Driven by the need for improved safety, enhanced performance, fuel economy and stringent emission regulations, the global automotive lightweight materials market is anticipated to hit $ 126.76 billion by 2030, states Allied Market Research.
The report, titled - Automotive Lightweight Materials Market by vehicle type, material and component: Global Opportunity Analysis and Industry Forecast, 2021–2030 - finds that the industry estimated at $ 71.65 billion in 2020 will grow at a CAGR of 7.1% between 2021 and 2030.
Though there are drivers to fuel this market, there are a few impediments as well. For instance, the high cost of lightweight materials and declined production and sale of automobiles impede the growth to some extent, the report states. However, entering into agreements and contracts with vehicle makers and developing the electrification of vehicles are expected to lead the way for lucrative opportunities in the future.
The key players in the automotive lightweight market include Hindalco, Lyondellbasell, Owens Corning, Stratasys, Thyssenkrupp, Toray, Alcoa, Arcelor Mittal, BASF and Covestro.
The outbreak of COVID-19 has significantly impacted the global automotive industry. The downturn in demand for new and old vehicles and disrupted supply chain outlook were the significant impacts of partial lockdown.
Moreover, restrictions by governments resulted in the weak financial performance of the automakers, which negatively impacted automotive production, especially during the initial phase.
However, the restrictions are getting eased off as the vaccination drives are getting boosted all across the region. And the market is, therefore, expected to recoup soon.
IC engine powered segment to dominate by 2030
According to Allied Market Research, the IC engine powered segment contributed to around four-fifths of the global automotive light material market share in 2020 and is expected to lead the trail by 2030. The fact that the available fleet across the globe is dominated by the IC powered vehicle drives the segment's growth. However, the electrically powered segment is expected to cite the fastest CAGR of 10.4% from 2021 to 2030, owing to the rise in electric vehicle penetration and the growing usage trend of green mobility solutions.
Exterior systems and components
Based on components, the exterior systems and components segment accounted for more than two-fifths of the total market revenue in 2020 and is projected to retain its dominance by 2030. In addition, the segment would also manifest the fastest CAGR of 7.9% throughout the forecast period due to the change in manufacturing outlook of the automotive development and growing adoption of lightweight materials by the automotive manufacturers.
The report finds that based on region, Europe, followed by North America, held a significant share in 2020, garnering more than one-third of the global market. The market across this region is also anticipated to register the fastest CAGR of 8% from 2021 to 2030, on account of the rising adoption of automotive lightweight materials and the growing need for fuel-efficient automotive solutions. The other regions studied in the report include Asia-Pacific and LAMEA.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: Thyssenkrupp.