Automotive Light Weight Materials Market - Forecast(2021 - 2026)

 Overview

Automotive light weight materials market size is forecast to reach $81 billion by 2025, after growing at a CAGR of 7.56% during 2020-2025, owing to the rise in demand for lightweight vehicles. There is an increasing demand for light weight vehicles as it makes the vehicle fuel-efficient, which reduces the running costs and fuel consumption of the vehicle. Lightweight materials such as metals, plastics, polymer composites, high strength steel, and advanced high strength steel improve the performance of the vehicles, which has resulted in the penetration of light weight materials into the automotive sector. The increasing vehicle emission and fuel economy regulations are anticipated to drive the automotive light weight materials market substantially during the forecast period.

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Report Coverage

The report: “Automotive Light Weight Materials Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the automotive light weight materials Industry. 

By Material: Metals (Magnesium, Aluminium, and Others), Composites (Carbon Fiber Composites, Glass Fiber Composites, and Others), High Strength Steel, Plastic, and Others 

By Vehicle Type: Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), Internal Combustion Engine (ICE), and Others

By Application: Body, Chassis, Interior, Engine, Bumper Fascia, Power Train, and Others

By Geography: North America, South America, Europe, Asia Pacific, and RoW

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Key Takeaways

• Asia Pacific dominates the automotive light weight materials market, owing to the increasing demand and production of lightweight vehicles. According to OICA, in 2018 the production of light commercial vehicles has increased by 10.2 % in the APAC region.
• Automotive manufacturers are increasingly using lightweight materials such as metals, glass fiber composites, carbon fiber composites, plastics, and more to improve vehicle fuel economy, which is anticipated to drive the automotive light weight materials market during the forecast period. 
• Nearly one-third of U.S. carbon pollution comes from the transportation system. By reducing the car’s weight, oil consumption can be reduced and climate change can be combated. According to Energy Efficiency & Renewable Energy, a 10 percent reduction in vehicle weight can lead to an 8 percent improvement in fuel economy, due to which the automotive manufacturers are tending towards automotive lightweight materials.
• Aluminum is a corrosion-resistant metal that naturally generates a protective coating. The coating formed is extremely thin and is generated when aluminium comes into contact with an oxidizing environment. This protective aluminium oxide layer shields the surface of the metal from corrosion. 
• Additionally, getting surface treatment such as painting or anodizing can further improve the overall corrosion resistance of the metal. Due to all these benefits of aluminium metal, the demand for aluminium metal is increasing from the automotive light weight materials market.
• Due to the COVID-19 pandemic, most of the countries have gone under lockdown, due to which operations of various industries such as automotive has been negatively affected, which is hampering the automotive light weight materials market growth.

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By Material – Segment Analysis

The metal segment held the largest share in the automotive light weight materials market in 2019, owing to the superior characteristics of metals such as low cost, good strength, stiffness, quick and easy to make, versatility, easily customizable, readily available globally, durable and flexible. Also, the body, structure, and some engine parts of vehicles are mostly made of magnesium as it is 75% lighter than steel and 33% lighter than aluminum. Moreover, aluminium is an extremely versatile metal with several advantages; and it is recognized for being both lightweight and flexible. It can be cast, melted, formed, machined, and extruded meaning that it can be manufactured into a variety of shapes and then subsequently fabricated to suit a whole variety of uses. Thus, metals are being extensively used for manufacturing automotive parts such as vehicle bodies, engine, chassis, wheels, doors, belts, hoses seals wiper blades, hoods, hatchbacks and more, which is anticipated to boost the demand for the metal from the automotive light weight materials market during the forecast period.

By Vehicle Type – Segment Analysis

The Battery Electric Vehicle (BEV) segment held the largest share in the automotive light weight materials market in 2019, owing to the advantages it offers such as lower running cost, cheaper to maintain, releases less pollution, reduction in greenhouse gas emission, eco friendly and more. Also, many European governments and cities such as Norway, Denmark, the Netherlands, France, UK, Oslo, Amsterdam, Paris, and London are incentivizing consumers to opt for electric mobility, each with their schemes. Many governments are making investments in EV-enabling infrastructures such as charging stations and special parking spots. The government of Estonia installed fast chargers throughout the country (165 in total) to ensure that every city with at least 5,000 inhabitants hosts at least one station. Also, Britain’s government has been focused on expanding its public electric vehicle (EV) charging infrastructure, investing an additional $3.25 million to help pay for the installation of more than 1,000 new charging points on residential streets. All these government initiatives are anticipated to boost the demand for battery electric vehicles during the forecast period.