The global automotive lightweight material market post COVID-19 is estimated to grow from USD 69.7 billion in 2020 to USD 99.3 billion by 2025, at a CAGR of 7.3%.
Factors contributing to the growth of automotive lightweight material can be attributed to stringent emission and fuel economy regulations.
Moreover, advancement in automotive and technology enabling reduced material usage will increase the demand for automotive lightweight material in the coming years.
With progression in time, the COVID-19 impact has severely disrupted the supply chain for the entire automotive ecosystem.
This has halted production facilities across the globe resulting in a disruption in the exports of the automotive components.
This scenario is expected to affect automotive lightweight material market, as the growth of the market is directly related to the production of the vehicles.
The global production of vehicle pre-COVID-19 was expected to reach from ~90-95 million units in 2020 to ~110-115 million units by 2025.
According to OICA, though global vehicle production declined by 5.2% between 2018-2019, the production outlook was supposed to showcase significant growth from 2021-2022 owing to multiple steps taken by OEMs, as well as some government, to attract customers.
Stringent emission and fuel economy regulations will drive the automotive lightweight material market
The automotive lightweight material market post COVID-19 is estimated 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 demand for lightweight materials is driven by the rising usage of electric vehicles and stringent emission norms & fuel economy regulations.
Several OEMs have set targets for CO2 reduction in the coming years.
Instrument panel is the fastest growing market, by component
The instrument panel is projected to be the fastest-growing segment in the automotive lightweight material market.
With the increasing demand for lighter interior cabins from car buyers, OEMs plan to use lightweight materials in interior applications.
Hence, OEMs are jointly working with component manufacturers and material providers to develop improved and lighter components.
As the interior cabin contributes significantly to the overall vehicle weight, the use of lightweight materials in the cabin can help in vehicle weight reduction.
Hence, the instrument panel is projected to be the fastest-growing market for automotive lightweight material.
North America is estimated to be the fastest-growing market for automotive lightweight materials, followed by Asia Oceania
North America is expected to be the fastest-growing market for automotive lightweight materials.
The Corporate Average Fuel Economy (CAF) standards have compelled OEMs to enhance their vehicle lightweighting efforts.
The domestic demand for passenger cars has increased due to low gas prices and low-interest rates.
The demand for light trucks and vans has also witnessed rapid growth in the region.
Asia Oceania, on the other hand, has seen increased usage of HSS and Aluminum, especially in the low and mid-segment vehicles.
China is the fastest-growing market for automotive lightweight materials in the Asia Oceania region.
Factors such as low production cost, abundant availability of metals, and safety norms have driven market growth in the region.
The sale of automotive lightweight materials is projected to increase in different regions during the forecast period.
For more information, visit www.researchandmarkets.com