The global automotive composites market is entering a period of rapid expansion, driven by the convergence of electric vehicle adoption, stricter fuel efficiency standards, and a broader push toward sustainable mobility solutions. According to The Insight Partners, market valuation is projected to rise from US$ 13.00 billion in 2024 to US$ 28.30 billion by 2031, reflecting a compound annual growth rate of 12.0%. This growth trajectory underscores the increasing reliance on lightweight, high-performance materials in modern vehicle design.
Automotive composites—engineered from fibers such as carbon or glass combined with polymer resins—offer a unique balance of strength, stiffness, and low mass. These materials are critical in reducing vehicle weight, which directly improves fuel efficiency and extends the range of battery-powered models. Their corrosion resistance and design flexibility also enable manufacturers to meet stringent environmental regulations without compromising safety or aesthetics.
The shift toward electric vehicles (EVs) is a major catalyst for this trend. The International Energy Agency reported that more than 10 million electric cars were sold globally in 2022, with sales expected to climb by 35% in 2023 to reach 14 million units. Governments worldwide are investing heavily in charging infrastructure, further accelerating EV adoption. In these vehicles, composites are used extensively in body panels, structural assemblies, and interior components to offset the weight of battery packs, thereby improving efficiency and performance. As the report notes, “Automotive composites are used in electric vehicles to reduce weight, improve range, enhance safety, and increase durability.”
Demand for lightweight vehicles extends beyond the EV segment. Internal combustion engine models also benefit from reduced mass, which enhances fuel economy and lowers emissions. Automakers are increasingly turning to carbon fiber and fiberglass to achieve these weight reductions while maintaining crashworthiness and long-term durability. For electric models, the energy savings are even more pronounced, as lighter structures require less battery power to travel the same distance, meeting consumer expectations for extended driving ranges.
Regional dynamics play a significant role in shaping the market. Asia Pacific led global revenues in 2024 and is forecast to post the highest growth rate through 2031, supported by a booming automotive sector and strong manufacturing capabilities. Europe and North America follow closely, each benefiting from advanced materials research and established automotive production bases.
Segment analysis reveals that glass fiber composites held the largest share by fiber type in 2024, valued for their cost-effectiveness and versatility. On the resin side, thermoplastics accounted for the greater share, offering recyclability and shorter processing times compared to thermosets. In manufacturing technology, injection molding dominated, enabling high-volume production of complex shapes with consistent quality. By application, interior components led demand, reflecting both functional and aesthetic uses of composites in cabin design.
Industry competition is anchored by leading materials and technology providers, including Gurit Holding AG, Hexcel Corp, Mitsubishi Chemical Group Corp, SGL Carbon SE, Solvay SA, Teijin Ltd, DuPont de Nemours Inc, Toray Industries Inc, Atlas Fibre, and Elaghmore Advisor LLP. Strategic developments are shaping the market’s trajectory, such as Gurit Holding AG’s long-term supply contract for its Kerdyn PET structural foam core and Excel Corp’s decision to refocus its industrial business around preferred carbon fiber applications.
Beyond automotive, the report highlights trending topics such as hybrid automotive composites and wind turbine composites, indicating cross-sector innovation in lightweight material applications. Rising global automobile sales—fueled by population growth, higher disposable incomes, and accessible financing—are increasing the consumption of composites. Parallel investment in EV development reinforces the material’s importance, as the market adapts to both regulatory pressures and consumer preferences for efficient, environmentally responsible transportation.
For stakeholders across the supply chain, from raw material suppliers to OEMs, the evolving composites landscape presents opportunities to align with industry shifts toward electrification and sustainability. The Insight Partners’ analysis offers a detailed roadmap for navigating these changes and capitalizing on the expanding role of advanced materials in automotive engineering.