Automotive Composites Market Trends

Navigating the Automotive Composites Market Landscape

The composites market for automobiles is undergoing a considerable transformation as we enter the year 2024, driven by a combination of macro-economic factors. A revolution in materials science has made it possible to produce lighter, stronger composites that improve the performance and fuel economy of vehicles. At the same time, the push to reduce carbon emissions is forcing automakers to adopt more sustainable materials and reshape their production processes. And the demand for greener, high-performance vehicles is also pushing the market for composites forward. These trends are of strategic importance to all the players involved. Not only do they affect product development and supply-chain dynamics, but they also affect the way they position themselves in a market that is becoming more and more focused on the environment.

Top Trends

1. Sustainability Initiatives
   In the automobile industry, too, the trend is to go green. For example, Toray Industries has turned its attention to bio-based composites. By 2023, 60 per cent of automobile manufacturers had cited “green” as a major priority. This is a trend that is affecting the supply chain and production process. Future developments may include tighter regulations on the use of materials and a greater demand from consumers for green vehicles.
2. Lightweighting for Efficiency
   Lightweight composites are becoming a necessity for improving fuel efficiency and performance. According to Hexcel, a leading manufacturer of composites, the use of lightweight materials can reduce a car’s weight by up to 30 percent. It is this trend that is driving manufacturers to invest in advanced composites, which in turn is driving down costs. Consequently, as fuel economy regulations become more stringent, demand for lightweight solutions is expected to grow, boosting R&D.
3. Electric Vehicle Integration
   Electrification is arousing the need for batteries and the resulting need for improved composite materials, which are capable of extending the range of electric vehicles. Companies such as SGL Carbon are therefore developing new lightweight composite materials for e-mobility applications. Sales of electric vehicles are expected to account for 15% of the total in 2023. This trend will lead to an even closer collaboration between the car industry and the composites industry in order to optimize the design of composite materials for electric vehicles.
4. Advanced Manufacturing Techniques
   The production of the automobile is being revolutionized by the introduction of new methods of manufacture such as three-dimensional printing and automatic fiber placement. Using these new methods, Teijin has been able to reduce the time required for the manufacture of automobiles by 40%. The combination of higher efficiency and lower costs makes composites much more attractive to manufacturers. The further development of these methods will allow mass customization.
5. Regulatory Compliance and Standards
   In the course of the years, the government regulations concerning vehicle emissions and safety have influenced the materials used in the automobile industry. Among other things, the European Union has set a goal of reducing CO2 emissions by 55% by the year 2030. With these regulations, the carmakers are pushing for the use of advanced composites that meet the safety and environmental standards. This development will lead to an increase in the investment in R&D to develop the necessary materials.
6. Increased Collaboration Across Industries
   The cooperation between the carmakers and the suppliers of composite materials is growing, as shown by the Magna International group's new composites alliances. In 2023, seventy per cent of car companies were working with the suppliers of composite materials. This is a trend that promotes the sharing of knowledge and the speedy development of new materials. Future collaborations could also involve the integration of smart technology into composites for added functionality.
7. Customization and Personalization
   The demand for individualised vehicle options is driving the demand for a greater variety of composite materials. UFP Technologies has reported an increase in the number of inquiries for bespoke composite solutions. The trend towards individualisation is pushing manufacturers to adopt flexible production methods that can accommodate individualisation. It is anticipated that the ability to offer individualised features will become a major source of competitive advantage in the automobile market as consumer preferences change.
8. Enhanced Safety Features
   The safety of the vehicle is further improved by the use of advanced composites, which improve the impact resistance and the integrity of the vehicle. Companies like Hexion are developing advanced composites which absorb more energy in collisions. In 2023, 80% of all new cars will have advanced safety features. The importance of new materials becomes even more important. In the future, it may be possible to combine smart materials that react in real time to the crash situation.
9. Digitalization and Smart Manufacturing
   In the automobile industry, the use of digital technology in the manufacture of components is transforming the market for composites. Companies are using the Internet of Things and artificial intelligence to optimize production and quality control. In 2023, 65% of manufacturers reported that digitalization had increased their productivity. It is expected that this trend will lead to an increase in operational efficiency and a reduction in waste, and will result in smarter and more efficient manufacturing practices.
10. Global Supply Chain Resilience
    The automobile industry is especially concerned with the resilience of its composite supply chains in the post-pandemic period. To reduce risks, companies are diversifying their suppliers and investing in local sourcing. In 2023, 55% of the industry regarded disruptions in the supply chain as a major concern. In the future, this trend is likely to lead to increased investment in supply-chain technology and strategies that ensure the continuity and stability of material sourcing.

Conclusion: Navigating the Automotive Composites Landscape

The Automotive Composites Market in 2024 will be characterized by intense competition and significant fragmentation. Both established and new players will compete for market share. There will be an increased focus on lightweight materials and sustainable materials in all regions, which will lead to innovation and the development of new products. Meanwhile, established players are using established supply chains and customer loyalty to differentiate themselves from new players. In the future, the ability to integrate sustainable practices and quickly respond to changing customer needs will be the key to success. In the meantime, suppliers must focus on technology and strategic alliances to enhance their competitiveness and seize emerging opportunities.