Market Trends of Automotive Composites Industry
This section covers the major market trends shaping the Automotive Composites Market according to our research experts:
Growing Demand for Lightweight Materials
The automotive industry has been focusing on the weight of vehicles as it has a direct impact on driving dynamics and fuel consumption. Due to the high cost of potential lightweight solutions and consumers' limited willingness to pay for weight reduction in automotive, the use of costly lightweight materials has so far been limited.
As governments worldwide are implementing stringent emission regulations and planning to set even higher emissions standards in the coming years, the importance of lightweight materials will likely increase. In a typical automobile, fiber is 50% by volume, while adding just 10% to the weight. In the United States, regulations mandate that by 2025, the average fuel economy standard must meet 54.5 miles per gallon.
A mileage-sensitive market like India is a great market for composites, owing to the demand for better fuel efficiency from vehicles, which can be achieved by using different composites. Although composites can account for a great business in the country, the costs associated with the research and development of the composites in vehicles can be a restraint for the market.
With the demand for lightweight vehicles increasing rapidly in developing economies, the market for carbon fiber composites is projected to grow at a fast pace during the forecast period.
Asia-Pacific leading the Automotive Composite Market
The automotive composites market is led by Asia-Pacific, followed by Europe and North America, in that order. The demand for lightweight materials is growing rapidly in the region due to the growing automotive industry and emission regulations.
- For instance, in India, the automotive industry is expanding rapidly, with the rising income level of consumers. In addition, the demand for lighter vehicles has increased with awareness about fuel efficiency and environmental benefits.
- Currently, India is the fifth-largest producer of light and commercial vehicles and is the second-largest producer of two-wheeler vehicles. With the rapid growth in manufacturing capacities in the country, the consumption of carbon fiber composites is expected to increase during the forecast period.
Emission legislation regulations in the United States and Europe have forced automobile manufacturers to restrict the exhaust levels of their vehicles. Vehicles in the European region have started to adapt to Euro 6 norms, while other regions have also followed suit. The higher standards (which are for controlling the emissions) are, in turn, dependent on the vehicle's weight, combustion, and fuel efficiency and thus are difficult to achieve.
Demand for customized cars is on the rise globally, with the younger population showing a keen interest in customizing their cars like sports and racing cars. In the manufacture of racing cars and luxury sports cars, thermoset composites have already been widely in use for many years. Together, these factors are expected to drive the market for automobile composites toward exponential growth in the future.
