With the new technologies being introduced
every day and upgrading of the existing ones, the automotive industry has seen immense
growth in the past few years. The rising need for meeting the environmental
norms, constant efforts are being made to reduce carbon emissions and lessen down
the fuel consumption by reducing the weight of vehicles, keeping the safety
requirements in mind. Vehicle weight is an important aspect to enhance the
performance of a vehicle. Therefore, these automotive composites help in
increasing the fuel economy by a significant margin by reducing the vehicle
weight. The automotive composites are majorly
used in the manufacturing of vehicles like cars, trolleys, and trucks, which
make them around 60% lighter than other materials such as steel or iron, thus
helping in maintaining the stiffness and strength. Moreover, they are also corrosion
resistant unlike steel, which gets corroded easily.
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One of the major market
players such as BMW has been investing actively in production of carbon fiber,
along with looking at the options like bonding carbon fiber with lightweight
steels in order to reduce the weight without increasing the cost.
According to the
researchers at MarketsandMarkets, the global automotive composite market is projected to grow at a CAGR of 8.50% between 2014 and
2019, reaching a value of USD 7,142.37 Million by 2019.
Based on type, carbon
fiber composite is the fastest-growing segment, owing to the high demand for
chassis & powertrain components application. Among applications, the chassis
& powertrain market for automotive composites has huge potential for its
expansion, thereby aiding in increasing the consumption for automotive
composite. However, exterior components hold the largest market share for automotive
composites, and are estimated to be valued at USD 3,555.51 Million by 2019.
Geographical growth scenario of the market
Regionally, Asia-Pacific
was the largest market for automotive composite in 2013, with China being the
key consumer of automotive composite in this region. This trend is expected to
persist over the next few years as well, owing to the rising need for
lightweight and fuel-efficient vehicles, leading to the shift in the focus of
manufacturers towards automotive composite. In addition, rising urban
population especially in countries like China and India is expected to further
drive the growth of this market. High disposable incomes and growing standard
of living in these countries are also fueling the demand for passenger cars and
other vehicles.
Drivers and restraints for the market
The growth
of the global market for automotive composites is being primarily driven by the
following factors:
- Increasing demand for fuel-efficient vehicles
- Reduced weight and consolidation of parts
- OEMs focusing on complete solution from suppliers
- Joint ventures of OEMs and composite suppliers
- Advancements in technology
Apart from these, strict emission
regulations that are leading the OEMs to focus more on composites and reduced
cycle speed of manufacturing process are expected to further create an array of
growth opportunities for the market.
On the flip side, high costs of
composites and issues regarding recyclability are the major factors that are
likely to hamper the growth of this market. Moreover, producing low-cost
composites, reducing process cycle time, and recyclability are the key
challenges being encountered by the leading players in this market.
Major
companies and strategies adopted
Toray
Industries Inc. (Japan), Owens Corning (U.S.), Johns Manville (U.S.), SGL Group
(Germany), Cytec Industries Inc. (U.S.), Koninklijke Ten Cate nv (Netherlands),
Nippon Sheet Glass Co., Ltd. (Japan), Jushi Group Co. Ltd. (China), and Teijin
Limited (Japan) are the major players operating in the worldwide market for
automotive composites. These companies are adopting certain strategies like
agreements, partnerships, collaborations, & joint ventures, investments
& expansions, new product launches, and mergers & acquisitions in order
to maintain their positions in the market as well expand their base across the
globe. Among these the strategy of partnerships, agreements, &
collaborations is the most popular strategy being implemented by the leading
companies.
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