Automotive Lightweight Materials Market size is likely to surpass USD 245 billion by 2026, according to a new research report by Global Market Insights, Inc.
Automobile manufacturers are minimizing vehicle weight due to customer desire for fuel efficiency will drive the automotive lightweight materials industry demand. Replacing iron and steel components with lightweight materials, such as magnesium alloys, high strength steel, aluminum alloys, glass fibers, carbon fibers, and other polymer composites, can drastically reduce vehicle body and chassis weight by more than 50%, thus reducing fuel consumption. According to the U.S. Department of Energy, using lightweight materials and high efficiency engines enabled by advanced materials can save up to five billion gallons of fuel by 2030.
The growing hybrid and electric vehicles is expected to drive automotive lightweight materials market outlook. Automobile OEMs are coming under intense pressure from government bodies as 25% of all greenhouse gas emissions are due to road transport. This is linked directly to the weight of vehicles and their fuel consumption. Various environmental agencies are planning to implement the 2025 Corporate Average Fuel Economy (CAFÉ) standards, which require automobile manufacturers to produce a fleet average of 54.5 mpg by 2025. Additionally, increasing consumer awareness coupled with energy security issues likely to propel the market.
The COVID-19 pandemic will have a short-term negative impact on the industry growth. It will cause lower production output, fluctuations of raw material prices, and supply chain constraints. Additionally, the demand for automotive will be impacted significantly. However, by the end of the forecast period, the industry will return to normalcy.
Magnesium material segment is projected to witness around 10% CAGR through 2026. Automobile manufacturers are generally interested in magnesium as it is an abundant metal. Magnesium alloys have unique solidification characteristics, such as good fluidity and less susceptibility to hydrogen porosity, which gives them an edge over other metals such as aluminum and copper. Magnesium extraction and casting are welded by using conventional methods such as gas tungsten arc welding, automated gas metal arc welding, solid state welding, and electron beam welding. Magnesium welding requires a minimum and well controlled power input. Magnesium alloys are generally more easily weldable compared to other cast alloys.
Body in White (BIW) segment is poised to register growth rate of more than 9% CAGR during 2020 to 2026. BIW’s are structural components used in two wheelers to heavy duty vehicles such as trucks and passenger vehicles. Growth in this segment can be attributed to depleting fossil fuel reserves that call for stringent emission regulations and fuel efficiency. The automobile industry is shifting its focus to lightweight materials, such as metal alloys, fiber reinforced plastic to make vehicle lighter, thus complying with strict emission regulations.
Growing electric vehicle adoption to enhance Asia Pacific penetration
Asia Pacific held above 45% of the automotive lightweight materials market share in 2019 driven by the increasing production of electric vehicles across the region. Increasing environmental awareness among the public is driving electric vehicle sales in the region. Moreover, rising income levels and increasing urbanization in the emerging countries of Asia Pacific will future propel the regional penetration.