Automotive Lightweight Materials Market Analysis

Automotive Lightweight Materials Market Analysis

Aluminum segment in the automotive lightweight materials market will attain around 7% gains through 2026. Aluminum offers a better cost-to-benefit ratio as compared to any other substitute lightweight materials. The future potential of aluminum as an automotive lightweight material is immense due to its low cost, high strength, and high production capacity. The average aluminum content per vehicle is growing steadily.

Chassis segment held over 20% of the industry share in 2019. Replacing iron and steel parts with lightweight materials, such as high-strength steel, aluminum alloys, magnesium alloys, or polymer composites, can reduce vehicle body and chassis weight by up to 50%, thus lower automotive fuel consumption. A reduction of 10% of automotive weight can result in 7% to 8% fuel economy improvement. Lightweight materials are necessary for boosting fuel economy of modern automotive along with maintaining safety and performance as it requires less energy to accelerate lighter objects.

The casting automotive lightweight materials market revenues was more than USD 40 million in 2019 led by its use to produce lightweight aluminum and magnesium automobile parts. The casting process provides various benefits, such as flexibility during operation, reduced cost per part, and increased production capacities, which will aid segment’s business outlook. The process is highly adaptable for mass production and a large number of casting can be developed quickly.

Automotive lightweight materials market for hybrid electric industry is anticipated to register 25% growth rate through 2026. The mounting awareness of fuel emissions has compelled regulatory agencies to incorporate stringent emission regulations. Stringent emission norms have forced automotive manufacturers toward hybrid electric vehicles. Hybrid vehicles in general emit less greenhouse gas as compared to petrol or diesel vehicles.

The North American automotive lightweight materials market is poised to expand at 8.5% growth rate during 2020 to 2026. Regulatory bodies in the U.S. are coming up with new standards and requirements to lower fuel emissions and reduce greenhouse gases emissions. Growing awareness of CO₂ emissions is pushing customers toward more efficient and superior electric & hybrid electric vehicles. This is evident from the fact that the sales of electric vehicles in the region grew by 10% in 2019 as compared to 2018. Rising demand for electric vehicles will positively impact the growth by end of 2026.