The global automotive lightweight materials market is expected to register CAGR of almost 9% uptil 2020, as per Technavio. The report categorizes the global automotive lightweight materials market into three major product segments- Metals, Plastics, Composites
According to Swapnil Tejveer Sharma, a lead analyst at Technavio for metals and minerals research, “The high growth rate of the market can be attributed to the strict regulatory norms regarding fuel efficiency and emission, and the emergence of eco-friendly vehicles that have led to the demand for automotive lightweight materials.”
The global automotive lightweight plastics market is broadly categorized into different varieties of plastics. Some of the plastics used as automotive lightweight materials are polypropylene, polyurethanes, polyvinyl chloride, etc. Among these plastic products, polypropylene has the largest market share. High-performance plastics that are used as automotive lightweight plastics are durable, scratch and abrasion-resistant, and recyclable. These plastics can also control the noise, vibration, and harshness in automobiles. They are mainly used in exterior, interior, and electronic and electrical applications in automobiles. "APAC is the largest market for the automobile plastic materials, followed by the Europe and North America. The automotive plastic manufacturers engage in continuous R&D for the development of advanced plastic materials that are biodegradable, recyclable, and also adhere to the regulatory restriction on automobiles," says Swapnil.
Lightweight composite materials are preferred by automotive designers and researchers as these materials can be easily molded to any shape and size. They are the fastest growing product type in the automobile industry. The lightweight composites include products, such as metal matrix composites, polymer matrix composite (glass fiber composites, carbon fiber composites, and natural fiber composites), and ceramic matrix composites. The glass fiber composites are divided into thermoplastics and thermosets. Glass fiber composites have the largest market share among the composite products. There is also a huge scope for the growth of carbon fiber composites in most of the automobile components mainly chassis, interiors, and powertrain because of its strength. APAC is the largest market for the consumption of automotive lightweight composite materials. Global automotive lightweight metals market has the largest market share among the three product as metals have properties, such as low density, high strength, and low cost. These metals have applications in almost all automotive components, and thus they have dominated the lightweight materials market. Aluminium has its applications in components, such as transmission casings, wheels, heat exchangers, and engine blocks. Many OEMs have started using aluminium for the entire vehicle manufacturing. Most of the aluminum production is in APAC, where China leads the global production with a market share of 40-45%. Other important aluminium producing regions are North America and ROW. Engineered lightweight steel is referred as AHSS. This type of steel offers the best opportunity for growth of the global automotive lightweight metals market because of its low cost, along with exceptional strength and formability. Magnesium, Titanium, and other metals are used in the automotive parts, such as powertrain, interior components, and electronics and electrical parts. Magnesium is used in cross car beams and instrument panels.
The automotive lightweight materials market size, in terms of value, is projected to grow at a healthy CAGR of 14.40% to reach US$206.8 bln by 2019, as per Markets and Markets. North America, mainly the U.S., houses some of the major players in the automotive lightweight materials market. These include Novelis Inc., Alcoa Inc., and Owens Corning Corporation, among others. North America has always been a frontrunner in terms of technological advancements. The U.S. holds the largest market share with a high penetration rate for premium vehicles, while Mexico is a major hub for automotive exports. In the current scenario, the lightweight metals segment holds the largest market share, followed by lightweight composites, which also constitute the fastest-growing market in the region. Lightweight composites are estimated to hold a major share in the automotive lightweight materials market. This segment is estimated to grow rapidly, at a CAGR of 17.06% during the forecast period. North America accounts for the second-largest share of this market. The application of lightweight composites has not only reduced the weight of the vehicle but has also aided in providing enhanced safety and higher fuel efficiency. Additionally, the use of composites in a vehicle has given automobile designers free rein, as these materials can be easily molded into any shape or size as per requirements. They thus provide the added advantage of creativity to automotive manufacturers.
Global automotive lightweight material market expected to grow at 14% CAGR from 2016 to 2022, as per P&S Market Research. The was estimated at US$77.1 bln in 2015. The factors driving the growth of the global market include growing enforcement by government for environmental regulations, increasing number of passenger vehicles and advancement in technology, along with change in material used for manufacturing. Various manufacturers are forced to operate and adopt the new policy and regulations, as per different legislations worldwide to reduce CO2 emission. OEMs across the globe are pushing their strategies towards more advanced technique and working cordially with lightweight material suppliers. As high costing of these lightweight materials remains the main barrier, the need of developed technique and change in material use offers solution to some extent. Progressions are being made globally as a result of research work going on and by integration with other industries, such as metallic, polymer, aviation and others for cross-industry learning. Using a high grade of metal and alloys, the use of composites and plastics, development in the design of electrified powertrain are some of the advancements that have been made in the recent years.
Geographically, the North American market held the largest share in the global automotive lightweight material market in 2015. The major reasons behind the growth of the market in the region include the regulatory pressure by government to reduce CO2 emission, and strict fuel economy majors being adopted throughout North America. In August 2012, the U.S. issued new corporate average fuel economy (CAFE) standards for the model year 2017-2025 light-duty vehicles, with the average requirement of 54.5 miles per gallon by 2025. Aluminium and high strength steel are the primary lightweight material being employed for manufacturing lightweight vehicles across the North American market. Aluminum as a lightweight material is expected to be the material of choice, and will witness significant growth rate being a highly emerging market. High strength steel because of its low cost and development of high grade is suitable for structural design and is expected to show a steady growth.
Asia-Pacific is anticipated to be the fastest growing market for automotive lightweight industry. The production volume for passenger car and LCV segment in Asia-Pacific accounted for more than 50% share of the global production. The increasing production in Asia-Pacific is complimented by intensifying demand for passenger cars and LCV in the region. The increasing economy and improving standards of living in countries, such as China and India are the factors resulting in increased sale volumes. The use of lightweight material in cars manufactured in Asia-Pacific is less, as compared to those manufactured in North America and Europe. However, the high production volume in Asia-Pacific has made it an attractive market for automotive lightweight material.
As per Markets Report Centre, the global automotive lightweight materials market is estimated at US$120.71 bln in 2015 and is expected to reach US$256.4 bln by 2022, growing at a CAGR of 11.4% from 2015 to 2022. Reduction in Carbon dioxide emissions, growth in fuel efficiency of vehicles and improved vehicle strength are the factors driving the market growth. However high cost of the raw materials in manufacturing of light weight materials and increase in the price of vehicles are the factors hampering the market growth. Depletion of metal reserves under earth provides an immense growth opportunity. Metals segment holds the largest share in this market owing to its usage in automobile manufacturing. Composite metals segment is expected to witness significant CAGR during the forecast period owing to its exclusive properties. North America holds the largest share in this market due to the stringent regulations imposed by government to reduce carbon emission from vehicles. Asia Pacific region is expected to grow at the highest CAGR during the forecast period. The growth is attributed to the new investments in this region led by the increasing demand for vehicles. Some of the key players in the market are Henkel Corporation, Novelis Inc., Tata Steel, Arcelormittal S.A., PPG Industries Inc., Dead Sea Magnesium Ltd, Toray Industries Inc., Lyondellbasell Industries N.V., Bayer AG, Owens Corning Corporation., Thyssenkrupp AG, Hexcel Corporation., Saudi Basic Industries Corporation (SABIC), Owens Corning Corporation, ALCOA Inc. and Titanium Metals Corporation.
According to StratisticsMRC, the global automotive lightweight materials market is estimated at US$120.71 bln in 2015 and is expected to reach US$256.4 bln by 2022 growing at a CAGR of 11.4% from 2015 to 2022. Reduction in Carbon dioxide emissions, growth in fuel efficiency of vehicles and improved vehicle strength are the factors driving the market growth. However high cost of the raw materials in manufacturing of light weight materials and increase in the price of vehicles are the factors hampering the market growth. Depletion of metal reserves under earth provides an immense growth opportunity. Metals segment holds the largest share in the Automotive Lightweight Materials market owing to its usage in automobile manufacturing. Composite metals segment is expected to witness significant CAGR during the forecast period owing to its exclusive properties. North America holds the largest share in Automotive Lightweight Materials market due to the stringent regulations imposed by government to reduce carbon emission from vehicles. Asia Pacific region is expected to grow at the highest CAGR during the forecast period. The growth is attributed to the new investments in this region led by the increasing demand for vehicles.