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Automotive Lightweight Materials Market Size By Material (Metals & Alloys [High Strength Steel, Aluminum, Magnesium], Plastics [Polypropylene, Polyurethane, Polyvinyl Chloride, ABS, Polycarbonate], Composites [Glass Fiber, Carbon Fiber]), By Application (Body In White, Chassis, Powertrain, Interior, Exterior), By Manufacturing Process (Casting, Extrusion, Rolling, Forging, Forming, Open Molding, Closed Molding), By Vehicle Type (Internal Combustion Engine Vehicle, Battery Electric Vehicle, Hybrid Electric Vehicle), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI3315
  • Base Year: 2019
  • Report Format: PDF

Industry Trends

Automotive Lightweight Materials Market size exceeded USD 184.9 billion in 2019 and is estimated to grow at a CAGR of over 8.2% from 2020 to 2026. Positive trends associated with the electric vehicle industry will create several opportunities for the automobile industry.

Automotive Lightweight Materials Market
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The rising trend of automobile weight reduction and strict emission controls are expected to drive the market growth. For instance, trimming the automotive body weight by more than 1 kg can reduce close to 20kg of CO2  emitted by the vehicle during its total lifespan. European regulatory authorities are working toward achieving 95g of CO2 emission per km from 140g of CO2 per km in every passenger vehicle.

Such regulations have compelled automotive manufacturers to look for various other alternatives such as developing new engineering technology in powertrain system, working on alternative fuel, and increasing the use of automotive lightweight materials.

When lightweight materials were introduced, there were very few opportunities to explore due to the lack of limited technology to develop lightweight materials for automotive. For instance, wheels which were made from steel were replaced with alloys. The dashboard, which was composed of steel initially is now made from different plastic composite materials, such as carbon fiber, and from other metals such as magnesium alloys or aluminum alloys.

Currently, more than 18% of passenger vehicle parts are made from high strength steel, and close to 11% of automobile parts are made from composites or another polymer. Such trends will spur the market expansion.

The Corporate Average Fuel Economy (CAFÉ) standards are designed by the (National Highway Traffic Safety Administration) (NHTSA) to regulate the fuel efficiency of passenger cars, light medium, a heavy truck. Under this program, automobiles with model years from 2017 to 2025 will be regulated to maintain a predicted 55.2 miles per gallon (mpg) until 2025. Automotive manufacturers us lightweight materials to reduce vehicle weight to meet higher MPG targets, lower energy consumption.

The materials offer numerous benefits, which include improved automotive performance coupled with controlled noise and vibration. Automotive lightweight materials also reduce greenhouse gas emissions, thereby contributing to an eco-friendly society. However, the closure of several manufacturing facilities across the globe owing to the COVID-19 pandemic will negatively influence the market value. Despite a recent slowdown in the demand from the automobile sector in the backdrop of weakened economic conditions, the industry is likely to offer ample opportunities in the long run.

Aluminum to propel the demand for automotive lightweight materials

Aluminum segment in the automotive lightweight materials market will witness a growth rate of around 7% through 2026. Aluminum offers a better cost-to-benefit ratio as compared to any other substitute lightweight materials. The future potential of aluminum as an automotive lightweight material is immense due to its low cost, high strength, and high production capacity. The average aluminum content per vehicle is growing steadily.

Growing stringent fuel emission standards to support chassis segment growth

Chassis segment held over 20% of the market share in 2019. Replacing iron and steel parts with lightweight materials, such as high-strength steel, aluminum alloys, magnesium alloys, or polymer composites, can reduce vehicle body and chassis weight by up to 50%, thus lower automotive fuel consumption. A reduction of 10% of automotive weight can result in 7% to 8% fuel economy improvement. Lightweight materials are necessary for boosting fuel economy of modern automotive along with maintaining safety and performance as it requires less energy to accelerate lighter objects.

Casting will follow an upward trajectory

Aautomotive Lightweight Materials Market

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Casting segment in the automotive lightweight materials market revenue was more than USD 40 million in 2019 led by its use to produce lightweight aluminum and magnesium automobile parts. The casting process provides various benefits, such as flexibility during operation, reduced cost per part, and increased production capacities, which will aid segment expansion over the forecast period. The process is highly adaptable for mass production and a large number of casting can be developed quickly.

Increasing hybrid vehicle adoption to enhance the revenue generation

Automotive lightweight materials market for hybrid electric segment is anticipated to attain a CAGR of 25% through 2026. Growing awareness of fuel emissions has compelled regulatory agencies to incorporate stringent emission regulations. Stringent emission norms have forced automotive manufacturers toward hybrid electric vehicles. Hybrid vehicles in general emit less greenhouse gas as compared to petrol or diesel vehicles.

North America to bank upon stringent vehicle emission regulations

Automotive Lightweight Materials Market

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North America automotive lightweight materials market is poised to expand at 8.5% CAGR during 2020 to 2026. Regulatory bodies in the U.S. are coming up with new standards and requirements to lower fuel emissions and reduce greenhouse gases emissions. Growing awareness of CO2 emissions is pushing customers toward more efficient and superior electric & hybrid electric vehicles. This is evident from the fact that the sales of electric vehicles in the U.S. grew by 10% in 2019 as compared to 2018. Rising demand for electric vehicles will positively impact the market growth during the forecast timeframe.

Rising R&D expense for automotive lightweight materials among industry players

The key automotive lightweight materials market participants are formulating various strategies including product development, strategic collaboration, and expansion of production capacity to gain a competitive advantage. Major companies operation in the market are Alcoa Corporation, BASF SE Covestro AG, thyssenkrupp AG, LyondellBasell, and ArcelorMittal.

This market research report on automotive lightweight materials includes in-depth coverage of the industry with estimates & forecast in terms of volume in million tons and revenue in USD billion from 2016 to 2026 for the following segments:

Market, By Material

  • Metal & Alloys
    • High strength steel
    • Aluminum
    • Magnesium
  • Plastic
    • Polypropylene
    • Polyurethane
    • Polyvinyl chloride
    • ABS
    • Polycarbonate
    • Others
  • Composite
    • Glass fiber composite
    • Carbon fiber composite
  • Others

Market, By Application

  • Body in White (BIS)
  • Chassis
  • Powertrain
  • Interior
  • Exterior
  • Others

Market, By Manufacturing Process

  • Casting
  • Extrusion
  • Forging
  • Forming
  • Open molding
  • Closed molding

Market, By Vehicle

  • Internal Combustion Engine Vehicle (ICEV)
  • BEV
  • HEV

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
    • Netherland
    • Poland
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Thailand
    • Indonesia
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE
    • Iran 


Authors: Kiran Pulidindi, Akshay Prakash

Frequently Asked Questions (FAQ) :

Automotive lightweight materials market industry size surpassed USD 184.9 billion in 2019 and may grow at a CAGR of 8.2% between 2020 to 2026.

Aluminum segment may record 7% CAGR through 2026, as it delivers an excellent cost-to-benefit ratio and also boasts of high production capacity.

Chassis segment accounted for 20% revenue share in 2019 and may depict appreciable proceeds by 2026, driven by the rising number of strict emission standards.

North America automotive lightweight materials market may register 8.5% CAGR through 2026, driven by the rising number of regulatory bodies in the U.S. that are coming up with new standards to reduce fuel emissions.

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Premium Report Details

  • Published Date: Dec 2020
  • Companies covered: 17
  • Tables & Figures: 340
  • Countries covered: 24
  • Pages: 300

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