Automotive Composite Market Size, Share & Trends Report

Automotive Composite Market Size, Share & Trends Analysis Report By Product (Polymer Matrix, Metal Matrix, Ceramic Matrix), By Application (Exterior, Structural & Powertrain), And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-2-68038-839-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 100

Report Overview

The global automotive composite market size was valued at USD 20.76 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2020 to 2027. Stringent emission control regulations, most notably in the developed countries, coupled with increasing demand for lightweight materials in the automotive industry, are expected to drive the demand for automotive composites over the forecast period. Increasing environmental concerns and stringent pollution control norms have forced the automotive manufacturers to control automotive emissions. One of the most critical factors affecting fuel efficiency and vehicular emission is the curb weight. A reduction in the curb weight can drastically increase fuel efficiency which, in turn, can reduce vehicular pollution.

U.S. automotive composite market size

The U.S. dominated the North America automotive composites market in 2019. The presence of major automobile manufacturers, such as Chrysler; Tesla, Inc.; Ford Motor Company; and General Motors; suitable infrastructure, coupled with high disposable income, are expected to drive this market. Increasing demand for customized vehicles where composites are utilized to provide desirable specifications and performance is also a major driver for the market.

Increasing fuel prices have triggered the need for fuel-efficient vehicles. Composites are most commonly used for replacing steel and other heavy materials on account of their higher strength to weight ratio. A large number of vehicles currently use conventional fuel technologies, such as diesel and petrol, which has led to increasing demand for fuel-efficient vehicles.

Stringent environmental regulations in Europe and the U.S. have mandated automotive manufacturers to employ composites in automotive construction. Regulations in Europe and across the globe are forcing OEMs to reduce CO2 emissions of manufactured automobiles. In April 2019, the Regulation (EU) 2019/631 of the European Union was adopted in Europe, which sets a target of 95 g/km of average CO2 emissions for new passenger cars.

The applications of composites have been limited to high-performance cars that are costlier owing to the high cost of composites. However, key market participants are conducting extensive R&D activities for developing low-cost composite grades having comparable mechanical properties as that of the high-cost variants. This is anticipated to boost the demand for composites in the automotive industry over the forecast period.

Product Insights

Polymer matrix composites led the market and accounted for 75.3% share of the global revenue in 2019. Polymer matrix composites are popular in the automotive industry due to their low cost and easy fabrication method. They exhibit various desirable mechanical properties, such as strength to weight ratio, high abrasion resistance, high tensile strength, and good corrosion resistance.

Polymer matrix composites include glass fiber reinforced polymer composites, carbon fiber reinforced polymer composites, and natural fiber reinforced polymer composites as subtypes are used in seatbacks, door panels, package trays, dashboards, headliners, and interior parts. Well-developed, installed manufacturing base and excellent mechanical properties have aided in the penetration of glass fiber reinforced polymer composites within the automotive industry.

The metal matrix composites segment, in terms of revenue, is likely to expand at the highest CAGR of 8.2% over the forecast period. Metal matrix composites offer high strength and stiffness, higher operating temperatures, and enhanced wear resistance. Growing demand for materials with increased performance and rising demand for lighter components, especially in the automotive industry, is further likely to benefit the growth of the metal matrix composites segment over the forecast period.

Ceramic matrix composites comprise a ceramic matrix that is reinforced by fiber materials, such as carbon, silicon carbide, alumina, or mullite. They possess properties such as high hardness and strength, excellent corrosion and wear resistance, and superior chemical and thermal resistance, which increases their application scope in the automotive industries.

Application Insights

Exterior components led the market and accounted for 38.6% share of the global revenue in 2019 on account of the properties possessed by automotive composites, such as high impact resistance, high tensile strength, high chemical and abrasion resistance, which are mandatory for exterior components according to automotive manufacturing standards.

Growing preference for composites in powertrain and exterior components of sports cars and luxury vehicles is expected to positively impact the overall market growth. Moreover, rising R&D activities to increase the application scope of composites in structural and powertrain components are further anticipated to spur the segment growth over the forecast period.

Global automotive composite market share

The structural and powertrain components application segment, in terms of revenue, is expected to expand at the highest CAGR of 8.0% over the forecast period. Structural and powertrain components include engine, transmission, and drive shafts. Composites act as an excellent replacement for metallic under-hood parts. Growing focus on reducing vehicular weight for improving fuel efficiency is expected to drive the demand over the coming years.

Interior components such as central console, carpets, steering wheels, cockpit modules, door panels, headliners, and automotive seats are major application areas of automotive composites. The increasing need for lightweight interior components in automobiles is likely to drive the use of composites to build these interior parts, thereby benefitting the segment growth.

Regional Insights

The Asia Pacific dominated the market and accounted for 46.8% share of the global revenue in 2019 on account of the region being one of the most lucrative destinations for the automotive industry owing to the presence of key manufacturers in the major economies, including China, India, and Japan. Competitive advantage in terms of low raw material and production cost along with steady growth in automobile production are likely to propel the regional market growth.

Stringent emission regulations implemented in China, India, and Japan are expected to reduce the weight of the vehicle, thereby enabling fuel savings. Vehicle weight can be reduced through the replacement of heavy metal components with composites. Moreover, government initiatives such as “Make in India” are expected to contribute to the automotive industry growth in India, which, in turn, is likely to fuel the demand for automotive composites over the coming years.

The European market, in terms of revenue, is expected to register a CAGR of 7.2% over the forecast period. Process innovation, improving R&D, and a well-established automotive sector in the European region are likely to fuel the market growth over the coming years. Moreover, stringent emission norms with a focus on environment-friendly green vehicles are pushing manufacturers to make use of composites as these are lightweight.

The presence of major automobile manufacturers, suitable infrastructure, and high disposable income of the individuals in North America are likely to boost the market growth in the region. Moreover, advancements in automobile technology, coupled with a supportive infrastructure and government initiatives, are likely to drive the region's automobile market. The abovementioned factors are, in turn, expected to benefit the market growth in the region.

Key Companies & Market Share Insights

The market for automotive composites is characterized by high competition. Market players compete on various parameters, including technical competence, product performance, quality, reliability, price, and corporate reputation. Joint ventures for technological collaborations and new product developments are critical in the product development cycle within the automotive industry. Market participants such as Teijin Limited and Toray Industries, Inc. are integrated along the value chain from raw material manufacturing to composite fabrication. With the rising demand for lightweight components in the automotive industry, automobile manufacturers are collaborating with composite fabricators for developing new products that cater to specific client requirements. Some of the prominent players in the automotive composites market include:

  • Solvay

  • Toray Industries, Inc.

  • SGL Carbon

  • Teijin Limited

  • Hexcel Corporation

  • Mitsubishi Chemical Carbon Fiber and Composites, Inc.

  • Johns Manville

  • Gurit

  • Plasan Carbon Composites

  • TPI Composites

  • GMS Composites

  • IDI Composites International

  • Revchem Composites

  • Formaplex

  • Owens Corning

Automotive Composite Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 22.16 billion

Revenue forecast in 2027

USD 37.10 billion

Growth Rate

CAGR of 7.5% from 2020 to 2027 (Revenue-based)

Market demand in 2020

2992.2 kilotons

Volume forecast in 2027

4954.4 kilotons

Growth Rate

CAGR of 7.3% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million, volume in Kilotons, and CAGR from 2020 to 2027

Report coverage

Revenue & volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; Spain; France; U.K.; China; India; Japan; South Korea; Brazil; Argentina; Morocco; South Africa

Key companies profiled

Solvay; Toray Industries, Inc.; SGL Carbon; Teijin Limited; Hexcel Corporation; Mitsubishi Chemical Carbon Fiber and Composites, Inc.; Johns Manville; Gurit; Plasan Carbon Composites; TPI Composites; GMS Composites; IDI Composites International; Revchem Composites; Formaplex; Owens Corning

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive composites market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Polymer Matrix Composites

      • Glass Fiber Reinforced Polymer Composite

      • Natural Fiber Reinforced Polymer Composite

      • Carbon Fiber Reinforced Polymer Composite

    • Metal Matrix Composites

    • Ceramic Matrix Composites

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Interior Components

    • Exterior Components

    • Structural & Powertrain Components

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Spain

      • France

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Morocco

      • South Africa

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