SINGAPORE, Jan. 27, 2012 /PRNewswire-Asia/ -- Some people at Frost & Sullivan discovered that that the lightweight automotive materials market, earned revenues of US$38 billion in 2010, and estimates this figure will reach US$95.34 billion in 2017, driven by the need to conform to environmental regulations.
Governments across the world have been passing laws mandating reductions in fuel consumption and/or carbon emissions. These laws have resulted in the lowering of vehicles' weight through the replacement of heavy materials in certain systems with lighter alternatives, as the weight of the automobile has a direct bearing on its fuel efficiency. A 10 per cent reduction in vehicle weight offers fuel savings of 5 to 7 per cent (in mpg), provided the vehicle's powertrain is also downsized, noted Frost & Sullivan.
"These laws also challenge OEMs to find innovative solutions to comply with them and still stay profitable," said Frost & Sullivan, Senior Research Analyst Sandeepan Mondal.
As an example, the end-of-life directive in Europe compels automakers to minimize the waste created when a vehicle reaches the end of its useful life. On one hand, it encourages the incorporation of recyclable lightweight materials in passenger vehicles and on the other; it hinders the market growth of thermosets and carbon composites.
Lightweight materials do decrease the overall weight and emissions, but also hike the costs considerably. The business of both OEMs and tier-I suppliers took a hit during the economic downturn and in such unfavourable economic conditions, they will unlikely be enthusiastic about shifting from a metal-based assembly to alternative materials, the report suggests.
Frost & Sullivan values the 2010 lightweight automotive metals market at US$20,698.1 million by revenue and 10.3 million tonnes by volume. The company projects the automotive metals market to grow to US$59,805.6 million in 2017 at a CAGR of 16.4%. Aluminium remains at the forefront of automotive metals usage, both in terms of value and volume.
Frost & Sullivan also suggests that exterior and body-in-white components are likely to witness more of metal-metal substitution. Aluminium remains the leading material of choice for exterior body panels, whereas for BIW structures, AHSS is expected to replace lower grade steels.
The company values the 2010 automotive plastics market at US$17,305.7 million by revenue and 5.5 million tonnes by volume. The total automotive plastics market is predicted to grow to US$35,536.2 million in 2017 at a CAGR of 10.8%. Polypropylene remains at the forefront of automotive plastics usage, both in terms of value and volume.
Interior and under-the-hood components are likely to witness more of plastics-plastics substitution, the company suggests. The majority of the plastics are targeting metal replacement given on-going trend of weight reduction of vehicles.
Among all lightweight materials, aluminium leads in volume and revenue, while polymers are finding an increasing number of takers, mainly due to the low cost-to-performance ratio depending upon part size, shape and complexity. The adoption rate of plastics will be low in structural parts, which require robust impact resistance properties.
International experts will gather at the Automotive Lightweight Materials 2012 to explore the top notch technologies and best practices the industry peers. Visit www.automotivelightweight.com or email enquiry@iqpc.com.sg for more information, or click http://bit.ly/tjRvhF for full programs and speakers lists.
For more information, please contact:
Joyce Shi
Marketing Manager
Tel: +65-6722-9446
Email: Joyce.shi@iqpc.com.sg
