EV Composites Market

EV Composites Market

The global EV composites market is valued at USD 2.3 billion in 2024 and is projected to reach USD 5.1 billion by 2029, growing at 17.1% cagr from 2024 to 2029. The global EV composites market is driven by the material's high-performance properties, compatibility with various resin systems, and the growing adoption of composites in electrical vehicle industry. Technological advancements and the development of new applications further expand its usage, while environmental regulations and sustainability goals propel demand across industries. These factors collectively contribute to the robust growth of the EV composites market, making it a critical component in modern composite materials.

Attractive Opportunities in EV composites Market Trends

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EV composites Market Dynamics

Driver: Increasing EV adoption and technological advancements

The growing popularity of EVs, fueled by consumer demand for sustainable transportation and government incentives, boosts the need for advanced composite materials to improve vehicle performance and range. Innovations in composite materials, such as carbon fiber reinforced plastics (CFRP) and advanced manufacturing processes like Resin Transfer Molding (RTM), are enhancing the properties and cost-effectiveness of EV components.

Restraint: Competition from low-cost mature products

The competition from low-cost mature products such as high grade polymers is a significant restraint for the EV composites market. These fibers are well-established and widely used in various applications, making it challenging for EV compositess to gain significant market share. The low cost of these fibers, combined with their established supply chain and manufacturing processes, makes it difficult for EV compositess to compete on price alone. Additionally, the high cost of production and processing of EV compositess compared to these mature products further hinders their adoption.

Opportunity: Rising demand from emerging markets

Emerging markets, particularly in Asia Pacific, are experiencing rapid industrialization and economic development, which is fueling the demand for lightweight and high-performance materials across various industries. rising demand for EV composites from emerging markets, particularly in the electrical automotive industry, is a significant driver of growth for the EV composites market. Financial incentives and support from governments for EV production and the use of sustainable materials present significant growth opportunities for the EV composites market.

Challenge: Llimited EV charging and recycling infrastructure

The EV composites market faces significant challenges due to limited EV charging and recycling infrastructure. The scarcity of widespread and accessible charging stations slows market adoption, exacerbates range anxiety, and diverts investment priorities, leading to regional disparities in EV growth. Additionally, the complex and costly recycling process for composite materials poses environmental concerns, deters manufacturers, and faces regulatory pressures. Technological limitations in recycling further hinder the market, and consumer concerns about end-of-life management of composites negatively impact acceptance. Addressing these challenges through investment in infrastructure and recycling technologies is crucial for the sustainable growth of the EV composites market.

Ecosystem: EV composites Market

Carbon fiber accounted for the largest market share, both in terms of value and volume.

Based on fiber type, the EV composites market has been classified into carbon fiber, glass fiber and other fibers. The carbon fiber segment of the EV composites market had the largest market share in 2023, in terms of value and volume. The growth of carbon fiber in EV composites market is driven by several factors, including increasing demand for lightweight materials to improve fuel efficiency and reduce emissions, growing demand for premium and luxury vehicles, advancements in carbon fiber manufacturing, government regulations and incentives, increased focus on sustainability, advancements in 3D printing, growing demand for electric vehicles, advancements in material processing. These factors are expected to continue driving the market growth in the future, as carbon fiber composites offer a lightweight and high-performance alternative to traditional materials, enabling the production of high-performance EVs with improved fuel efficiency and reduced emissions.

Compression molding manufacturing process segment accounted for the second largest market share, both in terms of value and volume

Based on manufacturing process, the EV composites market has been classified into compression molding, injection molding, and RTM. The compression molding segment of the EV composites market had the second largest market share in 2023, in terms of value and volume. Compression molding is a widely used process in the electric vehicle (EV) composites market, offering advantages in terms of part quality, complexity, and sustainability. In compression molding, an engineered composite layup is placed in the open mold cavity, the mold is closed, and consolidating force is applied, producing a composite part with low void content and high fiber volume fraction. This process is versatile and can be used with various resin and fiber combinations, including thermosets, thermoplastics, elastomers, and natural rubbers. Compression molding is particularly suitable for applications requiring high strength-to-weight ratios, such as battery enclosures, chassis, and body panels, and supports sustainability by enabling the incorporation of recycled carbon fiber and reducing material scrap and waste.

Thermoset resin segment expected to register highest market share of EV composites market, during forecasted period

Based on resin type, the EV composites market has been classified into thermoset, and thermoplastics segments. The thermoset segment is expected to lead the EV composites market during the forecast period, in terms of value and volume. The growth of thermoset resin in EV composites is driven by technological advancements and innovations in manufacturing processes, which have improved the quality and efficiency of thermoset resin production.

Non-premium type segment expected to register highest market share of EV composites market, during forecasted period

Based on type, the EV composites market has been classified into ultra-premium, premium and non-premium segments. The non-premium segment is expected to lead the EV composites market during the forecast period, in terms of value and volume. The significant movement in the electrical vehicle industry towards sustainable and efficient transportation solutions is highlighted by the considerable demand for EV composites in exterior applications in non-premium electric vehicles.

Exterior application segment is estimated to account for the highest market share in 2023, in EV composites market.

Based on application, the EV composites market has been segmented into Interior, Exterior, Battery Enclosure, Powertrain & Chassis.

The role of composites in electric vehicles (EVs) is significant, particularly in exterior applications. Composites are used to reduce weight and improve structural integrity in EV body panels, such as hoods, doors, and trunk lids. They offer high strength-to-weight ratios, corrosion resistance, and thermal insulation, making them ideal for high-performance applications.

Asia Pacific to hold the largest market share during the forecast period.

The EV composites market in Asia Pacific is experiencing significant growth, driven by increasing demand for lightweight and fuel-efficient electrical vehicles, growing population, and technological advancements in composite materials and manufacturing processes. According to the International Energy Agency (IEA), almost 14.0 million electric vehicles were sold in 2023. Also, the Intergovernmental Panel on Climate Change (IPCC) has stated electric vehicles as one of the major migration options to control climate change. According to IEA, China is the major markets for EV’s, it hold around 59% share in the global sales of EV’s in 2023. However, factors like high initial costs and strict regulations can hinder new entrants, but overall, the European EV composites market enjoys a positive outlook.

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EV Composites Market Players

The EV composites market is dominated by a few globally established players. Toray Industries, Inc. (Japan), Teijin Limited (Japan), Syensqo (Belgium), Piran Advanced Composites (UK),  HRC (Hengrui Corporation) (China), Envalior (Germany), Exel Composites (Finland), Kautex Textron GmbH & Co. KG (Germany), SGL Carbon (Germany), POLYTEC HOLDING AG (Austria), Plastic Omnium (France), Röchling SE & Co. KG (Germany), Mar-Bal, Inc. (US),  ElringKlinger AG (Germany), and Faurecia (France), among others, are the main producers who entered into significant deals and partnerships recently. Since global requirements are changing, contracts and new product development have received the majority of attention.

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

EV Composites Maket Report Scope

The study categorizes the EV composites market based on By Fiber Type, Resin Type, Type, Manufacturing Process, Application and Region.

By Fiber Type

• Glass Fiber
• Carbon Fiber
• Other Fibers

By Resin Type

• Thermoplastics
• Thermoset

By Type

• Ultra-Premium
• Premium
• Non-Premium

By Manufacturing Process

• Compression Molding
• Injection Molding
• RTM

By Application

• Interior
• Exterior
• Battery Enclosure
• Powertrain & Chassis

By Region:

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

Recent Developments

• In January 2024, SGL Carbon (Germany) signed techonoly partnership with E-Works Mobility (Germany). SGL Carbon is supplying battery cases made of glass fiber-reinforced plastic to E-Works Mobility. The e-car manufacturer is replacing its currently used aluminum battery boxes with boxes made of glass fiber-reinforced plastic from SGL Carbon.
• In March 2023, Solvay and Airborne obtained funding to develop composite alternatives to metal battery enclosures. This collaboration, leveraging Airborne's expertise in advanced composite manufacturing through automation and digitalization, has already received support letters from Jaguar Land Rover and Vertical Automotive. Both companies see significant potential in designing more compact and lightweight enclosures for high-energy batteries in future electric vehicles. They are also interested in the project's sustainability aspect, which aims to reuse composite waste.
• In December 2022, OPmobility (Plastic Omnium) completed the acquisition of the remaining 33.33% stake in the HBPO joint venture from Hella for Euro 290 million. This transaction gave OPmobility full ownership and control of the HBPO joint venture, which is a leading supplier of front-end modules.

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