Automotive Carbon Fiber Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

The Automotive Carbon Fiber Market is segmented by Application (Structural Assembly, Powertrain Components, Interiors, and Exteriors) and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

Automotive Carbon Fiber Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 11 %

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Market Overview

The automotive carbon fiber market was valued at USD 20 billion in 2020, and it is expected to grow up to USD 33 billion with a CAGR of 11% during the forecast period, 2021-2026.

The COVID-19 pandemic had a severe impact on the market owing to the complete standstill of global transport, imports, and exports. Due to the social distancing norms and lockdown restrictions worldwide, the research and production that goes into the carbon fiber market were hindered. With the majority of the world's carbon fiber production industries located in Japan, the supply chain for the automotive industry was disrupted. However, with the new and increasingly stringent emission norms and rising fuel prices, carbon fiber, which is a great alternative to conventional metals, can reduce the weight of the vehicle. This can improve the fuel efficiency and performance of the engine while the fiber's physical strength limits are almost twice as high as those of conventional metals.

Carbon fiber is a lightweight material and has high-strength characteristics that can be designed for enhanced performance in automotive applications. They offer improvement in structural, functional, or cosmetic properties. To make vehicles lighter, cleaner, safer, and more cost-effective, the leading carbon fiber suppliers are responding to the needs and expectations of the vehicle OEMs, system suppliers, and customers. Many car companies, such as BMW, Audi, GM, Honda, and Polestar, have established agreements with carbon fiber material producers for mass production and are investing in their processes to support low-cost carbon fiber manufacturing.

Europe is expected to be the market leader due to the presence of many car manufacturers such as Ferrari, Lamborghini, Koenigsegg, Pagani, etc., who use a lot of carbon fiber in manufacturing their cars. Europe is closely followed by North America and Asia-Pacific with growing demand for performance vehicles. Within the Asia-Pacific, China and Japan are poised to be the two largest markets.

Scope of the Report

The automotive carbon fiber market is segmented by application (structural assembly, powertrain components, interiors, and exteriors) and geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size of and forecasts for the automotive carbon fiber composites market in terms of value (USD billion) for all the above-mentioned segments.

Application
Structural Assembly
Powertrain Components
Interiors
Exteriors
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
South Korea
India
Rest of Asia-Pacific
South America
Brazil
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Adoption of Carbon Fiber in Automobiles

Although automobiles have been around for more than a century, the material they are made of has mostly remained the same. It is only in the past few decades that advanced materials ranging from aluminum and magnesium alloys to carbon fiber have made their way into mass-produced cars. Advanced materials such as carbon fiber are essential for boosting the fuel economy of modern cars, all the while maintaining performance and safety. Since it takes lesser energy to accelerate a lighter object than a heavier one, lightweight materials offer great potential for increasing vehicle efficiency and fuel economy. A 10% reduction in the vehicle’s weight can transpire to a 6% to 8% increase in fuel economy.

BMW’s use of carbon fiber in its i3 model has considerably reduced the car’s weight. The company sells around 31,000 units of the i3 model in a year. BMW and its carbon fiber producing partner, the SGL Group, spent close to USD 1 billion for establishing the supply chain for the CFRP used in the i3 and i8. Audi is also using carbon fiber to produce the rear wall of the space frame for its A8 sedan. Even from the supply side, carbon fiber manufacturers have been ramping up their production capacities, which will further help in the adoption of carbon fiber in automobiles.

About 10% of the global carbon fiber consumption is done by the automotive industry for various parts, along with around 12% consumed by the sports goods industry, which makes it a total of 22% of total carbon fiber being produced. It is used to build some important structures like a survival cell of a Formula 1 car, where the carbon fiber structure can withstand high force impact and stay intact.

Automotive Carbon Fiber Market Latest Trends

Healthy Growth Rate is Anticipated for the European Market

With the enactment of stringent emission norms and fuel economy standards in the European region, automobile manufacturers in Germany, Italy, and France, such as BMW, Volkswagen, Audi, etc., have started using carbon fiber composites in the manufacturing of their vehicles.

Companies are trying to invent new parts made of carbon fiber that can reduce the vehicle's total weight to a great extent. The application of carbon-fiber-reinforced plastic (CFRP) has been widely adopted for the production of automotive bodies, particularly in hyper-car manufacturers such as Ferrari, Lamborghini, and Porsche.

Europe is the largest market for carbon fiber manufacturers, owing to the fact that it is home to sports, super, and hypercar manufacturers like Porsche, Mercedes Benz, Audi, BMW, Ferrari, and Lamborghini.

The demand for carbon fiber is expected to increase during the forecast period, as companies are forming new partnerships and launching new carbon fiber technologies for the manufacturing of automotive components, in turn aiding in driving the growth of automotive carbon fiber in the European market. Faurecia, one of the world’s largest automotive part manufacturers, announced that it was joining the leading cluster MAI Carbon of the Incorporated Society of Carbon Composites, based at the Augsburg Innovation Park, Germany, to develop manufacturing processes capable of reaching automotive cycle times for the mass production of carbon fiber and composite parts.

Automotive Carbon Fiber Market Growth Rate by Region

Competitive Landscape

The automotive carbon fiber market is a consolidated market. The top 10 players account for most of the market share. Major companies in the carbon fiber market include Hexcel Corporation, Mitsubishi Chemical Carbon Fiber and Composites Inc., SGL Carbon SE, Teijin Limited, and Toray Industries Inc. Toray is expected to be the market leader since its acquisition of Zoltek in 2014 and has achieved that position according to the 2020 statistics available.

Recent Developments

Japan’s Sekisui Chemical inked a deal to acquire Renton, Washington–based Aim Aerospace for USD 510 million from the private equity firm Liberty Hall Capital Partners. The acquisition will give Sekisui, the maker of a thermoplastic material, access to carbon fiber–reinforced composite technology. It follows similar moves by other Japanese chemical makers that see a burgeoning future in the composite-part market.

In January 2020, Toray Industries acquired Alva Sweden AB, which is a manufacturer of cushions for automotive airbag systems.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitute Products

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Structural Assembly

      2. 5.1.2 Powertrain Components

      3. 5.1.3 Interiors

      4. 5.1.4 Exteriors

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

        3. 5.2.1.3 Rest of North America

      2. 5.2.2 Europe

        1. 5.2.2.1 Germany

        2. 5.2.2.2 United Kingdom

        3. 5.2.2.3 France

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 China

        2. 5.2.3.2 Japan

        3. 5.2.3.3 South Korea

        4. 5.2.3.4 India

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 United Arab Emirates

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Toray Industries

      2. 6.2.2 Hexcel Corporation

      3. 6.2.3 Mitsubishi Chemical Carbon Fiber and Composites Inc.

      4. 6.2.4 SGL Carbon SE

      5. 6.2.5 Solvay

      6. 6.2.6 Teijin Ltd

      7. 6.2.7 DowAksa USA LLC

      8. 6.2.8 A&P Technology Inc.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Automotive Carbon Fiber Composites Market market is studied from 2018 - 2026.

The Automotive Carbon Fiber Composites Market is growing at a CAGR of 11% over the next 5 years.

The Automotive Carbon Fiber Composites Market is valued at 20 Billion USD in 2018.

The Automotive Carbon Fiber Composites Market is valued at 33 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

Toray Industries Inc., Hexcel Corporation, Mitsubishi Chemical Carbon Fiber and Composites Inc., SGL Carbon SE, Teijin Limited are the major companies operating in Automotive Carbon Fiber Composites Market.

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