Automotive Lightweight Material Market by Material (Metal, Composite, Plastic, Elastomer), Application & Component (Frame, Engine, Exhaust, Transmission, Closure, Interior), Vehicle Type (ICE, Electric & Hybrid), Region - Global Forecast to 2025
[274 Pages Report] The global automotive lightweight material market is projected to grow from USD 69.7 billion in 2020 to USD 99.3 billion by 2025, at a CAGR of 7.3% during the forecast period. The increasing stringency of vehicle emission and fuel economy regulations and growing government initiatives for vehicle weight reduction are expected to drive the growth of the automotive lightweight material market.
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COVID-19 impact on automotive lightweight material market
The outbreak of COVID-19 has impacted and disrupted the supply chain of the entire automotive ecosystem, with the halt in the production facilities across the globe. This scenario is expected to affect the automotive lightweight material market, as the growth of the market is directly related to the production of vehicles. The decline in vehicle production is expected to adversely affect the market for automotive lightweight materials. Fluctuation in raw material prices and the high cost of carbon fiber restrict carbon use in manufacturing automotive components as it is more expensive than steel.
Leading material suppliers such as BASF SE are expected to be severely impacted by the decline in production. Other leading players such as Covestro anticipates core volume growth below the previous year due to pandemic impact. Covestros core volumes in polycarbonates declined by 4.9% as compared to the prior year's quarter as per the companys announcement. This decline was due to considerably lower volumes sold in the electrical, electronics, and automotive industry. Such decline in the overall automotive supply chain is expected to further hinder the growth of the automotive lightweight material market.
Automotive Lightweight Material Market Dynamics
Driver: Stringent emission and fuel economy regulations
Several governments across the globe have introduced stringent emission and fuel economy regulations for vehicles. These regulations have compelled automotive OEMs to increase the use of lightweight materials such as lightweight metals, composites, and plastics. Advanced lightweight materials help increase the fuel economy of a vehicle while ensuring safety and performance. A 10% reduction in vehicle mass can improve fuel economy by 6 to 8%. The use of lightweight materials reduces the consumption of fuel in a vehicle because less weight takes less energy at the time of acceleration. Engine components can withstand high pressure and temperature with the use of advanced materials, which in turn helps increase efficiency and lowers emission. The multi-material designs, with the combination of HSS, magnesium, composites, aluminum, and other materials, use a system of approach keeping the best properties of materials at an appropriate place. Efficient design, material selection, manufacturing, and assembly can effectively result in light-weighting.
Restraint: High cost (material cost and process cost)
The high cost of materials such as carbon fiber-reinforced composites, titanium, and magnesium can hinder the extensive usage of these materials. The price of 1 kg of Carbon Fiber Reinforced Polymers (CFRP) for automotive-grade can go up to 3900% more than normal steel, and the price of titanium can go up to 900% more than normal steel. Hence, the use of CFRP is restricted to high-end cars such as Bugatti, BMW, McLaren, Lamborghini, Ferrari, and other racing cars. Glass Fiber Reinforced Plastics (GFRP) cost approximately 400% more than normal steel. The usage of this material is expected to increase, as its price has decreased over the last few years. The price of high strength steel is higher than regular steel but lower than aluminum, fiber composites, and magnesium. It is, hence, used as a lightweight material by automotive OEMs globally. As raw materials have a high cost, OEMs in developing countries, who depend more on economy passenger cars, prefer to use conventional materials than lightweight materials. However, the use of lightweight materials is expected to increase gradually in the coming years.
Opportunities: Upward trend of vehicle electrification
The introduction of electric vehicles has resulted in a technological revolution in the automotive industry. These vehicles have superior performance than their internal combustion counterparts. Factors such as the increase in environmental awareness, government support and incentives, and investments by OEMs have paved the way for electric vehicles. Leading automotive players such as Volkswagen, BMW, Tesla Motors, Ford, General Motors, and Toyota have ventured into the electric vehicle segment. Electric vehicles are more efficient, energy independent, and better than gas alternatives. Since electric vehicles have low power engines, they use lightweight materials that drive the engines pulling capacity. Therefore, the increasing demand for electric vehicles provides an opportunity for the growth of the lightweight material market.
Challenges: Maintenance of lightweight material
In addition to high cost, lightweight materials require high maintenance. Lightweight materials have great strength and rigidity. However, their weak points are hard to track. For example, the maintenance of carbon fiber parts is difficult. Physical damage cannot be seen by naked eyes but with the help of acoustic emission detection or thermal, ultrasonic, or x-ray imaging. To reduce weight, many OEMs develop monocoque out of a single material without joints and welds. This gives the structure strength and lightweight, but in case of an accident, the whole monocoque needs to be changed as it is one piece, and this is a costly affair. Hence, it is a challenge in the lightweight materials industry to make materials that are easy to repair and maintain compared to regular steel.
BEV is expected to be the largest segment in the automotive lightweight material market, by electric and hybrid vehicle, during the forecast period
BEV is projected to be the largest market for automotive lightweight material. A BEV or battery electric vehicle is powered by an electric battery that uses chemical energy stored in the battery. The battery used in a BEV is rechargeable and accounts for about 70% weight of the electric vehicle. OEMs are investing heavily in research and development to increase the efficiency of electric vehicles by reducing the overall vehicle weight. Increasing demand for BEV and increasing focus on vehicle lightweighting will drive the lightweight material demand in this vehicle segment.
Metals are the largest segment of electric vehicle lightweight material market, by material type, during the forecast period
Metals are estimated to hold the largest share in the global market for electric vehicle lightweight material. By material, the market is segmented into metals, composites, plastics, and elastomers. According to MarketsandMarkets analysis, the market for metals is estimated to be the largest by 2027. There are three kinds of metal materials extensively used in vehicle lightweighting. These are High strength steel, aluminum, and Magnesium & Titanium. These materials are lighter and stronger than steel. Hence, these metals are expected to be used in electric vehicles in the near future.
In ICE vehicle type segment, HCV is projected to be the fastest growing segment during the forecast period
HCV is projected to be the fastest growing market for automotive lightweight materials, by ICE vehicle type. HCVs comprise vehicles such as buses, coaches, and heavy trucks with a vehicle mass of above 7 tons. OEMs such as BMW, Daimler, Dongfeng, Fiat, and Isuzu are rigorously focusing on weight reduction in HCVs due to stringent emission and fuel economy regulations. The use of lightweight material helps reduce the total vehicle weight, which in turn allows the vehicle to carry additional load. Hence, HCV is projected to be the fastest growing segment of the automotive lightweight material market.
Europe is expected to account for the largest market size during the forecast period
COVID-19 has resulted in a decline in vehicle production, thereby affects the overall automotive lightweight material market. However, a projected steady recovery by Q1-Q2 of 2021 in vehicle production will support the growth of the market in the coming years. Europe is projected to hold the largest market share by 2025. The implementation of Euro 6 norms, which are followed by the members of the European Union, will have a knock-on effect of reducing pollutants such as nitrogen oxide and carbon monoxide. It will also compel OEMs to improve fuel economy and lower CO2 emission levels. Also, lightweight materials manufacturers and suppliers are investing heavily in R&D to create new and advanced lightweight materials. With the increasing demand for vehicles, Europe is expected to remain the largest market during the forecast period.
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Key Market Players
The automotive lightweight material market is dominated by global players and comprises several regional players. The key players in the market are BASF SE (Germany), Covestro AG (Germany), LyondellBasell Industries Holdings B.V. (Netherlands), Toray Industries, Inc. (Japan), ArcelorMittal (Luxembourg), thyssenkrupp AG (Germany), Novelis, Inc. (US), Alcoa Corporation (US).
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Report Metric |
Details |
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Market Size Available for Years |
20172025 |
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Base Year Considered |
2019 |
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Forecast Period |
20202025 |
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Forecast Units |
Value (USD billion) and Volume (TMT) |
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Segments Covered |
Material type, application, component, electric & hybrid vehicle type, ICE vehicle type, electric vehicle by material type, and region |
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Geographies Covered |
Asia Oceania, Europe, North America, and RoW |
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Companies Covered |
The key players in the automotive lightweight material market are BASF SE (Germany), Covestro AG (Germany), Toray Industries, Inc. (Japan), ArcelorMittal (Luxembourg), and thyssenkrupp AG (Germany). Additionally, the report covered 20 major players. |
This research report categorizes the automotive lightweight material market based on material type, application, component, electric & hybrid vehicle type, ICE vehicle type, electric vehicle by material type, and region.
Market, By Material Type
- METALS
- HSS
- Aluminum
- Magnesium & Titanium
- COMPOSITES
- CFRP
- GFRP
- NFRP
- Other Composites
- PLASTICS
- PC
- ABS
- PA
- PP
- PU
- Others
- ELASTOMER
- EPDM
- NR
- SBR
- Others
Market, By Application
- Body in white
- Chassis and suspension
- Powertrain s
- Closures
- Interiors
- Others
Market, By Component
- Frames
- Wheels
- Bumpers & fenders
- Engines & exhausts
- Fuel tanks
- Transmissions
- Doors
- Hood & trunk lid
- Seats
- Instrument panels
Market, By Vehicle Type
- PC
- LCV
- HCV
Market, By Electric & Hybrid Vehicle Type
- BEV
- HEV
- PHEV
- Truck
- Bus
Electric Vehicle Lightweight Material Market, By Material Type
- Metals
- Composites
- Plastics
- Elastomer
Market, By Region
- Asia Oceania
- Europe
- North America
- RoW
Recent Developments
- In May 2019, BASF SE plans to build engineering plastics compounding plant and a Thermoplastic Polyurethane (TPU) plant at the companys proposed integrated chemical production (Verbund) site in Zhanjiang, China.
- In January 2019, Toray Industries, Inc. announced that it held the opening ceremony of Automotive Center Europe (AMCEU), established in the suburbs of Munich, Germany, on January 25, 2019, with guests representing the government of the state of Bavaria, automobile manufacturers, and Tier 1 automotive suppliers. The facility will serve as a technological development base of Toray Group to expand its Green Innovation (GR) Business in Europe. Torays GR business is at the forefront of environmental restrictions, by leveraging the Groups highly functional materials as well as its cutting-edge technologies for automobiles.
- In March 2018, LyondellBasell showcased its latest materials to advance surfaces at the Plastics in Automotive Engineering technical conference, which was organized by the Association of German Engineers (VDI) in Mannheim, Germany.
- In April 2019, Novelis Inc. announced it is supplying Toyota Motor Corporation with premium aluminum automotive body sheet for the all-new 2019 Toyota RAV4. The RAV4 is Toyota's number-one-selling vehicle and the best-selling non-pickup truck in the country. With a new and improved design that includes Novelis aluminum in the hood, fenders, and liftgate, the fifth-generation model of the RAV4 is 4% lighter than previous models.
- In November 2018, ArcelorMittal completed the transaction to acquire Ilva S.p.A. and launched ArcelorMittal Italia. Following the completion of the transaction, ArcelorMittal assumed the full management control of Ilva, forming a new business cluster within ArcelorMittal Europe - Flat Products and be known as ArcelorMittal Italia.
Frequently Asked Questions (FAQ):
Impact of COVID-19 on automotive lightweight material market?
The COVID-19 pandemic has compounded the effects of the decline in production that the automotive industry has been witnessing since the end of 2018. It has caused a disruption in the export of automotive components as well as the closure of manufacturing and assembly plants across the world, with major players such as GM, Honda, Fiat, Volkswagen, PSA Group, General Motors, and BMW suspending production. The outbreak of COVID-19 has impacted and disrupted the supply chain of the entire automotive ecosystem, with a halt in production facilities across the globe. This scenario is expected to affect the automotive lightweight material market, as the growth of the market is directly related to the production of vehicles. The decline in vehicle production is expected to affect the lightweight material market adversely.
Which material will lead the automotive lightweight material market in the future, what impact will it have on Asia Pacific region?
The metal segment is expected to lead the market during the forecast period. Asia Oceania is a price-sensitive market as well as there is a presence of steel at a cheap rate. Thus, the use of lightweight metals such as aluminum and magnesium is comparatively lesser in this region.
What are the key market trends impacting the growth of the automotive lightweight material market?
Increasing trend of downsizing the overall weight of vehicle, stringent emission norms and increasing demand for efiicient vehicle are expected to impact growth of automotive lightweight material market.
What strategic initiatives are being implemented by the key players for business growth?
Companies adopted new product developments and collaborations as the key growth strategy in the last few years.
What opportunities and threats are faced by the automotive lightweight material market vendors?
Considering the slow growth of automotive industry and the impact of recent pandemic, the transition from conventional material to lightweight material is expected to be delayed. Most of the OEMs are expected to refrain imposing additional cost on buyers by implementing costly lightweight material considering present buyers sentiment. .
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The study involves 4 main activities to estimate the current size of the automotive lightweight material market. Exhaustive secondary research was done to collect information on the market, such as the automotive lightweight material types, upcoming technologies, and upcoming automotive lightweight materials. The next step was to validate these findings, assumptions, and market analysis with industry experts across value chains through primary research. A mix of bottom-up and top-down approach was employed to estimate the market size for different segments considered under this study.
Secondary Research
The secondary sources referred for this research study include automotive lightweight material organizations such as the European Automobile Manufacturers Association, The Institute for Advanced Composites Manufacturing Innovation, corporate filings (such as annual reports, investor presentations, and financial statements), Factiva, CrunchBase, Bloomberg and trade, business, and automotive associations. Secondary data has been collected and analyzed to arrive at the overall market size, which is further validated by multiple industry experts.
Primary Research
Extensive primary research has been conducted after acquiring an understanding of the automotive lightweight material market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand- (users) and supply-side (all-terrain vehicle manufacturers) across 4 major regions, namely, North America, Europe, Asia Oceania, and the Rest of the World. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales, operations, vehicle planning, production and administration, to provide a holistic viewpoint in our report.
After interacting with industry experts, we also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts opinions, has led us to the findings as described in the remainder of this report.
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Market Size Estimation
Bottom-Up Approach
The bottom-up approach has been used to estimate and validate the size of the global automotive lightweight material market. The market size, by volume, of automotive lightweight materials, by material type Metals, Composites, Plastics & Elastomers, has been derived by identifying the penetration of different materials in each vehicle type in key countries. To determine the market size, in terms of volume, of automotive lightweight materials, the average vehicle weight has been multiplied by country level shares of lightweight material type considered in the study and then further multiplied with the vehicle production numbers to get the country level lightweight material volume. This country level market size, in terms of volume, of lightweight materials for each vehicle type is then multiplied with the country level average OE price (AOP) (weighted average method is used to derive country level prices) of lightweight materials for each material type. This results in the country-level market size, in terms of value. The summation of the country level market gives the regional market and further summation of the regional market provides the global automotive lightweight material market.
While estimating the regional segmentation of the automotive lightweight material market, by material type, the regional shares of automotive lightweight materials have been identified and applied to the regional market size, in terms of volume, of lightweight materials. To calculate the demand for automotive lightweight materials, the average weight of various vehicle segments at a regional level is found and this weight is multiplied with the regional lightweight material market size, in terms of volume. The lightweight materials demand is identified in thousand metric tons. With the addition of this regional market size, in terms of volume (thousand metric tons), the global automotive lightweight material market has been identified.
Top-Down Approach
The top-down approach has been used to derive the automotive lightweight material market based on application. The average use of lightweight materials in an application is found for each vehicle type in the region. These market shares of each application are then multiplied with the regional lightweight material market to find out the volume by application, in terms of thousand metric tons. All percentage shares, splits, and breakdowns have been determined using secondary paid and unpaid sources, and verified through primary research. All parameters that are said to affect the markets covered in this research study have been accounted for, reviewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The data has been consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in this report. The following figure is an illustrative representation of the overall market size estimation process employed for this study.
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Data Triangulation
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that are said to affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. The data has been consolidated, enhanced with detailed inputs and analysis from MarketsandMarkets, and presented in the report.
Report Objectives
- To define, segment, analyze, and forecast (20172025) the global automotive lightweight material market, in terms of volume (thousand metric tons) and value (USD billion)
- To segment and forecast the global automotive lightweight material market, by volume and value, based on type (Metals (HSS, aluminum, magnesium & titanium), Composites (CFRP, GFRP, NFRP, Others), Plastic (PC, ABS, PA, PP, PU & Others) and Elastomers (EPDM, NR, SBR & Others))
- To segment and forecast the global automotive lightweight material market, by volume and value, based on application (body in white, chassis & suspension, powertrain, closures, interior, and others)
- To segment and forecast the global automotive lightweight material market, by volume and value, based on component (frame, wheel, bumper & fender, engine & exhaust, transmission, fuel tank, doors, hood & trunk lid, seat, and instrument panel)
- To segment and forecast the global automotive lightweight material market, by volume and value, based on electric and hybrid vehicle type (BEV, HEV, PHEV, Truck, and Bus)
- To segment and forecast the global automotive lightweight material market, by volume and value, based on IC vehicle type (PC, LCV, and HCV)
- To segment and forecast the global automotive lightweight material market, by volume and value, in electric vehicles, based on material type (metals, composites, plastics, and rubber)
- To segment and forecast the global automotive lightweight material market, by volume and value, based on region (North America, Europe, Asia Oceania, and the Rest of the World (RoW)
- To analyze the competitive leadership mapping for the key market players based on their product offerings and business strategies to find the dynamic differentiators, innovators, visionary leaders, and emerging companies in the global automotive lightweight material market
- To identify the market dynamics (drivers, restraints, opportunities, and challenges) and analyze their impact on the global automotive lightweight material market
- To track and analyze recent developments, collaborations, joint ventures, product innovations, and mergers & acquisitions in the global automotive lightweight material market
Available Customizations
With the given market data, MarketsandMarkets offers customizations in accordance with the companys specific needs.
Country-Level Lightweight Material Market, By Sub-Material Types
- METALS
- HSS
- Aluminum
- Magnesium & Titanium
- COMPOSITES
- CFRP
- GFRP
- NFRP
- Other Composites
- PLASTICS
- PC
- ABS
- PA
- PP
- PU
- Others
- ELASTOMER
- EPDM
- NR
- SBR
- Others
Note: The countries would be covered: Asia Oceania (China, South Korea, Indonesia, India, and Japan), Europe (Germany, France, UK, Spain, Russia, and Rest of Europe), North America (US, Canada, and Mexico), and the Rest of World (South Africa, Brazil, Rest of RoW)
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Growth opportunities and latent adjacency in Automotive Lightweight Material Market
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