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The automotive industry of Latin America is witnessing growth in the number of new vehicle registrations in the past few years. Brazil, Argentina, Chile, and Colombia are the top automotive markets in Latin America. The growing potential in the automotive industry increases the demand of the automotive parts and components, thereby creating an opportunity for component suppliers in the region. However, the increasing number of vehicles on the road has increased the content of Greenhouse Gases (GHG), thus deteriorating the quality of the air. In Latin America, transport industry is considered to be the primary contributor to the CO2 emissions. This is one of the important environmental concerns in the region, owing to which several countries in LATAM vowed to reduce the GHG emissions to a certain levels in the coming years. For instance, Brazil pledged to reduce GHG emissions by 37% (intended reduction of 43%) by 2025 as compared to 2005 levels. Similarly Argentina targeted to reduce GHG emissions by 15% by 2030. Further to comply with these emission standards, automakers are using composite materials to reduce the vehicular weight thereby increasing the fuel efficiency. Composite materials exhibit superior physical, mechanical and chemical properties as a result they are rapidly replacing steel and aluminum in a range of automotive parts and products. Besides this the use of composite materials in Electric Vehicles (EV) in Latin America has also increased. These materials are widely adopted by the EV manufacturers to compensate the weight increased by the batteries. Composite materials also tend to increase the vehicle speed by reducing the overall vehicular weight. In addition to this, several composite material manufacturers and automotive OEMs see Latin America as a potential opportunity area; hence they are expanding their businesses in the region. For instance, Gurit Holdings AG, a German composite supplier entered into a strategic alliance with Barracuda Advanced Composites for distribution in Brazil. Moreover, Technical Research Institute and Latin America Composite Materials Association (ALMACO) collaborated to strengthen the composite materials market in Brazil. Hence the factors such as stringent emission standards, increasing demand of composites in EV segment and also the expansion of some of the prominent automotive OEMS and material suppliers within the region are attributed to be the factors propelling Latin America automotive composite materials market. Besides promising growth opportunities in the region the high cost of the raw material and manufacturing process, are the major factors hampering the market growth?
Latin America automotive composite materials market is segmented based on different materials such as Polymer Matrix Composite (PMC), Metal Matrix Composite (MMC), Ceramic Matrix Composite (CMC) and Hybrid Composite. Due to high flexibility, high insulation, lower density and lighter weight than other composite materials, the adoption of PMCs is more than the other composites. Therefore PMCs held the maximum market share in 2017 and their dominance is expected to prevail during the forecast period. PMC was valued at US $288.9 million in 2017 and are anticipated to reach to US $562.0 million by 2024 at a CAGR of 10.1% during the forecast period (2018-2024). To get a better understanding of the market, PMCs are further segmented by matrix types, which include thermosets and thermoplastics. In this segment, thermosets are anticipated to be the largest market on the other side thermoplastics will be the fastest growing matrix type during the forecast period. Further, due to low cost and high flexural and tensile strength of hybrid composites as compared to single fiber composites, the hybrid composites are anticipated to be the fastest growing composite type during the forecast period.
The market is further fragmented across different manufacturing processes. This includes hand lay-up, compression molding, injection molding, and resin transfer molding (RTM). Injection molding process dominated the market in 2017 and is expected to continue its dominance over the forecast period. The injection molding process was valued at US $175.2 million in 2017 and is anticipated to reach US $343.3 million by 2024 at a CAGR of 10.2% during the forecast period (2018-2024). On the other hand, due to RTM’s capability of low cost and high volume manufacturing, this segmented is anticipated to be the fastest growing segment during the forecast period (2018-2024). RTM is poised to grow at a CAGR of 11.4% during the forecast period.
Based on several application areas in automobiles, Latin America automotive composite materials market is segmented into interior, exterior, chassis, powertrain & under the hood and structural. Among different application areas, exterior application held the highest market share and was valued at US $258.7 million in 2017 and is anticipated to grow to US $501.5 million by 2024 at a CAGR of 10.0% during the forecast period (2018-2024), followed by the structural application segment.
Based on different vehicle types, Latin America automotive composite materials market is segmented into super cars, passenger cars and others (commercial vehicles and others). Passenger cars segment is the largest segment in LATAM automotive industry, hence held the highest market share in automotive composites industry as well. Latin America automotive composite materials market in passenger cars segment was valued at US $374.1 million in 2017 and is anticipated to reach US $717.6 million by 2024 at a CAGR of 9.9%.
For the better understanding of the market, Latin America’s automotive composite materials market is further segmented across different countries, which includes, Brazil, Argentina, Chile and rest of LATAM. Brazil dominated the market in 2017 and is expected to prevail over the others during the forecasted period. Brazil’s automotive composite materials market was valued at US $203.2 million in 2017 and is expected to reach US $320.6 million by 2024 at CAGR of 6.8% during the forecast period.
Some of the major local and foreign key players active in Latin 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 Latin America automotive composite materials market.
Latin America automotive composite materials market is segmented based on different materials such as Polymer Matrix Composite (PMC), Metal Matrix Composite (MMC), Ceramic Matrix Composite (CMC) and Hybrid Composite. Due to high flexibility, high insulation, lower density and lighter weight than other composite materials, the adoption of PMCs is more than the other composites. Therefore PMCs held the maximum market share in 2017 and their dominance is expected to prevail during the forecast period. PMC was valued at US $288.9 million in 2017 and are anticipated to reach to US $562.0 million by 2024 at a CAGR of 10.1% during the forecast period (2018-2024). To get a better understanding of the market, PMCs are further segmented by matrix types, which include thermosets and thermoplastics. In this segment, thermosets are anticipated to be the largest market on the other side thermoplastics will be the fastest growing matrix type during the forecast period. Further, due to low cost and high flexural and tensile strength of hybrid composites as compared to single fiber composites, the hybrid composites are anticipated to be the fastest growing composite type during the forecast period.
The market is further fragmented across different manufacturing processes. This includes hand lay-up, compression molding, injection molding, and resin transfer molding (RTM). Injection molding process dominated the market in 2017 and is expected to continue its dominance over the forecast period. The injection molding process was valued at US $175.2 million in 2017 and is anticipated to reach US $343.3 million by 2024 at a CAGR of 10.2% during the forecast period (2018-2024). On the other hand, due to RTM’s capability of low cost and high volume manufacturing, this segmented is anticipated to be the fastest growing segment during the forecast period (2018-2024). RTM is poised to grow at a CAGR of 11.4% during the forecast period.
Based on several application areas in automobiles, Latin America automotive composite materials market is segmented into interior, exterior, chassis, powertrain & under the hood and structural. Among different application areas, exterior application held the highest market share and was valued at US $258.7 million in 2017 and is anticipated to grow to US $501.5 million by 2024 at a CAGR of 10.0% during the forecast period (2018-2024), followed by the structural application segment.
Based on different vehicle types, Latin America automotive composite materials market is segmented into super cars, passenger cars and others (commercial vehicles and others). Passenger cars segment is the largest segment in LATAM automotive industry, hence held the highest market share in automotive composites industry as well. Latin America automotive composite materials market in passenger cars segment was valued at US $374.1 million in 2017 and is anticipated to reach US $717.6 million by 2024 at a CAGR of 9.9%.
For the better understanding of the market, Latin America’s automotive composite materials market is further segmented across different countries, which includes, Brazil, Argentina, Chile and rest of LATAM. Brazil dominated the market in 2017 and is expected to prevail over the others during the forecasted period. Brazil’s automotive composite materials market was valued at US $203.2 million in 2017 and is expected to reach US $320.6 million by 2024 at CAGR of 6.8% during the forecast period.
Some of the major local and foreign key players active in Latin 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 Latin America automotive composite materials market.
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