Automotive Composites Market Trends

Growth Drivers

• High Number of Vehicles on the Road Owing Increasing Purchases - With the recent urbanization, people are propelled to own a vehicle to fulfill their needs and requirements. This trend has led to a high number of vehicles on the roads. The increased number of vehicles is anticipated to bring lucrative growth opportunities in the automotive composites market in the assessment period. By the end of the first quarter of 2022, it was estimated that approximately 2 billion vehicles were on roads across the globe. Out of these, around 1 billion were estimated to be passenger cars.
• Burgeoning Population with Increasing Middle Income – A growing population with middle income is projected to raise the adoption of vehicles, which, in turn, is expected to raise the sales of automotive composites in the upcoming years. According to World Bank, the total population with middle income in the world rose from 5.51 billion in 2015 to 5.86 Billion in 2021.
• High Sales and Demand of Luxury Cars with Increasing Spending Capacity – The global sales of luxury cars are estimated to rise to 200K vehicles in 2026, a rise from 190K vehicles in 2022.
• Rapid Production of Vehicles with Rising Demand for More Vehicles – As per the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of vehicles augmented to 56,398,471 units in 2021 from 53,917,153 units in 2020. Whereas, the global production of vehicles was calculated to be 57,054,295 units in 2021, an increase from 55,908,989 units in 2020.
• Rising Fuel Use with Growing Vehicle Count Across the World – As per the 2021 data of the Energy Information Administration, the total consumed motor gasoline in the United States was 134.83 billion gallons which is 369 million gallons for one day.

Challenges

• Growth in Recycling Challenges
• High Processing and Manufacturing Costs of Composites
• Development of Low-Cost Technologies
• The use of high price composites has a significant place in the automotive which is replaced by low-cost composites. The rising advancements in low-cost technologies will hamper market growth. The increasing commercialization of cheap composites has a negative impact on the automotive composites market.