The global automotive lightweight material market accounted for a value of USD 63.5 billion in 2019 and is projected to register growth at a CAGR of 6.5% during forecast period.
COVID-19 has impacted the automotive lightweight material market. The automotive industry is adversely affected due to this ongoing pandemic. The manufacturing of vehicles is on halt due to lockdown and supply chain got disrupted due to travel restriction. The sales of vehicle are immensely declined across the globe. The automotive lightweight material growth is directly dependent on vehicle production. The decline in vehicle production affected the growth of automotive lightweight material market.
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The governments across various regions are implementing stringent regulations in order to reduce fuel emissions. This regulation helps in reducing emission and increasing fuel economy. The governments are also taking initiatives to reduce vehicle weight. The use of lightweight material helps in reducing vehicle weight along with reducing emission. This drives growth in automotive lightweight material market during forecast period.
On the basis of material type, the automotive lightweight material market is segmented into metals, composites, plastics and elastomer. The metals segment is estimated to hold largest market share during forecast period. There are three kinds of metal materials majorly used in vehicles are magnesium & titanium, aluminum and steel. Metals have high strength, lighter and stronger. Metals are expected to extensively used in electric vehicles and this increases the demand for metals material. This drives growth in metals segment during forecast period.
On the basis of electric and hybrid vehicle, the automotive lightweight material market is segmented into bus, truck, PHEV, HEV and BEV. The BEV segment is estimated to be largest market during forecast period. Battery electric vehicle (BEV) is powered by an electric battery which uses chemical energy stored in the battery. In BEV, batteries are rechargeable and hold about 70% of weight of the electric vehicle. The investment in this segment is increasing in research and development by OEMs in order to increase the efficiency of electric vehicles by reducing the vehicle weight.
On the basis of end-users, the automotive lightweight material market is segmented into passenger vehicle, light commercial vehicle and heavy commercial vehicle. The HCV segment is estimated to be the fastest growing segment during forecast period. This segment comprises of vehicles such as coaches, buses and heavy trucks. It consists of vehicles with a vehicle mass above 7 tons. The major OEMs are focusing on reducing weight of vehicles due to stringent fuel economy and emission regulations. The lightweight material helps in reducing vehicle weight which helps in vehicle to carry extra load. This increases use of lightweight materials in HCV segment and this drives growth in HCV segment during forecast period.
Europe region is estimated to hold largest market share during forecast period. The government is implementing various stringent norms to reduce emission and to improve fuel economy. The Euro 6 norms is implemented which helps in reducing effects of pollutants such as carbon monoxide and nitrogen oxide and this norms compel manufacturers to improve fuel economy. The investment in R&D sector is increasing heavily in this region to introduce new and advanced lightweight materials. The demand for lightweight material is increasing in this region and drives growth in Europe region during forecast period.
The key market players in automotive lightweight material industry are BASF SE, Covestro AG, Lyondellbasell Industries Holdings B.V., Toray Industries, Arcelormittal, Thyssenkrupp AG, Novelis Inc., Alcoa Corporation, Owens Corning, Stratasys Ltd., Tata Steel, Posco, SGL Carbon, Lanxess, Borealis AG and Asia Oceania.
- What are the expected industry trends over the next three to five years?
- Which of the automotive lightweight material connectivity is likely to lead by 2025?
- Which of the material type segments is expected to have the maximum potential to during the forecast period?
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