Global Automobile Ceramics Market - 2021-2028
発行: DataM Intelligence
ページ情報: 英文 180 Pages
Automotive ceramics consist of components made from advanced ceramic materials such as alumin and zirconia. Ceramic components are used in engine parts that include knock sensor, valve systems, and super chargers. They are used in various sensors and actuators, such as fuel level sensor, fluid level sensors, and oxygen sensors, for vehicle exhaust gas purification. Automobile ceramic products are lighter in weight, more durable, and offer better corrosion-resistance properties in comparison with traditional materials such as metals and plastics. This factor is serving as a catalyst towards the wide adoption of ceramic materials in a wide array of applications in the automotive industry. Changing vehicle emission control regulations, increasing consumer demand for fuel-efficient vehicles, and growing electric vehicles are the key drivers of the global automobile ceramics market. The global automobile ceramics market valued USD XX million in 2020 and is forecasted to reach USD XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028)
Market Dynamics: Increasing demand for metals and plastics alternatives to augment demand
Changing consumer preferences has limited the availability of raw materials for automakers, along with performance standards and safety has caused a limited ability in reducing the automobile weight. Light-weight components of every potential vehicle have been under investigation. Material substitution for heavier steel and iron with advanced composites such as plastics, ceramics, magnesium, aluminum, are essentially boosting the vehicle fuel economy. Material substitution majorly depends on the cost, mechanical properties, manufacturing capabilities, and design. Additionally, for the reduction of fuel consumption, enabling weight reduction is essential. Ceramics have better insulation and thermal properties and are cost-efficient that supports the consumer demand for light-weight automotive. These properties combined with advanced production & research methodologies and structures play an important role in reducing the total weight of the engine and other heat sensor parts of vehicles. Technological advancement further supports the use of advanced ceramics as an alternative material for automotive manufacturing.
Companies are continuously focusing on the development of low-cost technologies to help contribute towards the high demand for light-weight and affordable vehicles. Ceramics are used in various products such as knock sensors, valve systems, exhaust pipes, and others. Owing to their high melting point and durability, ceramics are ideal materials to be used for developing new technologies for reducing the manufacturing cost and weight of the vehicle. The introduction of advanced and beneficial technologies are further driving the market growth. In April 2021, NGK Spark Plug, manufacturers of automotive spark plugs, announced $100 million fund to invest in startups and find potential merger and acquisition deals. The company's corporate venture fund is opportunity to work with startups and expand into new businesses.
However, high cost of ceramics is expected to restrain the market growth. The material cost of ceramics is higher than that of metal and other alloys. This may hinder the adoption of ceramics used in automobile manufacturing. High demand for affordable vehicle acts as a restraining factor for the market growth. Technologies supporting low-cost production techniques to reduce the cost of the vehicle also risk the high adoption of ceramics into the automotive industry. Furthermore, the recycling of ceramics is difficult and adds to the issue regarding the use of ceramics in the automotive industry. Thereby, restraining the global market of automotive ceramics.
Market Segmentation: Automotive engine parts segment is anticipated to expand at a CAGR of XX%
The automotive engine parts segment will dominate the market during the forecast period. This is attributable to the increasing adoption of the product for the manufacturing of glow plugs, spark plugs, electronic fuel pumps, high-pressure pumps, sealing & insulation rings, valves, and others. By usage of ceramic materials in automobiles helps to maintain the engine efficiency through the protection of the engine parts. This is the factor that drives high consumption of ceramics in the automotive industry, thereby, leading to market growth.
Passenger vehicles accounted for the highest market share of XX% in 2020 and is likely to maintain its position during the forecast period. This is attributed to a higher share of passenger vehicles in overall automotive production. As per the International Organization of Motor Vehicle Manufacturers (OICA), nearly 67.1 million commercial vehicles were produced globally in 2019. Government incentives for Electric Vehicles (EVs) are projected to assist in the growth of the market. For instance, in the U.S., income tax credit up to USD 7,500 is provided by the federal U.S. government on the purchase of EVs depending upon its battery size. Commercial vehicles segment is expected to grow with a CAGR of XX% during the forecast period. Investment in new facilities for commercial vehicles is projected to assist in the growth of the segment. For instance, a joint venture between Volvo and Eicher Motors is likely to start in the second quarter of 2020 in India. This facility is projected to produce 40,000 commercial vehicles annually.
Geographical Penetration: Asia Pacific is expected to be the fastest growing region during the forecast period
Asia Pacific dominates the market and is expected to grow at a faster rate during the forecast period. This is ascribable to the increasing spending habit of consumers in the middle-class category. This growth can be associated with rapid economic expansion in developing countries such as China, India, and Malaysia. Additionally, automotive ceramics manufacturers from the western region are shifting to the Asia Pacific region on account of leveraging lucrative opportunities, and availability of cheap labor, and less competition. This shift can also be due to an increase in the automotive manufacturing activities within the region, and a cost-effective production hub available is further expected to drive the market.
The European region may witness considerable market growth due to the region being the world's leading producer of automobiles. The automotive industry is the most significant donor to the economy of the European Union. The European Commission aims at identifying and assessing the policy issues to encourage healthy competition among the automotive industry and recommending feasible solutions by taking account of the environmental, social, and economic goals. The effort to improve the internal market regulation of the automotive industry is expected to favor the market growth. Germany is one of the leading automobile producers and accounts for more than 29% of the total European Union automobile market share. Germany produces around 6 million vehicles that include commercial and passenger vehicles every year. Moreover, German automobile companies have accounted for the manufacturing of 5.5 million of automobile units in the overseas markets.
The automobile ceramics market is fragmented. Some of the major companies operating in this market include Corning, Ceradyne, IBIDEN and Saint Gobain Ceramic Materials among others. The major companies are forming new strategies constantly that include developing new technologies and creating new products according to consumer demand. Additionally, companies are adopting digital marketing strategies for revenue-boosting. For instance, in April 2020, Murata Manufacturing Co., Ltd. started mass production of two new multilayer ceramic capacitors for automotive applications. This is a step towards expanding lineup to meet market needs and contributing to automotive performance and features.
COVID-19 Impact: Negative impact on the automobile ceramics market
The automotive industry was one of the worst affected industries due to the COVID-19 pandemic as it disrupted the entire supply chain, starting from material sourcing to the end-use consumer. On the supply side of automotive ceramics, the closure of operations in China deeply impacted the supply of ceramic materials. China is a key region for the supply of ceramic raw materials such as zirconia and alumina. On the demand side, there was a change in consumer spending patterns as consumers delayed purchasing new vehicle to minimize the spending. This decline in automotive sales led to loss of revenue of all the automobile manufacturing companies. The decline in consumer demand was evident in their quarterly sales. Major car companies, such as Toyota, have temporarily suspended or intend to temporarily suspend production of automobiles and components at selected plants in Japan and overseas. In the U.S., passenger car sales went down 21.1% at 8 million units. Japanese car sales in the first 9 months contracted by 18.1%. Car registrations in China are now down 13.2% to 13 million units. Between January and August 2020, both imports and exports of commercial vehicles fell significantly. Registrations of vans in the EU fell by 22.8% to 1 million units from January 2020 to September 2020. However, the global automotive industry has showed positive signs of recovery in early 2021, a major part of sales being held by the passenger vehicle segment
The global automobile ceramics market report would provide an access to approximately 45 market data tables, 45 figures and 180 pages