Automotive Lightweight Material Market

Growing Demand for Automatic Automotive Lightweight Material to Drive Market Growth

The rapid use of cutting-edge technologies in the automotive industry drives Market CAGR. Over the next several years, it is anticipated that the market for automotive lightweight materials would expand due to the spike in electric car manufacturing. Automobiles that run totally or partially on electricity are referred to as electric cars. Electric cars are extremely eco-friendly since they use little to no fossil fuels (petrol or diesel), have fewer moving parts to maintain, and have low running costs.

Modern electric cars are made of lightweight materials like carbon-fiber-reinforced plastic, which enables them to run entirely on electricity and avoid being labeled as hybrids. For instance, sales of electric vehicles are anticipated to rise from 2.5 million in 2020 to 3.4 million in 2021, according to the Economist Intelligence Unit (EIU).

For instance, the production of electric vehicles is anticipated to increase to at least 1.3 million this year, with a 1.5 million threshold being achievable depending on market circumstances, according to a CNBC study released in May 2020. As a result, the market for automotive lightweight materials is expanding as electric vehicle manufacturing rises. The market for automotive lightweight materials is seeing a considerable increase in the popularity of new product innovations and compositions.

The main competitors in the automotive lightweight materials market are concentrating on creating novel and cutting-edge goods for the market by utilizing lightweight materials like aluminum and carbon fiber to replace conventional materials. Additionally, in 2021, Bucci Composites, an Italian company that creates composite parts and systems for industrial, military, and commercial applications, said that it had completed the manufacture of a 22-inch carbon fiber automobile wheel rim with cutting-edge features. Thus, driving the automotive lightweight material market revenue.

The Global Automotive Lightweight Materials Market Industry is significantly influenced by stringent emission regulations imposed by governments worldwide. These regulations aim to reduce greenhouse gas emissions and promote cleaner transportation solutions. For example, the European Union's stringent CO2 emission targets compel manufacturers to innovate and utilize lightweight materials to meet compliance. The adoption of materials such as carbon fiber and magnesium alloys not only aids in weight reduction but also enhances vehicle performance. As the market evolves, it is anticipated that these regulatory frameworks will drive the industry towards a valuation of 116.1 USD Billion by 2035, reflecting a growing emphasis on sustainability.

The Global Automotive Lightweight Materials Market Industry experiences a notable surge in demand for fuel-efficient vehicles. As consumers increasingly prioritize sustainability, automakers are compelled to adopt lightweight materials that enhance fuel economy. For instance, the integration of aluminum and advanced composites can reduce vehicle weight by up to 30 percent, leading to improved fuel efficiency. This trend is projected to contribute to the market's growth, with the industry valued at 60.6 USD Billion in 2024. As regulations tighten globally regarding emissions, the shift towards lightweight materials becomes more pronounced, indicating a robust trajectory for the market.

The Global Automotive Lightweight Materials Market Industry is also driven by an increased focus on safety standards in vehicle manufacturing. As safety regulations evolve, manufacturers are compelled to utilize materials that not only reduce weight but also enhance crashworthiness. Lightweight materials such as high-strength steel and aluminum alloys are increasingly employed to meet these safety requirements while maintaining vehicle performance. This dual focus on safety and weight reduction is likely to propel the market forward, as consumers demand safer vehicles without compromising efficiency. The industry's growth trajectory suggests a potential market value of 116.1 USD Billion by 2035.

The Global Automotive Lightweight Materials Market Industry is increasingly shaped by consumer preferences shifting towards electric vehicles (EVs). As EVs typically require lightweight structures to optimize battery efficiency and range, manufacturers are turning to advanced materials to meet these demands. The use of lightweight materials can significantly enhance the performance of EVs, allowing for longer driving ranges and improved handling. This trend is reflected in the growing investment in lightweight solutions, as automakers aim to capture the expanding EV market. Consequently, the industry is poised for substantial growth, aligning with the projected market value of 60.6 USD Billion in 2024.

Technological advancements in material science play a pivotal role in shaping the Global Automotive Lightweight Materials Market Industry. Innovations in manufacturing processes, such as 3D printing and advanced composite fabrication, enable the production of lightweight materials that were previously unattainable. These advancements facilitate the development of high-strength, low-weight components that enhance vehicle performance and safety. For instance, the introduction of thermoplastic composites allows for easier recycling and lower production costs. As these technologies mature, they are expected to contribute to a compound annual growth rate of 6.1 percent from 2025 to 2035, indicating a dynamic evolution within the market.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. North America dominates the automotive lightweight material market due to the implementation of corporate average fuel economy (CAFÉ) to promote the fuel efficiency of lightweight vehicles and passenger cars and the increased use of aluminum in structural and external components in electric vehicles, North America is anticipated to hold a sizable share of the market and grow quickly over the forecast period.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Lightweight Material Market Share By Region 2024 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe automotive lightweight material market accounts for the second-largest market share.  In 2020, Europe accounted for the greatest portion of the market; over the forecast period, it is anticipated to continue to lead the market with the highest CAGR. The adoption of Euro 6 standards by several European nations, growing concerns about carbon emissions, and various measures to reduce pollutants are likely to fuel market expansion. Further, the German automotive lightweight material market held the largest market share, and the UK automotive lightweight material market was the fastest-growing market in the European region.

The Asia Pacific Automotive Lightweight Material Market is expected to grow at the fastest CAGR from 2023 to 2032. Due to the key drivers propelling the market's expansion include the rise in demand for fuel-efficient heavy commercial vehicles and significant expenditures made by manufacturers in the region's R&D process.  Moreover, China’s automotive intercooler market held the largest market share, and the Indian automotive intercooler market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the automotive lightweight material market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive lightweight material industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automotive lightweight material industry to benefit clients and increase the market sector. In recent years, the automotive lightweight material industry has offered some of the most significant medical advantages. Major players in the automotive lightweight material market include Covestro AG, ArcelorMittal, Lyondellbassel Industries Holdings B.V., Thyssenkrupp AG, Toray Industries Inc., BASF SE, Novelis Inc., Alcoa Corporation, Owens Corning, Stratasys Ltd., and others, are attempting to increase market demand by investing in research and development operations.

LyondellBasell is one of the largest plastics, chemicals, and refining companies in the world. While they have a diverse range of products and applications, they have been involved in the automotive industry as a supplier of lightweight materials. Their products include advanced plastics and polymers that are used in various automotive applications to reduce vehicle weight and improve fuel efficiency. For instance, in October 2022, The weight of the vehicle has been decreased by 10kg thanks to a PP compound created by LyondellBasell Industries Holdings BV.

It will aid in the foaming of components, the reduction of material density, the thin walling of parts, the ability to replace metal, and the removal of paint from automobiles.

BASF offers a wide range of lightweight materials that cater to various applications within the automotive sector. BASF produces a variety of high-performance engineering plastics that are lightweight and possess excellent mechanical properties. These plastics are used in interior and exterior components, under-the-hood applications, and structural parts. Examples of their engineering plastics include Ultramid® (polyamide), Ultradur (PBT), and Ultrason (polyethersulfone). For instance, The Ultradur B4335G3 HR was developed by BASF SE to protect delicate electronic devices in harsh environments. For instance, shielding sensors from surface contact with water and salt when they are exposed to various environmental conditions.