The global biocomposites market size was USD 24.4 billion in 2021 and is expected to reach USD 51.2 billion by 2026, projecting a CAGR of 16.0% between 2021 and 2026. Biocomposites are increasingly used in the transportation end-use industry as they decrease weight and increase fuel efficiency. Automotive manufacturers are increasingly using biocomposites in various automobile models. The regulatory legislation imposed by the EU and other countries, such as the US, India, and Japan; are expected to increase the use of biocomposites, primarily in the automotive end-use industry. The EU legislation sets mandatory emission reduction targets for new cars to improve fuel economy and reduce the CO2 emissions.
The US has also imposed stricter Corporate Average Fuel Economy (CAFE) and tailpipe emission standards for the automobile sector. The proposed mandate raised CAFÉ standards to 39 mpg for passenger cars by 2016 and 54.5 mpg by 2025. China and Japan have also announced vehicle fuel economy regulations. Brazil, India, Mexico, and South Africa are expected to initiate similar measures in the near future. The above-mentioned factors and increased incorporation of biocomposites are expected to increase their demand mainly in the automobile sector.
The automotive industry focuses on stringent regulations, such as the Corporate Average Fuel Efficiency (CAFE) standards and the European Emission Standards (EES) by the US and European governments, respectively, for vehicle manufacturers. According to the United States Environmental Protection Agency (EPA), the transportation industry in the US is one of the largest contributors to greenhouse gas emissions. The US government has, thus, made it a critical concern for automakers to follow the average miles per gallon standard for their vehicles. A similar situation is prevalent in other regions across the globe. In order to reduce carbon dioxide (CO2) emissions, automakers focus significantly on producing lightweight vehicles to comply with government regulations and enhance fuel efficiency.
