China Automotive Composites Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.89 Billion |
| Market Size (2029) | USD 14.01 Billion |
| CAGR (2024 - 2029) | 9.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Automotive Composites Market Analysis
The China Automotive Composites Market size is estimated at USD 8.89 billion in 2024, and is expected to reach USD 14.01 billion by 2029, growing at a CAGR of 9.5% during the forecast period (2024-2029).
Over the long term, factors such as increasing demand for lightweight material from the automotive industry and growing focus on fuel economy are expected to be major drivers for the market. Presently, composite materials, like thermoplastics and reinforced glass, have drawn the attention of carmakers, making them focus on sourcing better, tensile, and lighter components in the manufacture of automobile units.
However, high costs associated with carbon fiber composites, and glass fiber composites are hindering the growth of the market, as their usage in low-cost vehicles could drastically increase the prices of such vehicles.
The low recyclability of composites is also a restraint for their penetration in entry-level passenger vehicles. However, collaborations of the OEMs with suppliers (due to rising demand for fuel-efficient vehicles, growing lightweight electrical vehicle segment, and major automobile giants, like BMW and Nissan, trying to replace their existing metal parts with composite fibers) imply the scope and booming opportunity that the market is anticipated to offer over the forecast period.
China Automotive Composites Market Trends
Passenger Car Hold Major Growth
China produced 12% of the world's carbon fiber and ranked 3rd in global production. With increasing automotive production, composite material production is expected to boom during the forecasted period.
The production and sales environment of passenger cars is growing rapidly in the country. China's passenger car sales increased year on year in 2023, as greater discounts and tax benefits for environmentally friendly and electric automobiles lifted consumer mood despite slowing economic development.
In June 2023, car manufacturers in China experienced a 9.8% increase in production, reaching a total of 2.56 million units. This figure also represents a 2.5% growth when compared to June 2022. According to recent data released by the China Association of Automobile Manufacturers (CAAM), sales also saw significant improvement, with a month-on-month increase of 10.1% and a year-on-year increase of 4.8% to reach 2.62 million units. These sales numbers represent the highest monthly sales figures since 2022.
China has been the world’s largest car production country. The global passenger cars manufactured in China exceeded the overall share of the European Union. In other car markets, Chinese car brands enjoy a significant cast advantage over imported cars from international automobile manufacturers.
Thus, other developing countries and emerging markets were the main export destinations for Chinese vehicle exports. With rules and regulations changing around the world, Chinese composite material manufacturers are expected to gain momentum for light-weight composite materials manufacturing, this paired with low labor costs and high technological manufacturing this market is expected to boom during the forecasted period.
Battery Electric Vehicles Witnessing Major Growth
The automotive industry has been focusing on vehicle weight for decades as vehicle weight has a direct impact on driving dynamics and fuel consumption. Due to the high cost of potential lightweight solutions and consumers’ limited willingness to pay for weight reduction in automotive, the use of costly lightweight materials has so far been limited.
With an increase in vehicle sales and rapid urbanization, China is determined to reduce exhaust emissions from vehicles. Meanwhile, the country plans to lessen its dependence on oil imports, boosting the demand for and sales of electric vehicles in the country.
Furthermore, many key cities and provinces are imposing more strict restrictions. For instance, Beijing only issues 10,000 permits for the registration of combustion-engine vehicles per month to boost its inhabitants to switch to electric vehicles.
As governments from around the world are implementing stringent emission regulations and are planning to set even higher emissions standards in the coming years, the importance of lightweight materials will increase.
China is one of the leaders in the global automotive fiberglass market with a significant share of 28%. China generates the highest revenue for fiberglass in the Asia-Pacific region. The automotive fiberglass market in the country has a high growth potential driven by a huge increase in the demand for electric vehicles. The growth of this market is also driven by technological developments in the manufacturing process of fiberglass.
Growing government regulations improving electric vehicle adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry in China are expected to create a positive outlook for market growth during the forecast period.
With technological advancements, Chinese manufacturers are expected to see a rise in demand for car exports which in turn will increase demand for automotive composites as manufacturers are looking to reduce car weight to keep up with emission norms across the world.
The Chinese government invested in building charging stations across the country to promote electric vehicle sales. For instance, in January 2022, the Chinese government announced plans to build enough charging stations for 20 million electric vehicles by 2025. This is likely to create a lucrative opportunity for automotive composites market across the country in the coming years.
China Automotive Composites Industry Overview
China's Automotive Composites Market is dominated by several key players such as Hexcel Corporation, Mitsubishi Chemical Corporation, SGL Carbon SE, Toray Industries Inc., and others. The rapid expansion of automotive manufacturers across the country is likely to witness major growth for the market in the coming years. The growing partnership between the manufacturers is anticipated to witness major growth in the market during the forecast period. For instance,
- In August 2023, Tejin Ltd. to transfer the shares of its consolidated subsidiary Teijin Automotive Technologies (Tangshan) Co., Ltd. to Qingdao Keda Times Intelligent Equipment Co., Ltd. in China.
- In July 2023, Dymag collaborated with Hyundai Motor on the development of innovative new carbon hybrid wheel technology for Hyundai's N Performance vehicles, in collaboration with its key partner, composites material specialists Hankuk Carbon.
- In April 2023, Continental officially started the third phase of the Changzhou Plant expansion project in collaboration with Jiangsu Changshun Group, marking its second joint venture in China. The expansion project is expected to increase the production capacity of high-performance composite surface materials by 13 million square meters per year, taking the total annual capacity of surface materials to 35 million square meters.
China Automotive Composites Market Leaders
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Hexcel Corporation
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BASF SE
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SGL Carbon SE
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Mitsubishi Chemical Corporation.
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Toray Industries, Inc.
*Disclaimer: Major Players sorted in no particular order
China Automotive Composites Market News
- In October 2023, Toray Industries, Inc. developed TORAYCA T1200 carbon fiber, which boasts the highest strength of 1,160 kilopounds per square inch (Ksi). This advancement will aid us in reducing our environmental footprint by using lighter carbon-fiber-reinforced plastic materials.
- In October 2023, Mitsubishi Chemical Group and Honda Motor Company jointly developed polymethyl methacrylate, also called acrylic resin material for automotive body parts. The new material will be used in vehicle doors, hoods, fenders, and other automotive body parts.
China Automotive Composites Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Demand for Lightweight Materials
4.2 Market Restraints
4.2.1 High Expenses of Composite Processing and Manufacturing
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value- USD)
5.1 By Vehicle Type
5.1.1 Passenger Car
5.1.2 Commercial Vehicles
5.2 By Propulsion
5.2.1 Internal Combustion Engine
5.2.2 Battery Electric Vehicles
5.2.3 Hybrid Electric Vehicles
5.2.4 Plug-in Hybrid Electric Vehicles
5.2.5 Fuel Cell Electric Vehicles
5.3 By Process Type
5.3.1 Hand Layup
5.3.2 Resin Transfer Molding
5.3.3 Vacuum Infusion Processing
5.3.4 Injection Molding
5.3.5 Compression Molding
5.4 By Material Type
5.4.1 Thermoset Polymer
5.4.2 Thermoplastic Polymer
5.4.3 Carbon Fiber
5.4.4 Glass Fiber
5.4.5 Others
5.5 By Application
5.5.1 Structural Assembly
5.5.2 Power train Component
5.5.3 Interior
5.5.4 Exterior
5.5.5 Others
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 SGL Group SE
6.2.2 Toray Industries Inc.
6.2.3 Hexcel Corporation
6.2.4 BASF SE
6.2.5 Teijin Limited
6.2.6 Nipposn Sheet Glass Co. Ltd.
6.2.7 Mitsubishi Chemical Corporation.
6.2.8 Jiuding New Material Co., Ltd
6.2.9 ALPEX Technologies GmbH
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
China Automotive Composites Industry Segmentation
Composites are being considered to make lighter, safer, and more fuel-efficient vehicles. A composite is composed of a high-performance fiber (such as carbon or glass) in a matrix material (epoxy polymer) that when combined provides enhanced properties compared with the individual materials by themselves.
China's automotive composites market is segmented by vehicle type, application type, process type, propulsion type, and material type. By Vehicle type, the market is segmented into passenger cars and commercial vehicles. By Application type, the market is segmented into Structural Assembly, Powertrain Component, Interior, Exterior, and Others. By process type, the market is segmented into Hand layout / Manual Process, Compression Molding, Injection Molding, and Continuous Process. By Propulsion type, the market is segmented into internal combustion engines, battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. By material type, Thermoset Polymer, Thermoplastic Polymer, Carbon Fiber, and Glass Fiber. For each segment, the market sizing and forecast have been done based on the value (USD).
| By Vehicle Type | |
| Passenger Car | |
| Commercial Vehicles |
| By Propulsion | |
| Internal Combustion Engine | |
| Battery Electric Vehicles | |
| Hybrid Electric Vehicles | |
| Plug-in Hybrid Electric Vehicles | |
| Fuel Cell Electric Vehicles |
| By Process Type | |
| Hand Layup | |
| Resin Transfer Molding | |
| Vacuum Infusion Processing | |
| Injection Molding | |
| Compression Molding |
| By Material Type | |
| Thermoset Polymer | |
| Thermoplastic Polymer | |
| Carbon Fiber | |
| Glass Fiber | |
| Others |
| By Application | |
| Structural Assembly | |
| Power train Component | |
| Interior | |
| Exterior | |
| Others |
China Automotive Composites Market Research FAQs
How big is the China Automotive Composites Market?
The China Automotive Composites Market size is expected to reach USD 8.89 billion in 2024 and grow at a CAGR of 9.5% to reach USD 14.01 billion by 2029.
What is the current China Automotive Composites Market size?
In 2024, the China Automotive Composites Market size is expected to reach USD 8.89 billion.
Who are the key players in China Automotive Composites Market?
Hexcel Corporation, BASF SE, SGL Carbon SE, Mitsubishi Chemical Corporation. and Toray Industries, Inc. are the major companies operating in the China Automotive Composites Market.
What years does this China Automotive Composites Market cover, and what was the market size in 2023?
In 2023, the China Automotive Composites Market size was estimated at USD 8.05 billion. The report covers the China Automotive Composites Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Automotive Composites Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Automotive Composites Industry Report
Statistics for the 2024 China Automotive Composites market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Automotive Composites analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
