Automotive Composites Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The automotive composites market was valued at USD 24 billion in 2020 and is expected to reach USD 50 billion by 2026, registering a CAGR of over 13% during the forecast period.

The COVID-19 pandemic has had a negative impact on the market. With stringent lockdown and social distancing norms implemented across the world, the production of composite materials was severely affected. With the reduced number of vehicle sales worldwide, the market opportunity for composites to be used as different structures in the vehicles was completely reduced.

Presently, composite materials, like thermoplastics and reinforced glass, have drawn the attention of carmakers, making them focus on sourcing better, tensile, and lighter components to manufacture automobile units.

· Factors such as increasing demand for lightweight materials from the automotive industry and a growing focus on fuel economy are expected to be major drivers for the market. However, high cost associated with carbon fiber composites and glass fiber composites is hindering the growth of the market. Usage of such composites in low-cost vehicles could increase the prices of such vehicles drastically.

· The low recyclability of composites is also a restraint for their penetration in entry-level passenger vehicles. However, collaborations of the OEMs with suppliers (due to rising demand for fuel-efficient vehicles, growing lightweight electrical vehicle segment, and major automobile giants, like BMW and Nissan, trying to replace their existing metal parts with composite fibers) imply the scope and booming opportunity that the market is anticipated to offer over the forecast period.

Scope of the Report

The automotive composites market is segmented by Application Type, Material Type, and Geography. The report offers market size and forecasts for automotive composites in volume and value (in USD billion) for all the above segments.

By application type, the market is segmented as Structural Assembly, Powertrain Component, Interior, and Exterior.

By Material Type, the market is segmented as Thermoset Polymer, Thermoplastic Polymer, Carbon Fiber, And Glass Fiber,

and By Geography, the market is observed in North America, Europe, Asia-Pacific, and the Rest of the World.

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Key Market Trends

Growing Demand for Lightweight Materials

The automotive industry has been focusing on the weight of vehicles as it has a direct impact on driving dynamics and fuel consumption. Due to the high cost of potential lightweight solutions and consumers’ limited willingness to pay for weight reduction in automotive, the use of costly lightweight materials has so far been limited.

As governments worldwide are implementing stringent emission regulations and planning to set even higher emissions standards in the coming years, the importance of lightweight materials will likely increase. In a typical automobile, fiber is 50% by volume, while adding just 10% to the weight. In the United States, regulations mandate that by 2025, the average fuel economy standard must meet 54.5 miles per gallon.

A mileage-sensitive market like India is a great market for composites, owing to the demand for better fuel efficiency from vehicles, which can be achieved by using different composites. Although composites can account for a great business in the country, the costs associated with the research and development of the composites in vehicles can be a restraint for the market.

With the demand for lightweight vehicles increasing rapidly in developing economies, the market for carbon fiber composites is projected to grow at a fast pace during the forecast period.

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