Forecasting the Global Sheet Molding Compounds for EV and Hybrid Vehicles Market: 2025 Trends and Status Update

December 23, 2024
3
Chemicals and Materials

The automotive industry is undergoing a significant transformation with the shift toward electric vehicles (EVs) and hybrid vehicles. A key player in this revolution is the adoption of advanced materials that offer improved performance, sustainability, and efficiency. Among these materials, Sheet Molding Compounds (SMCs) are becoming increasingly important in the manufacturing of electric and hybrid vehicles. These materials are contributing to lightweight vehicle designs, enhanced durability, and improved energy efficiency—key attributes for the future of transportation.

In this blog, we will explore the growing Sheet Molding Compounds (SMC) market for EV and hybrid vehicles, identify the main drivers behind this growth, examine real-time examples of SMC applications, and provide accurate statistics to outline the market’s outlook.

What Are Sheet Molding Compounds (SMCs)?

Sheet Molding Compounds (SMCs) are composite materials made of resin, reinforcing fibers (typically glass fibers), and fillers. These compounds are pre-mixed and formed into sheets that can be molded into complex shapes using heat and pressure. SMCs offer several advantages, including excellent mechanical properties, durability, high resistance to heat and corrosion, and the ability to be molded into intricate parts that are lightweight and cost-effective.

SMCs are widely used in the automotive industry for parts such as body panels, interior components, and structural elements. The key to their growing popularity in electric and hybrid vehicles is their ability to reduce weight, which improves overall vehicle efficiency and driving range—critical factors for the success of EVs and hybrid vehicles.

Sheet Molding Compounds Market for EV and Hybrid Vehicles: Key Trends and Drivers

The market for SMCs in electric and hybrid vehicles is expanding rapidly, driven by several key factors:

The global Sheet Molding Compounds For EV and Hybrid Vehicles market size was valued at US$ 425.7 million in 2024 and is projected to reach US$ 783.4 million by 2030, at a CAGR of 10.7% during the forecast period.

Sheet Molding Compounds For EV and Hybrid Vehicles Market

The Shift to Electric Vehicles

The rise of electric vehicles is one of the most significant drivers of the SMC market. EVs are designed to be lighter and more energy-efficient than traditional internal combustion engine vehicles, and the need for lightweight materials is paramount. SMCs, with their high strength-to-weight ratio, are ideal for EV applications, particularly for exterior panels, battery enclosures, and structural parts that must reduce overall weight without sacrificing safety or durability.
The global EV market is projected from 2024 to 2032, with sales expected. This rapid expansion is a major factor contributing to the increased demand for materials like SMCs that can help manufacturers meet the efficiency and performance demands of electric vehicles.

Increased Demand for Hybrid Vehicles

Hybrid vehicles, which combine an internal combustion engine with an electric motor, are also pushing the demand for lightweight, durable materials. As hybrid vehicles are positioned as a bridge between traditional gasoline-powered vehicles and full-electric models, they require advanced materials that support both fuel efficiency and powertrain performance. SMCs are increasingly being used in the production of hybrid vehicle body panels and structural components, helping to reduce the weight of these vehicles and improve their overall fuel efficiency.
In 2024, hybrid vehicle sales were estimated at 8 million units globally, with a forecast of continued growth as governments and consumers alike seek more environmentally friendly transportation options. The adoption of SMCs in hybrid vehicle production is expected to rise significantly as manufacturers focus on weight reduction and efficiency.

Improved Performance and Durability

SMCs offer excellent mechanical properties such as high strength, impact resistance, and durability. These qualities make them ideal for use in EVs and hybrid vehicles, where the need for components that can withstand high stress while maintaining performance over time is critical. For example, battery enclosures made from SMCs offer both weight savings and protection against external impacts, ensuring the safety of the vehicle and its passengers.
Additionally, SMCs offer corrosion resistance, a vital attribute for parts exposed to the elements, ensuring the longevity of EV and hybrid vehicles, which are expected to have longer life cycles compared to traditional vehicles.

Sustainability and Regulatory Pressures

Governments around the world are enacting stricter environmental regulations, particularly in terms of vehicle emissions and fuel efficiency. As part of these efforts, manufacturers are increasingly turning to lightweight composite materials such as SMCs to meet regulatory standards. The ability of SMCs to reduce the overall weight of vehicles contributes to improved fuel efficiency and lower emissions, aligning with global sustainability initiatives and the push for greener transportation solutions.
In addition, automakers are seeking materials that are recyclable and have a lower environmental impact during production. SMCs are often recyclable, making them a more sustainable choice for manufacturers focused on reducing their carbon footprint.

Cost-Effectiveness

Although SMCs may have a higher initial cost compared to traditional materials, their long-term benefits, including weight reduction, improved performance, and durability, make them a cost-effective choice. In addition, the ability to mass-produce parts using SMCs, especially for complex shapes, reduces labor costs and increases production efficiency.

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Key Applications of SMCs in EV and Hybrid Vehicles

Body Panels

SMCs are used extensively for exterior body panels in both electric and hybrid vehicles. These include parts such as doors, fenders, and bumpers, where lightweight yet strong materials are required. By using SMCs, automakers can reduce the overall weight of the vehicle, which is crucial for improving energy efficiency and increasing driving range, particularly in electric vehicles.

Battery Enclosures

SMCs are ideal for use in battery enclosures for electric vehicles. Their high strength and impact resistance provide essential protection for sensitive components like batteries while offering a reduction in weight. This application is becoming increasingly popular as manufacturers focus on creating lightweight, durable battery systems that enhance overall vehicle performance.

Interior Components

SMCs are also used in the production of various interior components in EVs and hybrid vehicles, such as dashboards, door panels, and consoles. The material’s moldability and ability to be formed into complex shapes make it an excellent choice for creating custom, high-performance interior parts.

Structural Components

The structural integrity of an electric or hybrid vehicle is crucial for safety. SMCs are used in a variety of structural components, including the vehicle’s frame and underbody. The lightweight nature of these materials reduces the overall vehicle weight while ensuring that safety standards are met.

Market Statistics and Growth Projections

As of 2024, the global market for Sheet Molding Compounds in electric and hybrid vehicles is valued at approximately USD 425.7 million. This market is projected to grow at a CAGR of 10.7% from 2024 to 2032, reaching an estimated USD 783.4 million by 2030. This growth is attributed to the increasing adoption of EVs and hybrid vehicles, as well as the growing emphasis on lightweight, sustainable materials in the automotive industry.

Key players in the SMC market include companies like Toray Industries, Owosso Motor Company, BASF SE, and DSM Engineering Materials, which are all actively involved in the development and supply of SMC materials for the automotive sector.

Real-Time Examples of SMC Use in EVs and Hybrid Vehicles

Tesla Model 3 Tesla, one of the leading manufacturers of electric vehicles, uses SMCs in its vehicle components to reduce weight and improve performance. The Model 3, Tesla’s most affordable electric vehicle, incorporates SMCs in its body panels and structural components to optimize driving range and safety.
BMW i3 BMW’s i3 electric vehicle utilizes SMCs in its body structure to help reduce weight and increase efficiency. The use of lightweight materials like SMCs is central to the i3’s design, which focuses on sustainability without compromising on performance.
Ford F-150 Lightning Ford’s all-electric version of its best-selling F-150 truck, the F-150 Lightning, uses SMCs in various components, including the battery enclosure and body panels. By incorporating SMCs, Ford has been able to reduce the weight of the vehicle while maintaining its rugged performance and strength.