Mexico & LATAM Automotive Lightweight Materials Market - Forecast(2023 - 2028)

Mexico & LATAM Automotive Lightweight Materials Market Overview

Mexico & LATAM Automotive Lightweight Materials Market size is forecast to reach US$6.5 billion by 2027, after growing at a CAGR of 8.2% during 2022-2027. Lightweight material improves the efficiency of vehicles and also reduce carbon emission. Automotive manufacturers use different types of materials in the manufacturing process of vehicles which include metals, plastic, composite and elastomer among others. The increasingly stringent norms and regulations on vehicle emission and fuel economy regulations are driving the market for the lightweight materials industry during the forecast period. The growing government initiatives for vehicle weight reduction are also expected to propel the growth of the automotive lightweight material market during the forecast period. The growing production of lightweight passenger vehicles in emerging economies such as Mexico, Brazil and Argentina is also boosting the automotive lightweight materials market. The COVID-19 outbreak led to major economic problems and challenges for the Mexico & LATAM Automotive Lightweight Materials industry globally. Governments all across Mexico and LATAM announced strict measures to slow the spread of the coronavirus and only the production of essential commodities was allowed, which impacted the non-essential commodity industries, thereby impacting the production of Mexico & LATAM Automotive Lightweight Materials industry.

Mexico & LATAM Automotive Lightweight Materials Market Report Coverage

The “Mexico & LATAM Automotive Lightweight Materials Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Mexico & LATAM Automotive Lightweight Materials industry.

Key Takeaways

• The Mexico region is expected to grow at a high CAGR of 7.8% during the forecast period. One of the key drivers driving the market is rapid growth in the automotive industry.
• The growing demand for lightweight engineered elastomer and plastic such as polycarbonate and polyurethane is expanding Mexico & LATAM Automotive Lightweight Materials Market size during the forecast period.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Mexico & LATAM Automotive Lightweight Materials Market Report.

Figure: Mexico Automotive Lightweight Materials Market Revenue, 2021-2027 (US$ Billion)

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Mexico & LATAM Automotive Lightweight Materials Market Segment Analysis – by Material Type

The metal segment held the largest share of 48% in the Mexico & LATAM automotive lightweight materials market in 2021 and is expected to grow at a significant CAGR during the forecast period 2022-2027. Metals offer various superior properties such as low cost, stiffness, good strength, versatility, easily customizable, durability and flexibility among others. The main body, structure and engine components are manufactured from different metals such as high-strength steel, aluminum and magnesium among others. The magnesium components are 75% lighter than steel and 33% lighter than aluminum. Metals are extensively used for manufacturing various automotive parts such as vehicle bodies, chassis, engines, wheels, doors, hoods and hatchbacks among others. According to the facts published by CEIC, Brazil’s Motor Vehicle Production was reported at 2,256,324 Units in 2021 and 2,020,229 Units in 2020. Hence the growth in automotive production is driving the market growth during the forecast period.

Mexico & LATAM Automotive Lightweight Materials Market Segment Analysis – by Vehicle Type

The passenger car segment held the largest share in the Mexico & LATAM automotive lightweight materials market in 2021 and is expected to grow at a significant CAGR during the forecast period 2022-2027. The growing income levels along with the growing trend of owning a own vehicle in developing nations such as Mexico, Brazil and Argentina are driving the market for passenger vehicles which is further driving the market for Mexico & LATAM automotive lightweight materials market. According to the International Trade Administration Mexico is the sixth largest passenger car manufacturer globally and produces approximately 3 million vehicles annually. Hence the growth in passenger car production is driving the market for Mexico ad LATAM automotive lightweight materials market.

Mexico & LATAM Automotive Lightweight Materials Market Segment Analysis - by Application

The body in white segment held a significant share of 23% in the Mexico & LATAM Automotive Lightweight Materials industry in 2021 and is anticipated to grow at a significant CAGR during the forecast period 2022-2027. Lightweight materials are used in the cross and side beams, passenger compartment frame, under-body floors, front end structures and panels among others. The body in white is welded with different components such as trims, bearing moving parts and chassis subassemblies among others. All components are manufactured from metals. Hence the growing usage of metal among bodies in white is driving the market growth during the forecast period. The power train segment held a significant share in the Mexico & LATAM automotive lightweight materials market in 2021 and is expected to grow at a CAGR of 8.5%, during the forecast period. The increasing demand for lightweight materials such as aluminum, high-strength steel, plastic, magnesium and carbon fiber composites from the automotive industries to manufacture power trains is supporting the market growth. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total automobile production in Mexico reached 3,145,653 units in 2021 and Brazil produced 2,248,253 units in 2021. Hence the growth in the automotive industry is driving the market for Mexico & LATAM Automotive Lightweight Materials.

Mexico & LATAM Automotive Lightweight Materials Market Segment Analysis – by Geography

The Mexico region holds a significant share in Mexico and the LATAM Automotive Lightweight Materials industry in terms of revenue with a share of 54% in 2021 and is projected to grow a significant CAGR during the forecast period (2022-2027). The presence of key raw material suppliers along with the presence of key automotive players is driving the market in Mexico’s automotive lightweight materials market. Ford, Chrysler, GM, VW, Toyota, Nissan, Mazda and Honda are some of the key automotive players operating in the Mexico market. According to World Steel Association, Steel production in Mexico increased to 1550 Thousand tons in December from 1450 Thousand tons in November of 2020. Mexico produced approximately 19mn metric tonnes (mt) of steel in 2021. Hence the presence of abundant raw material sources in Mexico is driving the market growth during the forecast period.

Mexico & LATAM Automotive Lightweight Materials Market Drivers

Growing Demand for Lightweight Passenger Vehicles

Automotive Lightweight Materials are generally used in the manufacturing of automotive body parts and components such as doors, windows, frames, bumpers, fuel tanks, wheels, engine components and others. Modern lightweight design requires new technologies in addition to new materials to decrease the weight of the vehicle. Automotive manufacturing companies have been involved in the use of lightweight materials to lower vehicle weight, fuel consumption and carbon dioxide emissions. According to the facts published by OICA, Mexico automotive manufacturers produced approximately 967,479 passenger vehicles in 2019 and 1,396,812 units of passenger vehicles in 2020. Argentina produced 108,364 units of passenger vehicles in 2019 and 93,001 units of passenger vehicles in 2020. The rapid growth in automotive production is supporting Mexico & LATAM Automotive Lightweight Materials market size during the forecast period.

Stringent emission and fuel economy regulations

The governments in Mexico and Latin America have introduced strict emission and fuel economy regulations for vehicles. These regulations have made automotive OEM manufacturers increase the use of lightweight materials such as lightweight metals, composites and polymers in automotive manufacturing. Lightweight materials will increase the fuel economy of a vehicle and improve the carbon emission from vehicles. According to automotive analysis, a 10% reduction in vehicle weight can improve fuel economy by 6 to 8%. In July 2012, the Mexican Government officially published regulations on CO2 emissions and the fuel economy equivalent for new passenger vehicles, pickup trucks and SUVs mandating an average new car fleet average fuel economy of 14.9 km/L (35 mpg) in 2016. Hence the growing rules and regulations like these are supporting the market growth for Mexico & LATAM automotive lightweight materials market.

Mexico & LATAM Automotive Lightweight Materials Market Challenge

High Material and Processing Cost

The high cost of materials such as high-strength steel, carbon fiber-reinforced composites and magnesium may hamper the market growth due to their extensive use of lightweight automotive vehicles. Due to the high cost of raw materials, OEMs in Mexico and Latin American countries depend on economical passenger cars and prefer to use conventional materials instead of lightweight materials. Lightweight materials require high maintenance, in addition to the high cost. These are some of the major challenges hampering the market growth for Mexico & LATAM Automotive Lightweight Materials.

Mexico & LATAM Automotive Lightweight Materials Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Mexico & LATAM Automotive Lightweight Materials Market. The top 10 companies in the Mexico & LATAM Automotive Lightweight Materials Market include:

1. Dupont
2. Toray Industries Inc.
3. LyondellBasell
4. Reichhold
5. Oweners Corning
6. Teijin Inc
7. 3M
8. Huntsman
9. Mitsubishi Rayon
10. Solvay

Recent Developments

• In May 2022, Solvay expands SolvaLite portfolio with prepregs for automotive body panels and invests in Xencor LFT production facilities. SolvaLite 714 Prepregs, a new generation of unidirectional carbon-fiber and woven-fabric products pre-impregnated with SolvaLite 714 epoxy resin. The product will be commercially available worldwide beginning in the second quarter of 2022.
• In May 2022, 3A Composites Core Materials has agreed to acquire SOLVAY’s TegraCore PPSU resin-based foam that will become part of the portfolio under the name AIREX TegraCore. Both companies agreed to continue their collaboration in the further development of AIREX TegraCore.
• In May 2022, The Toray Group, launched its wide range of TORAYCA carbon fiber, Cetex thermoplastics composites and other high-performance composite materials. TORAYCA carbon fiber is used in aerospace, automotive, industrial and sports and recreation markets. The products are also available globally.

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