Automotive Lightweight Material Market – Key Insights
- The automotive lightweight material market registered a volume CAGR of nearly 3% during 2013-2018. Aspects influencing growth of the automotive lightweight materials industry range from rising need to improve vehicle performance to concerns over energy consumption and carbon emissions.
- In 2018, worldwide volume sales of automotive lightweight materials reached approximately 74 kilotons, and is pegged to record a Y-o-Y growth of 3.4% in 2019.
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- East Asia is expected to be the leading market for automotive lightweight material, with China accounting for bulk market share in the region. Total volume sales of automotive lightweight materials in East Asia exceeded 27 kilotons in 2018.
- China is also likely to emerge as the high-growth market for automotive lightweight materials, with volume sales estimated to grow at a CAGR of nearly 5.0% through 2028. Sales will remain driven by steady demand from the country’s automotive industry.
What are the Key Dynamics Driving Automotive Lightweight Material Market Growth?
- Lightweight materials such as high-strength steel, aluminum alloys, carbon fiber materials, polymer composites, and others have been gaining wide-ranging adoption among automotive companies, to improve the fuel economy and reduce emissions without compromising on safety.
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- With growing government initiatives worldwide to bring energy consumption and carbon emissions down, the concept of reducing vehicle weight has gained significant traction, which has eventually led to the expansion of automotive lightweight material market.
- As compared to heavy vehicles, the lightweight variants take lesser energy and offer added benefits to automakers and vehicle owners alike. Notable growth of the automotive lightweight material market is likely to be fuelled by surge in replacement of heavy components with automotive parts made from lighter materials which help reduce overall vehicle weight by 10%-60%.
- Automotive lightweight materials have been deemed to have greater energy absorption capability, which provides high protection upon impact. In addition, automobiles with light components are considered to perform better in poor road conditions, as the weight does not force the vehicles down. Such factors are likely to work in favor of the automotive lightweight material industry.
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- Surging demand for automobiles, along with proliferating vehicle parc, especially in emerging economies, on the coattails of rapid urbanization, increasing disposable income, and high purchasing power are likely to impact growth of the automotive lightweight material market.
- The upward trend of vehicle electrification and gradual surge in the number of electric vehicles have meant that lightweight components will continue to remain sought-after in the automotive industry. This will significantly contribute to sales of the automotive lightweight materials in the upcoming years.
What are the Key Challenges Limiting the Growth of Automotive Lightweight Material Market?
- High cost of sourcing the raw materials such as carbon fiber, titanium, and magnesium, continues to remain a key concern among players in the automotive lightweight materials market.
- Limited availability of premium raw materials such as titanium and magnesium, which are extracted from the earth’s crust in developing nations may confine growth of the automotive lightweight material market to a certain extent.