Lightweight Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Lightweight Car Market is Segmented by Car Type (Passenger Cars and Sports Cars), Material Type (Glass Fiber, Carbon Fiber, High-strength Steel, and Other Material Types), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report provides market size and forecast in value (USD billion) for all the segments.

Market Snapshot

Lightweight Car Market Size
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: 5.32 %

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Market Overview

The lightweight car market was valued at about USD 70 billion in 2021, and it is expected to reach a value of about USD 93 billion by 2027, registering a CAGR of over 4.5% during the forecast period (2022 - 2027).

The COVID-19 outbreak had a huge impact on the market. With the raw materials and international trade coming to a halt due to stringent lockdowns worldwide, the assembly lines and production units were closed, which considerably impacted the market. However, with the preference for personal and individual mobility, the market is started to stabilize in terms of revenue and market sizes of different vehicles from 2021 which is expected to drive the market growth.

Over the long term, increasing demand for lightweight materials from the automotive industry and a growing focus on fuel economy are expected to be the major growth drivers for the market. However, the high cost of lightweight materials, such as carbon fiber and glass composites, is hindering the market's growth, 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 increasing awareness about fuel efficiency and environmental benefits. Currently, India is the fifth-largest producer of light and commercial vehicles and the second-largest producer of two-wheelers. 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 lightweight car market is segmented by Car Type, Material Type, and Geography.

By Car Type, the market is segmented into Passenger Cars and Sports Cars.

By Material Type, the market is segmented into Glass Fiber, Carbon Fiber, High-Strength Steel, And Other Material Types.

By Geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa.

The report offers market sizes and forecasts for the lightweight car market in value (USD billion) for all the mentioned segments.

Car Type
Passenger Cars
Sports Cars
Material Type
Glass Fiber
Carbon Fiber
High-strength Steel
Other Material Types
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
South America
Brazil
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand for Lightweight Material from the Automotive Industry

As fuel costs and distance traveled are increasing, consumers want better miles per gallon (mpg) and often consider gas mileage as a key factor while purchasing a vehicle. With stringent emissions regulations due to increased exhaust emissions, automobile manufacturers are focusing on manufacturing lightweight vehicles to reduce CO2 emissions. A 10 kg 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), the vehicle's weight is being reduced by 10%, which may yield a 6-8% rise in fuel economy.

Thus, to facilitate this change, automobile manufacturers are shifting from steel or aluminum to composite materials 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 sports models. Automotive manufacturers, such as BMW, Mercedes-Benz, McLaren, Chevrolet, and Lamborghini, are some of the OEMs continually increasing the usage of composites in their vehicles as they aid in reducing the weight of the vehicles.

trend_1

Europe is Expected to Witness Healthy Growth Rate

With the enactment of stringent emission norms and fuel economy standards in Europe, automobile manufacturers in the region have started using carbon fiber composites for manufacturing 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, 

  • In June 2022, Gestamp Automocion S.A. (Gestamp) announced a partnership with SSAB to develop new Docol1000CP steel for Toyota Yaris chassis parts. The new steel is stronger (1,000 Mpa), lighter, and more environmentally friendly. These properties also allow for lighter parts to be manufactured, as well as very positive fatigue behavior, which is important for any part of a car's steering and suspension, such as the front lower control arm (FLCA). A lower weight will also use less fuel and emit less pollution.
  • BMW partnered with German carbon fiber producer SGL Group and invested ~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, uses 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 usage in the vehicle. The part is ~50% lighter in weight than its metallic predecessor.

The carbon fiber material is a go-to option for most manufacturers. Despite being a lightweight material, it can handle high loads and is a perfect alternative to traditional heavy-weight metals. The expansion of the fossil fuel-based automotive industry may see negative growth as electric vehicles become more prevalent and the production of gasoline and diesel engines for diesel vehicles is more prohibited. However, because they are used in the market for alternative fuel vehicles, lightweight automotive materials will continue to be a driving force.

trend_2

Competitive Landscape

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.

Auto manufacturers majorly dominate the market for lightweight cars. They also have a long-standing partnership with major composite manufacturing companies. With the need for sustainability and lower emissions to protect the environment, many OEMs are releasing electric vehicles on their models. The industry is looking to invest in and develop electric vehicles with the best combination of performance and a long travel range. For instance,

  • In July 2022, Toyota stated that the all-new Toyota Crown (in the Crossover guise) will feature a high-rigidity, lightweight, and well-balanced body provided by the TNGA platform.

Major Players

  1. Toyota Motor Corporation

  2. General Motors

  3. Bayerische Motoren Werke AG (BMW)

  4. Hyundai Motor Co.

  5. Nissan Motor Co. Ltd

Toyata Motor Corporation, General Motors, Bayerische Motoren Werke AG(BMW), Hyundai Motor Co and Nissan Motor Co. Ltd.

Recent Developments

  • In May 2022, Mercedes-AMG unveiled its Vision AMG all-electric concept car. The four-door coupé is built on the AMG. A platform is being developed in Affalterbach for all-electric performance models. The Vision AMG's innovative Axial Flux Motor was developed by Mercedes-Benz's wholly owned subsidiary YASA. Its compact and lightweight design provides significantly more power than conventional electric motors.
  • In April 2022, Mercedes-Benz announced the VISION EQXX with the comprehensive lightweight design concept of the VISION EQXX. The dedicated electric chassis with a lightweight F1 subframe and aluminum brake discs contributes significantly to the weight efficiency. Another example is the 100 kWh battery. It takes up half the space and weighs half as much. As a result, the compact battery, measuring only 200 x 126 x 11 cm, is also relatively light at 495 kilograms and can fit in a compact car.
  • In April 2022, Through its venture capital arm, the Volvo Cars Tech Fund made a strategic investment in Bcomp, a forward-thinking Swiss company that creates high-performance lightweight materials based on natural fibres. In its upcoming line of all-electric vehicles, Volvo Cars is aggressively investigating the usage of natural fibre composites, and Polestar, a strategic affiliate, also plans to utilise Bcomp's materials. The most recent concept car from Volvo Cars, the Volvo Cars Concept Recharge, was made with elements from Bcomp. According to Bcomp's estimations, natural fiber-based composites are up to 50% lighter, use up to 70% less plastic, and produce up to 62 percent less CO2 than ordinary plastic parts.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in USD Billion)

    1. 5.1 Car Type

      1. 5.1.1 Passenger Cars

      2. 5.1.2 Sports Cars

    2. 5.2 Material Type

      1. 5.2.1 Glass Fiber

      2. 5.2.2 Carbon Fiber

      3. 5.2.3 High-strength Steel

      4. 5.2.4 Other Material Types

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Toyota Motor Corporation

      2. 6.2.2 Volkswagen

      3. 6.2.3 Ford Motor Company

      4. 6.2.4 Hyundai Motor Co.

      5. 6.2.5 Nissan Motor Co. Ltd

      6. 6.2.6 General Motors Company

      7. 6.2.7 Honda Motor Co. Ltd

      8. 6.2.8 Kia Motors Corporation

      9. 6.2.9 Ferrari SpA

      10. 6.2.10 Lamborghini SpA

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Lightweight Cars Market market is studied from 2018 - 2027.

The Lightweight Cars Market is growing at a CAGR of 5.32% over the next 5 years.

The Lightweight Cars Market is valued at 70 Billion USD in 2018.

The Lightweight Cars Market is valued at 93 Billion USD in 2027.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Toyota Motor Corporation, General Motors, Bayerische Motoren Werke AG (BMW), Hyundai Motor Co., Nissan Motor Co. Ltd are the major companies operating in Lightweight Cars Market.

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