North American Lightweight Car Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 34.66 Billion |
| Market Size (2029) | USD 56.5 Billion |
| CAGR (2024 - 2029) | 10.27 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North American Lightweight Car Market Analysis
The North American Lightweight Car Market size is estimated at USD 34.66 billion in 2024, and is expected to reach USD 56.5 billion by 2029, growing at a CAGR of 10.27% during the forecast period (2024-2029).
Over the long term, the market for lightweight cars in North America is expected to be driven by regulatory authorities pushing for fuel efficiency. The lightweight car market in North America is becoming stringent to serve the strict fuel economy standards of the United States Corporate Average Fuel Economy (CAFE) requirements, which are also being adopted by Canada and Mexico.
- According to the Energy Information Administration, the carbon dioxide emissions from energy consumption in the transportation sector in the United States touched 1,836 million metric tons of carbon dioxide in 2022 compared to 1,809 million metric tons in 2021, recording a Y-o-Y growth of 1.4% between 2021 and 2022.
Lightweighting is becoming a major trend in many industrial sectors, including not only transportation but also civil infrastructure, manufacturing, and clean energy technologies. In contrast to popular belief, lightweight components include aspects such as structural efficiency, economic and environmental impact, and other aspects involving structural efficiency. In industry, reducing a product's weight not only consumes fewer resources for manufacturing but also requires less transportation energy, preserving natural resources and reducing harmful pollution.
The ideal materials for lightweight cars in this market include aluminum, high-strength steel, and magnesium. In the luxury segment, carbon fiber cars, like those used in BMW, are no longer expensive and are increasingly being used in mass-market car production. North American economies are focusing on reducing the cost of materials through concentrated research to drive the lightweight car market's growth.
With the emergence of electric vehicles and an increasing ban on diesel vehicles' production of gasoline and diesel engines, the fossil fuel-run automotive industry's growth may face negative growth. However, lightweight car materials will remain a driving factor due to their application in an alternative fuel vehicle market.
North American Lightweight Car Market Trends
Composite Material Segment to gain Traction during the Forecast Period
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 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.
Furthermore, automotive manufacturers across the North American region such as Ford, Toyota, and Honda, among others are actively investing hefty sums to utilize composite materials for their vehicle components, which in turn, is positively impacting the composite segment of the market.
- In 2022, Ford, Toyota, Chevrolet, and Honda were the top four best-selling brands in the United States. Ford recorded sales of 1.76 million units in the United States in 2022, followed by Toyota with sales of 1.75 million units, and Chevrolet with a sales volume of 1.51 million units during the same period.
As more automakers shift towards the utilization of lightweight materials in their vehicles, the demand for the composite segment is expected to surge during the forecast period.
United States to Dominate the Lightweight Car Market during the Forecast Period
Strict regulations implemented by the government of the United States on emission standards and fuel consumption to curb greenhouse gas emissions are leading to a surging growth of the lightweight car market in the United States. The reduction in weight of the car substantially improves the fuel consumption ratio which in turn, assists in curbing emissions from cars.
- In July 2023, NHTSA proposed new Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks built in model years 2027-2032. If finalized, the proposal would require an industry fleet-wide average of approximately 58 miles per gallon for passenger cars and light trucks in MY 2032, by increasing fuel economy by 2% year over year for passenger cars and by 4% year over year for light trucks.
Further, manufacturers are also working to reduce overall vehicle weight, which lowers the energy required to operate the vehicle and increases fuel economy. The Body-In-White system is the critical focal point for automakers looking for fuel savings because of its weight reduction potential, importance to crash safety, and impact on compounded weight reduction for other sub-systems, such as the powertrain.
- The light vehicle retail sales in the United States touched 13,754.3 thousand units in 2022 compared to 14,946.9 thousand units in 2021, representing a Y-o-Y decline of 7.9% between 2021 and 2022.
However, even in the United States, with the high cost of materials like carbon fiber and AHSS, and the ongoing research on the material mix, the growth of this industry hasn't reached its full potential. With the rapid enhancement in lightweight material technology and the increasing preference of consumers to avail of eco-friendly cars, the lightweight car market in the United States is expected to showcase surging growth during the forecast period.
North American Lightweight Car Industry Overview
The North American lightweight car market is fragmented and highly competitive, due to the presence of various international and domestic lightweight manufacturing companies operating in the ecosystem. Some of the major players include Ford Motor Company, Honda Motor Co., Ltd., Chevrolet, Nissan Motor Co., Ltd., Toyota Motor Corporation, and Mazda Motor Corporation, among others. As the demand for lightweight cars is growing in the region, automotive manufacturers are trying to edge over their competitors by making joint ventures, partnerships, and launching new products with advanced technology. For instance,
- In August 2023, Porsche introduced a special edition 911 designed for maximum driving enjoyment on its 60th anniversary. Produced in a limited run of 1,963 cars, the Porsche 911 S/T offers a lightweight design and a pure, undiluted driving experience. For the first time, the 911 GT3 RS's 518 hp, high-revving engine is delivered to the road via a manual transmission and lightweight clutch.
The market is expected to witness rapid enhancement in lightweight components technology such as the development in the advanced high-strength steel (AHSS), as these players try to gain a competitive edge in the industry.
North American Lightweight Car Market Leaders
Ford Motor Company
Honda Motor Co., Ltd.
Chevrolet
Nissan Motor Co., Ltd.
Toyota Motors Corporation
*Disclaimer: Major Players sorted in no particular order
North American Lightweight Car Market News
- In August 2023, a team of researchers led by Clemson University created a lightweight vehicle door that increases fuel efficiency while meeting federal safety regulations using carbon fiber, thermoplastic resin, and cutting-edge computer design techniques. The research team reduced the weight of a steel door by 32% before exposing it to a battery of tests to ensure it fulfilled FMVSS and Honda's safety guidelines, another project partner.
- In March 2023, The LB744, Lamborghini's first HPEV (High-Performance Electrified Vehicle) hybrid supercar, received its first details. The vehicle is the world's first High-Performance Electrified Vehicle (HPEV): a plug-in hybrid super sports car with a lightweight high-power lithium-ion battery housed within the transmission tunnel in the center of the chassis. The new 6.5-liter L545 engine is Lamborghini's lightest and most powerful 12-cylinder engine to date. It weighs only 218 kilograms in total, 17 kilograms less than the Aventador model.
- In September 2022, Atlis Motor Vehicles signed a collaboration agreement with ArcelorMittal, the world's leading producer of automotive steels, to help accelerate lightweight product development. S-in motion is a set of lightweight steel solutions developed by ArcelorMittal for automakers looking to create lighter, safer, and more environmentally friendly vehicles. Atlis will use ArcelorMittal's body in white CAD engineering information to reduce weight and cost while increasing the range of its XT.
North American Lightweight Car Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rapid Enhancement in Advanced High-Strength Steels (AHSS) Technology to Foster the Growth of the Market
4.2 Market Restraints
4.2.1 High Cost of Raw Material Hampers the Market Growth
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 (Market Size in Value - USD)
5.1 By Material Type
5.1.1 Metals
5.1.2 Composites
5.1.3 Plastics
5.1.4 Others (Elastomer, etc.)
5.2 By Manufacturing Process
5.2.1 Extrusion
5.2.2 Stamping
5.2.3 Forging
5.2.4 Casting
5.2.5 Others (Molding, etc.)
5.3 By Application
5.3.1 Powertrain
5.3.2 Exterior Systems and Components
5.3.3 Interior Systems and Components
5.3.4 Frame
5.4 By Country
5.4.1 United States
5.4.2 Canada
5.4.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Ford Motor Company
6.2.2 Honda Motor Co., Ltd.
6.2.3 Chevrolet
6.2.4 Nissan Motor Co., Ltd.
6.2.5 Mazda Motor Corporation
6.2.6 Toyota Motors Corporation
6.2.7 General Motors
6.2.8 Volkswagen AG
6.2.9 Hyundai Motors
6.2.10 Kia Motors Corporation
6.2.11 Subaru
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Strict Government Regulations and Standards on Emission Norms to Fuel the Market Demand
North American Lightweight Car Industry Segmentation
In the automotive industry, lightweight refers to the construction of cars using lightweight components such as metals, composites, etc. to improve fuel efficiency and handling. Car manufacturers use carbon fiber parts, plastic windshields, and aluminum foam bumpers to reduce vehicle weight.
The North American lightweight car Market is segmented by material types, manufacturing process, application, and country. By material types, the market is segmented into metals, composites, plastics, and others (elastomer, etc.). By manufacturing process, the market is segmented into extrusion, stamping, forging, casting, and others (molding, etc.). By application, the market is segmented into powertrain, exterior systems & components, interior systems & components, and frame. By country United States, Canada, Mexico, and the Rest of North America.
The report offers market size and forecasts for lightweight cars in value (USD) for all the above segments.
| By Material Type | |
| Metals | |
| Composites | |
| Plastics | |
| Others (Elastomer, etc.) |
| By Manufacturing Process | |
| Extrusion | |
| Stamping | |
| Forging | |
| Casting | |
| Others (Molding, etc.) |
| By Application | |
| Powertrain | |
| Exterior Systems and Components | |
| Interior Systems and Components | |
| Frame |
| By Country | |
| United States | |
| Canada | |
| Rest of North America |
North American Lightweight Car Market Research FAQs
How big is the North American Lightweight Car Market?
The North American Lightweight Car Market size is expected to reach USD 34.66 billion in 2024 and grow at a CAGR of 10.27% to reach USD 56.5 billion by 2029.
What is the current North American Lightweight Car Market size?
In 2024, the North American Lightweight Car Market size is expected to reach USD 34.66 billion.
Who are the key players in North American Lightweight Car Market?
Ford Motor Company, Honda Motor Co., Ltd., Chevrolet, Nissan Motor Co., Ltd. and Toyota Motors Corporation are the major companies operating in the North American Lightweight Car Market.
What years does this North American Lightweight Car Market cover, and what was the market size in 2023?
In 2023, the North American Lightweight Car Market size was estimated at USD 31.10 billion. The report covers the North American Lightweight Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North American Lightweight Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North American Lightweight Car Industry Report
Statistics for the 2024 North American Lightweight Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North American Lightweight Car analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
