Automotive Thermoplastic Polymer Composite Market

According to Stratistics MRC, the Global Automotive Thermoplastic Polymer Composite Market is accounted for $10.61 billion in 2022 and is expected to reach $17.60 billion by 2028 growing at a CAGR of 8.8% during the forecast period. Thermoplastic polymer composites are a type of composite material made of reinforcing fibers and thermoplastic polymers. These composites have a number of benefits, including a high strength-to-weight ratio, excellent thermal stability, and corrosion resistance. They have a wide range of uses in the automotive industry, including interior and exterior body panels, structural assemblies, and powertrain parts.

According to Transparency Market Research’s latest research report on the thermoplastic composites market for the forecast period 2021 to 2031, rise in usage of thermoplastic composites in the production of automobile components is a key factor expected to boost the global thermoplastic composites market.



Market Dynamics:

Driver:

Increasing demand for electric vehicles

Electric vehicles (EV) are environmentally friendly and help lower carbon emissions in the transportation sector. In the upcoming years, there will likely be a significant increase in demand for electric and hybrid vehicles. Excellently strong and significantly contributing to vehicle weight reduction are thermoplastic composites. They are therefore very helpful in the creation of electric vehicle parts. Consequently, the demand for electric vehicles is growing, which is increasing the use of thermoplastic composites. Many businesses are currently working to develop components made of thermoplastic composites. For instance, to reimagine automotive designs and production, UNITI SWEDEN AB (Sweden) and KW Special Projects will use digital twin technology and thermoplastic composites reinforced with carbon fiber.

Restraint:

Expensive raw materials

In comparison to thermoset resins, thermoplastic resins are more expensive and are used to make thermoplastic composites. The cost of these composites is largely made up of raw materials. The high cost of raw materials, processing, and manufacturing for thermoplastic composites leads to high end-product costs. The OEMs in the supply chain are severely constrained in their use of thermoplastic composites by this high cost. Additionally, the equipment and tools needed to produce thermoplastic composites require a lot of capital, which raises the price of the finished product. Thermoplastic composites have numerous uses across numerous industries. They are not, however, currently commercially viable. If the price of thermoplastic resins and the cost of production decrease, it is anticipated that the use of thermoplastic composites in many applications will be practical.

Opportunity:

Rising demand from the transportation sector

Heavy vehicles, rail coaches, and various automotive components are all made with thermoplastic composite materials. These materials are lightweight and aid in lightening the load on automobiles, which lowers CO2 emissions and improves fuel efficiency. This also makes it easier for automakers to meet CAFE emission standards and other fuel standards set by environmental organizations. One of the factors propelling the thermoplastic composites market in the transportation sector is the rise in the use of thermoplastic composite materials in racing and high-performance vehicle components, such as instrumental panels, front end modules, door modules, roof components, appearance grade components, and under-hood components. The rail industry is seeing an increase in demand for thermoplastic composites as well. In order to lighten rail carriers, high-speed rail uses these materials for both interior and exterior applications.

Threat:

Increasing the Production of Cheap Thermoplastic Composites

Numerous end-use industries are driving up demand for thermoplastic composites. Due to their high price, many applications for these composites are not commercially viable. Its consumption may rise in a variety of end-use applications due to the production of inexpensive thermoplastic composites. Focus is needed on overcoming the significant challenge of developing low-cost production technology.

Covid-19 Impact:

The demand for thermoplastic composites has been negatively impacted by COVID-19 across a range of end-use industries, including aerospace & defense, transportation, wind energy, construction, consumer & electronics goods, and others. OEMs have been forced to operate at zero or partial capacities, which has decreased demand for thermoplastic composites. This is due to the disruption in the supply chain that has caused delays or non-arrival of raw materials, disrupted financial flows, and growing absenteeism among production line workers.

The transportation segment is expected to be the largest during the forecast period

Due to the high demand for fuel-efficient vehicles, the transportation industry is the largest consumer of thermoplastic composites in terms of value and volume. Due to their lightweight, high strength, and ease of shaping and reshaping, thermoplastic composites are being investigated by the auto industry and heavy vehicle manufacturers for use in various transportation applications. Automotive manufacturers can also comply with strict environmental regulations thanks to thermoplastic composites.

The carbon fiber segment is expected to have the highest CAGR during the forecast period

Carbon fiber is expected to be the fastest-growing product owing to its strength and thickness. Carbon atoms are arranged parallel to the fiber's long axis to create carbon fibers. Specialized material handling machinery and skilled labor are needed to align the fiber axis with the carbon atom. Steel is a good material because of its low cost and distinctive strength. When choosing raw materials to be used as lightweight materials for automobiles, crashworthiness is a crucial factor.

Region with highest share:

A significant portion of the global thermoplastic composites market is in Asia-Pacific. The two main markets driving the demand for thermoplastic composites are India and China. The market is expected to grow as a result of factors including quick urbanization, rising lightweight vehicle production, the popularity of electric vehicles, and an expanding key manufacturer presence in the Asia-Pacific region. Since China is one of the biggest manufacturers of electric vehicles, it holds a significant market share for thermoplastic composites in the Asia-Pacific region.

Region with highest CAGR:

The largest thermoplastic composites market worldwide is in APAC, which is also expected to grow at the highest CAGR between 2020 and 2025. The high domestic demand for thermoplastic composites in applications for consumer goods, electronics, aerospace and defense, and transportation propels the APAC region to lead the thermoplastic composites market. Major producers of thermoplastic composites, like Toray Industries, Inc. (Japan), are operating under COVID-19's adverse conditions while adhering to all of its regulations. Additionally, after 2020, there will be a rise in demand for thermoplastic composites in the region due to the recovery of all industries and the high-performance characteristics of these materials.



Key players in the market

Some of the key players in Automotive Thermoplastic Polymer Composite market include AVANCO GmbH, Avient Corporation, BASF SE, Celanese Corporation, Gurit Holding, Johns Manville, Jushi Group, Kineco, Lanxess AG, Mitsubishi Chemical Corporation, Nippon Sheet Glass, Owens Corning, SABIC, SGL Group, Solvay, Teijin Limited, Ten cate, The Dow Chemical Company and Toray Industries Inc.

Key Developments:

In June 2019, Mitsubishi Advanced Chemical Materials acquired Advanced Polymer Technologies (US) to enhance its technological advancement in the engineering plastics business. This acquisition will help the company to offer better solutions to aerospace & defense, medical, and electrical & electronics industries.

In May 2019, Polyone Corporation launched new thermoplastic composite products at CHINAPLAS 2019. It introduced Complet LFT formulations, which is a thermoplastic composite with PEEK and PP as a base resin, to meet highly demanding design and performance requirements.

In November 2018, DowDuPont announced plans to introduce two new grades, carbon fiber-reinforced polyamide and glass fiber-reinforced polyamide. These new grades are suitable to be used as a 3D-printing filament and cater to the demand from the high growing 3D printing market.

Product Types Covered:
• Hand Layup
• Resin Transfer Molding
• Vacuum Infusion Processing
• Injection Molding
• Compression Molding
• Sheet Molding
• Other Product Types

Resins Covered:
• Epoxy
• Polyurethane
• Polyamide
• Polypropylene
• Polyethylene
• Polyester
• Vinyl Ester
• Hybrid
• Other Resins

Fibers Covered:
• Carbon Fiber
• Glass Fiber
• Natural Fiber
• Mineral Fiber
• Other Fibers

Applications Covered:
• Structural Assembly
• Power Train Components
• Interior
• Exterior
• Other Applications

End users Covered:
• Conventional Vehicles
• Electric Vehicles
• Trucks & Buses
• Transportation
• Consumer goods & electronics
• Wind Energy
• Sports & Leisure
• Construction
• Aerospace & Defense
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances