EV Composites Market

Market Overview

The global electric vehicle (EV) composites market is thriving due to several key factors. The high-performance properties and versatility of these materials, which are compatible with a wide range of resin systems, have driven their growing adoption in the EV industry. Furthermore, technological advancements and the development of new applications are expanding the usage of EV composites. Concurrently, environmental regulations and sustainability goals are propelling demand across various industries. Collectively, these drivers are fueling the robust growth of the EV composites market, cementing its critical role in modern composite materials. Government-mandated fuel efficiency and emissions reduction standards have compelled automakers to adopt lighter materials, accounting for around 35% of this growth, in order to increase electric vehicle (EV) range. Additionally, rising fuel costs have led consumers to demand better fuel economy and consider EVs as an alternative. Furthermore, there is a growing consumer preference for sustainable mobility solutions driving this market expansion. Overall, the combination of regulatory pressures, economic factors, and evolving consumer preferences has contributed to the upswing in the global EV composites market. The rise of carbon fiber over fiberglass is a notable trend. While both materials are lightweight, carbon fiber boasts a superior strength-to-weight ratio, making it a preferred choice for high-performance electric vehicles (EVs). This is particularly relevant for the growing premium and luxury EV market, where customers seek out high-end, cutting-edge models. Furthermore, the use of 3D printing technology in manufacturing complex composite parts for EVs can enable lighter and more intricate designs. This approach not only enhances the vehicles' environmental friendliness and efficiency, but also reduces overall weight.

EV Composites Market Size

Report	Details
Market Size Value	USD 1.9 Billion in 2023
Market Size Value	USD 5.4 Billion by 2032
CAGR	17.3%
Forecast Period	2023-2032
Base Year	2023
Historic Data	2020

Major key players in global EV Composites market are Toray Industries, Teijin Limited, Syensqo, Piran Advanced Composite, HRC, Envalior, Exel Composites, Kautex Textron Gmbh and Co., SGL Carbon, POLYTEC HOLDINGAG, Plastic Omnium, Rochling SE and Co. KG, and Others.

Adoption of electric vehicles and technological advancements

The rising popularity of electric vehicles (EVs), driven by consumer demand for eco-friendly transportation and government incentives, has increased the need for advanced composite materials to enhance vehicle performance and range. The growing demand for electric vehicles (EVs) is driven by a shift among consumers and businesses seeking to reduce carbon emissions and lower fuel costs. This shift is fueled by environmental concerns, government incentives, and advancements in EV technology. Innovations in composite materials, including carbon fiber reinforced plastics (CFRP) and advanced manufacturing processes like Resin Transfer Molding (RTM), are improving the properties and cost-effectiveness of EV components. Technological advancements have enabled better integration of composites with other electric vehicle (EV) technologies. Composites are now being increasingly used in battery enclosures, structural components, and interior parts to enhance overall vehicle performance and safety.

Market Dynamics

Drivers:

• Adoption of electric vehicles and technological advancements
• Improved manufacturing processes, lowered production costs and enhanced scalability
• Increasing focus on sustainability and lowering overall vehicle emissions

Opportunities:

• Increasing demand from developing economies
• Developing innovative, sustainable, and recyclable composite materials
• Innovative manufacturing technologies enabled cost reductions and improved operational efficiency

Adoption of electric vehicles and technological advancements

Emerging markets are undergoing rapid industrialization and economic development, driving the demand for lightweight, high-performance materials across various industries. The rising demand for EV (electric vehicle) composites, particularly from the automotive sector in these emerging markets can be a significant opportunity. Furthermore, financial incentives and government support for EV production and the use of sustainable materials present substantial growth opportunities for the EV composites market. Advances in materials science and manufacturing, including automated production and innovative recyclable composites, are enabling cost-effective, sustainable solutions that enhance vehicle range, safety, and performance. This convergence of rising electric vehicle adoption and technological innovation has fostered a dynamic environment for developing cutting-edge composite materials and applications that meet market demands and environmental objectives.

The market for EV Composites is dominated by North America

The EV composites market is predominantly driven by North America, because of the region's strong automotive industry, substantial technological advancements, and robust investment in electric vehicle (EV) innovation. The United States, in particular, leads the charge due to its established automotive giants and a thriving EV sector that actively integrates advanced composite materials to enhance vehicle performance, safety, and energy efficiency. North America benefits from a well-developed R&D infrastructure, with numerous institutions and companies dedicated to advancing composite technologies. Furthermore, the region's favorable government policies and incentives aimed at promoting electric vehicles and reducing carbon emissions further stimulate the demand for lightweight and high-strength composites. This environment encourages significant R&D activities, leading to innovations that are crucial for meeting the performance and sustainability goals of modern EVs. As a result, North America maintains its position as a leader in the EV composites market, driving advancements in material technology and contributing significantly to the overall growth of the sector.

The Asia Pacific EV composites market is experiencing significant growth, driven by increasing demand for lightweight and fuel-efficient electric vehicles, a growing population, and technological advancements in composite materials and manufacturing processes. Additionally, the Intergovernmental Panel on Climate Change (IPCC) has identified electric vehicles as a major mitigation strategy for climate change. However, factors like high initial costs and strict regulations could hinder new entrants. Despite these challenges, the overall outlook for the European EV composites market remains positive.

The carbon fiber segment is anticipated to hold the largest market share during the forecast period

The carbon fiber segment is poised to dominate the EV composites market during the forecast period. This is due to carbon fiber's superior performance characteristics, including a high strength-to-weight ratio, rigidity, and durability. Automotive manufacturers are increasingly using carbon fiber composites in critical EV components like body panels, chassis, and structural reinforcements. These properties are invaluable for enhancing performance and efficiency by reducing vehicle weight and improving overall structural integrity - both of which are essential for maximizing range and battery life in electric vehicles. As automakers seek ways to boost EV efficiency and safety while meeting strict environmental regulations, the demand for carbon fiber composites is expected to surge. Furthermore, ongoing advancements in carbon fiber manufacturing are driving down costs and improving accessibility, further solidifying the material's position as the leading segment in the EV composites market.

Segmentations Analysis of EV composites market: -

• By Type:
• Premium
• Ultra-Premium
• No-Premium
• Others
   
• By Fiber Type:
• Carbon Fiber
• Glass Fiber
• Others
   
• By Resin Type:
• Thermoplastic
• Thermoset
• Others
   
• By Manufacturing Process:
• Compression Molding
• Injection Molding
• RTM
• Others
   
• By Application:
• Interior, Exterior
• Battery Enclosure
• Powertrain & Chassis
• Others
   
• By Region:
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
    • BENELUX
    • CIS & Russia
    • Nordics
    • Austria
    • Poland
    • Rest of Europe
  • Asia Pacific
• • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Vietnam
  • Australia & New Zealand
  • Rest of Asia Pacific

• • Middle East & Africa

• • Saudi Arabia
  • UAE
  • South Africa
  • Nigeria
  • Egypt
  • Israel
  • Turkey
  • Rest of MEA

Recent Developments

• In January 2024, SGL Carbon (Germany) signed a technology partnership with E-Works Mobility (Germany). As part of this agreement, SGL Carbon will supply battery cases made of glass fiber-reinforced plastic to the e-car manufacturer E-Works Mobility. This will enable E-Works Mobility to replace the aluminum battery boxes currently used in their vehicles with new boxes made of the glass fiber-reinforced plastic provided by SGL Carbon.
• In March 2023, Solvay and Airborne secured funding to develop composite alternatives to metal battery enclosures. Leveraging Airborne's expertise in advanced composite manufacturing through automation and digitalization, this collaboration has already garnered support letters from Jaguar Land Rover and Vertical Automotive. Both companies recognize the significant potential in designing more compact and lightweight enclosures for high-energy batteries in future electric vehicles. Additionally, they are interested in the project's sustainability focus, which aims to reuse composite waste.
•  In February 2023, the company introduced a novel method for joining Carbon Fiber Reinforced Plastic (CFRP) to mold automotive parts. This innovative technology is expected to significantly accelerate the molding process compared to traditional techniques.

Answers to Following Key Questions:

• What will be the EV composites market ’s Trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers in the EV composites market?
• What are the main forces behind worldwide EV composites market? Which companies dominate EV composites market?
• Which companies dominate EV composites market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global Insight Engines industry's suppliers' opportunities and dangers in EV composites market?
• What is the Insight Engines industry's regional sales, income, and pricing analysis? In the EV composites market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the EV composites market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for EV composites market?
• What are the dominant revenue-generating regions for EV composites market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main EV composites market trends that are influencing the market's expansion?
• Which key product categories dominate EV composites market? What is EV composites market ’s main applications?
• In the coming years, which EV composites market technology will dominate the market?