Autocomposites market is expected to double revenue by 2032

Allied Market Research (Wilmington, Del., U.S.), a full-service market research and business consulting wing of Allied Analytics LLP (Portland, Ore., U.S.) has published an analysis and forecast report for the 2023-2032 automotive composites market. According to the report, the market was valued at $7.4 billion in 2022, and is estimated to reach $16.4 billion by 2032, growing at a CAGR of 8.3% from 2023 to 2032.

The global automotive composites market is driven by rapid technological advancements. According to Allied Market Research, advances in composites manufacturing technologies — e.g., resin transfer molding (RTM) and automated fiber placement (AFP) — are making them more cost-effective and suitable for mass production. Furthermore, the rise of electric vehicles (EVs) is creating new opportunities for composites, to extend battery range and improve performance.

However, one of the primary restraints still impacting the automotive composite market is the high cost associated with composite materials as compared to traditional metals such as steel and aluminum; the manufacturing processes involved in producing composite materials, including molding, curing and finishing, tend to be more complex and capital-intensive; and, in addition, the cost of raw materials used in composites, such as carbon fibers and resins, remains relatively high. As a result, automakers face challenges in justifying the higher upfront investment required for integrating composites into vehicle structures.

Carbon fiber segment

By fiber type, the carbon fiber segment accounted for the largest share in 2022, contributing to more than two-thirds of the global automotive composites market revenue. Carbon fiber’s lightweight can improve fuel efficiency and overall performance of vehicles, especially in terms of acceleration, handling and braking. Furthermore, stricter emissions standards such as Bharat stage (BS-V and BS-VI) and fuel efficiency requirements are pushing automakers to explore lightweight materials like carbon fiber to reduce vehicle weight and meet regulatory standards; lighter vehicles generally produce fewer emissions and consume less fuel.

Thermosets segment

By resin type, the thermoset segment accounted for the largest share in 2022, contributing to more than half of the global automotive composites market revenue. Thermoset resins offer high strength, stiffness and dimensional stability, which are crucial for automotive applications. These resins provide durability and resistance to heat, chemicals and fatigue, making them suitable for various components in vehicles. Moreover, thermoset composites can be molded into complex shapes, enabling novel designs and integration of multiple functionalities into a single component. This flexibility enables automakers to optimize the design of automotive parts for performance, aesthetics and functionality.

Exterior segment

By application, the exterior segment accounted for the largest share in 2022, contributing to nearly half of the global automotive composites market revenue. Composites’ light weight make them particularly attractive for exterior components where reducing weight is crucial. Additionally, composites can be molded into complex shapes with ease, providing automakers with the to create distinctive exterior designs that not only enhance the vehicle’s aesthetics but also improve aerodynamics.

Asia-Pacific to maintain its dominance by 2032

By region, Asia-Pacific held the highest market share in terms of revenue in 2022, accounting for one-third of the global automotive composites market and is projected to register the highest CAGR of 9.0% during the forecast period. The Asia-Pacific region is a major hub for automotive manufacturing, with countries like China, Japan, South Korea and India leading the production. 

Within the report, Allied Market Research also provides a detailed analysis of list of leading market players in the autocomposites space. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements and others to increase their market share and maintain dominant shares in different regions:

• Toray Industries Inc.
• SGL Carbon SE
• Teijin Ltd.
• Hexcel Corp.
• Owens Corning
• Mitsubishi Chemical Holdings Corp.
• Gurit Holding AG
• Syensqo (previously Solvay S.A.)
• Toray Advanced Composites (previously TenCate Advanced Composites)
• Huntsman Corp.

It is noted that the report is valuable in highlighting business performance, operating segments, product portfolio and strategic moves of market players to showcase the competitive scenario.

Find the full report here.