The automotive composites market was evaluated at US$6.032 billion for the year 2020 and is projected to grow at a CAGR of 7.13%, reaching a market size of US$9.768 billion by the year 2027.
Composites are employed in various vehicle applications, including interior, exterior, structural, and other uses. Automotive composites have various features, including low coefficients of thermal expansion, form retention, ease of production, and corrosion resistance for performance in both dry and wet climates. The automotive composites market highly depends on the automobile industry, especially the revenue generated by the increasing number of electric vehicle sales. Due to the increasing production and sales of lightweight and electric vehicles, the market for automotive composites is expected to rise in the coming years. Furthermore, launching new products that give multiple operational benefits while adhering to existing emission criteria and other market laws will assist market companies in maintaining product differentiation and strengthening their position in the international automotive composites market.
With the existence of big companies with competence in modern production processes, the market for automotive composite has remained competitive. Therefore, product development is the primary growth strategy used by industry participants to ensure long-term viability in the global automotive composites market. For instance, Mitsubishi Chemical Co., Ltd. revealed the creation of a novel carbon fiber prepreg that may be employed as a component of an automotive engine in June 2021.
The rising automobile industry will surge the automotive composites market
The growing market share is attributed to increased automobile sales and the global desire for lightweight cars. Rapid urbanization, rising disposable incomes, and changing lifestyles are all driving up demand for noise reduction devices in automobiles in developing nations. A huge number of cars now utilize traditional fuel technologies such as diesel and gasoline, which has increased demand for fuel-efficient automobiles. Car manufacturers are concentrating more on incorporating safety and convenience into their vehicles as demand for automobiles develops in emerging economies. Furthermore, the rising need for replacement car parts and soundproofing equipment is likely to drive product demand throughout the forecast period. The primary causes for this shift in growth rate are increased car manufacturing and stringent pollution control regulations, forcing manufacturers to use lightweight vehicle components.
Increased government regulations
Moreover, governments in the United States, the United Kingdom, and Germany have implemented tough emission-control legislation in response to growing air pollution and global warming. Environmental rules in Europe and the United States have required automobile makers to use composites in vehicle manufacturing. Regulations in Europe and throughout the world are requiring OEMs to minimize CO2 emissions from produced vehicles. The European Union approved Regulation (EU) 2019/631 in April 2019, which sets a goal of 95 g/km of average CO2 emissions for new passenger automobiles. As a result, automotive sales will positively influence the automotive composites market in the near future.
Major key developments and initiatives taken by companies and the government will impact the automotive composites market
Due to the rise of the automotive industry, several companies, and governments worldwide have taken initiatives that have majorly contributed to the market’s future growth. Therefore, these developments have boosted the automotive composites market. For instance,
According to analysts, the Asia Pacific region is expected to occupy a notable share of the market in the coming years.
The Asia Pacific is the largest and fastest-growing area due to the highest number of vehicles present, notably in China, Thailand, and India. Furthermore, these countries are expected to have the most automobiles on the road, as well as the biggest markets for four-wheelers, fuelling the market's growth. The growing sales of electric vehicles in the Asia Pacific region and the technological advancements made in this segment will highly influence the automotive composites market for this region. For instance, the Automotive Component Manufacturers Association of India (ACMA) is the governing organization for the Indian auto component industry. Its participation of over 850 firms accounts for more than 85% of the organized auto component industry's sales. According to the same source, the automobile sector in India saw two consecutive years of growth, with 14.6 percent in FY19-20 and 13.6 percent in FY20-21.