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New Revenue Pockets: Automotive Lightweight Materials Market
Stringent Fuel Economy Standards & Environmentally Friendly Systems to Drive Demand
Increasingly stringent environmental regulations and fuel economy standards are projected to drive the demand for more efficient, optimized automotive lightweight materials. The use of enhanced lightweight materials results in low emission levels and greater efficiency, as well as a better driving experience. To meet the stringent fuel emission norms, OEMs are liable to manufacture new models featuring these lightweight materials to pass various pollution tests and to meet consumer demand for better-performing and more efficient vehicles. Aluminum and high-strength steel are projected to be new revenue pockets in the years to come, mainly in growing economies such as China, India, Brazil, Russia, and South Korea. Composite materials such as carbon fiber, reinforced plastic, and glass fiber reinforced plastic would prove to be a better option for OEMs in the long term, as these provide a significant advantage with regard to weight.
Asia-Oceania: Rapidly Growing Market
The Asia-Oceania region is projected to be the largest market for automotive lightweight materials for the next few years, with China accounting for the largest market share. Countries such as India, Japan, and South Korea have been making their emission norms/regulations more stringent to match those in Europe and the U.S. The passenger car and commercial vehicle markets are witnessing growth in Asian countries; this increases the demand for automotive lightweight materials. Additionally, the demand for green vehicles is anticipated to skyrocket, owing to government initiatives. Therefore, the use of lightweight materials will also increase, as they are generally the materials of choice for OEMs when producing electric vehicles. These materials provide a weight advantage over regular steel. Toray Industries Inc. (Japan) is one of the leaders of in lightweight materials across the globe with its carbon composite products.
North America: Growing Market For Automotive Lightweight Materials
North America has a highly sophisticated market in terms of technology, as all the major automobile manufacturers, such as Volkswagen, Nissan, Ford Motor Company, and BMW AG, launch and test their new models in this region. This is primarily because the region possesses technological prowess. Additionally, buyers in North America are more open to new ideas than those in Asia-Oceania, who prefer buying cost-effective vehicles with basic technologies. Japan and South Korea are exceptions, as they also have highly advanced automobile markets.
All the major material manufacturers/suppliers have established headquarters in this this region and have penetrated the North American market before turning their focus to Asia-Oceania. The increasing vehicle production, along with stringent emission, fuel efficiency, and road safety norms in these regions has compelled automobile manufacturers to implement lightweight technologies. These technologies not only help them to comply with stringent norms, but also reduce their production cost as unnecessary and heavy components are eliminated through the use of these materials. Materials such as aluminum and composites have a very high penetration rate in North America compared to Asia-Oceania, which has increased the overall revenue of these materials in North American region. Thus, lightweight materials market in the region is estimated to grow at the highest CAGR—that is, 16.24%—for the next five years.
Automotive Lightweight Materials Market by Material (Metals, Composites, & Plastics), by Application (Structural, Powertrain, Interior, Exterior, & Others), by Manufacturing Process, and Region - Global Trends and Forecast to 2019
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