Mexico Automotive Composites Market Expected to Reach $533.5 Million by 2033

The Mexico automotive composites market was valued at $363.2 million in 2023, and is projected to reach $533.5 million by 2033, growing at a CAGR of 4% from 2024 to 2033.

Automotive composites are advanced materials with enhanced properties suited for vehicle manufacturing made by combining two or more distinct components. Typically, they consist of a matrix such as plastic, resin, or metal, which is reinforced with fibers such as carbon, glass, or aramid. These composites offer significant benefits, including high strength-to-weight ratios, improved durability, corrosion resistance, and design flexibility. In the automotive industry, composites are used to reduce vehicle weight, improve fuel efficiency, and enhance performance that makes them vital for electric vehicles (EVs) and efforts to meet stricter environmental regulations. Their ability to replace heavier traditional materials such as steel or aluminum has driven their growing adoption in body panels, chassis, and other structural and non-structural vehicle components.

As automakers focus on reducing vehicle weight to meet fuel efficiency standards and emissions regulations, automotive composites are increasingly being adopted as lightweight alternatives to traditional materials such as steel and aluminum. Composites such as carbon fiber-reinforced plastics (CFRP) and glass fiber-reinforced plastics (GFRP) , offer high strength-to-weight ratios, contributing to better vehicle performance and energy efficiency. In Mexico, the rise in production of both conventional and electric vehicles (EVs) drives demand for these advanced materials as manufacturers look forward to optimizing vehicle designs while maintaining safety and durability. All these factors are expected to drive the growth of the Mexico automotive composites market during the forecast period.

However, Mexico’s composite manufacturing infrastructure is not as mature as that in other regions such as Europe or Asia, where composite materials have been widely adopted for automotive applications. Suppliers in Mexico lack the specialized knowledge and equipment required to produce high-quality composite components at scale. This results in limited local production capacity, forcing manufacturers to import composite components or invest in building new facilities and partnerships, which is costly and time-consuming. All these factors hamper the growth of the Mexico automotive composites market.

Increase in demand for sustainability and reduction of waste in automotive manufacturing boosts the adoption of recyclable and renewable materials. Innovations in composite recycling technologies allow manufacturers to recover and reuse materials such as carbon fibers and thermoplastics, reducing the environmental impact of composite waste. The adoption of recyclable composites presents Mexican automotive manufacturers with a competitive edge, as they offer more sustainable solutions to global automakers looking to reduce their lifecycle environmental impact. All these factors are anticipated to offer new growth opportunities for the Mexico automotive composites market during the forecast period.

United States-Mexico-Canada Agreement (USMCA)

The United States-Mexico-Canada Agreement (USMCA) is a trade agreement that replaced the North American Free Trade Agreement (NAFTA) , which had been in effect since 1994. Officially implemented on July 1, 2020, the USMCA aims to strengthen economic ties among the U.S., Mexico, and Canada by promoting fair trade practices, enhancing labor rights and encouraging environmental sustainability.

The agreement introduces stricter rules of origin for automotive products, requiring that a higher percentage of a vehicle's components be sourced from North America to qualify for tariff-free treatment. This is intended to support the regional automotive manufacturing sector and increase the use of local materials, including automotive composites.

Segment Highlights

The Mexico automotive composites market is segmented into fiber type, resin type, and application. By fiber type, the market is classified into glass fiber, carbon fiber, and others. By resin type, the market is divided into thermosets and thermoplastics. By application, the market is categorized into exterior, interior, and others.

The major players operating in the Mexico automotive composites market include Toray Industries, Inc, TEIJIN AUTOMOTIVE TECHNOLOGIES, Hexcel Corporation, SGL Carbon, Mitsubishi Chemical Corporation, Solvay S.A., Huntsman Corporation, Owens Corning, Plasan, and Gurit Services AG.