Asia Pacific Automotive Lightweight Materials Market Share was USD 87.77 Billion in 2019 and will grow at a CAGR of 7.9% up to 2026.
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The Asia Pacific market will witness significant growth due to growing penetration of electric vehicles in emerging nations including India, Thailand, China and Indonesia, thereby positively driving industry growth in the region. China is the largest market for electric vehicles in Asia Pacific. Rising income levels, growing concerns regarding fuel emission along with government initiatives to boost electric vehicles production will further boost the market for electric vehicles in China. In India, for instance, the government has launched a program called Faster Adoption of Manufacturing of Hybrid and Electric Vehicles (FAME) which will drive the electric vehicles demand in India. Growth in electric vehicles market will positively influence the industry size for the projected time period.
Increasing foreign direct investment in auto industry is driving revenue generation in the region. The growing automotive industry in Japan, South Korea and Vietnam owing to rapidly advancing industrial sector and rising consumer demand for lightweight and fuel-efficient vehicles is expected to drive the Asia Pacific market size. Lenient labor laws coupled with cheap labor is anticipated to drive foreign investment. Stringent regulation regarding fuel emission in Asia Pacific will continue to push companies in designing and producing lightweight vehicles. This will further drive the business towards growth trajectory.
The COVID-19 pandemic has significantly disrupted auto industry, thereby affecting the market. This weak demand scenario has largely affected Asia Pacific region due to focusing its expenditure towards improving healthcare infrastructure. Imposition of lockdowns to control the spread of virus has further resulted in major disruption of production and supply chains mainly in import dependent countries. However, the market is anticipated to bounce back due to continuous government spending and fiscal stimulus to automotive and related industries.
Based on materials , the market is segmented into, metals & alloys, plastics, composite. High strength Steel is the most widely used material in and will generate over USD 25 billion by 2026. Steel due to its high strength and low cost is usually considered the top choice as an automotive lightweight material.
Based on application, the Asia Pacific automotive lightweight materials market is segmented into body in white, interior, chassis, exterior, powertrain and others. Powertrain segment will account for more than 20% volume share due to the growing requirement of minimizing battery weight in hybrid and electric vehicles. Addition of aluminum and polymer composite in advanced battery production will further propel the segment size.
Based on manufacturing process, the market is segmented into casting, open molding, rolling, forming, extrusion, closed molding and forging. Forming is the most widely preferred manufacturing process in automotive lightweight materials market and will generate over USD 35 billion by 2026. Many metals harden as they deform, mainly due to its crystal structure which allows certain movement but beyond which it gets hardened. Forming subjects’ metal to a lot of deformation which produces a very hard finished part.
Based on vehicle type, the market is segmented into internal combustion engine, hybrid electric vehicle and battery-operated electric vehicle. Internal combustion engine (ICE) segment is anticipated to grow at 5.4% CAGR. Lightweight material helps in reducing energy consumption and pollution levels. They also impart specific strength and resistance to ICEs.
China holds more than 50% share in Asia Pacific industry. The growing demand towards more fuel efficient automotive will drive the market for the projected time period. The government is also working towards building more efficient infrastructure surrounding electric vehicles which will have a positive impact on the automotive lightweight materials market.
The key players in the industry include tata steel, posco, Luneng Jinbei, Shandong Xinfa Aluminium Group, Shandong Weiqiao Aluminum and Power Co., Ltd., Hangzhou Jinjiang Group., Ace global, Saint enterprise co., etc. Companies are constantly developing new design operation, expanding strategic partnerships and looking towards diversifying sales and distribution network.