Global automotive composites market to increase at a CAGR of 8.8% by 2022

Toray Industries, Toho Co., Mitsubishi and SGL currently account for at least 70% of market share.

Related Topics:

Persistence Market Research (New York, NY, US) recently released its latest market report on the automotive composites market, which is expected to increase at a CAGR of 8.8% by 2022.

Some of the major drivers identified in the market are growing preference for fuel-efficient passenger cars, improving vehicle aesthetics in order to achieve product differentiation, increasing vehicles production especially in Asia-Pacific region, and stringent vehicle emission norms. Minor restraints identified in the market are the relatively high cost of composites.

Increasing urban population due to rising industrialization, particularly in developing countries such as India and China, is encouraging the establishment of automotive manufacturing facilities in these regions. Increasing automobile production is expected to fuel the overall demand for carbon composites in the near future. In 2014, 16.5 million vehicles were manufactured in the U.S., compared to 15.6 million in 2013. This number is expected to increase to 17.0 million by the end of 2015.

This is influencing automakers toward investing in the R&D of lightweight materials to manufacture the exterior and interior parts/components of the vehicle. This reduces the overall weight of the vehicle, in turn, improving its fuel efficiency. 

Owing to increasing automotive production, especially in developing Asia-Pacific countries such as India and China, consumption of automotive composites has witnessed steady growth in the recent past. In 2013, there were 800 vehicles per 1,000 people in the U.S. compared to 600 vehicles per 1,000 people in Japan, 80 cars per 1,000 people in China, and 25 vehicles per 1,000 people in India.

Asia-Pacific was the largest market for automotive composites in 2014, accounting for 50.8% market share, followed by Europe and North America, with 22.7% and 15.5% market shares respectively. The Asia-Pacific market is expected to account for 52.4% by 2022. Rising domestic automotive production, especially in developing countries such as India and China, is expected to boost the Asia Pacific automotive composite market. The Europe market is expected to lose market share to reach 21.9% by 2022. However, the automotive composite market in North America is expected to marginally gain market share to reach 15.9% by 2022.

The automotive composites market is divided on the basis of composite material (polymer matrix composites, metal composites and ceramic matrix composites), manufacturing process (manual, compression, injection and continuous and other), composite component (interior components, exterior components, engine and drivetrain components and others) in major region. The polymer matrix composites segment is expected to reach a CAGR of 8.7% for the period 2015-2022. However, the metal composites segment is expected to exhibit the highest CAGR of 9.9% during the forecast period.