Latin America Automotive Carbon Fiber Composites Market Analysis
The Latin America Automotive Carbon Fiber Composites Market is expected to register a CAGR of greater than 8% during the forecast period.
- A higher market dynamic is being created by the OEMs and their supply chain to achieve greater efficiency and longer life-cycle value. The newer applications of the composites material in Brazil and penetration in new areas are crucial to the industry's future growth.
- Traditionally, countries like Brazil and Mexico had a strong manufacturing base with a higher per capita income. As a production hub in entire Latin America, Brazil today has a strong presence worldwide.
- Carbon fiber composites offer improvement in structural, functional, or cosmetic properties making vehicles lighter, cleaner, safer, and more cost-effective, the leading carbon fiber suppliers respond to the needs and expectations of the vehicle OEMs, system suppliers, and customers.
- Many car companies, such as BMW, Audi, GM, Honda, and Polestar, have established agreements with carbon fiber material producers for mass production. They are investing in their processes to support low-cost carbon fiber manufacturing.
Latin America Automotive Carbon Fiber Composites Market Trends
Electrical Cars Sales Will Drive the Carbon Fiber Automotive Market
Reducing the weight of electric vehicles has significant importance with the greater secondary cost savings associated. However, Composite materials will help to compensate for the extra weight of installing batteries and electrical engines. This allows manufacturers to not only focus on lighter batteries but the entire white body of the vehicle.
For instance, in 2019 the BMW Group has selected SGL Carbon to produce a cover component for battery enclosures. This substantial multi-year order will include creating an innovative glass-fiber-based cover plate for the battery housing for usage in the future plug-in hybrid model of BMW Group.
Many carbon fiber composites companies are offering a solution to reduce the weight of electric vehicles. For instance, Companies like Kordsa are offering new lightweight materials and engineering solutions to produce lightweight cars for future hybrid electrical cars as their sales are expected to boom in the future.
High cost of carbon fiber restricts the usage in high volume vehicles. Additionally, continuous availability and high cycle time remain the major challenges in the expansion of the industry.
Brazil is leading the Latin America Automotive Carbon Fiber Market
Brazil has the largest carbon fiber composites industry in the Latin America region. The recovery of the automotive industry and increased urbanization have resulted in the growth of the region's automotive fiber composites market. However, the country is again seeing a down since the beginning of the COVID-19 pandemic. However, the automotive industry is expected to make a comeback by 2021, promoting sales for automotive carbon fiber composites in the Latin America region.
Brazil's automotive carbon composite industry is characterized by small and large companies such as Elekeiroz, Embrapol, Cromitec, and Fiacbras, ranging in molding, fabrication, and materials suppliers. Brazil has a well-established manufacturing location in the center of Latin America, where goods can be easily exported to neighboring nations as raw materials or finished products needed for automotive fiber carbon composites.
Additionally, low per-capita helps the demand for automotive carbon composites consumption in the Latin region. The rise in the automotive industry in Brazil has resulted in a significant demand for carbon composites manufacturers to reach the need for various customers in the Latin America region.
Latin America Automotive Carbon Fiber Composites Industry Overview
The Latin America Automotive Carbon Fiber Composites Market is dominated with various international and regional players such as Reichhold, Ashland, Toray, Owens Corning and Teijin. Although to have the edge over its competitors, the major automotive carbon fiber manufacturing companies are making joint-ventures, partnerships to launch newer products.
- In 2018, UK based Shimtech Industries Ltd. expanded its composites division, in Mexico. The company works on carbon fiber component fabrication ranging aerospace to the automotive industry. Its primary assembly facility is situated in Hermosillo, Sonora.
- In 2019, Toray Industries confirmed the development of its latest automotive carbon fiber composite with an improved cost-performance ratio. A new carbonization facility will be set up in 2020 for mass production at the Mexican plant of its US subsidiary Zoltek.
Latin America Automotive Carbon Fiber Composites Market Leaders
Reichhold
Toray Industries
Owens Corning
Teijin Inc.
3M
- *Disclaimer: Major Players sorted in no particular order
Latin America Automotive Carbon Fiber Composites Market News
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