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Automotive Ceramics Market - Forecast(2023 - 2028)
Automotive Ceramics Market Overview
The Automotive Ceramics Market size is estimated to reach US$3.1 billion by 2027 after growing at a CAGR of 5.7% during the forecast period 2022-2027. The rising preference for ceramics components in automotive vehicles over metal alloys for weight reduction and enhanced durability acts as a significant driving factor in the automotive ceramics market. According to the International Organization of Motor Vehicle Manufacturers (OICA), global passenger car production increased from 55,834,456 units in 2020 to 57,54,295 units in 2021. The Covid-19 outbreak disturbed the functioning and growth of the market due to the closure of automotive production and a halt in manufacturing, logistics disruptions and supply chain issues. However, with recovery and an established base for the automotive sector post-pandemic, the applications of automotive ceramics are rising, thereby offering major demand in the market. Thus, the automotive ceramics industry is anticipated to rise and contribute to the automotive ceramics market size during the forecast period.
Report Coverage
The “Automotive Ceramics Market Report
– Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of
the following segments in the Automotive Ceramics Industry.
Key Takeaways
- Asia-Pacific dominates the Automotive Ceramics Market, owing to its growing government initiatives toward electric vehicle development and production in APAC, thereby boosting the growth of the automotive ceramics industry.
- The growing automotive sector, majorly passenger vehicles segment offers flourishing demand in the automotive ceramics industry for various applications in engine parts, electronic components, ceramic bearings, sensors and others, thereby contributing to the automotive ceramics market size.
- The demand for alumina oxide ceramics is rising due to its advantageous features over zirconia, titanate oxide and others for cost-effectiveness, thermal efficiency and mechanical features, thereby boosting the growth in the market.
- However, the rising prices for automotive ceramics such as zirconia oxide, titanate oxide and others, create a major challenge in the automotive ceramics market.
Automotive Ceramics Market Segment Analysis – by Material
Alumina oxide held the largest Automotive
Ceramics Market share in 2021 and is estimated to grow at a CAGR of 5.8%
during the forecast period 2022-2027. Alumina oxide ceramics have high demand
compared to other types such as zirconia oxide, titanate oxide and others due
to their advantageous features such as outstanding electrical insulation,
thermal shock resistance and cost-effectiveness. Due to such superior
advantages of alumina oxide over other types, it is increasingly used in
automotive vehicles for sensors, electronic components, lighting systems and
thermal barrier coatings to enhance fuel efficiency and lightweight vehicle
body. The alumina oxide ceramics work for the thermal efficiency in the
vehicle; thereby are preferable for various automotive applications. Thus, with
the rise in demand and preference for alumina ceramics in the automotive
industry owing to its excellent advantages compared to other types, alumina
oxide ceramics hold dominance and major growth prospects in the automotive
ceramics industry during the forecast period.
Automotive Ceramics Market Segment Analysis – by End-use Industry
The Automotive Industry segment held a
significant Automotive Ceramics Market share in 2021 and is projected to grow
at a CAGR of 6.5% during the forecast period 2022-2027. Automotive ceramics has
a wide range of applications for the passenger vehicles (PV) segment in
seating, ceramic bearings, interior components and others. The passenger
vehicles segment is rapidly growing due to high demand for lightweight cars,
increasing production for electric motor vehicles, high demand for
two-wheelers, three-wheelers and others as transport sources and rising
preference among the middle-class segment. For instance, according to the
International Organization of Motor Vehicle Manufacturers (OICA), global
passenger car production increased from 55,834,456 units in 2020 to 57,54,295
units in 2021. According to the European Automobile Manufacturers Association
(ACEA), the total motor vehicles produced globally were 79.1 million units,
which increased by 1.3% in 2021 compared to 2020. Thus, with rising passenger
vehicle production and demand, the applications of advanced automotive
ceramics for insulation rings, interior components, valves and others are
anticipated to rise, thereby boosting the demand in the market and
providing significant growth in the passenger vehicles segment during the forecast
period.
Automotive Ceramics Market Segment Analysis – by Geography
The Asia-Pacific region held the largest Automotive Ceramics Market share in 2021 up to 45%. The robust growth of automotive ceramics in this region is influenced by the rising production and development of automotive vehicles and the established base for auto manufacturers in major countries such as China, India, Japan, South Korea and others. According to the Society of Indian Automobile Manufacturers (SIAM), the total automotive vehicle production in India rose from 22,655,609 units in 2020-21 to 22,933,230 units in 2021-22. According to the Federal Chamber of Automotive Industries, the new vehicle registration in Australia represented an increase of 1.2%with 101,233 units in March 2022 compared to March 2021. According to the China Association of Automotive Manufacturers (CAAM), the production and sales of new energy vehicles reached 1.29 million units and 1.25 million units in quarter 1st of 2022 respectively, showing an increase of 140% year-on-year. With the rise in automotive production and development, the applications of automotive ceramics materials for spark plugs, automotive electronics, engine parts and others are rising, which is boosting the growth of the automotive ceramics industry in the Asia-Pacific region. Thus, the automotive ceramics market is anticipated to grow majorly in the Asia-Pacific during the forecast period.
Automotive Ceramics Market Drivers
Bolstering Growth of the Electric Vehicles Sector:
The electric vehicles sector is growing significantly due to
factors such as a rise in subsidies and incentives for electric vehicle
promotion, emphasis on zeros emissions of carbon and harmful gases and the
latest technological developments. According to the International
(IEA), the sales of electric cars tripled in 2021 to reach 3.3 million units
compared to the previous years. According to the India Energy Storage Alliance (IESA) report, India's electric vehicle segment is
anticipated to reach 63 lakh per unit mark per year by the year 2027. The EV
market is projected to expand at 44% between 2020 and 2037. According to
International Energy Agency (IEA), electric car production saw a rapid increase
of 43% in 2020 over 2019. Thus, with the rise in production and growth of
electric vehicles, the applications of automotive ceramics for battery modules,
spark plugs and others are growing, which is boosting the demand in the
automotive ceramics industry and driving the market.
Rising Adoption of Advanced Ceramic for Fuel-Efficiency In Vehicles:
The demand for lightweight vehicles and
fuel-efficient vehicles is growing rapidly owing to factors such as emphasis on
reducing carbon emission, maintenance of fuel efficiency and the limit on
harmful gases emitted by high-fuel-consuming vehicles. For instance, under the
Net Zero Emission by 2050 scenario, plans for fuel consumption of new
light-duty vehicles in 2030 must reach half the value in 2019. Moreover, other
regulations mandate that the fuel economy must meet 54.5 miles per gallon
in the US by 2025. Thus, with increasing emphasis on fuel efficiency and
reduction of carbon emissions, the applications of automotive ceramics in
vehicle engine parts, sensors and others are growing to fulfill the lightweight
body and fuel efficiency in vehicles, thereby boosting the demand and driving the
automotive ceramics industry.
Automotive Ceramics Market Challenge
High Costs of Automotive Ceramics:
The material cost of Automotive Ceramics is high compared to
that of other metals and alloys. The manufacturing of automotive ceramics is a
costly procedure due to the major impact of the increase in gas prices. The
price for titanium oxide ceramics saw an increase due to a rise in raw
materials prices. For instance, the Longbai Group announced that starting in
January 2022, the sale price of titanium dioxide will rise by RMB 1,000 or
US$149/ton to domestic customers and US$150 per ton for international. In
addition, Orient Zirconic, a Chinese manufacturer of zirconia ceramic
powders, increased the prices by US$447 per ton for zirconium oxychloride and
US$1,492.4 per ton for zirconium dioxide products. Thus, with an increase in
prices for major ceramic materials due to demand and supply changes, the
automotive ceramics industry faces a slowdown and hamper in production trends,
thereby facing a major challenge in the market.
Automotive Ceramics Industry Outlook
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the automotive ceramics
market. The top 10 companies in Automotive Ceramics Market are:
- Almatis GmbH
- Saint-Gobain S.A.
- Stanford Advanced Materials and
- Ferrotec Corporation
- Hoganas AB
- International Syalons Limited
- CoorsTek
- CeramTec
- Elan Technology
- Venator Materials Plc
Recent Developments
- In January 2022, the Advanced Nanotech Lab announced the private label manufacture of 9H ceramic coating, 10H ceramic coating and other hybrid variants for the automotive sector in Asia, thereby boosting its product portfolio and demand in the automotive industry.
- In January 2022, the JGC Subsidiary acquired the ceramics business of SDMC, intending to boost the portfolio in automotive, semiconductors and others, thereby offering major growth for the market.
- In May 2019, NGK Insulators, Ltd received the 4th Ceramic Grand Prize award for contributing to reducing air pollution through the development of porous advanced ceramic products for applications in the automotive exhaust, thereby offering a major contribution and demand for the automotive sector.
Relevant Reports
Report Code: CMR 0268
Report Code: CMR 16059
Report Code: CMR 88625
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