuel-efficient vehicles to enhance fuel efficiency and reduce carbon emissions is driving the growth of the market. Composites such as carbon fiber-reinforced polymers (CFRPs), glass fiber-reinforced polymers (GFRPs), and natural fiber composites are gaining significant traction due to their high strength-to-weight ratio, durability, and design flexibility.
Technological advancements in production techniques, such as resin transfer molding and additive manufacturing, are reducing manufacturing costs and expanding industry adoption. Leading players are focusing on developing technology to enhance heat resistance.
Major companies operating in the automotive composites industry are Formaplex Technologies Ltd, GMS COMPOSITES, Hexcel Corporation, IDI Composites International, Mitsubishi Chemical Group Corporation, Owens Corning, SGL Carbon, Solvay, TEIJIN LIMITED, Toray Advanced Composites, Huntsman International LLC., Exel Composites, RTP Company, STRUCTeam, Avient Corporation, and others.
Due to severe air pollution, environmental agencies across numerous countries are enforcing stringent regulations to reduce carbon dioxide (CO2) emissions from vehicles.
This is prompting original equipment manufacturers (OEMs) to adopt innovative technologies, such as automotive composites, to decrease vehicle weight while preserving strength and structural integrity.
This trend is further supported by the rise of digitalization, the growing adoption of electric vehicles (EVs), and increased emphasis on redesigning vehicles to enhance safety and performance. Furthermore, key players are developing cost-effective manufacturing methods for automotive composites, fueling market growth.
Market Driver
"Increasing Demand for Electric Vehicles"
The increasing demand for electric vehicles is fueling the the growth of the automotive composites market. As the automotive industry prioritizes sustainability and carbon emission reduction, manufacturers are emphasizing the use of lightweight materials to optimize electric vehicle (EV) performance and battery efficiency.
Composites, renowned for their exceptional strength-to-weight ratio, corrosion resistance, and design versatility, are key in EV production. These materials enhance driving range, energy efficiency, and overall vehicle performance, aligning with consumer expectations and regulatory requirements.
Additionally, increased investments in EV technology and innovations in composite manufacturing processes are propelling market growth.
Market Challenge
"High Costs Associated with Advanced Composites and Manufacturing Processes"
The high costs associated with advanced composites and manufacturing processes pose a major challenge to the growth of the automotive composites market. These materials, including carbon fiber-reinforced plastics and glass fiber composites, offer benefits such as reduced weight, enhanced durability, and improved fuel efficiency.
However, their production involves complex, resource-intensive techniques, such as autoclave curing and resin transfer molding, which increase costs. This cost barrier often limits their adoption in mass-market vehicles, restricting broader adoption.
To mitigate this challenge, key players are focusing on process innovation, economies of scale, and advancements in automation, cost-effective materials, and alternative production methods such as out-of-autoclave (OoA) manufacturing.
Additionally, collaborations between automotive manufacturers and composite suppliers to optimize designs and integrate sustainable materials can reduce costs.
Market Trend
"Utilization of AI to Optimize the Selection and Composition of Composite Materials"
AI assists engineers and researchers in determining the optimal combination of materials, such as carbon fiber and resin, to achieve an ideal balance of strength, weight, and cost.
This streamlines the innovation process, enabling the development of highly customized, high-performance composites specifically designed for automotive applications. Companies are introducing AI tools and services to minimize the labor-intensive processes between component design and production.
In manufacturing, artificial intelligence (AI) enhances process automation, boosting production efficiency and minimizing errors. AI-powered systems monitor and manage composite manufacturing processes, ensuring accuracy and consistency in operations such as molding, layering, and curing.
This increases output, reduces material waste, and promotes sustainable production practices. Additionally, AI-enabled predictive maintenance enhances machinery performance by minimizing downtime, thereby optimizing factory efficiency.
AI enables manufacturers to assess the performance of materials prior to physical testing, thus expediting product development cycles. This approach reduces costs while improving safety and durability in automotive applications.
| Segmentation | Details |
| By Vehicle Type | Passenger Cars, Commercial Vehicles, High-Performance Vehicles |
| By Fiber Type | Carbon Fiber Composites, Glass Fiber Composites, Natural Fiber Composites |
| By Application | Body Panels, Chassis and Structural Components, Interior Components, Others |
| By Region | North America: U.S., Canada, Mexico |
| Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe | |
| Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific | |
| Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa | |
| South America: Brazil, Argentina, Rest of South America |
Market Segmentation:
Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific automotive composites market accounted for a substantial share of around 36.58% in 2023, valued at USD 3.54 billion. Rapid industrialization and the increased use of composites materials in the automotive sector is fostering this growth. Countries such as China, Japan, and India are at the forefront of advancements in the composites sector.
China stands as the largest contributor, with significant investments in aerospace and automotive industries, where lightweight composite materials are essential for vehicle and aircraft components.It also leads in wind turbine installation capacity, generating demand for advanced composites in turbine blade manufacturing.
Japan is a major consumer of carbon fiber composites, particularly for the automotive and aerospace sectors. Key players are launching products for electric vehicles, thus aiding regional market expansion.
Companies have incorporated composites into electric vehicle (EV) production to reduce weight and enhance performance. India is emerging as a key market, supported by the rising adoption of composites in the automotive industry and a growing emphasis on sustainable manufacturing practices.
The increasing demand for electric vehicles in the Asia Pacific region is further accelerating the use of automotive composites, as these materials are critical for improving EV efficiency and extending battery life.
North America automotive composites industry is poised to grow at a robust CAGR of 10.54% over the forecast period. Surging demand for lightweight materials in the automotive sector is fostering this growth.
Composites, particularly carbon fiber and glass fiber materials, offer an optimal balance of strength, durability, and reduced weight, which are essential for enhancing vehicle performance and fuel efficiency, key priorities for consumers.
Moreover, the growing shift toward electric vehicles (EVs), which require lighter, more efficient components for improved battery management and range, further highlights the need for automotive composites.
North America's position as a hub for major automotive manufacturers and suppliers supports continued growth as these manufacturers increasingly adopt advanced composite materials to enhance vehicle design and performance, with ongoing investments to expand production capacity.
The global automotive wrap films market is characterized by a number of participants, including both established corporations and rising organizations. Companies in the market are investing in research and development to expand their production capacity.
To gain a competitive edge in this evolving industry, companies are focusing on new product launches, collaborations, corporate expansions, and mergers and acquisitions.
Market players are focusing on advancing composite manufacturing technologies to increase the accessibility and affordability of composite materials for use in automotive applications.
To reduce production costs and enhance scalability, key players are prioritizing innovations such as three-dimensional (3D) printing, resin transfer molding (RTM), and automated fiber placement (AFP). Companies are also focusing on recycling to manufacture lightweight and durable components, which helps reduce costs and greenhouse gas emissions.
Recent Developments (M&A/Partnership/Agreements/New Product Launch)
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