The global market, which was estimated to be worth US$ 6.35 billion in 2021, is anticipated to reach US$ 20 billion by 2032, growing at a remarkable CAGR of 11% during the following 10 years.
Glass fibre composite demand is anticipated to soar and reach a worth of approximately US$ 11 billion, while carbon composite demand is anticipated to soar at a rate of 12%.
To offer significant structural and weight advantages, composites have been widely used in a variety of interior and external vehicle components. Automotive composites are being used more and more by original equipment manufacturers (OEMs) and automakers worldwide with the primary goal of lowering vehicle weight and reducing carbon emissions.
Demand for increasing manufacturing efficiency driving automotive composites market growth
Over the following ten years, there will be a strong increase in the demand for automotive composites on a global scale. Improvements in the production of automobiles have shown a number of market expansion prospects.
Also, the automotive sector favours composites over steel because they outperform their steel equivalents.
Automotive composites are now a necessity for vendors in the automotive sector to boost manufacturing productivity. As a result, in the next years, the global market for automotive composites is anticipated to reach new heights.
How are Stringent Carbon Emission Regulations in Europe Benefiting Manufacturers of Automotive Composites?
Throughout the forecast period, the global automotive composites market in Europe is anticipated to grow at a CAGR of 12%.
One of the important sectors present in the area and, in comparison to other regions, the largest is the automotive industry in Europe. Together, the nations of the European Union rank among the top makers of automobiles, and the industry is the greatest private investor in R&D.
Automakers have been under pressure as a result of strict rules implemented by authorities across Europe, including the European Automotive Manufacturers Association (ACEA) and the European Union Automotive Fuel Economy standard, which have set limitations for carbon emissions.
As an illustration, the European Union Commission (EC) mandated that the EU’s GHG (greenhouse gases) reduction target for 2030 be raised from a 40% CO2 emission reduction to a 50 or 55% reduction.
The region’s demand for the product is being driven by the region’s increasing fuel efficiency requirements and the lightweight nature of automobiles, which have encouraged the use of automotive composites in automotive applications.
Growing Use of Automotive Composites in Car Manufacturing Creating Lucrative Opportunities for Automotive Composites Market?
Automotive composites account for 55% of the market’s total value and 50% of its total volume when used for exterior applications.
Since many important body parts of cars, including bumper beams, fenders, front-end modules, door panels, and hoods, are constructed of composite materials, exterior application accounts for a sizable portion of the automotive market.
Also, using composites in exterior components like fenders, hoods, bumper beams, deck lids, and other pieces increases a car’s durability and ensures a long lifespan with minimal maintenance.
- Toray Industries Inc
- SGL Carbon
- Teijin Limited
- Mitsubishi Chemical Holding Corporation
- Hexcel Corporation
- Solvay SA
- UFP Technologies Ltd.
- Huntsman Corporation