Automotive Composites Market Expected to Reach $14.7 Billion by 2033

According to a new report published by Allied Market Research, titled, “Automotive Composites Market," The automotive composites market size was valued at $9.8 billion in 2023, and is estimated to reach $14.7 billion by 2033, growing at a CAGR of 4.2% from 2024 to 2033.

Introduction

Automotive composites are advanced materials utilized in vehicle manufacturing and amalgamating fibers such as carbon or glass with resin matrices. These materials offer superior strength-to-weight ratios as compared to conventional options. Commonly used in body panels, chassis, and structural elements, they enhance performance, durability, and safety. By reducing vehicle weight and improving stiffness, automotive composites contribute to enhanced fuel efficiency and reduced emissions. They play a crucial role in meeting stringent regulatory standards and advancing sustainability goals in the automotive industry. With their versatility, automotive composites enable innovative design solutions, driving the development of next-generation vehicles that prioritize efficiency, safety, and environmental responsibility.

Market Dynamics

Composites provide designers with greater freedom in shaping vehicle components as compared to conventional materials. They have the ability to be molded into complex shapes, allowing innovative designs and aerodynamic efficiency. Moreover, composites offer opportunities for customization, enabling automakers to differentiate their products in a competitive market by creating visually appealing and unique vehicles that resonate with consumers. Moreover, while composites have been associated with high manufacturing costs, advancements in materials technology and production processes have helped reduce costs over time. Automation, improved resin infusion techniques, and innovative manufacturing methods have lowered the overall cost of composite components.

In addition, composites often require fewer manufacturing steps as compared to metal fabrication, resulting in increased efficiency and reduced assembly time in vehicle manufacturing. Furthermore, sustainability concerns have become paramount in the automotive industry, driving the adoption of recyclable and eco-friendly materials. Many composite materials are recyclable and offer a more sustainable alternative to traditional materials such as steel and aluminum. Furthermore, advancements in composite recycling technologies have made it easier to recover and reuse composite materials, reducing waste and environmental impact throughout the vehicle lifecycle. All these factors are expected to drive the demand for the automotive composites market during the forecast period.

However, limited production efficiency and scale as compared to conventional materials is another significant restraint for the automotive composite market. Mass production of automotive components using composites is often constrained by longer cycle times and intricate manufacturing processes. High-performance composites require careful quality control measures to ensure consistent material properties, further adding to production complexities. Achieving economies of scale in composite manufacturing remains a challenge, as the infrastructure for large-scale production is still developing, resulting in higher per-unit costs.

Moreover, the automotive industry has witnessed rapid advancements in manufacturing technologies, including additive manufacturing (3D printing), automated fiber placement (AFP), and robotic assembly processes. These technologies enable precise and cost-effective production of complex composite components, allowing customization, rapid prototyping, and mass production. Stakeholders in the automotive composites market streamline production workflows, reduce lead times, and achieve greater design freedom by leveraging advanced manufacturing techniques, thereby capitalizing on emerging opportunities in the automotive sector. All these factors are anticipated to offer new growth opportunities for the automotive composites market during the forecast period.

Segments Overview

The automotive composites market is segmented on the basis of fiber type, resin type, application, and region. On the basis of fiber type, the market is categorized into glass fiber, carbon fiber, and others. By resin type, the market is classified into thermosets and thermoplastics. By application, the market is divided into exterior, interior, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of fiber type, the market is categorized into glass fiber, carbon fiber, and others. The carbon fiber segment is anticipated to grow at the fastest CAGR of 4.8% during the forecast period. Carbon fiber in automotive composites is increasingly popular due to its unique combination of high strength and low weight that makes it ideal for vehicles focused on fuel efficiency and performance. Moreover, the urgent need to reduce vehicle weight, as regulations worldwide push for lower emissions and improved fuel economy. Carbon fiber-reinforced polymer (CFRP) composites weigh up to 70% less than steel and 40% less than aluminum, offering automakers an efficient way to meet stringent emission standards. This weight reduction directly contributes to fuel savings and lower greenhouse gas emissions, critical goals for manufacturers aiming to stay compliant with regional emission standards in North America, Europe, and Asia-Pacific. The reduction in weight also enhances the range for electric vehicles (EVs), an essential factor as EV adoption accelerates globally.

By resin type, the market is classified into thermosets and thermoplastics. The thermoplastic segment is anticipated to grow at the fastest CAGR of 4.4% during the forecast period. Thermoplastics, such as polypropylene (PP), polyamide (PA), and polyphenylene sulfide (PPS), are significantly lighter than traditional metal parts and offer considerable weight savings when used in composites. With increasingly stringent emission regulations globally, especially in North America and Europe, automotive manufacturers are under pressure to adopt lightweight materials to reduce the overall carbon footprint of vehicles. Thermoplastic resins enable this by allowing for parts consolidation, which reduces the number of components and the overall vehicle weight without compromising structural integrity.

By application, the market is divided into exterior, interior, and others. The exterior segment is anticipated to grow at the fastest CAGR of 4.4% during the forecast period. Composites offer high impact resistance, weather resilience, and corrosion resistance, which are essential for vehicle exteriors exposed to harsh environmental conditions. Compared to metals, composites do not rust and withstand UV exposure that makes them ideal for exterior applications such as bumpers, panels, and structural components. Their versatility allows for intricate and aerodynamic designs, helping manufacturers enhance the aesthetic appeal and aerodynamic efficiency of vehicles. This design freedom facilitates the incorporation of modern, sleek exterior styles, enhancing brand differentiation in a competitive market.

Regional Analysis

Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region is anticipated to grow at the fastest CAGR of 4.4% during the forecast period. The cost-effectiveness and scalability of composite manufacturing have improved significantly, which has facilitated wider application in Asia-Pacific’s automotive sector. Technological advancements in production methods such as high-pressure resin transfer molding and automated fiber placement, have reduced the cost and production time associated with composites. This enables manufacturers to scale up and integrate these materials into high-volume production, thus overcoming a previous barrier where composites were often limited to luxury or high-performance vehicles. As production costs drop, more vehicles across different segments, including commercial and passenger vehicles, are being designed with composite materials that drive demand in Asia-Pacific's automotive market.

Key players in the automotive composites industry include Toray Industries, Inc., SGL Carbon SE, Teijin Limited, Hexcel Corporation, Owens Corning, Mitsubishi Chemical Holdings Corporation, Gurit Holding AG, Solvay S.A., TenCate Advanced Composites, and Huntsman Corporation.

Key Market Insights

• By fiber type, the glass fiber segment was the highest revenue contributor to the market accounting for more than four-fifths of global automotive composites market share in 2023.
• On the basis of resin type, the thermoset segment was the highest revenue contributor to the global automotive composites market analysis in 2023.
• On the basis of application, the interior segment was the highest revenue contributor to the market accounting for two-fifths of the global automotive composites market share in 2023.
• Region-wise, Asia-Pacific was the highest revenue contributor of global automotive composites industry share in 2023.