The automotive industry holds a significant share of North America’s economy as the region is the second largest vehicle producer in the world. According to a ranking published by Environment Protection Agency (EPA) published in 2017, North America’s largest automotive industry, the U.S held second position with 15% share among all other countries. However, the increase in number of vehicles leads to subsequent increase in Greenhouse Gases (GHG) emissions. This increase in the GHG level in the atmosphere is of utmost importance to the governing bodies in the region. Following which, National Highway Traffic Safety Administration (NHTSA) and Environment Protection Agency (EPA) issued emission regulations under Energy Policy and Conservation Act and Clear Air Act respectively. Both the agencies together finalized certain Carbon Dioxide (CO2) limits for passenger cars and commercial vehicles for 2025. They together set a target value of 89 g/km of CO2 emission for passenger cars, 126g/km of CO2 emission for light trucks and 101 g/km for combined cars and trucks. The firmness from the government side made the auto players to find the ways to reduce the GHG emission by their vehicles. In this respect, using composite materials is one the most preferred was of reducing the GHG emission. The usage of composite materials not only reduces the emission but also imparts superior properties than the traditional materials. Beside this there is a growing adoption of composite materials in fuel efficient vehicles, as they compensate the weight increased by the batteries. Further the presence of some of the leading automotive OEMs and composite material suppliers strengthens North America automotive composite materials market. Some of the composite materials players in North America include Hexel Corporation, Continental Structural Plastics, Cytec Industries, Dow Automotive Systems, DuPont and Magna International Inc., among others. In addition to this, with the growing demand of composite materials in North America, there is a visible increase in the number of material supplier startups. Owing to this, North America automotive composite materials market is expected to reach US $1,454.87 million in 2024 from US $692.67 million in 2017 at a CAGR of 11.3% during the forecast period (2018-2024).On the other hand, the major factors that are hampering the market growth are the high cost of the raw materials and recyclability issues. In spite of this, the increasing demand for hybrid composites and increasing OEM and supplier relationships within the region are considered to be the key opportunity areas for the players in the supply chain.
Polymer Matrix Composite (PMC), Metal Matrix Composite (MMC), Ceramic Matrix Composite (CMC) and Hybrid Composite are different types of the composite materials widely used across the automotive industry. Currently, PMCs are the most popular composite type among the automakers, as they have high flexibility, high insulation, lower density and lighter weight than other composite materials. Owing to such factors, North America polymer matrix composite segment held the highest market value of US $525.5 million in 2017 and is anticipated to reach to US $1,096.5 million by 2024 at a CAGR of 11.2% during the forecast period (2018-2024). However, because of lower cost, lesser cycle time and better structural and mechanical properties of hybrid composites, they have high growth opportunities and are expected to growth at a CAGR of 13.9% during the forecast period (2018-2024).
The properties of the composite materials change with the manufacturing techniques, hence these techniques are considered as an important aspect of the composites. Some of the popular manufacturing processes include Hand Lay Up, Compression Moulding, Injection Moulding, and Resin Transfer Moulding (RTM). Injection Moulding dominated North American market in 2017 with a market value of US $318.8 million and is anticipated to reach US $669.90 million by 2024 at a CAGR of 11.3% during the forecast period (2018-2024). On the other side RTM will be the fastest growing manufacturing process, because of their growing adoption in auto industry. RTM is widely used for mass production of large and complex surfaces, they completely satisfy the low cost- high volume requirement of the automotive industry. RTM held US $57.3 million market value in 2017 and is expected to reach US $130.4 million by 2024 at a CAGR of 12.6% during the forecast period.
Moreover, a visible surge in the usage of composite materials is witnessed across all the vehicle segments. These are replacing steel, aluminum and other materials in vehicle interiors, exteriors, structures, chassis, powertrain and others. Among different application areas, exterior application held the highest market value with a market value of US $470.6 million in 2017 and is anticipated to grow at a CAGR of 11.1% to reach US $978.40 million by the end of forecast period. However the stringent regulations on vehicle interior air quality within the region are expected to fuel the demand of composite demand for vehicle interiors. Owing to which, North America interior application market is poised to grow at a CAGR of 12.3% during the forecast period (2018-2024).
Among several vehicle types, which include passenger cars, Super Cars and others, passenger cars segment is the largest vehicle market in the region. Hence passenger cars held the highest market share with market value of US $680.4 million in 2017 and are anticipated to reach US $1,400.0 million by 2024 at a CAGR of 11.0%. In addition to this, the largest market share of passenger cars among the vehicle segment is attributed to the growing adoption of composites in this segment.
In North America automotive composite materials market, the U.S dominated the market. It is evident from the fact that the U.S has the largest automotive industry in the region, further the presence of several material suppliers, automotive OEMs, stringent emission regulations and increasing adoption of composites in electric vehicles are attributed to be the major factors for the dominance of the U.S in the region. The U.S automotive composite materials market was valued at US $531.1 million in 2017 and is anticipated to reach US $1,028.0 million by 2024 at a CAGR of 10.0% during the forecast period. Some of the major local and foreign key players active in North America automotive composite materials market include BASF, DowDupont, Gurit Holding AG, Magna International Inc., Mitsubishi Chemicals Holding Corporation, Owens corning, SGL Group, Solvay S.A., Teijin Limited and Toray Industries Inc. These players are entering into several competitive strategies (partnerships, merger-acquisitions, joint venture, new product launch, business expansion and others) with each other or other supplier or automotive OEMs to strengthen their position in the North America automotive composite materials market.
TABLE OF CONTENTS
1.1 Market Definition 12
1.2 Objective of the Study 12
1.3 Limitation 12
1.4 Stakeholders 12
1.5 Currency used in the Report 13
2. RESEARCH METHODOLOGY OR ASSUMPTION 14
2.1 Secondary Data 14
2.1.1 Key Secondary Sources 14
2.2 Primary Data 14
2.2.1 Sampling Techniques & Data Collection Methods 14
2.2.2 Primary Participants 14
3.INDUSTRY PERFORMANCE 15
4. EXECUTIVE SUMMARY 16
5. MARKET OVERVIEW 19
5.1 Introduction 19
5.2 Market Dynamics 20
5.2.1 Market Trends & Drivers 20
184.108.40.206 Stringent Government Regulations on GHG emission 20
220.127.116.11 Increasing Demand of Composites in Hybrid and Electric Vehicles 21
18.104.22.168 Superior Structural and Mechanical Properties 22
5.2.2 Market Restraints 23
22.214.171.124 High Cost of the Raw Materials 23
126.96.36.199 Lack of innovation and advancements in Emerging Countries 23
5.2.3 Opportunities 24
188.8.131.52 Growing Scope of Hybrid Composite Materials 24
184.108.40.206 Increase in partnerships Between OEMs and Composite Manufacturers 24
5.3 Key Market Indicators (Demand & Supply) 25
5.3.1 Demand & Supply Side Analysis 25
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