Automotive Lightweight Material Market Size Analysis by Type (Metals, Composites, Plastics, Elastomers), Application (Body in White, Chassis and Suspension, Powertrain, Closures, Interiors), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles) - Global Industry Demand Forecast to 2030

Market Overview

The automotive lightweight material market size stood at $67,498.7 million in 2021, and it is set to grow at a CAGR of 7.4% during 2021–2030, to reach $128,010.1 million by 2030.

Materials with a high strength-to-weight ratio, high corrosion resistance, and significant design flexibility are the key demands of consumers when looking at automotive systems and components. The main factors that are set to influence automakers to concentrate on material redesigning in the forecast years are the need for weight reduction and higher fuel efficiency, adhere to environmental regulations, and the changing consumer preferences toward mobility solutions.

Automobile makers have employed plastics, polymer composites, steel, magnesium, and aluminum to meet the evolving demands of customers. Because of their many applications in automobiles and their increased strength and safety, composites are gaining popularity.

For instance, reducing the body weight of a car by more than 1 kg can result in a 20-kg reduction in the amount of CO2 the car emits over the course of its lifetime. The goal of European regulatory agencies is to reduce each passenger vehicle's CO2 emissions from 140 g to 95 g per km by 2024. Moreover, the vehicle component and material sector will receive vast positive opportunities from electric vehicle OEMs.

These requirements have compelled automakers to consider a number of additional options, including creating new techniques for the powertrain systems, research on alternative fuels, and use of alternative, lightweight components.

Currently, high-strength steel is the mostly used by manufacturers for passenger vehicle parts, while composites and other polymers are also attracting interest due to their low weight and high strength.

Moreover, in the projected timeframe, there will be a surge in the demand for low-weight materials as a result of the rapid development of electric vehicles by well-known automakers, including Toyota, Volkswagen Group, General Motors, Bavarian Motor Works, Fiat Chrysler Automobiles, Renault, and Tata Motors.

Due to the pandemic, the massive drop in auto production had a significant impact on major material suppliers, such as BASF SE, and Covestro AG. According to the Covestro AG company's report of 2020, the sales volume for polycarbonates decreased by 3% from 2019.

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Europe Makes Largest Contribution to Global Revenue Generation

With a revenue share of around 40% in 2021, Europe led the market, and it is expected to experience significant advance over the coming years. The expansion is being accelerated by the regional presence of major suppliers of the most of the commodities, as well as a large number of automakers globally.

In addition, Euro 6 standards, which are followed by the EU's members, aim to reduce the amount of pollutants, such as nitrogen oxides and carbon monoxide. The standards consist of instructions for OEMs to reduce CO2 emissions and increase fuel efficiency. Additionally, in order to develop new and cutting-edge lightweight components, suppliers and manufacturers of lightweight materials are investing time and money in R&D. Moreover, Europe is expected to continue to be the largest region during the projection period due to the rising demand for automobiles.

To the East, India, China, Japan, and South Korea are the major contributors to the Asia-Pacific automobile Industry. Moreover, the demand for light materials here is expected to increase with around 10% CAGR during this decade because of the abundant supply of resources and the high demand for passenger automobiles and commercial vehicles.

Furthermore, the need for light composite materials will rise as a result of the region's strict vehicle pollution regulations and shifting inclination toward passenger safety. It is expected that BS-VI (BS6) compliance in India and consumer preference for safe-rated automobiles will enhance the consumption of such material.

Metals Are Most-Widely Used Materials

The metal category had the greatest revenue share, over 40%, in 2021, and it is forecast to expand significantly over the projection period. Aluminum, titanium, magnesium, and high-strength steel are witnessing an increase in demand due to the necessity for durability in components such as chassis, passenger compartment frames, and underbody floors.

Metallic components are utilized in automobiles to increase rigidity, since they are stable and long-lasting. The demand for metallic components is set to be supported by the concerns about passenger safety, which are driving the adoption of vehicles with high safety ratings in Europe and the Asia-Pacific region.

Moreover, without compromising the vehicle's design or dynamics, composite materials give it strength and lightness. They are becoming more popular in the auto industry since they provide strong qualities to the automobiles and are simple to shape. The market for these materials are expected to be impacted by the increase in electric car production. Furthermore, the plastics and elastomer material categories are expected to expand significantly in the upcoming years due to the increase in the preference for premium sedans.

Stringent Laws on Emissions and Fuel Efficiency Drive Lightweight Component Demand

Globally, a number of regions have enacted strict laws for automobile emissions and fuel efficiency. Automotive OEMs are now required to employ more lightweight materials, such as plastics, composites, and low-molecular-mass metals. Modern lightweight parts let automobiles use less fuel, while maintaining performance and safety. The fuel efficiency of a vehicle can increase by 6% to 8% with a 10% mass reduction. As less weight means less energy to accelerate, the use of lightweight components lowers the fuel consumption of a vehicle. Modern materials used in engine components allow them to tolerate high pressures and temperatures, which helps to boost efficiency and reduce emissions.

Moreover, the technical revolution in the automobile sector has brought about big opportunities to the automobile-associated sectors, just like the development of electric vehicles has been facilitated by a rise in the environmental consciousness, government support and initiatives, and OEMs research. EVs have attracted major automakers, including Volkswagen, BMW, Tesla Motors, Ford, General Motors, and Toyota.

Electric vehicles use lightweight parts to optimize the motor's pulling power, because the motors are generally of lower power than engines. As a result, the market for lightweight materials has an opportunity to expand due to the growing popularity of EVs.

Key Players in Automotive Lightweight Material Market Are:

• BASF SE
• Covestro AG
• Lyondellbasell Industries Holdings B.V.
• Toray Industries Inc.
• ArcelorMittal S.A.
• ThyssenKrupp AG
• Novelis Inc.
• Alcoa Corporation
• Owens Corning
• Stratasys Ltd.

Market Size Breakdown by Segment

The report offers a comprehensive market segmentation analysis along with revenue estimation for the period 2017-2030.

Based on Type

• Metals
• Composites
• Plastics
• Elastomers

Based on Application

• Body in White
• Chassis and Suspension
• Powertrain
• Closures
• Interiors

Based on Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.