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The carbon fiber in the automotive composites market size is estimated to grow by USD 181.63 million at a CAGR of 6.24% between 2022 and 2027. The projected market size expansion amounts to an increase of USD 181.63 million. Market growth is contingent on various factors, including the exceptional properties demonstrated by carbon fiber, strict regulations within the automotive sector, and heightened automobile production capacity in the Asia-Pacific region (APAC). These elements collectively shape the trajectory of market expansion, reflecting a combination of material performance, regulatory compliance, and regional industrial dynamics. The outstanding properties drive its demand across multiple industries, while stringent automotive regulations necessitate the adoption of advanced materials. Moreover, the increasing automobile production capacity in APAC underscores the region's pivotal role in the automotive manufacturing landscape. Thus, the interplay of these factors delineates the landscape for the anticipated growth of the market.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by material (long fiber thermoplastic, sheet molding compound, prepreg, short fiber thermoplastic, and others), application (exterior components, interior components, structural and powertrains, chassis systems, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa).
The long fiber thermoplastic segment is estimated to witness significant growth during the forecast period. The most important reason for the increasing consumption of long fiber reinforced thermoplastics (LFT) lies in their properties, such as high strength-to-weight ratio, chemical resistance, Corrosion resistance, and heat resistance. LFT has applications in automotive door modules, front modules, dashboards, and underbody protection. LFT also has many advantages over SMC.
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The long fiber thermoplastic segment was the largest segment and was valued at USD 153.57 million in 2017. Long fiber thermoplastics are widely used in automotive applications to produce light vehicles to reduce the overall weight of the material and prevent corrosion and chemical attack. The enhanced performance and diverse applications of LFTs will likely lead to significant growth in the segment in the market during the forecast period.
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APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the largest segment by region in terms of volume and value. The growing demand for lightweight, fuel-efficient vehicles and improving economic conditions in the APAC region have fueled the growth of the market.
In addition, the sudden expansion of automakers and increased investment in R&D by major suppliers has contributed to the production of high-performance carbon fibers in automotive composites. The competitive landscape and increased R&D spending by key suppliers will lead to improved quality and reduced prices, thereby driving growth in APAC during the forecast period.
The market plays a pivotal role in addressing emission control and fuel efficiency challenges in the automotive industry. Known for its exceptional strength to weight ratio and weather resistance, carbon fiber finds extensive Applications in automotive industry, including car bodies and automotive parts. By reducing vehicle weight, it contributes to lower CO2 emissions and enables the production of impact-resistant cars. As a lightweight material, carbon fiber helps in improving fuel efficiency and battery weight in transportation vehicles. It's also widely utilized in various end-use industries like aerospace & defense, wind energy, and construction to enhance performance and durability. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Excellent properties exhibited by carbon fiber is the key factor driving the growth of the market. This has several important properties, including high strength-to-weight ratio, corrosion and fire resistance, electrical conductivity, lubricity, inertness, and less toxicity. Carbon fiber is chemically stable and corrosion-resistant. Carbon fiber in epoxy or UV-resistant paint is chemically stable and remains resistant to corrosion.
In addition, they are heat stable and fire resistant. These properties enable its widespread use in the automotive, aerospace, and defense industries as well as other industrial applications. Due to all these properties, the demand in automotive composites is increasing, which is expected to drive the growth of the global market during the forecast period.
Increasing demand for fuel-efficient vehicles is the primary trend in the market. Growing urban populations and industrialization are important factors driving the growth of the auto industry in countries such as India and China. The availability of alternative fuels, coupled with awareness of the positive impact of green and light vehicles, can directly contribute to the growth of the market.
In addition, fuel-efficient cars are environmentally friendly, have high driving ranges, can run on alternative fuels, and use advanced fuel technology. Hybrid electric cars, battery-powered cars, plug-in hybrids, and pneumatic electric cars are some of the fuel-efficient vehicles favored by consumers. These light vehicles make extensive use of composites, which directly increases the demand for the market during the forecast period.
High costs associated with carbon fiber is a challenge that affects the growth of the market. Composites are more costly than their alternatives, such as metals, plastics, and polymer. Manufacturing and R&D costs associated with carbon fiber could reduce demand for carbon fiber in automotive composites and increase demand for alternative products.
Moreover, the production and R&D cost of carbon fiber composites is eight times higher than that of steel. PAN is one of the raw materials used in the production of carbon fiber composite materials; PAN is more costly than its alternatives. The high production costs associated with carbon fiber composites are primarily due to the high cost of raw materials. Thus, high costs associated with carbon fiber will impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market finds extensive applications in the automotive industry, particularly in addressing greenhouse gas emissions and enhancing fuel efficiency within the transportation industry. As one of the most sought-after lightweight materials, carbon fiber competes with aluminum and other metal products for use in various automotive components, including car bodies and battery enclosures for electric vehicles. Its flexibility and strength make it ideal for manufacturing body panels, hoods, and components for supercars. With strict government rules on emissions and safety driving demand, carbon fiber reinforced plastics (CFRPs) are increasingly replacing traditional materials in automotive applications, contributing to reduced carbon emission and air pollution.
Furthermore, it is revolutionizing the automotive industry with its diverse applications. It plays a crucial role in reducing greenhouse gas emission by enabling the production of lightweight vehicles. Used extensively in the car body, carbon fiber is also employed in the exterior application segment for components like bumper beams, fenders, front end modules, door panels, and hoods. Additionally, it's increasingly utilized in battery enclosures for electric vehicles, further enhancing their efficiency and performance. Manufacturers (OEMs) are embracing carbon fiber to meet consumer demand for sales of automobiles and avoid penalty payments associated with excessive carbon emissions. Its integration with thermoplastic resins offers superior durability and strength compared to traditional materials, making it a preferred choice in the automotive composites market.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.24% |
Market growth 2023-2027 |
USD 181.63 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.15 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACP Composites Inc., China Composites Group Corp. Ltd., DowAksa Ileri Kompozit Malzemeler San. Ltd. Sti., Formosa Plastics Corp., Hexcel Corp., HP Composites S.p.A. , Hyosung Corp., Knauf Industries, Kureha Corp., Mitsubishi Chemical Group Corp., Plasan Sasa Ltd., Revchem Composites Inc., SAERTEX GmbH and Co.KG, Saudi Basic Industries Corp., SGL Carbon SE, Shenzhen KIY Carbon Co. Ltd., Solvay SA, Teijin Ltd., Toray Industries Inc., and Muhr und Bender KG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Material
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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