PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308589
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308589
According to Stratistics MRC, the Global Automotive Lightweight Material Market is accounted for $80.18 billion in 2023 and is expected to reach $141.93 billion by 2030 growing at a CAGR of 8.5% during the forecast period. Materials with a high strength-to-weight ratio, superior corrosion resistance, and significant design flexibility are referred to as automotive lightweight materials and are used in automotive systems and components. The need for weight reduction and higher fuel efficiency, adherence to environmental regulations, and changing consumer sentiments toward mobility solutions as consumers demand high-strength materials to achieve high-end operational performance. Moreover, Automobile manufacturers have used plastics, polymer composites, steel, magnesium, and aluminum to meet the changing demands of the automotive industry.
According to Tata Steel, the development of advanced high-strength steels for the automotive industry prioritizes sustainability and quality. Tata Steel's lightweight materials offer excellent strength-to-weight ratio, reduce emissions, and maintain safety and structural integrity, helping to create a better future for the planet and future generations.
The global Automotive Lightweight Material market expected to drive growth during the forecast period. The production of different components and parts for the automotive industry has historically used a variety of manufacturing techniques. Traditional manufacturing techniques are being replaced with advanced manufacturing technologies as demand for vehicles with cutting-edge designs and features rises. These technologies range from micro-injection molding to resin transfer molding to additive manufacturing. The ability to produce new materials that are comparatively light in weight and stronger was the main benefit of implementing such advanced manufacturing techniques.
The global Automotive Lightweight Material market expected to hinder growth during the forecast period. Automotive lightweighting has been greatly facilitated by mixed material design, which involves creating parts and components from two different materials. However, it can be challenging to fully utilize the benefits of the MMD due to the challenges involved in welding or joining two dissimilar materials. This is primarily due to the physical characteristics, densities, and welding temperatures of various materials. The strength and structural integrity of the parts depend on the proper joining of these two materials. If the joining of any crucial components fails, it poses a serious safety risk.
The global demand for sustainable mobility and tightening emission regulations are the main causes of the electrification trend that is growing in the automotive industry. Compared to ICE vehicles, electric vehicles are generally more efficient. The battery range has evolved into one of the main purchasing factors for consumers, along with the growth in electric vehicle sales. But one of the biggest expenses related to making an EV is the price of the battery. With a weight of between 30 and 40 percent of the curb weight of the vehicle, the batteries are also one of the heaviest parts of an EV. The demand for vehicles with longer ranges makes it impossible to incorporate larger batteries because doing so would increase the cost and weight of the vehicles and reduce their usable space. Additionally, these factors influence the OEMs' preference for automotive lightweight in electric vehicles, which results in a battery range that is comparatively longer for a given battery capacity.
The global Automotive Lightweight Material market expected to hamper growth during the forecast period. Advanced lightweight materials are more expensive to manufacture into automotive parts than traditional materials. For instance, aluminum costs about three times as much as steel, and World AutoSteel estimates that the cost of producing an automobile increases by 60% when materials like aluminum are used. In a similar vein, manufacturing components out of metals like titanium and magnesium is more expensive than using aluminum. Moreover, the automakers are restricting the use of such lightweight materials in entry-level and mid-range passenger and commercial vehicles due to these factors.
Due to travel restrictions, the COVID-19 pandemic has had a negative effect on the global market for automotive lightweight materials. In 2020, the market participants' financial performance is predicted to decline as a result. Because of this, contributors to the economy as well as market participants are creating strategic cost-cutting plans. The execution of the supply chain, regulatory and policy changes, reliance on labor, working capital management, and liquidity and solvency management are the main risk factors for market participants in automotive lightweight materials. Due to commuter restrictions, a lack of laborers, and a shortage of raw materials caused by supply chain disruption, the majority of manufacturing facilities for automotive lightweight materials have been closed during the pandemic.
Over the forecast period, the passenger vehicle segment is anticipated to have the largest share. The market for lightweight vehicles is expected to be driven by the rising middle-class population, high income levels, and spending power in the Asia-Pacific region as well as Central and South America. Rising consumer demand is responsible for the expansion of the passenger vehicle market, which includes hatchbacks, premium hatchbacks, sedans, SUVs, and multi-utility vehicles. The players have been forced to use lightweight materials due to the trend towards high-performance and fuel-efficient vehicles, supporting the segment's growth.
Over the forecast period, the metal segment is anticipated to experience the highest CAGR. Aluminum, titanium, magnesium, and high-strength steel are among these metals. The demand for metallic products is anticipated to rise due to the need for durability in components such as chassis, passenger compartment frames, under-body floors, instrument panels, and others. Metallic components are used in vehicles to increase rigidity because they are stable and long-lasting. The demand for metallic materials is anticipated to be supported by concerns about passenger safety and a rise in the adoption of vehicles with the highest safety ratings in Europe and the Asia-Pacific region.
The Asia-Pacific region has the largest market share over the forecast period for small passenger cars, supported by robust demand in the automotive sector. The region's automotive lightweighting market will benefit from the expansion of the passenger car segment. Many of the top automakers from around the world are also present in the area. Volkswagen Group, Mercedes-Benz, Ford, Renault, and other companies have already established manufacturing facilities in these nations. The automotive lightweighting market will also be driven by the rising demand for fuel-efficient vehicles that meet strict emission standards. This is primarily due to the significant demand in the automotive sector in nations like China, India, and others.
During the forecast period, Europe is anticipated to dominate the market with the highest CAGR. The EU's members adhere to the Euro 6 standards, which are designed to reduce pollutants like carbon monoxide and nitrogen oxides. The standards give OEMs instructions on how to cut CO2 emissions and improve fuel economy. Additionally, suppliers and producers of lightweight materials are spending time and money on research and development in order to create innovative and new lightweight components. Furthermore, because of the increasing demand for cars, Europe is anticipated to remain the largest region during the projection period.
Some of the key players in Automotive Lightweight Material market include Alcoa Corporation, Applied Ink Solutions , ArcelorMittal, Creative Materials Inc, Henkel AG & Co, Heraeus Holding GmbH, Hindalco Industries Limited, Intrinsiq Materials, Inc, Johnson Matthey PLC, Lyondellbasell N.V, Owens Corning , PPG Industries, Inc, Stratasys Ltd., Tata Steel, Thyssenkrupp AG, Toray Industries, Inc., and Vorbeck Materials Corporation, Inc.
In October 2022, Lyondellbasell Industries Holdings B.V. developed a PP compound made up of PP compound material which has reduced the weight of the vehicle by 10kg. It will help in foaming of parts, reducing the density of the material, thin walling of parts, can become a substitute to metal and eliminates the paint for cars.
In August 2022, Toray Industries, Inc., has launched its 3D printer which can produce automotive parts, power tools and other equipment's which are heat resistance, high strength, and has good precision in designing.
In May 2022, BASF SE developed the Ultradur® B4335G3 HR for the protection for sensitive electronic devices which are exposed to extreme challenging surroundings. For example, protecting sensors when exposed to different climatic condition, surface contact to water and salt.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.