The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including the Automotive composite Market.
It was estimated prior to this unanticipated outbreak that the Automotive composite Market will reach 15.6 billion in 2024. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Automotive Composites Market Insights
Market Forecast & Drivers
Automotive composites market size is projected to reach an estimated value of US$ 15.6 billion in 2024. 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 Witnessing Consolidation
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 acquisition of Polyamide Business of Solvay by BASF and Domo Chemicals in which Domo Chemicals will acquire the European PA6.6 business of Solvay, whereas BASF will acquire the global polyamide business excluding European PA6.6 business. In 2019, the EU Commission approved the acquisition with deal expect to be closed by 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.
Automotive Composites Market Share Analysis
Automotive Composites Market: Share by Vehicle Type
"High production of passenger car coupled with good composites penetration makes the segment dominant."
The automotive composites market is broadly segmented based on vehicle type as Passenger Car, LCV, and M&HCV. Passenger car is expected to remain the growth engine of the automotive composites market 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.
Automotive Composites Market: Share by Application
"Composites are are increasingly being used in newer applications."
Composites are used in all major application areas in the automotive industry, such as interiors, exteriors, and under the hood. Composites have the highest level of penetration in under-the-hood application areas, such as air intake manifold, 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 temperature about 260°C and is lightweight, resistant to road salt and engine fluids, and offers excellent mechanical properties.
Exterior applications of composites generally include large-sized components and are relying more on LFRT and SMC compounds, unlike the under-the-hood segment that predominantly uses SFRT compounds. Front-end module, fender, bumper, liftgate, door module, and hood are key applications of composites in exteriors. Apart from interior, exterior, and under the hood, composite materials are also gaining sheer interest in various other applications such as leaf springs, pressure vessels, underbody shield, and driveshaft.
Automotive Composites Market: Share by Reinforcement Type
"Glass fiber composites dominant owing to their impressive price-performance ratio"
Based on the reinforcement type, the automotive composites market is segmented as glass fiber composites and carbon fiber composites. Glass fiber composite is expected to remain the dominant segment of the market during the forecast period, whereas carbon fiber composite is likely to grow at a faster rate during the same period. Glass fiber offers unmatched price-performance ratio and competes well with steel and aluminum in most of the automotive applications. The reinforcement type offers many advantages, such as low cost, moderate mechanical performance, and good chemical and corrosion resistance.
Automotive Composites Market: Share by Resin Type
"Polyamides for under-the-hood components & Polyesters for exterior applications are the materials of choice."
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 box. Polyester composites are primarily used in the form of SMCs and BMCs through either compression or injection molding process.
Regional Insights
"Europe & North America Dominate the Market."
In terms of regions, 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 in the market.