2018 - 2026
Need a report that reflects how COVID-19 has impacted this market and its growth?
The lightweight car market studied was valued at USD 67 billion in 2020, and it is expected to reach a value of USD 73 billion by 2026, while registering a CAGR of over 4.5% during the forecast period.
Covid-19 had a huge impact on the market. With the raw materials and international trade halt due to stringent lockdowns worldwide, the assembly lines and production units were closed and this resulted in a considerable dent in the market's economy. However, with the preference of personal and individual mobility due to and post Covid-19, the market is definitely set to step up and get back into stability in terms of revenue and market sizes of different vehicles.
Increasing demand for lightweight material from the automotive industry and growing focus on fuel economy are expected to be major growth drivers for the market. However, the high cost of lightweight materials, such as carbon fiber and glass composites, is hindering the growth of the market, as their usage in low-cost vehicles, may drastically increase the prices of such vehicles.
The automotive sector is one of the largest markets for composite materials. The automotive industry is continuously looking for innovative materials to help reduce vehicle weight and achieve fuel efficiency and carbon emission targets.
Asia-Pacific is expected to witness the fastest growth in the market, due to the growing automotive industry in the region (in terms of both production and demand), especially in countries, such as India and China. In India, the automotive industry is expanding rapidly, with the rise in the income level of consumers. In addition, the demand for light vehicles has increased with awareness about fuel efficiency and environmental benefits. Currently, it is the fifth-largest producer of light and commercial vehicles and is also the second-largest producer of two-wheeled vehicles. With the rapid increase in manufacturing capacities in the country, the consumption of carbon fiber composites is expected to increase during the forecast period.
Scope of the Report
The global lightweight car market has been segmented by car type, material type, and geography. The report offers market size and forecast for Lightweight Car Market in Value (USD billion) for all the above-mentioned segmentation.
Key Market Trends
Increasing Demand for Lightweight Material from the Automotive Industry
As fuel costs and distance traveled is increasing, consumers want better miles per gallon (mpg) and often consider gas mileage as a key factor while purchasing a vehicle. With the enactment of stringent emissions regulations due to increased exhaust emissions, automobile manufacturers are focusing on the manufacturing of lightweight vehicles to reduce CO2 emissions. A 10 kilogram weight reduction is estimated to save 1 gram of CO2 per kilometer. In the United States, the regulations mandate that by 2025, the average fuel economy standard must meet 54.5 miles per gallon. As per the US Department of Energy (DOE), they are reducing the weight of a vehicle by 10% yields a 6-8% rise in fuel economy.
Thus, to facilitate this change, automobile manufacturers are shifting from steel or aluminum to composite materials that are essential to achieve the cost efficiency of these highly automated production cycles, which reduce vehicle weight. In a typical automobile, the use of fibers is 50% by volume, while adding just 10% of the weight.
As a result, the companies have started using materials, such as carbon fiber and titanium alloys to make vehicles lightweight and fuel-efficient, especially in luxury and sport models. Automotive manufacturers, such as BMW, Mercedes-Benz, McLaren, Chevrolet, and Lamborghini, are some of the OEMs who are continually increasing the usage of composites in their vehicles, as they aid in reducing the weight of the vehicles.
To understand key trends, Download Sample Report
Europe - Expected to Witness Healthy Growth Rate
With the enactment of stringent emission norms and fuel economy standards in the European region, the automobile manufacturers in the region have started using carbon fiber composites in the manufacturing of their vehicles.
The companies are experimenting with new composites that can reduce the total weight of the vehicle to a great extent. The application of carbon-fiber-reinforced plastic (CFRP) has been widely adopted for the production of automotive bodies, particularly in German cars, such as BMW and Audi.
For instance, BMW partnered with German carbon fiber producer SGL Group and spent ~USD 1 billion for securing the supply chain for CFRP used in the production of i3 and i8. Apart from BMW, another German automobile manufacturer Audi has also been using CFRP to produce the rear wall of the space frame for its A8 luxury sedan. This part provides ~40% of the vehicle’s overall torsional rigidity, making it a suitable material for the usage in the vehicle. The part is ~50% lighter in weight than its metallic predecessor.
Carbon Fiber material is a go to option for most of the manufacturers as this can handle high loads inspite of being a lighweight material and is a perfect alternative to the traditional heavy weight metals.
To understand geography trends, Download Sample Report
Some of the major players in the lightweight car market are Toyota Motor Corporation, Nissan Motor Co Ltd, Kia Motors Corporation, Hyundai Motor Co, and Ford Motor Company.
The market for lightweight cars is majorly held by auto manufacturers who have a long-standing partnership with the major composite manufacturing companies and are their preferred suppliers.
With the need for sustainability and lower emissions to protect the environment, many OEMs have started to release electric vehicles on their models and the industry is looking to invest and bring out electric vehicles with the best combination of performance and a long travel range that can be achieved.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Car Type
5.1.1 Passenger Cars
5.1.2 Sports Cars
5.2 Material Type
5.2.1 Glass Fiber
5.2.2 Carbon Fiber
5.2.3 High-strength Steel
5.3.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 United Arab Emirates
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Toyota Motor Corporation
6.2.3 Ford Motor Company
6.2.4 Hyundai Motor Co
6.2.5 Nissan Motor Co Ltd
6.2.6 General Motors Company
6.2.7 Honda Motor Co Ltd
6.2.8 Kia Motors Corporation
6.2.9 Ferrari SpA
6.2.10 Lamborghini SpA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The Lightweight Cars Market market is studied from 2018 - 2026.
What is the growth rate of Lightweight Cars Market?
The Lightweight Cars Market is growing at a CAGR of >4.5% over the next 5 years.
Which region has highest growth rate in Lightweight Cars Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Lightweight Cars Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Lightweight Cars Market?
- Kia Motors Corporation
- Toyota Motor Corporation
- Hyundai Motor Co
- Ford Motor Company
- Nissan Motor Co Ltd
Are the major companies operating in Lightweight Cars Market.