Automotive Heat Shield Market Analysis

Automotive Heat Shield Market Analysis

Passenger cars segment is poised to generate USD 1.5 billion revenue by 2026 owing to increasing demand from aftermarket industry. Growing average annual vehicle miles travelled is creating the need for product replacement.

The increased use of vans and pickup vehicles will lead to a greater demand for lightweight automotive heat shields, that are commonly used in other underhood components such as high-temperature hoses. The product prevents radiator hoses from bursting and other vital automotive components from premature failure due to intense heat generated by the vehicle.

Engine application is set to witness more than 4% growth rate through 2026 impelled by high heat generation. The most significant functions of heatshields in automotive vehicles are to protect delicate vehicle components from heat generated by the engine and to provide optimal temperature inside the cabin. These products are custom designed to effectively manage radiant, convective, and conductive heat from the front or back of a vehicle. With increasing technological innovations in the automobile industry, the number of heatshields per car has been considerably increased from manifold to spark plug.

In 2019, the OEM segment held more than 75% of the automotive heat shield market share. The increasing automotive production to meet the rising demand is boosting the segment growth. By 2030, as per the Green Mobility Report by the World Bank, there may be an additional 1.2 billion cars on the road. This demand represents an opportunity for the players to capitalize on advanced technologies to enhance fuel efficiency.

Aluminized steel material segment is forecast to register 3.5% gains in terms of volume till 2026. This can be attributed to superior materials properties including, high temperature resistance and low coefficient of thermal expansion. The material is gaining recognition as it combines the advantages of both steel and aluminum. It combines the strength of steel and corrosion resistance of aluminum. Moreover, superior formability will induce significant growth potential in the industry landscape.
 

The aluminum material accounted for about USD 905 million in 2019 due to growing adoption of lightweight products in vehicles. The engine economizing strategies and the proliferation of turbocharging in the vehicle have created substantial opportunities for aluminum material products.

The Asia Pacific automotive heat shield market led by China is anticipated to observe nearly 4.5% growth up to 2026. China is the world’s largest automobile manufacturing market since 2009. In 2019, according to the OICA, China alone held nearly 25% of the global automotive production. Furthermore, in China, the auto industry saw a rapid growth rate with production and sales both hitting new records in 2018. The increasing middle-class population and rising purchasing power across the region will result in propelling the demand for passenger cars. The growing competitiveness owing to the presence of large-scale players will positively influence regional market growth.