Automotive Composite Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application Type (Structural Assembly, Powertrain Component, Interior, Exterior), By Material Type (Thermoset Polymer, Thermoplastic Polymer, Carbon Fiber, and Glass Fiber), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 10.57 Billion
CAGR (2026-2031)	10.32%
Fastest Growing Segment	Powertrain Component
Largest Market	Asia Pacific
Market Size (2031)	USD 19.05 Billion

Market Overview

The Global Automotive Composite Market will grow from USD 10.57 Billion in 2025 to USD 19.05 Billion by 2031 at a 10.32% CAGR. Automotive composites are engineered materials comprising a polymer matrix and reinforcing fibers, designed to provide superior mechanical strength while significantly reducing vehicle weight compared to traditional metals. The primary drivers supporting market growth include stringent government regulations mandating improved fuel efficiency and the critical necessity for lightweighting to extend the operational range of electric vehicles. According to the American Composites Manufacturers Association, the global market for light vehicle composite materials reached 4.9 billion pounds in 2024. This substantial volume underscores the industry's reliance on these materials to achieve compliance with emission standards and performance metrics.

Nevertheless, a significant challenge impeding broader market expansion is the high cost associated with raw materials and manufacturing processes. The fabrication of high-performance composites often involves complex methods that result in longer cycle times and elevated unit costs relative to steel or aluminum. This economic barrier limits the widespread adoption of these materials primarily to the luxury and performance segments, thereby restricting their integration into high-volume, cost-sensitive mass-market vehicle production.

Key Market Drivers

Stringent government regulations mandating reduced vehicle emissions and improved fuel economy constitute a primary catalyst for the Global Automotive Composite Market. Legislative bodies worldwide are enacting aggressively lower tailpipe limits, compelling original equipment manufacturers to integrate lightweight composite materials that significantly decrease vehicle mass and curb energy consumption. According to the Environmental Protection Agency, March 2024, in the 'Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles', the final rule sets an industry-wide fleet average CO2 target of 85 grams per mile by 2032, representing a nearly 50 percent reduction from the 2026 model year standards. This regulatory pressure forces a strategic shift from traditional metals to advanced polymer composites in structural and semi-structural applications to ensure compliance with these rigorous environmental benchmarks.

The rapid expansion of the electric vehicle market further necessitates this weight reduction to maximize operational range and offset heavy battery systems. As automakers accelerate electrification strategies, the superior strength-to-weight ratio of composites becomes essential for compensating for battery mass without compromising vehicle performance or safety. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', sales of electric cars are projected to reach approximately 17 million units in 2024, underscoring the surging volume of vehicles requiring efficiency-enhancing technologies. To accommodate the sector's evolving material requirements, major suppliers are maintaining substantial output capabilities. According to Toray Industries, November 2024, in the 'Toray Report 2024', the company's global carbon fiber production capacity stood at 64,000 metric tons as of March 2024, reflecting the robust industrial infrastructure available to support the automotive industry's lightweighting transition.

Download Free Sample Report

Key Market Challenges

The high cost associated with raw materials and manufacturing processes acts as a substantial economic barrier that directly curtails the scalability of the Global Automotive Composite Market. While the industry faces pressure to reduce vehicle weight, the elevated unit expenses linked to complex fabrication cycles and advanced resin systems make these materials financially inviable for high-volume economy vehicles. Original Equipment Manufacturers (OEMs) operating in the mass market rely on thin profit margins and established supply chains for metals; therefore, the premium price of composite integration prevents the transition from niche luxury applications to widespread standard adoption.

This financial constraint limits the market's ability to capitalize on the most advanced lightweighting technologies. According to the American Composites Manufacturers Association, in 2024, global demand for carbon fiber reached 300 million pounds. When viewed against the multi-billion-pound total market for general composites, this comparatively low volume indicates that the most effective high-performance materials remain restricted to a small fraction of the industry due to pricing pressures. Consequently, the market is unable to unlock significant growth within the mass production segment, as the cost-to-benefit ratio remains unfavorable for the majority of consumer vehicles.

Key Market Trends

The shift toward thermoplastic resin systems is transforming the automotive composite sector by addressing the critical need for faster manufacturing cycles and improved recyclability. Unlike traditional thermoset materials that require lengthy curing times, thermoplastics can be molded rapidly and reshaped upon reheating, making them highly suitable for the high-volume production lines required by mass-market vehicle manufacturers. This capability to combine structural integrity with processing efficiency is driving substantial market penetration across Europe and other key regions. According to the Industrievereinigung Verstärkte Kunststoffe (AVK), March 2025, in the 'Market Report 2024', the market for thermoplastic composites in Europe comprised a total volume of 1,368 kilotonnes in 2024. This significant volume underscores the industry preference for materials that support both lightweighting objectives and the economic demands of large-scale automotive assembly.

Simultaneously, the utilization of recycled carbon fiber materials is gaining momentum as a strategic response to the high costs and environmental impact associated with virgin fiber production. Automotive manufacturers are increasingly integrating reclaimed carbon fibers into semi-structural components, leveraging their ability to retain high mechanical performance while significantly lowering the carbon footprint of the final part. This approach facilitates a circular economy within the automotive supply chain and provides a cost-effective alternative that helps bridge the price gap between composites and conventional metals. According to the Offshore Renewable Energy Catapult, December 2024, in the case study 'Gen 2 Carbon Accelerating the shift to a Circular Economy', Gen 2 Carbon currently produces over 200 tonnes of recycled carbon fiber products annually to supply the growing needs of the transport sector. This scaling of recovery infrastructure highlights the sector's commitment to decoupling high-performance material use from unsustainable extraction processes.

Segmental Insights

The powertrain component segment is currently positioned as the fastest-growing category within the global automotive composite market. This rapid expansion is primarily driven by the industry-wide focus on vehicle weight reduction to comply with rigorous emission standards enforced by regulatory entities such as the European Commission and the U.S. Environmental Protection Agency. Automakers are increasingly replacing heavy metal engine and transmission parts with high-strength composites to meet these mandatory targets. Consequently, this material adoption is essential for improving fuel efficiency in internal combustion engines and extending the driving range of electric vehicles.

Regional Insights

Asia Pacific maintains a leading position in the global automotive composite market, supported by extensive vehicle manufacturing activities in China, Japan, and India. This regional dominance is primarily driven by rigorous government regulations concerning fuel efficiency and emissions, such as the China VI standards and India’s Bharat Stage VI. These mandates compel automotive producers to integrate lightweight composite materials to ensure regulatory compliance. Furthermore, the accelerating transition toward electric mobility requires weight reduction to maximize battery range, thereby sustaining the high demand for automotive composites across the region.

Recent Developments

• In May 2024, Teijin Automotive Technologies inaugurated a new topcoat and assembly facility in Huntington, Indiana, significantly expanding its manufacturing capabilities for the Global Automotive Composite Market. This new 164,000-square-foot plant, representing an investment of more than $100 million, was established to support the production of modular painted roofs for the Ford Bronco program. The facility enhances the company's existing operations in the region, which include compression molding and bonding of advanced composite components. The expansion addresses the growing demand for lightweight, sustainable exterior parts in the automotive sector, positioning the company to better serve major original equipment manufacturers.
• In April 2024, Hyundai Motor Group entered into a strategic cooperation agreement with Toray Industries to advance material innovation within the automotive industry. This collaboration focuses on the joint development of carbon fiber reinforced plastic (CFRP) parts designed to enhance the performance and safety of future mobility solutions, particularly electric vehicles. By leveraging the Japanese partner's expertise in carbon fiber and composite material technology, the automotive group aims to integrate lightweight, high-strength materials into its vehicle platforms. The partnership aligns with the automaker's long-term electrification strategy to improve energy efficiency and driving dynamics through advanced material adoption.
• In February 2024, Syensqo expanded its portfolio of composite materials for the automotive sector with the launch of a new bio-based epoxy prepreg. This advanced material, which incorporates 30% bio-sourced monomers, was developed to assist original equipment manufacturers in reducing their carbon footprint while maintaining high mechanical performance. The product targets structural applications such as body panels, chassis components, and spoilers, offering a high strength-to-weight ratio that enables significant mass savings compared to metals. The introduction of this sustainable composite solution supports the industry's transition toward carbon neutrality and meets the rigorous quality standards required for high-volume vehicle manufacturing.
• In February 2024, the Mitsubishi Chemical Group announced the development of a new high-heat-resistant ceramic matrix composite (CMC) utilizing pitch-based carbon fibers. This breakthrough material demonstrated the ability to withstand temperatures as high as 1,500 degrees Celsius without strength degradation, surpassing conventional performance limits. While primarily targeted at the space industry, the composite is also suitable for demanding applications in automotive engine components where lightweight and heat-resistant properties are critical. This innovation highlights the company's commitment to advancing material technologies that offer superior durability and thermal management capabilities for next-generation transportation systems.

Key Market Players

• Hexcel Corporation
• Mitsubishi Chemical Carbon Fiber and Composites, Inc.
• mouldCAM Pty Ltd.
• SGL Carbon
• Toray Industries Inc
• Nippon Sheet Glass Company, Limited
• Sigmatex
• Nippon Carbon Co., Ltd.
• Solvay

By Application Type	By Material Type	By Region
Structural Assembly Powertrain Component Interior Exterior	Thermoset Polymer Thermoplastic Polymer Carbon Fiber Glass Fiber	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Composite Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Composite Market, By Application Type:

• Structural Assembly
• Powertrain Component
• Interior
• Exterior

• Automotive Composite Market, By Material Type:

• Thermoset Polymer
• Thermoplastic Polymer
• Carbon Fiber
• Glass Fiber

• Automotive Composite Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE