The Automotive Composites Market presents a strong and automotive industry demand-anchored revenue growth trajectory, and the Automotive Composites Market Size figures reflect this substantial expansion, underpinned by global EV adoption growing 35% to 14 million units in 2023 making composite lightweighting a range-extending performance requirement, Asia-Pacific automotive production exceeding 55 million units in 2023 as the world's largest manufacturing region with China producing over 30 million vehicles, Gurit Holding AG's January 2025 long-term Kerdyn PET structural foam core North American exclusive supply contract providing market revenue certainty through secured customer relationships, Hexcel Corp's October 2024 European carbon fiber industrial business refocus strengthening its competitive position in premium automotive composite applications, India's passenger vehicle sales growing approximately 18% year-over-year to 2.85 million units in November 2023, and stringent global emission regulations requiring mandatory composite lightweighting for CO2 compliance. Valued at US$ 12,474.38 million in 2024, the market is projected to reach US$ 27,374.53 million by 2031, recording a CAGR of 12.3% over the 2025 to 2031 forecast period.

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The market's revenue structure combines interior application revenues from the dominant application category with structural assembly revenues from the growing structural lightweighting segment, glass fiber composite revenues from the largest fiber type, thermoplastic revenues from the dominant resin category, and Asia-Pacific revenues from the largest regional market.

Automotive Composites Market Drivers and Opportunities:

Increase in Adoption of Electric Vehicles

The rise in fuel prices and the environmental impact of conventional gasoline vehicles have paved the way for alternative fuel vehicles across the globe. Buyers are gradually getting inclined to use battery-powered or hybrid automobiles, which is anticipated to boost the demand for electric vehicles. According to the International Energy Agency's annual Global Electric Vehicle Outlook, over 10 million electric cars were sold worldwide in 2022, and the number is projected to grow by 35% in 2023 to reach 14 million. As the automotive industry witnesses a transformative shift toward electric vehicles (EVs), the role of composites has become more crucial. To promote the sale of EVs, governments are providing attractive laws and incentives. Reduced selling costs, no registration fees or minimal registration fees, and free EV infrastructure charging at various charging points are a few of these incentives. Furthermore, many countries worldwide exclude import, purchase, and road taxes due to multiple subsidies. These auto industry incentives have led to a rise in the manufacture of electric vehicles. Governments have also created beneficial policies and invested heavily in infrastructure. For example, the US government plans to spend US$ 87 billion on new highway construction over the next five years

Growth of Automotive Industry in Emerging Economies

In the last few years, the automotive industry has grown significantly across emerging economies such as Brazil, China, India, Mexico, and South Africa. With the increasing disposable income, the demand for both passenger and commercial vehicles is growing in developing countries. For instance, according to the Federation of Automobile Dealers Associations (FADA), in India, sales of passenger vehicles increased to 2,854,242 units in November 2023, compared with 2,409,535 units in November 2022. Similarly, according to the China Association of Automobile Manufacturers (CAAM), the sales of commercial vehicles accounted for 18.3% year-on-year for September 2023 in China. These stats show the increasing demand for vehicles.

The automotive industry also paved its way in Brazil and South Africa. According to the International Organization of Motor Vehicle Manufacturers (OICA), South Africa's automobile production increased by 24% to 555,889 units in 2022. According to the same source, Brazil was the largest manufacturer and exporter of light and commercial vehicles in 2023 in South & Central America. The country reported production of 2.3 million vehicles in 2022. Thus, the growth of automotive industries in emerging economies is expected to create lucrative opportunities for the automotive composites market growth.

Frequently Asked Questions

What is the Automotive Composites Market size in 2024? The Automotive Composites Market is valued at US$ 12,474.38 million in 2024.

What is the projected Automotive Composites Market size by 2031? The market is projected to reach US$ 27,374.53 million by 2031.

What CAGR is the Automotive Composites Market expected to register? The market is estimated to record a CAGR of approximately 12.3% from 2025 to 2031.

What factors are driving Automotive Composites Market revenue growth? EV adoption driving composite range-extension demand, Asia-Pacific automotive production growth to 55 million units, Gurit's long-term North American supply contract, Hexcel's European carbon fiber refocus, India and China emerging market vehicle growth, and global emission regulation compliance requirements collectively drive market revenue through 2031.

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