Automotive Carbon Fiber Composites Market Size
|Fastest Growing Market:||Asia Pacific|
*Disclaimer: Major Players sorted in no particular order
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Automotive Carbon Fiber Composites Market Analysis
The automotive carbon fiber market is valued at USD 22.08 billion, and it is expected to grow up to USD 40.85 billion with a CAGR of 10.80% during the forecast period.
The COVID-19 pandemic severely impacted the market owing to the complete standstill of global transport, imports, and exports. Major manufacturing industries shut down their plant due to restrictions worldwide, and 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.
The last year remained the year for transition, where the automotive sector witnessed steady growth after revamping the automotive industry throughput. This has also elevated the demand for carbon fiber.
Carbon fiber is a lightweight material with high-strength characteristics that can be designed for enhanced performance in automotive applications. It offers 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 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.
Growing stringent emission norms and rising fuel prices, carbon fiber, a great alternative to conventional metals, can reduce the vehicle's weight. 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. The rise in demand for electric vehicles across the world is likely to increase the penetration of carbon fiber to enhance the range of electric vehicles.
- 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.
Automotive Carbon Fiber Composites Industry Segmentation
Carbon fiber is a lightweight material with high-strength characteristics that can be designed for enhanced performance in automotive applications.
The Automotive Carbon Fiber Market is segmented by Application (Structural Assembly, Powertrain Components, Interiors, and Exteriors), Vehicle Type (Passenger Car, Commercial Vehicle), and Geography (North America, Europe, Asia-Pacific, and the Rest of the World). The report covers the market size and forecasts in terms of value (USD Billion) for all the above segments.
Automotive Carbon Fiber Composites Market Trends
This section covers the major market trends shaping the Automotive Carbon Fiber Composites Market according to our research experts:
Increasing Adoption of Carbon Fiber in Automobiles
The automotive industry has started using carbon fiber for strong, lightweight parts that increase speed and improve aerodynamics and fuel efficiency. Currently, most carbon fiber automotive parts are used in high-end sports cars and European supercars; however, some carbon fiber composite parts are available in the aftermarket. Vehicle parts such as body components, wheels and rims, and interior finishes utilize carbon fiber for their unique properties and sleek appearance.
Advanced materials such as carbon fiber are essential for boosting the fuel economy of modern cars for 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 6-8% increase in fuel economy.
Major players are investing in the research and development of carbon fiber components to enhance vehicle efficiency. For instance,
- In November 2022, Ahera, an ultra-premium electric automotive brand, revealed the exterior design of the first model of its SUV. The vehicle is made up of highly sustainable composite material, including forged carbon fiber.
- In October 2022, Nissan Motors showcased its Frontier pickup truck powered by a 5.6-liter V-8 engine and integrated with a wide-body kit featuring carbon-fiber front fenders and bedsides, along with a carbon hood.
- In May 2022, Hexcel developed a new product range that combines Hexcel resin systems made with bio-derived resin content with natural fiber reinforcements to create material solutions for Automotive, Winter Sports, Marine, and Wind Energy applications.
BMW uses carbon fiber components in the upper portions of its 7-series Sedan, such as roof elements and supporting pillars, with the intention of lowering the car’s center of gravity. The Alfa Romeo 4C, on the other hand, has a complete carbon fiber chassis, which cuts the weight of the vehicle down to just 2,500 lbs. Other cars of similar styles and sizes generally weigh 3,000 lbs or more, making the 4C a lightweight luxury in its class. 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.
Considering these aforementioned factors and developments, the demand for highly efficient carbon fiber is anticipated to hold high potential during the forecast period.
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Europe is Dominating the Market
The luxury car and sports car market is anticipated to hold high potential for the usage of carbon fiber. Europe anticipates itself as the leading region to portray strong demand for luxury cars and sports cars.
The European luxury car market is expected to be driven by SUVs. Traditional passenger cars are losing their hold in the market. It is a global trend that started in the US and then spread to Europe and Asia. Some of the brands whose best-seller SUVs are in Europe include Nissan, Hyundai, Kia, Mazda, Mitsubishi, Jaguar, Lexus, Porsche, Maserati, and Volvo. These vehicle sales would drive the demand for automotive air suspension in the long run.
The automotive industry in the United Kingdom is now best known for premium and sports car manufacturers, including Aston Martin, Bentley, Daimler, Jaguar, Lagonda, Land Rover, Lotus, McLaren, MG, Mini, Morgan, and Rolls-Royce. The country's passenger car sales increased from 1,631,064 units in 2021 to 1,647,181 units, an increase of 1.0%. This growth is backed by the launch of the latest models by these OEMs embedding the advanced body material in the vehicle.
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 manufacturing their vehicles.
Companies are trying to invent new parts made of carbon fiber that can reduce a 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.
Considering these factors, the demand for carbon fiber for automotive parts is anticipated to portray a high growth rate in the European region due to luxury and sports car sales.
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Automotive Carbon Fiber Composites Industry Overview
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.
The demand is on the positive side, attributed to strong expansion and growth strategies adopted by the carbon fiber manufacturers. For instance, in March 2021, Teijin Limited and Applied Electric Vehicle (Applied EV) jointly developed a polycarbonate solar roof for future mobility applications.
Automotive Carbon Fiber Composites Market Leaders
Toray Industries Inc.
Mitsubishi Chemical Carbon Fiber and Composites Inc.
SGL Carbon SE
*Disclaimer: Major Players sorted in no particular order
Automotive Carbon Fiber Composites Market News
Nov 2022: Dodge announced the addition of the Hellephant V-8 engine under its product line. In addition, the company revealed the offering of the engine along with the option of carbon fiber body shells.
May 2022: Hexcel developed a new product range that combines Hexcel resin systems made with bio-derived resin content with natural fiber reinforcements to create material solutions for Automotive, Winter Sports, Marine, and Wind Energy applications.
Automotive Carbon Fiber Composites Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
5. MARKET SEGMENTATION (Market Size in Valued USD Billion)
5.1.1 Structural Assembly
5.1.2 Powertrain Components
5.2 Vehicle Type
5.2.1 Passenger Car
5.2.2 Commercial Vehicle
5.3.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.4 Rest of the World
220.127.116.11 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Toray Industries
6.2.2 Hexcel Corporation
6.2.3 Mitsubishi Chemical Carbon Fiber and Composites Inc.
6.2.4 SGL Carbon SE
6.2.6 Teijin Ltd
6.2.7 DowAksa USA LLC
6.2.8 A&P Technology Inc.
6.2.9 Zoltek Corp.
6.2.10 Toho Tenax Europe GmbH
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Automotive Carbon Fiber Composites Market Research FAQs
What is the study period of this market?
The Automotive Carbon Fiber Composites Market market is studied from 2018 - 2027.
What is the growth rate of Automotive Carbon Fiber Composites Market?
The Automotive Carbon Fiber Composites Market is growing at a CAGR of 10.8% over the next 5 years.
What is Automotive Carbon Fiber Composites Market size in 2018?
The Automotive Carbon Fiber Composites Market is valued at 22 Billion USD in 2018.
What is Automotive Carbon Fiber Composites Market size in 2027?
The Automotive Carbon Fiber Composites Market is valued at 40 Billion USD in 2027.
Which region has highest growth rate in Automotive Carbon Fiber Composites Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Carbon Fiber Composites Market?
Europe holds highest share in 2021.
Who are the key players in Automotive Carbon Fiber Composites Market?
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.
Automotive Carbon Fiber Composites Industry Report
Statistics for the 2023 Automotive Carbon Fiber Composites market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Carbon Fiber Composites analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.