As per MRFR Analysis, the Automotive Carbon Fiber Composites Market is projected to grow from USD 21,247.14 Million in 2021 to USD 37,487.1 Million by 2032, with a CAGR of 6.4% during the forecast period (2023 - 2032). The market is driven by stringent regulations on emissions, increasing demand for lightweight materials, and the growing automotive industry. However, high costs of production and raw materials pose significant challenges. The COVID-19 pandemic caused a downturn in 2020, but recovery is anticipated with rising electric vehicle demand, particularly in the Asia Pacific region. Recent developments include advancements in sustainable materials and recycling technologies, enhancing the market's growth potential.
The Automotive Carbon Fiber Composites Market is witnessing significant trends and developments.
Teijin Limited (Japan), Cytec Industries, Inc (U.S.), SGL Carbon (Germany), Toray Industries Inc. (Japan)
Carbon fibers are strong, stiff, and lightweight materials. These contain at least 95% carbon atoms bonded together. The strands of the carbon fibers are relatively thinner than a human hair. They can be easily twisted together like yarn or woven together to form a cloth. When woven carbon fiber is bonded with any polymer, a composite is formed. Carbon fiber is emerging as a preferred material across various end-use industries.
This is because of its excellent strength-to-weight ratio, chemical resistance, and low thermal expansion. Some of the significant applications of carbon fibers extend to various end-use industries such as aerospace & defense, automotive, wind energy, construction, and sports & leisure. Increasing awareness of OEMs toward strict government regulations on emission control is an opportunity for the growth of the Automotive Carbon Fiber Composites market. However, owing to COVID-19, the sales of automobiles have declined, resulting in reduced demand for automotive composites.
In January 2024, Sonichem, a sustainable technology pioneer formerly known as Bio-Sep based in Southampton, U.K., has received a financing of about £600,000 from Innovate UK's "resource efficiency for materials and manufacturing" (REforMM) program. The money will expedite the advancement of the exclusive Sonichem ultrasonic technology and the manufacturing of sustainable, economical substitutes for petrochemicals that are frequently employed in the fabrication of plastics, resins, and composites in the automotive sector.
The CARMA project aims to utilize Sonichem's ultrasonic processing technique in automotive applications, specifically focusing on the transformation of carbon-neutral agroforestry-derived resins into materials. The patented method transforms sawdust, which is the residual biomass from forestry activities, into lignin of exceptional quality. Subsequently, this sustainable substance will be utilized as the foundation for bio-based platform chemicals, thereby generating environmentally friendly substitutes for the typical petrochemical-derived materials now employed in the manufacturing of diverse vehicle components.
The Automotive Carbon Fiber Composites market has seen a considerable downturn during 2020 due to COVID-19. Lockdowns imposed in various countries have impacted automobile manufacturers, which has played a significant role in declining the automotive composites market. The shutdown of manufacturing plants, halt in production, and disturbance across the supply chain have also affected the growth of the automotive composites market in 2020. However, it is expected that the market will start recovering in 2021 with an increase in demand for electric vehicles, particularly in the Asia Pacific region. The lockdown delayed projects, which also affected the growth of the automotive composites market in 2020, will revive, giving the momentum for the market's growth.
The pandemic outbreak has resulted in a global halt in activities, and hence, the demand and supply for the global market products have been at stake. Also, the decline in the availability of resources and raw materials has hampered the production ability of the market. But, the forthcoming Automotive Carbon Fiber Composites market trends show that the market has a promising future owing to the expanded product portfolios and investments.
The automotive industry is highly focused on stringent regulations such as the Corporate Average Fuel Efficiency (CAFE) standards and the European Emission Standards (EES), laid by the governments of the U.S. and Europe, respectively, for the vehicle manufacturers. According to the United States- Environmental Protection Agency (EPA), the transportation industry in the U.S. accounts for 27% of greenhouse gas emissions.
The U.S. government has made it a critical concern for the automakers to follow the average miles per gallon standard for their vehicles. Thus, the U.S. automakers are concerned more significantly about the production of lightweight vehicles to reduce the battery weight and thus enhance the fuel efficiency of the vehicles. The stringent government rules, the lightweight property, and the high safety associated with the composites have helped drive the use of these materials in the automotive industry.
It isn't easy to reach out with a new product with a market price higher than the existing ones in a competitive market. A similar market scenario persists for the Automotive Carbon Fiber Composites market, as automotive composites are very expensive compared to other alternatives already available in the market. However, it is still struggling in various countries, such as in the APAC and MEA regions, mainly due to the high processing and manufacturing cost of composites. Also, the cost of raw materials such as carbon fibers and thermoplastic resins is high. Thus, even after its several advantages over traditional materials such as steel and aluminum, its use is limited in the automotive industry. The high economic investment associated with composites production is majorly restricting the growth of composites in the automotive industry.
Vehicles are considered one of the prime contributors to air pollution, and thus, there arises a dire need to reduce vehicular emissions on a priority basis. The governments across the globe have thus, laid strict standards to be followed by the OEMs against CO2 emission control from the vehicles manufactured by them. If not met by the OEMs, these government norms may lead to penalty payments for excess emissions. The OEMs are thus, focusing highly on enhancing the fuel efficiency of their vehicles by manufacturing lightweight cars with enhanced battery mileage. The OEMs have considered composite materials the best substitute for traditional heavyweight materials such as steel and aluminum to manufacture lightweight, fuel-efficient, and strong impact-resistant cars, which is a lucrative opportunity for the Automotive Carbon Fiber Composites market.
The latest market updates highlight the global market segmentation. The global automotive carbon fiber composites market has segmented the global scenario based on type, applications, and region.
The market has been divided into types and includes both composites and non-composites.
The global market has been classified based on its applications, and the use is extended to industries like aerospace & defense, automotive, construction, wind energy, sports & leisure, and others.
The global carbon fiber composites market has been segmented based on the regions. The market is studied in five regions: Asia-Pacific, North America, the Middle East & Africa, Europe, and Latin America.
The Asia-Pacific was the most prominent and fastest-growing market in 2019. The automotive Carbon Fiber Composites market is expected to be the leading market during the forecast period. The region had accounted for 37% by value in 2019. The market trends support rapid industrialization in the region due to the growing economy. It is the prominent factor attributing to the growth of end-use industries like aerospace and defense, automotive, and renewable energy, which is fueling the growth of the regional market.
Europe dominated the global automotive carbon fiber composites market in 2019 and is projected to register a CAGR of 11.8% between 2020 and 2025. The European region is home to a massive automotive industry which is one of the major industries operating in the region and is comparatively higher than any other region. The European Union is amongst the world's biggest producers that is gaining momentum for its production ability of motor vehicles. The sector represents the most significant private investor in research & development, with approximately $ 57.4 billion annually. The turnover generated by European Union's auto industry represents 7% of the overall GDP.
There are various key market players like Teijin Limited (Japan), Cytec Industries, Inc (U.S.), others, SGL Carbon (Germany), and Toray Industries Inc. (Japan).
The global market players in the carbon fiber composites market adopt strategies such as expansion, mergers & acquisitions, supply, and distribution agreements, and new product launches to maintain their market dominance and increase their global presence. For instance, in November 2017, one of the prominent company - Solvay, which is the parent company of Cytec, acquired European Carbon Fiber GmbH ("ECF"). This company is a major manufacturer of high-quality precursors for large tow (50K) polyacrylonitrile carbon fibers.
Stringent regulations imposed by the government of Europe, such as the European Automotive Manufacturers Association (ACEA) and the European Union Automotive Fuel Economy standard, have set limits for carbon emission, which has put pressure on automakers. For instance, the European Union Commission (E.C.) has enforced increasing the E.U.'s GHG reduction target for 2032- from a 40% cut in CO2 emission to a 50 or 55% cut. Therefore, increasing fuel efficiency requirements and the lightweight nature of vehicles have enforced the use of automotive composites in automotive applications driving the demand for a product in the region.
The exterior application of automotive composites accounted for 55%, in terms of value and 50% in terms of volume, of the overall market in 2019. Exterior application contributes a significant share of the automotive carbon fiber composites market. Significant components of a car body, such as bumper beam, fender, front end module, door panels, and hood, are made of composite materials. Furthermore, the use of composites in the exterior parts such as fenders, hoods, bumper beams, deck lids, and others added to the durability of cars, ensuring a long lifecycle and lowering maintenance costs.
The automotive carbon fiber composites market report has been prepared to understand the dynamics available to the market during the period ending in 2027. The report highlights the impact of the pandemic outbreak on the market, followed by the growing reasons that enhance the global market competition. The global automotive carbon fiber composites market report highlights the recent developments undertaken by the market players during the period that have an impact on the investment and buying decisions for the continuous period.
In February 2024, inventors at the Department of Energy's Oak Ridge National Laboratory achieved a significant breakthrough in chemistry. They successfully developed a closed-loop process for creating an extremely durable carbon-fiber-reinforced polymer (CFRP) and subsequently recovering all of the initial components used in its synthesis. CFRP, a composite material that is lightweight, durable, and resilient, is highly advantageous in terms of reducing the weight and enhancing the fuel efficiency of automobiles, airplanes, and spacecraft. Nevertheless, traditional carbon fiber reinforced polymers (CFRPs) pose challenges when it comes to recycling.
The majority of these materials have been designed for one-time usage, resulting in a substantial carbon impact. A standard thermoset material undergoes permanent crosslinking. Once the material is synthesized, cured, molded, and shaped, it becomes irreparable and cannot be reprocessed. Conversely, the technique developed by ORNL introduces dynamic chemical groups to both the polymer matrix and the carbon fibers that are embedded within it. The polymer matrix and carbon fibers may endure numerous reprocessing cycles without experiencing any degradation in mechanical qualities, such as strength and toughness. Thermoset epoxies, which are conventional polymers, are commonly employed to permanently join various materials like metal, carbon, concrete, glass, ceramic, and plastic.
| Attribute/Metric | Details |
| Market Size 2021 | USD 21247.14 Million |
| Market Size 2032 | USD 37487.1 Million |
| Compound Annual Growth Rate (CAGR) | 6.4% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Production Type, Application |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Cytec Industries (U.S.), SGL Carbon SE (Germany), Toray Industries, Inc. (Japan), ACP Composites, Inc (U.S.), Clearwater Composites, LLC (U.S.), Owens Corning (U.S.), HITCO Carbon Composites Inc (U.S.), Mitsubishi Rayon Carbon Fiber and Composites, Inc. (U.S.), Polar Manufacturing Limited (U.K.) and Rock West Composites (U.S.) |
| Key Market Opportunities | Increase in vehicle production along with emission norms, as well as adoption of new technologies |
| Key Market Dynamics | Growing demand for carbon fiber-reinforced plastics in luxury cars, race cars and other high-performance cars |
Automotive Carbon Fiber Composites Market Highlights:
Frequently Asked Questions (FAQ) :
A 6.4% CAGR is expected to set the market on a favorable course of development.
HITCO Carbon Composites Inc (U.S.), Owens Corning (U.S.), and Mitsubishi Rayon Carbon Fiber and Composites, Inc. (U.S.) are influencing the market growth.
A promising revenue level is expected to transform the market’s growth potential.
The augmented inclination towards carbon fiber-reinforced plastics, especially in luxury and race cars, is expected to benefit the market.
The dominance of the APAC region is expected to visible in the market.
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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