The market trends of the Automotive Carbon Fiber Composites industry have been evolving rapidly, reflecting the dynamic landscape of the automotive sector. Carbon fiber composites, known for their lightweight and high-strength properties, have gained significant traction in the automotive market. One notable trend is the increasing emphasis on lightweight materials to enhance fuel efficiency and reduce emissions. As automakers strive to meet stringent environmental regulations, carbon fiber composites have emerged as a key solution for achieving weight reduction without compromising structural integrity.
Another noteworthy trend in the Automotive Carbon Fiber Composites market is the growing demand for electric vehicles (EVs). With the global push towards sustainable transportation, EVs have gained popularity, and automakers are turning to carbon fiber composites to offset the weight of heavy batteries, thereby extending the electric range. The unique combination of strength and lightness offered by carbon fiber composites aligns well with the requirements of electric vehicles, contributing to their overall efficiency and performance.
Additionally, the automotive industry is witnessing an increasing focus on luxury and high-performance vehicles, which often incorporate carbon fiber composites in their design. Consumers' preferences for sleek, stylish, and technologically advanced vehicles have driven the adoption of these materials in premium car segments. As more automakers integrate carbon fiber components into their product lines, the market for Automotive Carbon Fiber Composites is experiencing a positive growth trajectory.
The trend towards autonomous vehicles also plays a role in shaping the market dynamics of carbon fiber composites. As self-driving technology advances, there is a growing need for lightweight materials to optimize energy consumption and ensure the safety of autonomous vehicles. Carbon fiber composites, with their exceptional strength-to-weight ratio, offer a compelling solution for manufacturers working towards the development of autonomous systems.
Furthermore, advancements in manufacturing technologies have contributed to the increased affordability of carbon fiber composites, making them more accessible to a broader range of automotive applications. As production processes become more efficient and cost-effective, the market for these materials is expanding beyond high-end and luxury vehicles, reaching mainstream segments.
However, challenges such as high production costs and limited scalability persist in the Automotive Carbon Fiber Composites market. Manufacturers are actively working to address these challenges through research and development initiatives aimed at improving production efficiency and exploring alternative raw materials.
Report Attribute/Metric | Details |
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Market Opportunities | Increase in vehicle production along with emission norms, as well as adoption of new technologiesKey Market DynamicsGrowing demand for carbon fiber-reinforced plastics in luxury cars, race cars and other high-performance cars |
Market Dynamics | Growing demand for carbon fiber-reinforced plastics in luxury cars, race cars and other high-performance cars |
The Automotive Carbon Fiber Composites Market is projected to grow from USD 21247.14 Million in 2021 to USD 37487.1 Million by 2032, exhibiting a compound annual growth rate (CAGR) 6.4% during the forecast period (2023 - 2032).Â
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.
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.
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