Automotive Ceramics Market– Statistics And Analysis & Forecast To 2027
Posted by Mrudula Anil Karmarkar on January 20th, 2021
The global automotive ceramics market size is expected to reach USD 2.9 billion by 2027 registering a CAGR of 5.6%, according to a new report by Grand View Research, Inc. Stringent regulations for environmental protection are likely to remain a key growth driving factor for the market.
The shortage in supply of raw materials from Chinese manufacturers has resulted in a severe demand-supply gap. The manufacturers are further expected to be stranded on raw material orders owing to the logistics industry being significantly impacted due to lockdown amid COVID-19. However, the producers are expected to move away from China aiming to reduce the future risks that would affect the business and to reduce the manufacturers' cluster in a single country in order to smoothen the supply chain. The report will account for Covid19 as a key market contributor.
Governments of various countries are ensuring stringent emission standards to curb air pollution. Automakers around the world are under pressure to reduce the weight of the manufactured vehicles to improve fuel efficiency. This is likely to boost the demand for lightweight materials, such as aluminum, ceramics, and plastics.
Indian government recently announced BS VI emission standards, which are in line with European standards. These emission standards are effective from April 1, 2020. This is likely to attract investments in R&D and demand for lightweight materials over the coming years. As per these norms, petrol-based vehicles are projected to observe a 25% reduction in their NOx.
Growing requirements for safety and quality of materials used in auto manufacturing is another factor projected to assist in the demand for automotive ceramics products. In order to improve the performance of vehicles, companies are focusing on the development of more efficient engines. Advanced ceramics have the potential to replace some small metal parts to reduce the overall weight of the vehicle. It provides advantages, such as high strength, low density, and coefficient of friction and high wear resistance.
Automotive Ceramics Market Report Highlights
Increasing demand for vehicles in Europe and North America is projected to assist in the growth of the market over the coming years. Germany owing to its close association with luxurious brands, such as BMW, Mercedes, and Audi, is likely to have medium to high growth prospects over the long term.
However, recent outbreak of COVID-19 in the first quarter of 2020 has affected the product demand as governments of various countries have started lockdown for all the non-essential businesses across the world. As per the European Automobile Manufacturers Association, the outbreak of COVID-19 has resulted in nearly 14.6 million vehicles in production loss.
However, in the long run, U.S. is likely to remain an attractive market for automotive ceramics vendors. Another factor that is likely to affect the market demand is increasing sales of SUVs and trucks in the country. Some of the factors boosting the demand for SUVs are their durability, resistance, and affordability.
Easy availability of auto loans is an indirect factor, which is promoting the sales of vehicles in the region. In addition, digitization of the loans has made the process simpler for the end-users. For instance, Honcker Inc. provides all the best deals offered by the nearby dealers for an automotive lease. This assists in avoiding lengthy procedures and helps save time.
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Vendors in the market are focused on new product development, which is aimed at the lightweight design of vehicles. Players are also investing in R&D for the development of new products for automotive electronics applications. Automotive is one of the leading sectors, which is likely to attract inflows of Foreign Direct Investment (FDI) in various countries over the coming years. Some of the prominent players in the automotive ceramics market include:
Grand View Research has segmented the global automotive ceramics market on the basis of material, application:
Automotive Ceramics Material Outlook (Revenue, USD Million, 2016 - 2027)
Automotive Ceramics Application Outlook (Revenue, USD Million, 2016 - 2027)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information:www.grandviewresearch.com
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
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