Canada Automotive Carbon Fibre Composites Market Report and Forecast 2024-2032

Canada Automotive Carbon Fibre Composites Market Outlook

The Canada automotive carbon fibre composites market size is projected to grow at a CAGR of 10.10% between 2024 and 2032.

Key Takeaways

Carbon fibre composites are highly desirable for components that need to be stable and lightweight, such as in automotive engineering. Carbon fibre is used in add-on parts such as BMW M performance parts, or whole carbon fibre chassis elements. Automotive carbon fibre composites are manufactured using carbon fibre composite materials and support structures derived from thermoset plastics called matrices.

The fibre’s ability to create parts in nearly any desired shape, its corrosion resistance and longevity, low thermal expansion, and its long-lasting temperature resistance are the main factors driving Canada automotive carbon fibre composites market growth. Carbon fibre composites are 75-80% lighter than steel and around 30-40% lighter than aluminium and are used in the manufacture of automobiles by prominent car manufacturers, such as Ferrari, Lamborghini, Koenigsegg, and Pagani, which will likely increase the Canada automotive carbon fibre composites market share in future.

Key Trends and Developments

Development of recycled carbon fibre and high demand for luxury cars are increasing the Canada automotive carbon fibre composites market demand

Canada automotive carbon fibre composites market outlook looks promising because carbon fibre is increasingly used in the construction of lightweight racing and performance car bodies, as well as for components that need to be stable and lightweight. The advantages of carbon fibre reinforced plastic in the automotive industry include a reduction in weight, part integration, rigidity, durability, and aesthetic appeal. Composites are also being used in high-end electric vehicles by several OEMs, including Audi and BMW in Canada. Electric vehicles with composites have a high strength to weight ratio and are therefore more fuel-efficient, positively impacting the automotive carbon fibre composites market in Canada.

Market Segmentation

Canada Automotive Carbon Fibre Composites Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Commercial and passenger cars are expected  to hold significant market share due to heightened demand for fuel-efficient vehicles

According to Canada automotive carbon fibre composites market report, both, commercial vehicles and passenger cars hold a significant market share as the use of carbon fibre composites equally impacts their fuel efficiency due to their lightweight and high-strength characteristics.

According to energy.gov, carbon-fibre composites can improve fuel efficiency by about 35 percent and reduce passenger car weight by 50 percent as carbon fibre offers a very high strength-to-weight ratio, being up to five times stronger than steel and one-third the weight. Lighter commercial vehicles require less energy to accelerate, leading to improved fuel efficiency. Additionally, carbon fibre composites can be used to create lightweight parts that increase vehicle’s speed, further contributing to fuel efficiency. Many car companies, such as BMW, Audi, GM, Honda, and Polestar, are using carbon fibre composites in their vehicles to improve fuel efficiency and reduce carbon emissions, aiding the Canada automotive carbon fibre composites market.

Carbon fibres are mostly used in exterior applications as they provide rigidity to the outer structure

According to the Canada automotive carbon fibre composites market segmentation, the exterior application segment is expected to dominate in the forecast period. The exterior parts of the car body are the components that are situated on the monocoque's exterior, such as door panels, bumper beam, and fender. In the event of an accident, the exterior parts made of composite materials provide minimal risk of damage due to their rigidity, contributing to the segment’s growth.

In addition, carbon fibre is increasingly being used in the interior design of vehicles and as it is a lightweight and strong material that increases strength and durability. CFRP is used in the production of steering wheels and paddle shifters. It is also used in the production of front dashboards, which are the control panels located in the front of the vehicle.

Competitive Landscape

Several leading players are working constantly towards expanding their business by launching new car models and building new manufacturing facilities.

Other key players in the Canada automotive carbon fibre composites market analysis include Spartec Composites Inc., Sigmatex (UK) Limited, Teijin Limited, and Fibrotek Advanced Materials Inc., among others.

Alberta is one of the prominent regions as it a main producer of carbon fibre products

As per the automotive carbon fibre composites market in Canada, several factors are contributing to the growth of the market in Canadian countries. Firstly, the adoption of carbon fibre composites is being driven by the growing demand for lighter vehicles in the automotive sector with a view to improving fuel efficiency. Secondly, the market share of carbon fibre composite material is growing with a focus on sustainable transport and governmental initiatives to promote its uptake in major provinces like Alberta, Ontario, Quebec, and British Columbia.

Alberta’s provincial research and innovation agency has launched the ‘Carbon Fibre Grand Challenge’, a USD 26 million, three-phase competition. The aim is to accelerate the development of largescale, low-cost production paths for carbon fibre based on feedstock originating from Alberta's bitumen. If this operation succeeds, Alberta will be provided with a no combustion channel and could become one of the country's main producers of carbon fibre products, which can accelerate the Canada automotive carbon fibre composites market development.

Key Highlights of the Report