Automotive Composites Market worth $19.35 billion by 2031 - Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., July 7, 2026 /PRNewswire/ -- According to MarketsandMarkets, "Automotive Composites Market by Fiber Type (Glass, Carbon), Resin Type (Thermoset, Thermoplastic), Manufacturing Process (Compression Molding, Injection Molding, RTM), Application, Vehicle Type, and Region - Forecast to 2031", The global automotive composites market is estimated to reach USD 19.35 billion by 2031 from USD 10.74 billion in 2026, at a CAGR of 12.5%. 

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Automotive Composites Market Size & Forecast:

• Market Size Available for Years: 2023-2031
• 2026 Market Size: USD 10.74 billion
• 2031 Projected Market Size: USD $19.35 billion
• CAGR (2026-2031): 12.5%

Automotive Composites Market Trends & Insights:

• The automotive composites market is witnessing strong growth due to increasing demand for lightweight, high-strength, and durable materials that help improve vehicle performance, fuel efficiency, and sustainability. Automakers are increasingly adopting composite materials in body panels, battery enclosures, structural components, chassis systems, and interior applications to reduce vehicle weight and comply with stringent emission regulations. Continuous advancements in composite manufacturing technologies, including automated production processes, high-pressure resin transfer molding (HP-RTM), thermoplastic composite processing, and recycling solutions, are improving production efficiency and enabling greater adoption across high-volume vehicle platforms. Market growth is further supported by the rapid expansion of electric vehicle production, growing investments in lightweight vehicle architectures, and increasing demand for extended battery range and energy efficiency. The automotive industry's focus on carbon reduction, vehicle electrification, and sustainable mobility is accelerating the adoption of advanced composite materials. As OEMs continue to invest in next-generation vehicle platforms and recyclable composite solutions, automotive composites are expected to play an increasingly important role in the future of transportation.
• Asia Pacific is projected to grow at the highest CAGR of 14.0% during the forecast period.
• By fiber type, the glass fiber segment dominated the automotive composites market with a share of 59.0% in terms of value in 2025.
• By resin type, the thermoset segment dominated the automotive composites market with a share of 59.4% in terms of value in 2025.
• By manufacturing process, the RTM process segment is expected to register the highest CAGR during the forecast period.
• By vehicle type, the electric vehicle segment is projected to register the fastest CAGR during the forecast period.
• By application, the battery enclosures segment is expected to register the highest CAGR during the forecast period.
• Teijin Limited, Mitsubishi Chemical Group Corporation, Toray Industries, Inc., Syensqo, ElringKlinger AG, and Hexcel Corporation are star players in the automotive composites market, given their broad industry coverage and strong operational & financial strength.
• Piran Advanced Composites, OPmobility, Envalior, and CIE Automotive India have distinguished themselves among startups and SMEs due to their well-developed marketing channels and extensive funding to build their product portfolios.

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The automotive composites market is driven by the automotive industry's increasing focus on vehicle lightweighting, electrification, and compliance with stringent fuel economy and emission regulations. Automakers are increasingly adopting composite materials to reduce vehicle weight, improve fuel efficiency, extend electric vehicle driving range, and enhance overall vehicle performance. The growing production of electric vehicles, which reached nearly 22 million units globally in 2025, is creating significant demand for lightweight composite solutions in battery enclosures, structural components, body panels, and interior applications. Continuous advancements in composite manufacturing technologies, including high-pressure resin transfer molding (HP-RTM), thermoplastic composite processing, automated fiber placement, and advanced recycling solutions, are improving production efficiency and enabling greater adoption across high-volume vehicle platforms. These innovations are helping reduce manufacturing costs and support the transition of composites from premium vehicles to mainstream automotive applications.

Government regulations aimed at reducing vehicle emissions and improving energy efficiency are further accelerating the use of composite materials. In addition, increasing investments by automotive OEMs in electric mobility, lightweight vehicle architectures, and sustainable material solutions are strengthening market demand. Composite materials offer superior strength-to-weight ratios, corrosion resistance, impact performance, and design flexibility, making them attractive alternatives to traditional metal components. The presence of major automotive manufacturers and composite material suppliers, particularly in Asia Pacific, Europe, and North America, is fostering innovation and expanding production capabilities. Growing adoption of recyclable and bio-based composites, coupled with increasing emphasis on circular economy initiatives, is expected to create additional growth opportunities. As vehicle electrification and lightweighting trends continue to accelerate, the global automotive composites market is poised for substantial expansion over the forecast period.

Carbon fiber type to grow at the highest CAGR in the automotive composites market during the forecasted period

Carbon fiber is expected to register the highest CAGR in the automotive composites market during the forecast period, driven by increasing demand for lightweight materials in electric vehicles, premium vehicles, and high-performance automotive applications. Compared with conventional materials, carbon fiber composites offer exceptional strength-to-weight characteristics, enabling significant weight reduction while maintaining superior structural performance, stiffness, and crash resistance. These benefits help improve vehicle efficiency, extend EV driving range, and support compliance with increasingly stringent emission regulations.

The growing adoption of carbon fiber composites is being supported by continuous advancements in manufacturing technologies aimed at reducing production costs and improving scalability. Automotive OEMs and material suppliers are investing in rapid molding processes, automated fiber placement, recycled carbon fiber solutions, and thermoplastic composite technologies to facilitate higher-volume production. In addition, increasing use of carbon fiber in battery enclosures, structural reinforcements, roof systems, body panels, and chassis components is expanding its application scope beyond luxury and sports vehicles. Strategic initiatives by leading industry participants, including the development of sustainable carbon fiber materials, recyclable composite solutions, and next-generation manufacturing processes, are further accelerating market growth. As vehicle lightweighting and electrification remain top priorities for automakers worldwide, carbon fiber is expected to emerge as the fastest-growing fiber segment within the automotive composites market over the forecast period.

Thermoplastic resins to register highest growth in the automotive composites market

Based on resin type, thermoplastic composites are expected to register the highest CAGR in the automotive composites market during the forecast period. The segment's rapid growth is driven by increasing demand for lightweight, recyclable, and cost-effective materials that support the automotive industry's sustainability and circular economy objectives. Unlike thermoset composites, thermoplastic composites can be reheated, reshaped, and recycled, making them particularly attractive for next-generation vehicle platforms and high-volume automotive production.

The growing adoption of electric vehicles is further accelerating demand for thermoplastic composites in applications such as battery enclosures, front-end modules, underbody shields, seat structures, and interior components. These materials offer several performance advantages, including excellent impact resistance, design flexibility, faster processing cycles, weldability, and compatibility with automated manufacturing technologies. As automotive OEMs seek to reduce vehicle weight while improving production efficiency, thermoplastic composites are becoming an increasingly preferred material solution.

Although thermoset composites currently account for the largest share of the market due to their superior heat resistance, dimensional stability, and widespread use in structural applications, advancements in continuous-fiber reinforced thermoplastics and long-fiber thermoplastic technologies are narrowing the performance gap. Supported by increasing investments in sustainable materials, recycling infrastructure, and high-volume manufacturing processes, thermoplastic composites are expected to gain significant market share and emerge as the fastest-growing resin segment in the automotive composites market.

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North America accounted for the second-largest share of the automotive composites market in terms of value and volume

North America accounted for the second-largest share of the automotive composites market in terms of both value and volume. The region's strong market position is supported by the presence of leading automotive OEMs, advanced composite material manufacturers, and a well-established automotive supply chain. Growing demand for lightweight vehicles, stringent fuel economy regulations, and increasing investments in electric vehicle production continue to drive composite material adoption across the region. The United States remains the largest market within North America, supported by significant production of passenger vehicles, pickup trucks, SUVs, and electric vehicles. Automotive manufacturers are increasingly incorporating composite materials into exterior body panels, battery enclosures, structural components, and interior applications to improve vehicle efficiency, reduce emissions, and enhance performance. The growing popularity of electric vehicles and the expansion of domestic battery manufacturing facilities are creating additional opportunities for advanced composite materials. The region also benefits from strong research and development activities, technological advancements in thermoplastic and carbon fiber composites, and increasing collaboration between automakers and material suppliers. Government initiatives promoting vehicle electrification, fuel efficiency, and domestic manufacturing are accelerating the adoption of lightweight composite solutions. As automakers continue to focus on reducing vehicle weight and improving sustainability, North America is expected to remain a key growth market for automotive composites throughout the forecast period.

Key Players

Prominent companies include Toray Industries, Inc. (Japan), SGL Carbon (Germany), POLYTEC HOLDING AG, ElringKlinger AG (Germany), Syensqo (Belgium), HENGRUI CORPORATION (HRC) (China), Exel Composites (Finland), Teijin Limited (Japan), Mitsubishi Chemical Group Corporation (Japan), Piran Advanced Composites (UK), IDI Composites International (US), and Röchling SE & Co. KG (Germany).

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