Automotive Composites Market Size

Automotive Composites Market Size

Automotive Composites Market size surpassed USD 3.80 billion in 2020 and is projected to grow at 6.9% CAGR from 2021 to 2027. Growing affluence of lightweight vehicles in the U.S. and major European countries is expected to propel product consumption in the automotive sector. There is a high degree of association between lightweight property and the fuel efficiency of a car. On average, a 10% reduction in vehicle weight may lead to 6% to 8% of fuel economy in passenger cars and approximately 10% effectiveness in battery-powered electric cars. These trends assist in curbing carbon emissions at a substantial level from the automobile sector, which will again help in achieving sustainable car production by 2027.

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Another key growth enabler of the global automotive composites industry is the increasing acceptance of electric vehicles in Asian countries. Supportive government initiatives and strict environmental policies pertaining to crude oil consumption will drive product demand.

China is the leading country in electric car production globally, which can be attributed to its well-versed manufacturing base for producing vehicles along with easy accessibility to labor & raw materials. The country has liberal foreign direct investment policies compared to developed markets, which have gathered the attention of OEMs of automobile companies over recent years.

The ongoing coronavirus pandemic has negatively influenced the automotive composites market in 2020. One of the major reasons behind this can be the disrupted manufacturing output of vehicles in major parts of the world. Globally, gasoline-powered car production dipped by 15% in 2020 compared to the previous year. Major companies have faced tremendous challenges in terms of procurement of materials & labor owing to government announced lockdowns, which further caused a delay in the market recovery. However, changing consumer sentiments toward vehicle ownership and the reestablishment of the supply chain are likely to boost industry development.