The global automotive lightweight material market is projected to demonstrate a CAGR of 14.0% during the forecast period (2016–2022). Increasing demand for passenger vehicles, advancements in technology, stringent regulations implemented by governments to reduce vehicular emissions, and growing use of advanced materials in manufacturing are some of the major factors driving the market growth across the world, according to the study published by P&S Intelligence
Automotive companies are obligated to follow standards imposed by governments globally to lower carbon emissions from vehicles and are, therefore, working on the development of lightweight vehicles with the incorporation of advanced lightweight materials. However, the high cost of these materials is hindering the growth of the automotive lightweight material market to some extent.
Thus, the need for change in material and development techniques is likely to serve as a possible solution to this conundrum. Moreover, advancements in material science and engineering are expected to support the automotive lightweight material market growth. Some advancements that have been made in the recent past include usage of high-grade metals, alloys, composites, and plastics.
Geographically, North America accounted for the largest share in the automotive lightweight material market, with a consumption of 18,250.2 thousand tons of lightweight material in 2015. The regulatory pressure by the government to reduce carbon dioxide emissions was one of the major factors that led to the growth of the market in North America. In August 2012, the U.S. introduced the Corporate Average Fuel Economy (CAFE) standards for light-duty vehicles of model years 2017–2025, to increase fuel economy to 54.5 miles per gallon by 2025.
High-strength steel (HSS) and aluminum are the primary lightweight materials used in manufacturing vehicles in the North American market. The demand for aluminum is expected to witness significant growth in the automotive lightweight material market in developing economies, while HSS is expected to witness steady growth in demand across the world because of its low cost and suitability for structural designs.
Geographically, the automotive lightweight material market is expected to witness the fastest growth in Asia-Pacific (APAC). This can be attributed to the rise in automotive manufacturing in the region complemented by the increasing demand for passenger cars and light commercial vehicles. The growing standard of living in developing economies, including China and India, has resulted in increased sales of automotive vehicles in recent years. Although the usage of lightweight materials in vehicles manufactured in APAC is less as compared to that in vehicles produced in North America and Europe, the increase in the manufacturing of automotive vehicles in APAC is making the region a potential market for growth.
Some of the major players in the global automotive lightweight material market are ThyssenKrupp AG, LyondellBasell Industries N.V., Owens Corning, Hexcel Corporation, Toray Industries Inc., PPG Industries Inc., Novelis Inc., Arcelor Mittal S.A., Alcoa Inc., and SABIC.
AUTOMOTIVE LIGHTWEIGHT MATERIAL MARKET SEGMENTATION
By Material Type