Automotive Carbon Thermoplastic Market

Updated on : April 23, 2024

Automotive Carbon Thermoplastic Market

The global automotive carbon thermoplastic market was valued at USD 522 million in 2023 and is projected to reach USD 983 million by 2028, growing at 13.5% cagr from 2023 to 2028. The automotive sector is under constant pressure to reduce carbon emissions and bring down fuel consumption by reducing the weight of vehicles. At the same time the improvement in the safety is essential. This is in turn driving the electric drive technology, lower weight of automobiles, multi material or hybrid cars, as well as stricter environmental legislation, and related traffic regulations. The thermoset composites have already been in use widely for many years in the construction of racing cars and luxury sports cars. The processing capacity of thermoset composites has not yet achieved the industrial production speeds required in the automobile industry, which is characterized by high volumes. For larger volumes of cars, automated production processes are a must. For instance, the time required to make a component should be a maximum of about one minute only. This is achievable with the use of thermoplastic composites.

Attractive Opportunities in Automotive Carbon Thermoplastic Market Trends

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Automotive Carbon Thermoplastic Market Dynamics

Driver: OEMs looking for a complete solution from suppliers

CFRTP composites have enjoyed considerable success in Formula 1 motorsport car production. This has created a highly fragmented and technology-rich support industry. Over the next five years, CFRTP composite usage will cascade from the high-end sports and luxury segments into mainstream premium vehicles as OEMs aim to deliver fuel-efficient cars through weight reduction across their portfolios. Not all incumbent suppliers, however, will be able to translate their motorsport experience into these higher-volume segments. The lack of experience using composites in the mainstream applications such as aerospace and wind energy will drive OEMs towards suppliers, who can provide a complete solution to help navigate through the adoption cycle. Small companies wishing to prosper in this segment should look to provide an increasing proportion of the composites value chain. Reducing manufacturing costs and cycle times will offer the greatest potential to grow the business in the medium term.

Restraint: No major breakthrough from research and technical side

Huge investments are made and various laboratories are being set up in order to develop new technologies for production of low-cost carbon fiber. Oak Ridge National Laboratory (ORNL) leads the research work done for carbon fiber. The Automobile OEMs have made huge investments for mass use of carbon fiber composites in the automotive industry. Attempts are being made to modify the value chain of carbon composites but nothing concrete has been achieved in this regard so far.

Opportunity: Growth opportunity in high volume production of structural automotive components

Composites are becoming a core strategic material for automotive OEMs for structural (hood, roof, doors, fenders, deck-lid, front-end, seats, powertrain) as well as non-structural (dashboard, under the hood components) components. Higher volume usage to date has been hindered by high material costs, long production cycles, and lack of automation. But the scenario is expected to change in the near future with decreased cost of carbon fiber and automated processes with low cycle time for large volume production of automotive components.

Challenge: Capital-intensive and complex manufacturing process of carbon fibers

Carbon fiber manufacturing is highly capital-intensive and requires significant investments. New technologies must be developed to produce low-cost carbon fiber to commercialize the end products. Production and development projects are being undertaken to reduce the manufacturing costs of carbon fiber products through advanced technologies and process solutions. According to some industry experts, the production process of carbon fiber is complex and lengthy compared to the other alternative products. Developing low-cost and simpler technologies for the commercial production of low-cost thermoplastic composites is a major challenge for governments, research laboratories, and carbon fiber producers globally.

Automotive Carbon Thermoplastic Market Ecosystem

Based on the application, the interior segment is estimated to account for the second-largest automotive carbon thermoplastic market share during the forecast period.

CFRP composites have been embraced by luxury car manufacturers for seat backs, headliners, package trays, dashboards, and other interior parts. Technology for implementing CFRP composites into interior trim continues to be developed by Tier I and Tier II automotive suppliers, typically in partnership with producers of carbon fibers. Car interior trim laminate in sports and luxury automobiles today is a natural offshoot of CFRP material with the impressive strength to weight ratio. Consoles, knobs, steering wheels, and door sills are other popular carbon fiber car interior items.

Based on resin type, the PA resin is anticipated to register highest CAGR in automotive carbon thermoplastic market.

PA is a strong competitor for the polymeric matrix of the carbon fiber reinforced thermoplastic composites due to its low dielectric constant, low cost, chemical inertness, high mechanical strength, good dimensional stability, and heat resistance to 2400C.  CF/PA composites can be used in automobile air intake manifolds which were once made of metal. Substituting metal in the manifolds with nylon reduces the weight of the part by up to 60%, cuts system costs through parts integration, and contributes to higher fuel efficiency.

Europe to hold the second-largest market share during the forecast period.

Europe is the second-largest market for automotive carbon thermoplastics. Major factors driving the growth of the market in the region are the presence of established automobile manufacturers, industrial expansion, and technological developments in the automotive industry. The European automotive industry is one of the major industries in the region and is stronger than other regions due to the presence of established automakers. The European Union Commission has enforced to increase the EU’s GHG reduction target for 2030 from a 40% cut in CO2 emission to 50 or 55%. The increasing fuel efficiency requirement has forced the use of automotive carbon thermoplastic composites in the region.

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Key Market Players

The automotive carbon thermoplastic market is dominated by a few globally established players. BASF SE (Germany), Solvay (Belgium), Avient Corporation (US), Celanese Corporation (US), Toray Industries, Inc. (Japan), Teijin Limited (Japan), Mitsubishi Chemical Group Corporation (Japan), SGL Carbon (Germany), Asahi Kasei Corporation (Japan), CompLam Material Co., Ltd. (Taiwan), Ensinger (Germany), and Jiangsu QIYI Technology Co., Ltd. (China), among others, are the main producers in the global market.

These companies are attempting to establish themselves in the automotive carbon thermoplastic market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major automotive carbon thermoplastic market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

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Scope of the Report

The study categorizes the automotive carbon thermoplastic market based on Resin Type, Application, and Region.

By Resin Type

• PA
• PEEK
• PPS
• PC
• PP
• Others

By Application:

• Exterior
• Interior
• Chassis
• Powertrain & UTH

By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Recent Developments

• In October 2023, Toray Industries, Inc., announced that it had decided to expand French subsidiary Toray Carbon Fibers Europe S.A.’s production facilities for regular tow medium- and high-modulus carbon fibers. This move will increase the annual capacity at the plant in Abidos (South-West France) from 5,000 metric tons annually to 6,000 metric tons. Also, this advancement will boost the production of automotive carbon fiber thermoplastic products. The production is expected to start in 2025.
• In June 2023, BASF and Avient collaborated to offer colored grades of Ultrason high-performance polymers to the global market. The collaboration will give customers in different industries a distinctive benefit by providing comprehensive technical support from the base polymer to the final-colored product.
• In May 2023, Celanese announced its intent to initiate a three-year plan to expand engineered materials compounding capacities at the company’s facilities in Asia, including the locations of Nanjing, China; Suzhou, China; and Silvassa, India.
• In March 2023, Solvay and Airborne received funding for a composite alternative to metal battery enclosures. Solvay’s collaboration with Airborne, a technology leader in advanced composites manufacturing using automation and digitalization, received letters of support from Jaguar Land Rover and Vertical Aerospace. They see great potential in the design of more compact and lightweight enclosures for high-energy batteries in future electric cars and aircraft and are interested in the sustainability aspect of this project, which aims to reuse composite waste.
• In February 2023, Toray Industries, Inc. developed a rapid integrated molding technology for carbon fiber-reinforced plastic mobility components. This material sandwiches a light, porous carbon fiber-reinforced foam core prepreg skin, offering outstanding mechanical properties.

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