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

The South and Central America Automotive Composites Market size is expected to reach US$ 406.75 million by 2031 from US$ 218.06 million in 2024. The market is estimated to record a CAGR of 9.6 % from 2025 to 2031. 

Executive Summary and South and Central America Automotive Composites Market Analysis:

The significant presence of automotive companies in Brazil, Argentina, and Chile propels the sales of automotive components and materials in South & Central America. According to the OICA and Industry database., sales of vehicles in Central & South America increased by 2.8% year-on-year to 3.8 million to 4.1 million units in 2023. Brazil dominates the region's sales, accounting for over half, followed by Argentina and Chile with 300,000–400,000 units each. The region's automotive industry, which relies mainly on import and export revenue generation, considerably creates lucrative opportunities for elastomers. Moreover, passenger car sales growth is driving the automotive elastomers market. Major manufacturers in the automotive sector have strategized the development and expansion of their operational capacities in South & Central America to benefit from the lucrative automotive market.

South and Central America Automotive Composites Market Strategic Insights

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South and Central America Automotive Composites Market Segmentation Analysis

Key segments that contributed to the derivation of the South and Central America automotive composites market analysis are product type, resin type, technology, vehicle type, and application.

• On the basis of fiber type, the automotive composites market is segmented into glass fiber composites, carbon fiber composites, and others. The glass fiber composites segment held the largest share of the market in 2024.
• In terms of resin type, the market is segmented into thermoset and thermoplastics. The thermoplastics segment held the largest share of the market in 2024.
• On the basis of technology, the market is segmented into pultrusion, injection molding, compression molding, and others. The injection molding segment held the largest share of the market in 2024.
• In terms of vehicle type, the market is segmented into passenger cars, commercial vehicles, and two wheelers and others. The passenger cars segment held the largest share of the market in 2024.
• In terms of application, the market is segmented into structural assembly, powertrain component, interior, and exterior. The interior segment held the largest share of the market in 2024.

South and Central America Automotive Composites Market Outlook

In 2022, Audi AG invested US$ 19.2 million to restart production activities at the company's plant in Parana, Brazil, registering a capacity of 4,000 vehicles per year. Passenger car sales growth is driven by their pricing and credit availability in the country. In 2022, Kavak invested US$ 500 million in its auto reconditioning space in Brazil to purchase and sell second-hand cars. The company already has 40 logistics centers and vehicle reconditioning spaces in Latin America. The investments in the used car industry are expected to drive the 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 increased by 41%, reaching 610,725 in 2023 from 536,893 in 2022. Composites such as fiberglass and carbon fiber are gaining popularity for their lightweight and durable properties, crucial in meeting environmental regulations and consumer demand. With an increasing focus on electric vehicles (EVs) and eco-friendly transportation solutions, Argentina is witnessing a shift toward adopting composite materials in vehicle manufacturing. This growing trend, along with Argentina's emphasis on industrial development, presents opportunities for composites to play a significant role in the country's automotive sector. Thus, the growth in the automotive industry is expected to create opportunities for players operating in the automotive elastomers market in the coming years.

South and Central America Automotive Composites Market Country Insights

Based on region, the South and Central America automotive composites market is further segmented into Brazil, Argentina, Chile, Peru, Colombia, and Rest of South and Central America. Brazil recorded the largest market share in 2024.

The automotive composites market in Brazil is experiencing steady growth, driven by the country's robust automotive manufacturing sector and increasing demand for fuel-efficient, sustainable vehicles. Composites such as fiberglass, carbon fiber, and natural fiber materials are utilized to reduce vehicle weight and improve performance, particularly in producing electric and hybrid vehicles. According to the OICA, Brazil was the largest manufacturer and exporter of light and commercial vehicles in South & Central America in 2023. The country reported production of 2.3 million vehicles in 2022, recording a surge of 5% compared to 2021. Brazil's focus on innovation and sustainability, along with government incentives for green technologies, supports the adoption of advanced materials. Additionally, Brazil's position as a major automotive hub in Latin America provides a strong foundation for the continued expansion of automotive composites in the region.

South and Central America Automotive Composites Market Report Highlights

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 in the market and offer innovative products to their consumers.

South and Central America Automotive Composites Market Research Methodology:

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations
• Industry trade journals and other relevant publications
• Government documents, statistical databases, and market reports
• News articles, press releases, and webcasts specific to companies operating in the market

Note:

• Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate and analyze the data and gain valuable insights. These research interviews are designed to:

• Refine findings from secondary research
• Enhance the expertise and market understanding of the analysis team
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects

Primary research is conducted via email interactions and telephone interviews with industry experts across various markets, categories, segments, and sub-segments in different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

South and Central America Automotive Composites Market Country and Regional Insights

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South and Central America Automotive Composites Key Sources Referred:

• National Association of Automotive Component and Allied Manufacturers
• American Automotive Policy Council
• Automotive Parts Remanufacturers Association
• American Composites Manufacturers Association