The Global Automotive Composites market to grow at a CAGR of 7.83 percent over the period 2012-2016. The weight reduction measures taken by automobile manufacturers is one of the key factors contributing to this market growth. The market has also been witnessing increasing use of carbon fiber composites. However, high automotive composite costs could pose a challenge to the growth of this market.
The Global Automotive Composites market has witnessed many strategic expansions and agreements, and this trend is expected to increase in the future. For instance, in the recent past, Toray Industries Inc. established a joint venture with Daimler AG, where both companies will work together in the development and manufacturing of carbon fiber-based automotive components. Recently, SGL Group formed a joint venture with BMW AG for the development of lightweight and carbon fiber-based components. Furthermore, Teijin Ltd. established a joint venture with General Motors Co., where both companies will jointly develop carbon fiber-reinforced thermoplastic automotive components. Other players are also concentrating on joint ventures as a way to capture more market share, enhance their distribution channels and their market reach, and remain competitive in the market.
One of the major factors driving the market is the weight-reduction measures taken by automobile manufacturers. This has increased the potential of automotive parts made from composites. The reinforcement of fuel economy standards has also propelled the demand for automotive composites, resulting in the growth of the Global Automotive Composites market.
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