The advanced automotive materials market is expected to grow at a CAGR of 6.8% during the forecast period. The market was valued at US$ 74.9 billion as of 2022 and is expected to hit a valuation of US$ 144.61 billion by 2032.
Advanced automotive materials come with the ability to reduce the weight of the vehicle. Apart from that, their usage also ensures that the efficiency of the vehicles increases, and at the same time, the fuel consumption is drastically reduced. This is expected to surge the demand for advanced automotive materials.
Additionally, they are able to provide better dimensional stability as compared to other conventional materials. This consequently improves the mechanical efficiency of the vehicle, which might lead to an increase in the sales of advanced automotive materials during the forecast period. Reduced fuel consumption also ensures that the emission rates are automatically controlled. This completely stands in line with the stringent emission norms put forth by the regulatory authorities.
| Attributes | Value |
|---|---|
| Advanced Automotive Materials Market Value (2022) | US$ 74.9 billion |
| Advanced Automotive Materials Market Forecast Value (2032) | US$ 144.61 billion |
| Advanced Automotive Materials Market Expected CAGR (2022 to 2032) | 6.8% |
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Technological developments and innovations are taking place on a consistent basis in the automobile industry. This has led to the development of Electric Vehicles across the globe. This has consequently accelerated the advanced automotive materials market growth.
Moreover, a massive increase in the sales of passenger cars is expected to further surge the adoption of advanced automotive materials during the forecast materials. However, market growth has been hindered because of the disruption in the supply chain that has been caused because of the covid 19 pandemic, followed by the war in certain parts of the world. This might affect the market growth going ahead.
High cost is something that is causing a few concerns related to market growth. The usage of materials like Titanium, Magnesium is leading to the high cost of these materials. Additionally, the usage of advanced automotive materials requires high maintenance. The physical damage that has been caused to these materials may not be visible to the naked eye. Thus, these materials are not easy to repair, which is likely to hinder the steady adoption rate.
Based on the region, Europe is expected to dominate the advanced automotive materials market. Europe has a market share of nearly 40% as of 2022. Stringent emission norms and the presence of a huge number of automobile players in the region currently make Europe the largest market. However, Asia Pacific is expected to be the fastest-growing market during the forecast period. Increasing disposable income, coupled with the increased adoption of electric vehicles, is anticipated to make Asia Pacific the fastest-growing market.
North America is expected to see a lot of technological innovations in the automobile sector. Increased focus on fuel efficiency is expected to surge the application of advanced automotive materials in North America. Based on the application, the body in the white segment currently has the highest market share. During the forecast period as well, the segment is expected to record considerable growth. However, a growing inclination towards light engine parts is expected to support the powertrain application segment during the forecast period.
The fundamental function of advanced automotive materials is to reduce the weight of a vehicle. These materials finds use in a number of automobile applications, including interior, exterior, structure, and powertrain, among others. Advanced automotive materials reduces the overall weight of the vehicle, increasing the efficiency and thereby reducing the overall fuel consumption.
The advanced automotive materials possess better dimension stability than conventional materials, improved mechanical performance, and elevated service temperature.
Automotive OEMs are compelled to employ advanced automotive materials to ensure that the vehicles meet the increasingly stringent emission norms. A variety of factors involved in the evolution of advanced automotive materials are the necessity for improved fuel economy, growing vehicle performance requirements, higher power requirements, and the requirement for a superior driving experience.
Principal Consultant
Global advanced automotive materials market is segmented into types of material, region, and application. The global advanced automotive materials market includes a variety of materials such as metals, engineered plastics, thermoplastic elastomers (TPEs), and composites.
Metals are segmented into high-strength steel (HSS), stainless steel, aluminum, powder metals and others, whereas engineered plastics are segmented into nylon, ABS, polycarbonate, polyphenylene oxide, etc. Thermoplastic Elastomers include thermoplastic vulcanizates, thermoplastic polyolefin, thermoplastic polyurethanes, styrene block copolymer, copolyester elastomer, and others.
The composites are segmented into carbon fiber reinforced plastic (CFRP) and glass fiber reinforced plastic (GFRP). Region wise, the global advanced automotive market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, Japan, and MEA and in terms of advanced automotive material applications the market is divided into interior, structural, exterior, structural, powertrain, and others.
In North America, the U.S. accounted for the largest share of the advanced automotive materials market in 2014. In the coming years, however, the developing regions like Asia Pacific are predicted to become lucrative regional markets for key players operating in the global advanced automotive materials market.
Sizeable population, economic development, stringent regulations regarding emission, increasing knowledge regarding eco-friendly systems, and benefits of better fuel efficiency are the major factors driving the growth of the advanced automotive materials market in this region.
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The growth of the advanced automotive market is expected to be driven mainly by constant pressure to reduce the vehicle weight, thus improving fuel efficiency leading to lower CO2 emissions. Other important driving factors for the growth of the global advanced automotive market includes focus on safety, durability, noise and vibration, by replacing the traditional materials.
New process technologies, improvements in resins and metal alloys helps increasing the attractiveness of advanced automotive materials manufacturing, encouraging growth. Advanced automotive plastics use, in particular, has been encouraged by lower tooling costs relative to other materials.
The global advanced automotive materials market growth is also driven by the fact that advanced automotive materials provide higher strength as compared to the ordinary materials, facilitating higher energy absorption during crash.
Some of the factors hindering the growth of the global advanced automotive materials market are limited raw material, increasing pressure for materials recycling, particularly for engineered plastics, and low awareness towards benefits of advance automotive materials, etc.
Some of the major players identified in the global advanced automotive market are AK Steel, National Steel, General Electric, DuPont, Bayer AG, A. Schulman, Alcoa, Norsk Hydro, Johnson Matthey, ThyssenKrupp AG, Toray Industries Inc., ArcelorMittal S.A., and Novelis Inc., etc.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
Chemicals & Materials
February 2024
REP-EU-82
333 pages
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Advanced Automotive Materials Market
