Market Size of Canada Automotive Carbon Fiber Composites Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 1.33 Billion |
Market Size (2029) | USD 2.32 Billion |
CAGR (2024 - 2029) | 10.50 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Canada Automotive Carbon Fiber Composites Market Analysis
The Canada Automotive Carbon Fiber Composites Market size is estimated at USD 1.33 billion in 2024, and is expected to reach USD 2.32 billion by 2029, growing at a CAGR of 10.5% during the forecast period (2024-2029).
Carbon fiber is a lightweight material with high-strength characteristics that can be designed for enhanced performance in automotive applications. It offers improvement in structural, functional, or cosmetic properties. To make vehicles lighter, cleaner, safer, and more cost-effective, the leading carbon fiber suppliers are responding to the needs and expectations of the vehicle OEMs, system suppliers, and customers.
Carbon fiber components will not only make EVs lighter and more aerodynamic but will also help improve the battery life and range of travel. If it can be mass-produced, then the EV market will translate into substantial job opportunities directly and indirectly. The people are thrilled about the widespread adoption of electric vehicles (EVs) as a mode of transportation. This shift will significantly impact India's sustainability efforts by reducing environmental damage and decreasing the country's reliance on imported oil. Significant progress will be made toward a cleaner and greener future locally, and the complete electrification of India will benefit businesses, investors, and consumers alike.
Many car companies, such as BMW, Audi, GM, Honda, and Polestar, have established mass production agreements with carbon fiber material producers. They are investing in their processes to support low-cost carbon fiber manufacturing.
In August 2023, Canadian researchers turned black bitumen into 'Green' carbon fiber. The team anticipates starting commercial production in 2024 and witnesses wide applications for its carbon fibers in electric vehicles (EVs), improving their performance and ultimately helping to boost EV adoption rates. With around one million cars and other light vehicles manufactured annually in Canada, local carbon fiber can give automakers a competitive edge while supporting Canada’s emission-reduction goals.
Adopting carbon fiber increases the durability of vehicles, thereby ensuring a long life cycle of the parts and vehicles. The exterior parts of vehicles manufactured from composites also offer high stiffness, resulting in minimum damage to occupants in case of accidents.
Thus, the above factors have a positive impact on the market.
Canada Automotive Carbon Fiber Composites Industry Segmentation
Carbon fiber is a polymer, also known as graphite fiber. It is a robust and stiff material made of crystalline carbon filaments twisted together. It can be woven into a cloth, molded into a permanent shape, and coated with plastic or resin.
The Canadian automotive carbon fiber composites market is segmented by application (structural assembly, powertrain components, interior, exterior, and other applications). The report offers market size and forecasts for the Canadian automotive carbon fiber composites market in value (USD) for all the above segments.
Application Type | |
Structural Assembly | |
Powertrain Component | |
Interior | |
Exterior | |
Other Applications |
Canada Automotive Carbon Fiber Composites Market Size Summary
The Canadian automotive carbon fiber composites market is poised for significant growth, driven by the increasing demand for lightweight and high-strength materials in vehicle manufacturing. Carbon fiber's unique properties make it an ideal choice for enhancing the performance and efficiency of vehicles, particularly electric vehicles (EVs). The material's ability to reduce weight and improve aerodynamics contributes to better battery life and range, aligning with the automotive industry's shift towards sustainability and emission reduction. Major automotive manufacturers, including BMW, Audi, GM, Honda, and Polestar, are actively investing in carbon fiber production to meet the evolving needs of vehicle OEMs and consumers. This trend is further supported by innovations such as the conversion of black bitumen into 'Green' carbon fiber by Canadian researchers, which is expected to bolster local manufacturing and provide a competitive edge to Canadian automakers.
The market is characterized by a strong focus on both exterior and interior applications of carbon fiber composites. In exterior applications, carbon fiber is favored for its lightweight and durable nature, making it suitable for components like roofs, hoods, and aerodynamic elements. This not only enhances vehicle performance but also meets the aesthetic demands of car enthusiasts and premium sports car users. Interior applications, such as carbon fiber dash kits and other customization accessories, are gaining popularity due to their stylish appearance and lightweight benefits. The Canadian government's push towards zero-emission vehicles by 2035 further accelerates the adoption of carbon fiber in the automotive sector. The market is consolidated with key players like Hexcel Corporation, Mitsubishi Chemical Carbon Fiber and Composites Inc., and SGL Carbon SE, who are leveraging new product launches and strategic collaborations to maintain their market positions.
Canada Automotive Carbon Fiber Composites Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Application Type
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2.1.1 Structural Assembly
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2.1.2 Powertrain Component
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2.1.3 Interior
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2.1.4 Exterior
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2.1.5 Other Applications
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Canada Automotive Carbon Fiber Composites Market Size FAQs
How big is the Canada Automotive Carbon Fiber Composites Market?
The Canada Automotive Carbon Fiber Composites Market size is expected to reach USD 1.33 billion in 2024 and grow at a CAGR of 10.5% to reach USD 2.32 billion by 2029.
What is the current Canada Automotive Carbon Fiber Composites Market size?
In 2024, the Canada Automotive Carbon Fiber Composites Market size is expected to reach USD 1.33 billion.