The global automotive lightweight material market was estimated at $77.1 billion in 2015, and it is expected to grow at a CAGR of 14.0% during 2016 – 2022. The factors driving the growth of the global market include growing enforcement by government for environmental regulations, increasing number of passenger vehicles and advancement in technology, along with change in material used for manufacturing. Various manufacturers are forced to operate and adopt the new policy and regulations, as per different legislations worldwide to reduce CO2 emission. OEMs across the globe are pushing their strategies towards more advanced technique and working cordially with lightweight material suppliers. As high costing of these lightweight materials remains the main barrier, the need of developed technique and change in material use offers solution to some extent. Progressions are being made globally as a result of research work going on and by integration with other industries, such as metallic, polymer, aviation and others for cross-industry learning.
Geographically, the North American market held the largest share in the global automotive lightweight material market in 2015. The major reasons behind the growth of the market in the region include the regulatory pressure by government to reduce CO2 emission, and strict fuel economy majors being adopted throughout North America. In August 2012, the U.S. issued new corporate average fuel economy (CAFE) standards for the model year 2017-2025 light-duty vehicles, with the average requirement of 54.5 miles per gallon by 2025. Aluminum and high strength steel are the primary lightweight material being employed for manufacturing lightweight vehicles across the North American market. Aluminum as a lightweight material is expected to be the material of choice, and will witness significant growth rate being a highly emerging market. High strength steel because of its low cost and development of high grade is suitable for structural design and is expected to show a steady growth.
Asia-Pacific is anticipated to be the fastest growing market for automotive lightweight industry. The production volume for passenger car and LCV segment in Asia-Pacific accounted for more than 50% share of the global production. The increasing production in Asia-Pacific is complimented by intensifying demand for passenger cars and LCV in the region. The increasing economy and improving standards of living in countries, such as China and India are the factors resulting in increased sale volumes. The use of lightweight material in cars manufactured in Asia-Pacific is less, as compared to those manufactured in North America and Europe. However, the high production volume in Asia-Pacific has made it an attractive market for automotive lightweight material.
The key companies operating in the global automotive lightweight material market include Arcelor Mittal S.A., Owens Corning, PPG Industries Inc., ThyssenKrupp AG, Toray Industries, Inc., Novelis Inc., Alcoa Inc., LyondellBasell Industries N.V., Hexcel Corporation, and Saudi Basic Industries Corporation.
News Courtesy: P&S Market Research