The composite materials market size is projected to grow at a promising CAGR of 12.94% during the forecast period of 2015 to 2020, and will reach USD 11.26 Billion by 2020. Government regulations and mandates regarding fuel efficiency, rising demand for fuel efficient vehicles, and major OEMs partnering with composite material manufacturers are some of the drivers fueling growth in sales of automotive composite materials globally.

The highest growing application in terms of value for composite materials in the automotive sector is structural components. The polymer matrix composite is the major material which is used in this application due to its high strength and lightweight properties. Structural application is followed by the powertrain application where due to the advancements in powertrain technologies, the use of composite materials has increased to a great extent.

In terms of composite materials used in the automobiles, the polymer matrix composite (PMC) materials is the largest market followed by metal matrix composites (MMC). The advancements in manufacturing technologies of these materials has increased their penetration in the growing markets including India and China which are also the largest vehicle producing countries. The growth in the MMC materials is mainly due to the high strength and lightweight properties of this material. Apart from these properties, the low cost as compared to PMC is one of the major drivers for the increasing MMC market.

The automotive industry in Asia-Oceania has emerged as a hub for automotive production in recent times, given the changing end-user preferences, increasing per capita income of the middle class population, and cost advantages for OEMs. The region is inclined towards compact and cost-effective passenger cars. Factors such as low production cost, availability of economic labor, lenient emission and safety norms, and government initiatives for foreign direct investment (FDI), have resulted in substantial growth for the automotive industry in the region. The rise in automotive production is positively impacting the automotive composite materials market in the region.

In North America and Europe, stringent EPA standards and Euro norms have led to an increased use for polymer matrix composites in vehicle applications.

Some of the major restraints considered in the study are the technological constraints and the high cost of these materials. Technological constraints, such as difficulty in manufacturing metal matrix such as magnesium and its alloys to suit a specific need, have been hindering the market growth of these materials. Metallic processing and joining techniques are not suitable for these composite materials. On the other hand, the high cost of materials such as carbon and glass fiber reinforced composites, are hindering extensive usage of these materials. Hence, the adoption of CFRP is restricted to high-end cars, such as Bugatti, BMW, McLaren, and racing cars.

Toray Industries (Japan) is one of the major composite materials suppliers. The company is vigorously expanding across the globe to strengthen its foothold in the market. For instance, company acquired the European carbon fiber fabric and prepeg business of Saati S.p.A (Italy) in December 2014. Along with this, company expanded its production facilities in France, Japan, and Thailand.