Automotive Carbon Fiber Composites Market Size (2024 - 2029)

Automotive Carbon Fiber Composites Market Analysis

The Automotive Carbon Fiber Composites Market size is estimated at USD 27.16 billion in 2024, and is expected to reach USD 45.76 billion by 2029, growing at a CAGR of 11% during the forecast period (2024-2029).

Carbon fiber is a lightweight material with high-strength characteristics that can be designed for enhanced performance in automotive applications. It offers improvements in structural, functional, or cosmetic properties.

The rising demand for lightweight material from the automotive industry and the growing focus on fuel economy are expected to be major drivers for the automotive carbon fiber market. Amid increasingly stringent emission norms and rising fuel prices, carbon fiber is a great alternative to conventional metals as it can reduce the vehicle's weight. This can improve the fuel efficiency and performance of the engine while the fiber's physical strength limits are almost twice as high as those of conventional metals.

To make vehicles lighter, cleaner, safer, and cost-effective, leading carbon fiber suppliers are responding to the needs and expectations of vehicle OEMs, system suppliers, and customers. Major car companies, such as BMW, Audi, GM, Honda, and Polestar, have established agreements with carbon fiber material producers for mass production and are investing in their processes to support low-cost carbon fiber manufacturing.

• In June 2023, Dash-CAE launched a new carbon fiber monocoque chassis, the TR01, an affordable, versatile, and lightweight composite chassis for road cars. TR01 is suitable for any two-seat vehicle requiring a lightweight and stiff carbon fiber monocoque.

However, high costs associated with carbon fiber composites and glass fiber composites are hindering the market's growth, as their usage in low-cost vehicles could drastically increase the prices of such vehicles.

The rise in demand for electric vehicles worldwide is likely to enhance the penetration of carbon fiber to improve the range of electric vehicles, which, in turn, is likely to result in major growth for the market during the forecast period.

Automotive Carbon Fiber Composites Industry Segmentation

Carbon fiber is a lightweight material with high-strength characteristics that can be designed for enhanced performance in automotive applications.

The automotive carbon fiber market is segmented by application, vehicle type, propulsion, and geography. By application, the market is segmented into structural assembly, powertrain components, interiors, and exteriors. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By propulsion, the market is segmented into internal combustion engines, battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done based on the value (USD).