The global automotive composites market size was USD 5.4 billion in 2020 and is expected to reach USD 9.3 billion by 2025, projecting a CAGR of 11.5% between 2020 and 2025. The automotive industry is highly focusing on the stringent regulations such as the Corporate Average Fuel Efficiency (CAFE) standards and the European Emission Standards (EES); laid by the governments of U.S. and Europe respectively for the vehicle manufacturers. According to United States- Environmental Protection Agency (EPA), the transportation industry in U.S. accounts for 27% of greenhouse gas emission. The U.S. government has made it a critical concern for the automakers to follow an average miles per gallon standard for their vehicles and thus, the U.S. automakers are concerning more significantly on the production of lightweight vehicles to reduce the battery weight and thus enhancing the fuel efficiency of the vehicles.
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Europe is the leading global automotive composites market due presence of established car manufacturers, industrial expansion, and technological developments happening in automotive industry of the region. On the other hand, APAC is the fastest growing and most prominent market to the growing need for lightweight, fuel-efficient, and environment-friendly vehicles. The electric vehicles segment of automotive industry is growing at faster pace in the region driving huge demand for automotive composites. Moreover, the manufacturers are focusing on producing lightweight car bodies with emission control features since the government has set stringent regulatory norms for pollution control from vehicles. This in turn is further boosting growth of the automotive composites market in the region.
COVID-19 Impact on Automotive Composites Market
However, with effects of COVID-19 all across the globe growth for the automotive composites market is more likely to witness major downturn over the next two years. Car manufacturer worldwide had to shut down the production process while the supply chain has shaken-up.
In 2020, a huge drop in the demand for automotive composites was observed due to partial and complete lockdown in major countries as a result of the COVID-19 pandemic. Due to lockdowns, the whole supply chain of the automotive composites market was disrupted and due to the lower expenditure of consumers, the demand for automotive composites decreased. The lockdown delayed upcoming projects, which also affected the growth of the automotive composites market in 2020.
Toray Industries Inc. (Japan), SGL Carbon (Germany), Teijin Limited (Japan), Mitsubishi Chemical Holding Corporation (Japan), Hexcel Corporation (US), Solvay SA (Belgium), Gurit (Switzerland), UFP Technologies Ltd. (US), Huntsman Corporation (US), and Hexion (US), are some of the key players in the automotive composites market. The companies such Toray Industries Inc., Teijin Limited, Hexcel Corporation and among others are focusing on new product development.
Companies operating in the automotive composites market have strengthened their position in the global automotive composites market by adopting expansions, partnerships, agreements, new product/technology launches, joint ventures, contracts, and mergers & acquisitions from 2015-2020. However, the novel coronavirus pandemic has created ripples across the global electronics, industrial coatings, graphic arts industries affecting the global supply chains. This has resulted in a decline in vehicle sales, disrupted financial flows, and growing absenteeism among production line workers. These factors have affected the demand for automotive composites.
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