The automotive lightweighting market is projected to grow from USD 73.9 billion in 2022 to USD 101.5 billion by 2027, at a CAGR of 6.5% for the same period. The base year for the report is 2021, and the forecast period is considered from 2022 to 2027.
The market is expected to witness growth mainly because of the increasing demand for lightweight premium vehicles with all safety features present in the vehicle. Furthermore, increasing safety, emission regulations, increased in growth of electric vehicles, and other factors is driving the growth of the automotive lightweighting market.
The automotive lightweighting market is led by globally established players such as BASF SE (Germany), Covestro AG (Germany), LyondellBasell Industries Holdings B.V. (Netherlands), Toray Industries, Inc. (Japan), and Arcelormittal (Germany) These companies adopted expansion strategies and undertook collaborations, partnerships, and mergers & acquisitions to gain traction in the automotive lightweighting market. These players have presence across all major countries in the global market, serving the OE demand with a market share of 50-60% around the world.
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BASF SE has followed their development strategy with various joint ventures, acquisitions, and collaborations. The company has used this as their primary strategy to remain dominant in automotive lightweighting market. For instance, on September 2022, BASF SE had signed a partnership agreement with Citroen showcased their new electric car which had applications of lightweight material in their car which showcased the less usage of resources by reducing the cost of the car and improving the battery lifespan. Furthermore, the company also acquired SOLVAY for increasing their product portfolio in January 2019, where BASF SE after acquiring their nylon business of Solvay, it increased the portfolio by entering into textiles, carpets, and car components. BASF SE has invested around 2.9% of its total revenue in research and development in 2021. On April 2022, BASF SE and SINOPEC has come together for joint partnership in Ninjing (China) for expanding its chemical production plant and support the increased demand in China Looking to have a firm hold in Asia Pacific region, BASF SE constructing their first plant of its smart Verbund project in Zhanjiang, Guangdong (China). The first plant is expected to produce engineering plastics and thermoplastic polyurethane (TPU) to cater the increasing needs of various industries in southern China and throughout Asia. Some major customers of BASF SE are Acura, Audi, BMW, Chrysler, Daimler Trucks, Fiat, Ford, Hyundai, Jaguar etc.
Covestro AG is a global supplier of high-tech polymer materials, and their related components. Before September 2015, it was known as Bayer Material Science. The company primarily focuses on research and development activities. For instance, it spent around 2.1% of its total revenue on research and development activities. This enables the company to develop innovations and compete with the latest lightweight technologies and products in the market. The company offers a wide product portfolio that includes a variety of high-tech polymers, polycarbonate, polyurethane, coatings, adhesives, specialties, electrical/electronics, automotive, construction, fashion, and cosmetics for the customers. Covestro AG also actively participate in expanding its services worldwide and currently has a presence in many countries across the Americas, Europe, and Asia Pacific and holds 10 research and development center across Europe and Middle East, North America, and APAC region. With ample of opportunities in electric cars and other vehicles sales, Covestro AG made an investment in November 2022 for expanding their production line for Vulkollan® raw materials based in Thailand for catering the demand for high performance elastomers. With partnership and acquisition strategy from Covestro AG and Coleitec has led to expansion of composite lightweight material manufacturing from polyurethane which will be used for battery pack field for electrical vehicles.
LyondellBasell Industries Holdings B.V (Germany) is one of the key players in the automotive lightweighting market who are mainly into plastics, chemicals, and refinery products manufacturing. The company has an extensive network of sales and dealers, which helps them to serve the regional demand efficiently. The company has 94 production plants in 32 countries. With continues competition and development, LyondellBasell Industries Holdings B.V and CSPC had a joint venture for using CSPC’s Spherizone technology, which will be used to manufacture 500 kilotons per year polypropylene line in Guangdong (China) in various sector including automobile and hold a strong grip in Asia Pacific region. It has adopted the strategy of acquisition and expansion to extend its product range and geographical reach. For instance, company has expanded its PP production capacity in Houston (USA) looking at the high demand in North America with the help of their existing technology of converting ethylene into propylene for the production of polypropylene and propylene oxide which will used in cars bumpers and in other industry.
Toray Industries (Japan), Inc mainly focuses on nanotechnology in its operations and is specialized in industrial products, centered on technologies. The company has a strong focus on acquisition and partnership to increase their products portfolio and increase their offerings in the highly competitive market. For instance, the company with their subsidiary companies Toray Textiles Central Europe S.R.O. and Toray Advanced Materials Korea Inc. has set up a new facility in Czech Republic in September 2022, to expand their automotive interior sound acoustic Insulation business in Europe considering the high demand. Again, in December 2021, the Toray Industries Inc expanded their business by expanded its advanced material to manufacture polyphenylene sulfide (PPS) compound with an investment of 300 billion in Saemangeum industrial complex (South Korea). In June 2022, company had opened their new marketing and development office to grow their environmental and mobility business in Otsu (Japan) which will provide advanced material, and cross-disciplinary collaboration with other brands for sales and marketing. The company has 12 operating units with mines in operation with centralized marketing organization to customers with global footprint presence in 155 countries
ArcelorMittal (Germany) has a huge variety of products, solutions, and services to automotive customers. They are specialized in high strength steel, tensile strength steel, and aluminized steel for the automotive industry. Company has focused on various merger and acquisition activities where Arcelormittal & Nippon Steel acquired Essar Steel on December 2019, to increase their strength in Asia Pacific region. In November 2021, ArcelorMittal acquired Grupo Condesa with their 4 plants in Spain and Germany which includes cold profiling and welded pipe mills used for automobile sector and other industrial purpose. With joint venture and advanced engineering team ArcelorMittal and Atlis Motor have come together for developing all electric trucks and XP platform with S-in motion which generates light weight material for BIW and battery packs for increasing the range of the vehicle.
Automotive Lightweighting Market by Material (Metals, Composites, Plastics, Elastomers), Application & Component (Frame, Engine, Exhaust, Transmission, Closure, Interior), Vehicle (ICE, Electric, Micro-mobility & UAVs) and Region - Global Forecast to 2027
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