Automotive Composites Market worth over $5.5bn by 2026
Published Date: May 26, 2020 Authors: Kiran Pulidindi, Sayan Mukherjee
Automotive Composites Market size is set to exceed USD 5.5 billion by 2026, according to a new research report by Global Market Insights, Inc.
The vehicle manufacturers are developing technology to reduce the overall vehicle weight and improve fuel efficiency. Regulatory bodies across the globe including the U.S. Environmental Protection Agency and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) have jointly developed regulation pertaining to the establishment of standards applying to light-duty trucks & passenger cars.
Similarly, in 2019, EU introduced mandate to improve the fuel economy from 41.9 miles per gallon in 2015 to 57 miles per gallon by 2021. These initiatives can be achieved with the vehicle weight reduction and improved penetration of composites in the automotive sector. Currently, the composites hold a strong potential for the use in automotive manufacturing as compared to steel and aluminum.
Thermoset resins lead the automotive composites industry and is anticipated to remain dominant during forecast timeframe. Thermoset resins tend to remain stable at an extreme and dynamic temperature and require low pressure. It enables easy impregnation of reinforcing fibers including carbon fibers, glass, and natural fibers. They exhibit exceptional properties along with enhanced flexibility at a low raw material cost. These advantages are likely to induce immense growth potential to the industry size. Tailored elasticity, fatigue strength, and excellent finishing are among other factors, which will positively influence the market size.
Light weight and economical natural fiber to enhance composite adoption
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Natural fibers will witness around 8.5% growth rate through 2026. Dominant natural fiber used in the automotive sector comprises of flax, hemp, kenaf, and jute. As the material are naturally sourced, the environmental impact is significantly less than other fiber materials. Natural fibers are light in weight and have high absorbability, thereby increasing safety of the vehicle. Moreover, ongoing technological advancements to overcome current material issues such as low impact resistance, and moisture degradation will enhance the market penetration.
Browse key industry insights spread across 335 pages with 586 market data tables & 15 figures & charts from the report, “Automotive Composites Market Size By Fiber (Glass, Carbon, Natural), By Resin (Thermoset, Thermoplastic), By Manufacturing Process (Compression, Injection, Resin Transfer Molding (RTM)) By Application (Interior, Exterior, Structural & Powertrain) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Compression manufacturing process generated over USD 1.8 billion revenue in 2019. It is attributed to high preference of consumers owing to advantages of this process including less delivery time, cost-effectiveness as compared to the counterparts, and delivery of lightweight products. The industry participants are extensively using this process for the production at a larger level, further fostering the product sales.
Increasing adoption of sustainable interior material from manufacturers
Interior holds significant share in the market size drive by extensive adoption of glass and natural fiber for interior components. The applications include windows, trims, seats, and instrument panels. The replacement of steel parts with fiber will further strengthen the industry penetration. Apart from luxury and high-end vehicles, natural and glass fiber interiors are also being witnessed in medium to lower trim models.
Latin America automotive composites market, led by Brazil, Mexico, and Argentina will observe a significant growth rate during the study period. Favorable emission regulations in the region will fuel the market by 2026. In past few years, the industry experienced a strategic shift within the glass fiber manufacturers to enhance glass fiber operations.
Industry to witness surge in R&D investments
Market participants are increasing their R&D investment to reduce the production and ownership cost. The key manufacturers include, Solvay, Clearwater Composites PLC, Cytec Solvay Group, DowAksa, Hexcel Corporation, Hitco Carbon Composites, Johns Manville Corporation, Jushi Group Co, Ltd., Koninklijke Ten Cate BV, Mitsubishi Rayon Co., Ltd., and Owens Corning Corporation.
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