Automotive composites are lightweight materials made from a combination of fibers and resins used in vehicle manufacturing to reduce weight, enhance fuel efficiency, and improve performance. These composites help meet stringent environmental regulations and support the automotive industry’s shift toward sustainability. The global automotive composites market is experiencing significant growth, driven by increasing demand for lightweight materials in autmotive industry to enhance fuel efficiency and meet stringent environmental regulations. The Automotive Composites Market size is expected to reach US$ 27,374.53 Million by 2031 from US$ 12,474.38 Million in 2024. The market is estimated to record a CAGR of 11.88% from 2025 to 2031.
Governments worldwide are implementing stricter emission standards and fuel efficiency requirements. Automotive composites help reduce vehicle weight, which improves fuel efficiency and lowers CO2 emissions, helping manufacturers meet these regulations.
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Automotive Composites Market Drivers and Opportunities:
Increase in Adoption of Electric Vehicles
The rise in fuel prices and the environmental impact of conventional gasoline vehicles have paved the way for alternative fuel vehicles across the globe. Buyers are gradually getting inclined to use battery-powered or hybrid automobiles, which is anticipated to boost the demand for electric vehicles. According to the International Energy Agency’s annual Global Electric Vehicle Outlook, over 10 million electric cars were sold worldwide in 2022, and the number is projected to grow by 35% in 2023 to reach 14 million. As the automotive industry witnesses a transformative shift toward electric vehicles (EVs), the role of composites has become more crucial. To promote the sale of EVs, governments are providing attractive laws and incentives. Reduced selling costs, no registration fees or minimal registration fees, and free EV infrastructure charging at various charging points are a few of these incentives. Furthermore, many countries worldwide exclude import, purchase, and road taxes due to multiple subsidies. These auto industry incentives have led to a rise in the manufacture of electric vehicles. Governments have also created beneficial policies and invested heavily in infrastructure. For example, the US government plans to spend US$ 87 billion on new highway construction over the next five years
Growth of Automotive Industry in Emerging Economies
In the last few years, the automotive industry has grown significantly across emerging economies such as Brazil, China, India, Mexico, and South Africa. With the increasing disposable income, the demand for both passenger and commercial vehicles is growing in developing countries. For instance, according to the Federation of Automobile Dealers Associations (FADA), in India, sales of passenger vehicles increased to 2,854,242 units in November 2023, compared with 2,409,535 units in November 2022. Similarly, according to the China Association of Automobile Manufacturers (CAAM), the sales of commercial vehicles accounted for 18.3% year-on-year for September 2023 in China. These stats show the increasing demand for vehicles.
The automotive industry also paved its way in Brazil and South Africa. According to the International Organization of Motor Vehicle Manufacturers (OICA), South Africa’s automobile production increased by 24% to 555,889 units in 2022. According to the same source, Brazil was the largest manufacturer and exporter of light and commercial vehicles in 2023 in South & Central America. The country reported production of 2.3 million vehicles in 2022. Thus, the growth of automotive industries in emerging economies is expected to create lucrative opportunities for the automotive composites market growth.
Automotive Composites Market News and Key Development:
The automotive composites market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the automotive composites market are:
- Gurit Holding AG announced a long-term supply contract for its Kerdyn PET structural foam core. The contract allows for exclusive supply of Kerdyn PET to the company’s Products for the use in office and commercial interior applications in the North American region. (Source: Gurit Holding AG, Company Website, Jan 2025)
- Hexcel Corp announced its intend to refocus its industrial business around preferred carbon fiber applications that align with its core competencies in Neumarkt, Austria. This is also expected to strengthen the company’s market position in Europe. (Source: Hexcel Corp, Press Release, Oct 2024)
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