South and Central America Automotive Composites Market Outlook (2021-2031)

The South and Central America Automotive Composites Market is projected to reach USD 406.75 million by 2031, up from USD 218.06 million in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2025 to 2031.

Executive Summary and Market Analysis:

The significant presence of automotive companies in Brazil, Argentina, and Chile is driving the sales of automotive components and materials in South and Central America. According to a report by Fastener World Inc., vehicle sales in the region increased by 2.8% year-on-year, reaching between 3.8 million and 4.1 million units in 2023. Brazil leads the market, accounting for over half of the sales, followed by Argentina and Chile, each contributing 300,000 to 400,000 units. The automotive industry in this region relies heavily on import and export revenue, creating lucrative opportunities for elastomers. Additionally, the growth in passenger car sales is boosting the automotive elastomers market. Major manufacturers in the automotive sector are expanding their operational capabilities in South and Central America to capitalize on the growing market.

Market Segmentation Analysis:

The South and Central America automotive composites market is segmented based on product type, resin type, technology, vehicle type, and application.

Fiber Type: The market is segmented into glass fiber composites, carbon fiber composites, and others. The glass fiber composites segment held the largest share in 2024.

Resin Type: The market is categorized into thermoset and thermoplastic resins, with thermoplastics taking the largest share in 2024.

Technology: The market is divided into pultrusion, injection molding, compression molding, and others. The injection molding segment was the largest in 2024.

Vehicle Type: The market is segmented into passenger cars, commercial vehicles, two-wheelers, and others. The passenger car segment held the largest share in 2024.

Application: The market is divided into structural assembly, powertrain components, and interior and exterior applications, with the interior segment having the largest share in 2024.

Market Outlook:

In 2022, Audi AG invested USD 19.2 million to resume production at its plant in Parana, Brazil, with a capacity of 4,000 vehicles per year. The growth in passenger car sales is influenced by pricing and credit availability in the country. Additionally, in 2022, Kavak invested USD 500 million in Brazil's auto reconditioning sector to enhance its capabilities in buying and selling used cars. With 40 logistics centers and vehicle reconditioning spaces across Latin America, these investments are expected to boost maintenance and reconditioning operations in the region. End-users of automotive elastomers include automotive companies and original equipment manufacturers.

According to the OICA, automotive production in Argentina surged by 41%, reaching 610,725 units in 2023, up from 536,893 in 2022. Composites such as fiberglass and carbon fiber are becoming increasingly popular due to their lightweight and durable properties, which are essential for meeting environmental regulations and consumer demands. The rising emphasis on electric vehicles (EVs) and eco-friendly transportation solutions is driving Argentina's shift toward adopting composite materials in vehicle manufacturing. This trend, combined with the country's focus on industrial development, presents significant opportunities for composites in the automotive sector. Consequently, growth in the automotive industry is expected to create additional opportunities for players in the automotive elastomers market in the coming years.

Country Insights:

The South and Central America automotive composites market is divided into regions, including Brazil, Argentina, Chile, Peru, Colombia, and the rest of the region. Brazil accounted for the largest market share in 2024.

The automotive composites market in Brazil is showing steady growth, supported by the country's robust automotive manufacturing sector and an increasing demand for fuel-efficient and sustainable vehicles. Composites like fiberglass, carbon fiber, and natural fiber materials are used to reduce vehicle weight and enhance performance, especially in the production of electric and hybrid vehicles. According to the OICA, Brazil was the largest manufacturer and exporter of light and commercial vehicles in South and Central America in 2023, reporting production of 2.3 million vehicles in 2022, which represented a 5% increase compared to 2021. The country's emphasis on innovation and sustainability, along with government incentives for green technologies, is driving this growth.

South and Central America Automotive Composites Market Company Profiles  

Gurit Holding AG, Hexcel Corp, Mitsubishi Chemical Group Corp, SGL Carbon SE, Solvay SA, Teijin Ltd, DuPont de Nemours In, Toray Industries Inc, Atlas Fibre, and Elaghmore Advisor LLP are among the key players operating in the market. These players adopt strategies such as expansion, product innovation, and mergers and acquisitions to stay competitive and offer innovative products to their consumers.   Show more