Automotive Composites Market

Automotive Composites Market Insights

“The global automotive composites market is projected to grow at a CAGR of 6.3% and is expected to reach an estimated value of US$ 15.6 billion by 2024.”

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Introduction

Automotive composites are made up of fibers, such as glass fiber and carbon fiber, which are impregnated with a resin system (thermoset or thermoplastic) using various manufacturing processes. Composites are preferably used in the form of compounds in the automotive industry. Short fiber-reinforced thermoplastics (SFTs), long fiber-reinforced thermoplastics (LFRTs), glass mat thermoplastics (GMTs), sheet molding compounds (SMCs), and bulk molding compounds (BMCs) are the key compound types used in the industry.

Automotive Composites Market Dynamics

The automotive industry is undergoing the most potentially disruptive decade where stringent regulations imposed by regulatory authorities on automakers are compelling them to increasingly incorporate advanced materials to make the vehicle lighter to increase fuel efficiency or to reduce carbon emissions. Composites offer significant weight savings as compared to metals including steel and aluminum. Amongst composite materials, carbon fiber offers the maximum weight-saving advantage along with exceptional mechanical performance.

Market Drivers

In the coming five years, the growth rate of composites in automotive is likely to outpace the growth rate of the automotive industry, catching the significant attention of the industry stakeholders.

Some of the factors that are driving the demand for composite materials in the automotive industry are recovery of the automobile production in coming years; strict government regulations regarding carbon emission reductions and fuel efficiency enhancements such as CAFÉ Standards; an excellent weight reduction offered by composite materials, a shift towards all-composites parts, a significant reduction in number of parts & excellent chemical as well as corrosion resistance.

Automotive Composites Market Segments' Analysis

Vehicle Insights

“The passenger car segment accounted for the largest market share.” 

The automotive composites market is broadly segmented based on vehicle types such as Passenger Cars, LCVs, and M&HCVs. The passenger car witnessed the largest market share of more than 60% and is likely to register a healthy CAGR during the forecast period. The high production of cars coupled with good composites penetration is the prime factor behind the dominance of the passenger car segment in the automotive composites market.

Application Insights

“Under-the-hood segment accounted for the largest market share.”

Composites are used in all major application areas in the automotive industry, such as interiors, exteriors, and under the hood. Under-the-hood application areas witnessed the largest market share of more than 35% and are likely to register a healthy CAGR during the forecast period. Composites have the highest level of penetration in under-the-hood application areas, such as air intake manifolds, radiator end tanks, engine oil pan, engine cover, aero ducts, and charge-air-cooler end caps. Temperature and heat resistance are the major requirements of the materials used in under-the-hood applications. Amongst resins, polyamide resin is the perennial choice as it can withstand temperatures of about 260°C is lightweight, resistant to road salt and engine fluids, and offers excellent mechanical properties.

Exterior applications of composites generally include large-sized components and rely more on LFRT and SMC compounds, unlike the under-the-hood segment that predominantly uses SFRT compounds. Front-end modules, fenders, bumpers, liftgates, door modules, and hoods are key applications of composites in exteriors. Apart from the interior, exterior, and under the hood, composite materials are also gaining sheer interest in various other applications such as leaf springs, pressure vessels, underbody shields, and driveshaft.

Reinforcement Insights

“Glass fiber composite segment accounted for the largest market share.”

The automotive composites market is segmented into glass fiber composites and carbon fiber composites. Glass fiber composite witnessed the largest market share of more than 80% and is likely to register a healthy CAGR during the forecast period, whereas carbon fiber composite is likely to grow at a faster rate during the same period. Glass fiber offers an unmatched price-performance ratio and competes well with steel and aluminum in most automotive applications. The reinforcement type offers many advantages, such as low cost, moderate mechanical performance, and good chemical and corrosion resistance.

Matrix Insights

“Polyamide Composites segment accounted for the largest market share.”

The automotive composites market is segmented into Polyester Composites, Polyamide Composites, Polypropylene Composites, Epoxy Composites, and Others. Polyamide segment witnessed the largest market share of more than 40% and is likely to register a healthy CAGR during the forecast period. The report also deeply studies the different resin types in the market. Polyester, polyamide (PA), polypropylene (PP), and epoxy are the major resin types considered in the report. Different resin materials are preferred choices for different applications and are used in different product forms. For instance, polyamide is the material of choice in under-the-hood components, such as air intake manifolds, radiator end tanks, engine covers, charge-air-cooler end caps, and engine oil pans.

Polyamide composites are generally used in the form of SFTs and LFRTs, primarily through the injection molding process. On the other hand, polyester composites are predominantly used resin types for exterior composite applications such as fender, hood, bumper, and pick-up boxes. Polyester composites are primarily used in the form of SMCs and BMCs through either compression or injection molding process.

Regional Insights

“Europe accounted for the largest market share.”

Europe witnessed the largest market share of more than 35% and is likely to register a healthy CAGR during the forecast period. Europe and North America capture a large chunk of the global automotive composites market. The average composite content per vehicle is higher in Europe and North America as compared to the Asia-Pacific region, which led to a low share of Asia-Pacific despite being the largest vehicle producer across the globe. The USA, Canada, Mexico, Germany, France, China, and Japan are some key countries across the globe, accounting for a significant share of the market.

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Key Players

The supply chain of this market is convoluted and comprises several nodes including raw material suppliers, composite material manufacturers, compounders, distributors, part fabricators, tier players, and OEMs.

The following are the key players in the automotive composite market (arranged alphabetically)

• AOC, LLC
• Ashland Global Holdings Inc.
• BASF SE
• Continental Structural Plastics Inc. (CSP)
• E. I. du Pont de Nemours and Company
• Hexion Inc.
• Huntsman Corporation
• Koninklijke DSM N.V.
• Lanxess GmbH
• Owens Corning Corporation.
• SABIC (Saudi Basic Industries Corporation)
• Solvay S.A.
• Toray Industries, Inc.

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments of Automotive Composites Market

In recent years, the market for automotive composites has witnessed fair consolidation as the major players are acquiring other medium and small players with an aim to enhance their product portfolio and expand their geographical reach. 

Some of the foremost mergers & acquisitions that took place in the market include.

• The announcement of an agreement on the acquisition of the Polyamide Business of Solvay by BASF and Domo Chemicals in which Domo Chemicals will acquire the European PA6.6 business of Solvay.

• BASF will acquire the global polyamide business excluding the European PA6.6 business. 

• In 2019, the EU Commission approved the acquisition with a deal expected to be closed by the end of 2019.

• Similarly, in 2018, LyondellBasell acquired Ohio-based A. Schulman for an agreed price of US$ 2.25 billion. The acquisition is a strategic move of the company to double its existing compounding business and to broaden its products in the high-margin markets.

Report Features

This report provides intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the dynamics and will enable strategic decision-making for the existing players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s automotive composites market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

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• Detailed profiling of additional market players (up to three players)
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• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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