Automotive Lightweight Material Market Size, Share & Trends Report

Automotive Lightweight Material Market Size, Share & Trends Analysis Report By Material (Metal, Composite), By Application (Body In White, Interior), By End User (Passenger Cars, HCVs), And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-050-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 170

Report Overview

The global automotive lightweight material market size was valued at USD 66.53 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027. High demand for weight reduction in performance vehicles is expected to increase the demand for lightweight materials for vehicle manufacturing. Moreover, increasing demand for fuel economy and vehicle stability is likely to support market growth. The positive growth of the automobile industry in major regions, like North America, Europe, and the Asia Pacific, is likely to accelerate the market growth significantly. However, the current COVID-19 pandemic across the globe has impacted economic stability and hampered the vehicle demand in major regions. This, in turn, is impacting the demand for lightweight materials.

U.S. automotive lightweight materials market size

In the U.S., the market for automotive lightweight materials is expected to expand at a revenue-based CAGR of 5.1% from 2020 to 2027. The rise in the sale of passenger cars and the growing trend of using mini trucks as family cars in the country are expected to support the demand for the products. Moreover, the growing demand for fuel-efficient cars in the country is likely to support market growth.

Increasing demand for vehicle stability on roads, coupled with the durability and performance of the vehicles for efficient fuel consumption across major regions, has propelled the market growth. Furthermore, stringent pollution norms in North America and Europe have compelled the manufacturers to use lightweight materials in the manufacturing process, thus supporting the market growth.

Technological developments and innovations in the automobile industry, coupled with the rise in demand for alternative fuel technologies, have introduced electric vehicles (EVs) in the market. The addition of passenger cars, luxury cars, and trucks in this category has accelerated the demand for lightweight materials to increase the performance of EVs.

Upcoming electric vehicles from prominent car makers, including Toyota, General Motors, Volkswagen Group, Fiat Chrysler Automobiles, Bavarian Motor Works, Renault, and Tata Motors, are expected to increase the demand for lightweight materials in the estimated period.

Material Insights

In 2019, the metal segment accounted for the largest revenue share of 50.7% and is estimated to witness significant growth over the forecast period. These metals are inclusive of aluminum, titanium, magnesium, and high strength steel. The need for durability in chassis, passenger compartment frame, under-body floor, instrument panels, and others is expected to increase the demand for metallic products.

Metallic structures in the vehicle offer stability and durability, and thus are used for increasing rigidity of the vehicles. Passenger safety concerns and the rise in the adoption of the highest safety rated vehicles in Europe and the Asia Pacific are expected to support the demand for metallic materials.

Composite materials offer durability and lightweight properties to the vehicle without affecting the design and dynamics. These offer robust properties to the vehicles and are easy to mold, thus are gaining traction in vehicle manufacturing. The rise in the production of electric vehicles is expected to influence the demand for composites.

The plastics and elastomer material segments are likely to grow at a significant rate in the years to come on account of increasing utilization in passenger cars and commercial vehicles. The rise in demand for passenger cars and premium sedan car is anticipated to increase the demand for the products over the forecast period.

End-user Insights  

The passenger car end-user segment dominated the market with a revenue share of 82.8% in 2019 and is anticipated to witness significant growth over the forecast period. Increasing the middle-class population, high-income levels, and spending capacity in the Asia Pacific and Central and South America are expected to augment the growth of the passenger car segment, thus driving the market for lightweight vehicles.

The growth of the passenger cars segment, which includes a hatchback, premium hatchback, sedan, SUV, and multi-utility vehicles, is attributed to rising demand from end consumers. Inclination towards high-performance and fuel-efficient vehicles has compelled the players to use lightweight materials, thus supporting the segment growth.

The light commercial vehicles (LCVs) segment is anticipated to increase the consumption of light components on account of end-user demand for fuel efficiency and on-road stability. The growing trend of using mini trucks as family cars in the North American and European countries is expected to increase their demand in the upcoming years, thus influencing the segment growth.

Heavy commercial vehicles (HCVs) are widely used for industrial operations, and thus require durable and rigid structures. Metallic components used in these vehicles offer durability and strength, thus making them heavy. However, technical innovations in the industry have introduced high-performance trucks with light components and are expected to gain popularity in the coming years.

Application Insights

The body in white application segment accounted for the largest revenue share of 25.1% in 2019 and is expected to witness significant growth in the estimated time. The use of materials in the cross and side beams, passenger compartment frame, under-body floors, front end structures, and panels are expected to increase their penetration in vehicle manufacturing, thereby supporting the segment growth.

Powertrain applications for these lightweight materials are inclusive of transmission components, engine parts, fuel tanks, exhaust systems, and others. Inclination towards light engine parts and durability of the vehicle components to keep intact the overall performance of the vehicle is expected to support the powertrain application segment growth.

Global automotive lightweight materials market share

The chassis and suspension segment comprises essential parts in the vehicles. This includes steering, brakes, chassis, tires, suspension, wheels, and others. These applications are expected to witness significant growth in the years to come due to the increase in the production of vehicles, thus creating a growth prospect for the segment.

The interior, closure, and others segments are anticipated to expand in the upcoming period on account of increasing applications in the instrument panel, trim, seats, insulation, airbags, hood, front and rear doors, liftgate, windows, lighting, electrical components, and others. These are manufactured using metal, composite, plastics, and elastomer.

Regional Insights

Europe dominated the global market in 2019 with a revenue share of 35.9% and is expected to witness significant growth in the projected period. The presence of multinational carmakers, along with prominent suppliers of the said materials in the region, has surged the market growth. Moreover, high spending on R&D by the players is expected to support market growth.

The automotive market in the Asia Pacific is primarily driven by the players in India, China, Japan, and South Korea. The abundant availability of raw materials in the region, along with high demand from the end consumers of passenger cars and commercial vehicles, is anticipated to ascend the demand for these light materials.

Stringent norms regarding vehicle pollution and inclination towards passenger safety in the region are expected to increase the demand for light composite materials. Compliance with BS6 norms in India and consumer preference for safe rated vehicles are expected to increase the consumption of materials, thus supporting the regional market growth.

The North American automotive market is anticipated to witness technological introductions in the electric vehicle segment. Pollution control norms and high demand for fuel-efficient vehicles are expected to raise the demand for light components, thereby driving the market for lightweight automotive components.

Key Companies & Market Share Insights

The market is characterized by high competition due to the presence of prominent players. Multinational players implement strategies such as regional expansion, collaborations, and expansion of production capacities. Players compete based on application industries served, product quality, prices, and global reach. Technical innovation in R&D and material composition is considered by these players to maintain their dominance in the market. Moreover, contracts and agreements with vehicle manufacturers are considered to stay competitive in the market. Some of the prominent players in the automotive lightweight material market include:

  • BASF SE

  •  Toray Industries, Inc.

  •  LyondellBasell

  •  Novelis Inc.

  •  ArcelorMittal

  • Alcoa Corporation

  •  Owens Corning

  •  Stratasys Ltd.

  •  Tata Steel

  •  POSCO

Automotive Lightweight Material Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 69.1 billion

Revenue forecast in 2027

USD 105.4 billion

Growth Rate

CAGR of 5.9% from 2020 to 2027 (Revenue-based)

Market demand in 2020

160.3 million tons

Volume forecast in 2027

202.8 million tons

Growth Rate

CAGR of 3.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in million tons, revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Material, application, end-user, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; Italy; Spain; Russia; China; India; Japan; South Korea; Brazil; Argentina

Key companies profiled

BASF SE; Toray Industries, Inc.; LyondellBasell; Novelis Inc.; ArcelorMittal; Alcoa Corporation; Owens Corning; Stratasys Ltd.; Tata Steel; POSCO

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive lightweight material market report on the basis of material, application, end-user, and region:

  • Material Outlook (Volume, Million Tons; Revenue, USD Million, 2016 - 2027)

    • Metal

    • Composite

    • Plastics

    • Elastomer

  • Application Outlook (Volume, Million Tons; Revenue, USD Million, 2016 - 2027)

    • Body in White

      • Passenger Compartment Frame

      • Cross & Side Beams

      • Roof Structure

      • Front-End Structure

      • Underbody Floor

      • Panels

    • Chassis and Suspension

      • Chassis

      • Suspension

      • Tires

      • Wheels

      • Steering

      • Brakes

    • Powertrain

      • Engine

      • Transmission

      • Exhaust Systems

      • Fuel Tank

    • Closure

      • Front & Rear Doors

      • Hood

      • Lift Gate

    • Interior

      • Seats

      • Instrument Panel

      • Insulation

      • Trim

      • Airbags

    • Others

      • Electrical

      • Lighting

      • Thermal

      • Windows

      • Glazing

  • End-user Outlook (Volume, Million Tons; Revenue, USD Million, 2016 - 2027)

    • Passenger Cars

    • LCVs

    • HCVs

  • Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • The U.K.

      • France

      • Italy

      • Spain

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa (MEA)

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