Multiple Factors are Driving the Global Automotive Composites Market
According to “Global Market Study on Automotive Composites: Polymer Matrix Composites to be the Largest Segment by 2022,” a recent report from Persistence Market Research, the global automotive composites market was valued at $3.1 billion in 2014 and is expected to increase to $7.0 billion by 2022, growing at a compound annual growth rate (CAGR) of 8.8%. Increasing urban populations due to rising industrialization, particularly in developing countries such as India and China, are encouraging the establishment of automotive manufacturing facilities in these regions. Increasing automobile production is expected to fuel the overall demand for carbon composites in the near future.
In 2014, 16.5 million vehicles were manufactured in the U.S., compared to 15.6 million in 2013. This number is expected to increase to 17.0 million by the end of 2015. In addition, increasing carbon emissions due to the rising number of vehicles over the last few decades is prompting governments worldwide to revamp various aspects in order to adhere to environmental norms and regulations, particularly with emphasis on reducing carbon emissions. Automakers are focused on using lightweight materials to manufacture external and internal vehicle parts in order to reduce vehicle weight, and in turn improve fuel efficiency. This is a major factor driving the growth of the automotive composites market.
In addition, consumers are more inclined toward purchasing lightweight and fuel-efficient vehicles due to increasing fuel prices over the last decade. This is influencing automakers to invest in R&D initiatives with regard to lightweight materials to manufacture both exterior and interior vehicle parts. Composites that are easy to process and that feature properties such as high tensile strength, light weight, and good corrosion resistance and surface tension are ideal for manufacturing lightweight and fuel-efficient vehicles.
Asia-Pacific was the largest market for automotive composites in 2014, accounting for 50.8% of the market share, followed by Europe and North America, with 22.7% and 15.5%, respectively. The Asia-Pacific market is expected to account for 52.4% by 2022. Increasing domestic production of vehicles, along with increasing disposable incomes, is driving the growth of the automotive composites market in Asia-Pacific. One of the major factors contributing to the growth of the automotive composites markets in North America and Europe is stringent CO2 emissions norms.
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