Europe Market Insights on Automotive Composite Materials: Insights and Forecast, 2019-2025

Report Description

Europe Automotive Composite Material was valued at US$ 1,013.3 Million in 2018 and is anticipated to reach US$ 1,757.4 Million by 2025 displaying reasonable CAGR of 8.29% over the forecast period (2019-2025). Europe’s automotive industry holds 4% of its Gross Domestic Product (GDP). In addition to this, the number of new vehicle registrations increased by 3.8% in 2017 as compared to 2016. The increasing number of vehicles has contaminated Europe’s atmosphere with Green House Gases (GHG), owing to which European Commission laid regulation that mandates a target value of 95g/km of CO2 emission for passenger cars and 147g/km for commercial vehicles to achieve by 2020. To comply with such regulations, automakers in Europe are using composite materials to reduce the overall weight of the vehicle which results in improved the fuel efficiency. Using composite materials in the place of steel or aluminium reduces vehicular weight considerably (35-50%). Besides reduction in weight, features such as excellent aerodynamic design, crashworthiness and toughness of the composite materials are also attracting the European automotive industry. Further, the presence of some of the prominent material suppliers such as BASF, DowAksa, Gurit Holding AG, Mubea Carbo Tech GmbH, SGL Group and Solvay S.A. among others in Europe is also propelling the market growth. However, high cost of the materials, discrepancies in the manufacturing processes and high R&D investment in this industry are acting as the major challenges hampering the market growth.

“Polymer Matrix Composite is expected to dominate during the analyzed period.”

The Europe automotive composites material market is segmented based on different materials such as Polymer Matrix Composite (PMC), Metal Matrix Composite (MMC), Ceramic Matrix Composite (CMC) and Hybrid Composite. Due to high flexibility, high insulation, lower density and lighter weight than other composite materials, PMCs held the maximum market share in 2018 and their dominance is expected to prevail during the forecast period. However, due to the low cost and high flexural and tensile strength of hybrid composites as compared to single fiber composites, the hybrid composites are anticipated to be the fastest growing polymer type during the forecast period

“Thermoset held the largest market share in 2018 and are expected to dominate the market in 2025.”

The study further bifurcates the PMCs by matrix types, which include thermosets and thermoplastics. wherein thermoset held the largest market share in 2018 and is expected to dominate the market by 2025. However, thermoplastic is expected to register highest growth during the forecast period as they are compact and wireless

“Amongst Manufacturing Process, Injection moulding is projected to hold the largest market share and will dominate the Europe automotive composite material market by 2025.”

Europe automotive composite market is further fragmented across different manufacturing processes. This includes hand lay-up, compression moulding, injection moulding, and resin transfer moulding (RTM). The injection moulding process and is anticipated to reach US$ 809.3 million by 2025. On the other hand, RTM will be the fastest growing manufacturing process because of its growing adoption in auto industry

“Amongst applications, exterior segment is anticipated to dominate Europe automotive composite material market by 2025.”

Based on several application areas in automobiles, Europe automotive composite materials market is segmented into interior, exterior, chassis, powertrain & under the hood and structural. Among different application areas, exterior segment dominated the market however a gradual increase in the adoption rate of composite materials for vehicle interiors is expected in the upcoming years

“Amongst vehicle type, passenger cars hold the major share in Europe automotive composite material market.”

Based on different vehicle types, Europe automotive composite materials market is segmented into performance cars, passenger cars and others (commercial vehicles and others). Europe’s passenger car market is the biggest segment in the automotive industry of the region, because of largest share in auto industry and increasing penetration of composite materials in passenger car segment

Europe Automotive Composite Materials Market Size by Vehicle Type, 2018-25 (US$ Mn)

“China represents as one of the largest markets of Europe automotive composite material market.”

For a deep dive analysis of the industry Europe automotive composite materials market is further segmented across different countries, which includes Germany, France, the U.K, Spain, Russia, Italy and rest of Europe. China dominated the market in 2018 and is expected to prevail over the others during the forecast period. Germany is expected to lead the market because of the presence of several prominent automotive OEMs and composite material suppliers

Competitive Landscape-Top 10 Market Players

BASF SE, DowDupont Inc., Gurit Holding AG, Magna International Inc., Mitsubishi Chemical Holdings Corporation, Owens Corning, SGL Group, Solvay SA, Teijin Limited and Toray Industries Inc. are some of the prominent players operating in the Automotive composites market industry. Some of the key players are also expanding their businesses by setting up new plants or increasing their expenditure on R&D to develop cheaper manufacturing methods. Several M&A’s along with partnerships have been undertaken by these players to facilitate costumers with hi-tech and innovative products.

Reasons to buy:

• Current and future market size from 2018 to 2025 in terms of value (US$)
• Combined analysis of deep dive secondary research and input from primary research through Key Opinion Leaders of the industry
• Country level details of the overall adoption of automotive composite material in Europe
• A quick review of overall industry performance at a glance
• An In-depth analysis of key industry players
• A detailed analysis of drivers, restraints, key trends and opportunities prevailing in the industry
• Examination of industry attractiveness with the help of Porter’s Five Forces analysis
• The study comprehensively covers the market across different segments and sub-segments of the technology
• Country Covered: UK, Germany, France, Italy, Spain and Russia

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Research Methodology

Analysing historical market, estimation of the current market and forecasting the future market for European automotive composite materials were the three major steps considered while creating and analysing the overall adoption rate of automotive composite materials in major European countries. Exhaustive secondary research was done to collect the historical market of the technology and overall estimation of the current market. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted with industry experts across value chain of the European automotive composite materials market. After all the assumption, market sizing and validation of market numbers through primary interviews, top-down approach was employed to forecast the complete market size of the European automotive composite materials market. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyse the market size of segments and sub-segments of the technology. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the European automotive composite materials market through company internal sources such as annual report & financial statements, performance presentations, press releases, inventory records, sales figures etc. and external sources including trade journals, news articles, government publications, International Organization of Motor Vehicle Manufacturers, competitor publications, sector reports, regulatory bodies publications, safety standard organizations, third-party database and other creditable publications.

Step 2: Market Segmentation:

After obtaining historical market size of the overall market, detailed secondary analysis was done to gather historical market insights and share for different segments & sub-segments of the European Automotive Composite Materials market. Major segments included in the report are material type, manufacturing process, application, and vehicle types.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, detailed factor analysis was conducted to estimate the current market size of the European automotive composite materials market. Factor analysis was conducted using dependent and independent variable such as purchasing power, government initiatives, government regulations in major European countries. Historical trends of the automotive composite materials and their year-on-year impact on the market size and share in the recent past were analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at current market size, key players in market, market share of these players, industry’s supply chain, and value chain of the industry. All the required percentage shares, splits, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weightage was assigned to different factors including drivers, restraints, trends and opportunities available in the market. After analyzing these factors, relevant forecasting techniques i.e. Bottom-up/Top-down was applied to arrive at the market forecast pertaining to 2025 for different segment and sub-segments in major European countries. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and rate of adoption of automotive composite materials in major European countries
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players across different technologies and markets as well as market share of each player. Also, the growth strategies adopted by these players to compete in the rapidly growing European Automotive Composite Materials market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head etc.). Primary research findings were summarized, and statistical analysis was performed to prove the stated hypothesis. Input from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants

Market Engineering

Data triangulation technique was employed to complete the overall market engineering process and to arrive precise statistical numbers of each segment and sub-segment pertaining to the European automotive composite materials market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of material type, manufacturing process, application, and vehicle type.

Main objective of the European Automotive Composite Materials Market Study

The current & future market trends of the European automotive composite materials market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market, providing a platform for the industrial participant to exploit the untapped market to benefit as first mover advantage. Other quantitative goal of the studies includes:

• Analyse the current and forecast market size of European automotive composite materials in terms of value (US$)
• Analyse the current and forecast market size of different segments and sub-segments of European automotive composite materials market. Segments in the study include material type, manufacturing process, application, and vehicle type
• Define and describe the technologies and protocols used in automotive composite materials
• Anticipate potential risk associated with the technology along with customer and competitor analysis, among others
• Define and analysis of the government regulations for automotive composite materials in major European countries
• Analyse the current and forecast market size of automotive composite materials in the European regions, in terms of value for countries including Germany, France, UK, Spain, Russia, Italy and Rest of Europe
• Define and analyse the competitive landscape of the European automotive composite materials and the growth strategies adopted by the market players to sustain in the ever-growing market