The Russia Automotive Composites Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Owing to the demand of automobiles in the region, and increasing global temperature because of the emission of harmful gases in the atmosphere by automobiles the demand for light weight components are rising as they are more fuel efficient and reduces emission of these gases in the atmosphere.
- However, because of the ongoing trade war between United States and China along with the confusion over the emission standards in the region, the growth in automotive sector is slowing down and the automobile sales are expected to witness a downfall for a couple of years until the end of trade tensions.
Key Market Trends
Trend to Decrease weight Driving Growth
Owing to the increasing pollution and decreasing air quality in the region, the demand for fuel efficient vehicles is enhancing in the region. The Auto manufacturers are investing heavily to reduce weight of the vehicle by using different polymers and fibers, to enhance the fuel efficiency of the vehicle and enhance demand in the region.
Composites, which essentially are composition of two of more constituent materials, form a substantial part of an automobile and, if smartly used, can lead to significantly lighter vehicles that are safer and more fuel-efficient.
Another benefit of using of using composites in automobiles is that it can be recycled and for the same reason recyclable bio-based automotive composites are being adapted for manufacturing automotive components.
For instance, in March 2019, McLaren has introduced chassis made from carbon fiber, this will reduce the overall weight of the car as the company develops its next generation of vehicles as part of its Track25 business plan.
Exterior Application Leading Market
During the year 2019, among the application types, exterior application was leading in the market. The growth of this segment of the market can be attributed to the increased demand for automotive composites to manufacture several exterior parts such as fenders, hoods, bumper beams, and deck lids of vehicles. The automotive composites are used to manufacture the exterior parts of vehicles as they result in their increased strength and lightweight. They also increase the durability of vehicles, thereby ensuring their long-life cycles and low maintenance costs. The exterior parts of vehicles manufactured from composites offer high stiffness, thereby resulting in minimum damages in case of accidents.
With the presence of several major OEMs and component manufacturers in the country, and their spending towards research and development of innovative composites and materials to reduce the overall weight of the vehicle and increase the fuel efficiency is driving growth for the industry.
For instance, in April 2018, Magna announced that it has entered into a joint venture with GAC subsidiary, GAC Component Co., Ltd., for production of composite liftgates for a global automaker's crossover vehicle.
The Russia Automotive Composites Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in Russia Automotive Composites Market are BASF Group, Gurit, NSG Group, Teijin and others. The major players in the country are entering into strategic partnership with global leaders to gain considerable market share.
For instance, in February 2020, Anand Group entered into a partnership with Far-UK to development of carbon fiber composites. The collaboration will focus on bringing out innovative solutions suited for reducing emissions. The product has the potential for Light Weighting in vehicles by almost 50%, with strength matching that of high strength alloy steel at the weight of aluminum.
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