Automotive Composites Market Size was valued at USD 7.1 billion in 2022. The Automotive Composites market is projected to grow from USD7.8952 Billion in 2023 to USD 18.4587137 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.20% during the forecast period (2023 - 2032). Increased demand for lightweight and fuel-efficient vehicles is the key market driver enhancing market growth.
          
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The automotive industry is focusing on stringent regulations such as the Corporate Average Fuel Efficiency (CAFE) standards and the European Emission Standards (EES) laid by the governments of the US and Europe, respectively, for vehicle manufacturers. According to the United States Environmental Protection Agency (EPA), the transportation industry in the US accounts for 27% of greenhouse gas emissions. The US government has made it critical for automakers to follow average miles per gallon vehicle standards. Thus, US automakers are concerned about producing lightweight vehicles to reduce battery weight and enhance the fuel efficiency of vehicles. Car manufacturers are adopting new lightweight materials to comply with government regulations to manufacture their products. Composites are considered the best lightweight substitutes over traditional heavy materials such as steel and aluminum to fabricate a car body. This factor is driving the market CAGR.
Additionally, the market for automotive composites is driven by the heavy demand for lightweight components in automotive parts for better fuel efficiency and reduced emissions to comply with the EU legislation. Composites offer weight reduction benefits by 15-20% using glass fiber composites and 25-40% for carbon fiber composites, compared with other structural metallic materials such as steel, iron, and aluminum. Moreover, to support the usage of composites in the automotive sector, various public-private partnership initiatives have already been launched in EU member states. Such initiatives include the establishment of composites and automotive lightweight materials innovation clusters and collaborations with the automotive and chemical industry to support the investment with supply chain analysis of the automotive carbon fiber composites market. Moreover, many experts consider that electric vehicles will allow higher costs per kilo of weight saved in vehicle weight reduction strategies. Normal IC engine-driven cars can only afford to pay 2-3 per kg of weight saved, but electric vehicles can save 7-8/kg. General vehicles consume more energy while accelerating in the standard drive cycles and can recover more kinetic energy through brake energy recovery. A lower-weight vehicle body allows downsizing batteries while maintaining range in electric vehicles. Reducing vehicle body and battery pack weight leads to a compounding effect on weight reduction of the overall vehicle by enabling the downsizing of other parts, such as the brake system and driven train parts. In ICE-driven vehicles, the lower weight reduces emissions and improves performance at equal drive train power and torque levels. Thus, these drive the Automotive Composites market revenue.
The  Automotive Composites market segmentation, based on fiber type, includes glass and carbon fiber. Glass fiber dominates the market; the glass fiber increasing need for cost-effective and lighter vehicles is driving the metal substitution in the automotive industry. Alternative materials, such as glass-fiber-reinforced plastic (GFRP), are increasingly used in manufacturing lightweight automobile parts, including body panels, doors, roofs, frame segments, and seating systems. With its desirable physical properties and major advantages over steel, glass fiber reinforced plastics (GFRP) are used in many automotive industry applications.
Figure1: Automotive Composites Market, by Fiber Type, 2022 & 2032 (USD billion)Â Â Â Â Â Â Â Â Â Â Â Â 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on the manufacturing process, the  Automotive Composites market segmentation includes compression, injection, and resin transfer molding. The compression molding dominated the market; compression molding dominated the market; because the compression molding process uses high pressure to form parts from the material. The force and heat applied during the process must be carefully measured and monitored to produce the desired shape.
Based on application, the  Automotive Composites market segmentation includes exterior, interior, and powertrain. The exterior dominated the market, owing to the increased application of composites in external components such as bumper beams, fenders, front-end modules, door panels, and hoods. Furthermore, composites in exterior parts improve durability, ensure longevity, and reduce automobile maintenance costs.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Automotive Composites Market area will dominate, owing to rapidly expanding application industries in this Region. Moreover, China’s Automotive Composites market held the largest market share, and the Indian Automotive Composites market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: AUTOMOTIVE COMPOSITES MARKET SHARE BY REGION 2022 (%)Â Â Â Â Â Â Â Â Â Â 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Automotive Composites market accounts for the second-largest market share due to the process innovation, improving R&D, and expansion of automobile production in this Region. Further, the German Automotive Composites market held the largest market share, and the UK Automotive Composites market was the fastest-growing market in the European Region
North America is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising awareness among the population regarding the benefits of using wind energy is also expected to drive the wind sector market growth.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Automotive Composites market, grow even more. Market participants are also undertaking various strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Automotive Composites industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s uses in the Automotive Composites industry to benefit clients and increase the market sector. In recent years, the Automotive Composites industry has offered some of the most significant medical advantages. Major players in the Automotive Composites market, including TORAY INDUSTRIES, INC. (Japan), SGL Carbon SE (Germany), TEIJIN LIMITED (Japan), Mitsubishi Chemical Holding Corporation (Japan), Magna International Inc. (Canada), UFP Technologies, Inc. (US), and Cytec Industries Inc. (US)and others, are attempting to increase market demand by investing in research and development operations.
Mitsubishi Chemical Corporation, or MCC, is a Mitsubishi Chemical Holdings Corporation subsidiary. It is a Japanese corporation that merged with Mitsubishi Pharma Corporation in 2005 to create Mitsubishi Chemical Holdings Corporation. Mitsubishi Chemical is the largest chemical corporation based in Japan. Mitsubishi Chemical Co., Ltd. announced the development of a new carbon fiber prepreg that can be used as a part of an automotive engine.
As a leading producer of carbon fiber reinforcements and resin systems and the world leader in honeycomb manufacturing for the commercial aerospace industry, Hexcel is creating a better world through lightweight solutions. Hexcel joined ASCEND Project, aiming to improve high-rate manufacturing and processing technologies to develop lightweight advanced composite materials for the automotive and aerospace industry.
June 2021: Mitsubishi Chemical Co., Ltd. announced the development of a new carbon fiber prepreg that can be used as a part of an automotive engine.
March 2021: Hexcel joined ASCEND Project, aiming to improve high-rate manufacturing and processing technologies to develop lightweight advanced composite materials for the automotive and aerospace industry.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 7.1 billion |
| Market Size 2023 | USD 7.8952 billion |
| Market Size 2032 | USD 18.4587137 billion |
| Compound Annual Growth Rate (CAGR) | 11.20%(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 | Fiber Type, Manufacturing Process, Application, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â TORAY INDUSTRIES, INC. (Japan), SGL Carbon SE (Germany), TEIJIN LIMITED (Japan), Mitsubishi Chemical Holding Corporation (Japan), Magna International Inc. (Canada), UFP Technologies, Inc. (US), and Cytec Industries Inc. (US) |
| Key Market Opportunities | Rising electric vehicle production is anticipated to provide lucrative opportunities for market growth. |
| Key Market Dynamics | A rise in demand for lightweight, fuel-efficient vehicles Increasing environmental concerns and stringent pollution control measures |
Frequently Asked Questions (FAQ) :
The Automotive Composites market size was valued at USD 7.1Billion in 2022.
The Automotive Composites Market is projected to grow at a CAGR of 11.20% during the forecast period, 2023–2032.
Asia Pacific had the largest share of the Automotive Composites Market
The key players in the market are TORAY INDUSTRIES, INC. (Japan), SGL Carbon SE (Germany), TEIJIN LIMITED (Japan), Mitsubishi Chemical Holding Corporation (Japan), Magna International Inc. (Canada), UFP Technologies, Inc. (US), and Cytec Industries Inc. (US)
The Glass Automotive Composites category dominated the market in 2022.
The Exterior category had the largest share in the Automotive Composites Market.
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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