Europe Automotive Lightweight Materials Market Share was USD 66.71 Billion in 2019 and will grow at a CAGR of 9.1% up to 2026.
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Europe electric vehicle industry is anticipated to grow in the long term. Germany is the largest electric vehicles market in Europe followed by Norway, France, UK and Sweden. Norway presently is the leading country in Europe for electric car penetration with close to 30% of all vehicles sold being electric in the first quarter of 2017, followed by Sweden and Iceland. Stringent environmental regulations and various incentives provided by the government will drive the market size.
Strict government regulations to control pollution levels and minimize dependence on fossil fuel is driving hybrid and electric vehicle adoption. Norway and Netherland have passed a resolution to ban sales of fossil fuel powered vehicles by 2025. Other countries such as Germany will also stop the sales of traditional vehicles by the end of 2030. Various governments are formulating regulations to support hybrid and electric vehicles would continue to have a positive impact on the market over the forecast period.
The coronavirus pandemic has severely disrupted automotive industry, thereby affecting the Europe industry. The pandemic has significantly impacted production and supply chain thereby slowing down automotive industry. However, the market is expected to bounce back in the long term as lockdown restriction eases thereby driving the industry growth.
Based on materials, the market is segmented into, metals & alloys, plastics, composite. High strength steel will witness over 9% CAGR over forecast timeframe. Increasing use of high strength steel in chassis, front end structure and body parts will further drive the segment growth.
Based on application, the market is segmented into powertrain, chassis, body in white, interior, exterior and others. Body in white segment is expected to hold around 25% volume share till 2026. Automotive manufacturers are currently developing strategies to use advance materials in body in white structures. Incorporation of CATIA V5 technique will aid in the development of aluminum structures compatible with automotive engineering.
Based on manufacturing process, the industry is segmented into casting, open molding, rolling, forming, extrusion, closed molding and forging. Closed molding is anticipated to grow at over 10% over the projected time period. This growth can be attributed owing to its benefits over other process such as reduced waste and emission, lower material and disposal cost and reduced cycle times.
Based on vehicle type, the industry is segmented into internal combustion engine, hybrid electric vehicle and battery-operated electric vehicle. Growing demand for reducing CO2 emission along with other pollutant and complying with strict environmental regulation will further drive the hybrid and electric vehicle market till the projected time period.
France holds more than 15% share in market. The growing demand for more fuel-efficient vehicles will help drive the market for the projected time period. The government is also working towards providing incentives and subsidies for developing electric vehicles. Moreover, growing awareness among customers regarding environment and the damage conventional vehicles have on it is driving electric vehicles market in European region.
The key players in the Europe market include British steel Ltd., ArcelorMittal, Creusot-Lorie, ThyssenKrupp AG., BASF, Covestro AG., LyondellBasell, etc. Various industry players are investing into research & development to produce low cost and more efficient products. They are also looking at expanding strategic partnership and working on diversifying supply chains.