Driven by increasing automobile sales worldwide, the global automotive Body In White (BIW) market size is anticipated to register growth at a 3.4% CAGR between 2021-2031.
As per recent data released by ESOMAR-certified consulting firm Future Market Insights (FMI), the market is projected to reach $ 59.7 billion in 2021.
Despite increasing production in certain pockets, unimpressive automotive sales in mature markets and disruptions witnessed amidst COVID-19 have negatively affected the market for BIW.
However, FMI projects a steady recovery in sales and production as pandemic-induced restrictions are gradually lifted. According to the study, the market is expected to register 3.1% year-over-year in 2021.
In addition, the implementation of BS-VI regulations and growing demand for passenger vehicles for private commute post-pandemic will continue driving the global automotive BIW in the forthcoming years.
To curb rising concerns regarding environmental pollution and carbon emissions, government authorities have imposed stringent regulations in several countries. This has led to the increasing demand for sustainable and cleaner manufacturing processes and products, the report said.
Leading players operating in automotive BIW market includeKirchhoff Automotive, Voestalpine, Benteler International, CIE Automotive, JBM Auto, ThyssenKrupp, Gestamp Automocion, Magna International, Dura Automotive Systems, Martinrea International, Autokiniton Global Group Multimatic, Futaba Industrial, H-One and Shiloh Industries.
According to Future Market Insights, the need for sustainable practices and products in the automotive sector encourages manufacturers to incorporate sophisticated technologies that will help control carbon footprint. As a result, these developments are expected to augment market growth in the coming years.
Besides this, the introduction of lightweight automotive components to improve fuel efficiency and overall mobility of vehicles results in increased sales. Moreover, lightweight vehicles offer easy manoeuvrability and are made of sustainable components. This trend is anticipated to bode well for the global automotive BIW market.
The research firm has projected China to emerge as the biggest automotive BIW in East Asia. Easy availability of low-cost raw materials and expansion of manufacturing and production units in the country will continue pushing sales of automotive BIW.
An FMI analyst said that the automotive BIW sales are expected to surge due to the increasing production of electric vehicles. To capitalise on existing opportunities, market players are likely to focus on strategic collaborations.
Based on product type, the chassis segment is set to witness high growth, holding 53% of the total market share. In terms of vehicle type, passenger vehicles are estimated to account for 74.3% of the total market share. The US is projected to dominate the North American automotive BIW market, offering an absolute opportunity of $ 4.4 billion during the assessment period.
Besides, due to increasing sales of automobiles in China, the market revenue in the country is anticipated to reach $ 7.4 billion between 2021 and 2031.
Germany is anticipated to lead the European market, creating an unlimited opportunity of $ 2.8 billion in 2021.
The Indian automotive BIW market is projected to grow at a 3.9% CAGR due to rising disposable income and increasing urbanisation.
The market in Japan is estimated to expand at a 3.7% CAGR. South Korea and Japan will collectively account for 9.1% of the global market share, the research firm said.
Key Drivers
Intensive research and development to develop lightweight and innovative automotive body components are anticipated to drive market growth. In addition, increasing sales of autonomous and hybrid vehicles will also propel automotive BIW in the upcoming years.
However, high costs associated with lightweight material and its production process might stunt market growth, Future Market Insights said.
Competitive Landscape
Prominent players operating in the global market are focusing on production facility expansions to cater to the growing consumer demand. Apart from this, intensive research and development to develop innovative and unique products will remain a part of key players' growth strategies during the forecast period, the market intelligence and consulting services company added.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Gestamp Automocion.