Europe Automotive Lightweight Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Europe Automotive Lightweight Car market was valued at USD 79.40 billion in 2021 and is expected to reach USD 125 billion by 2027 registering a CAGR of above 9% during the forecast period.
The COVID-19 pandemic hindered the growth of the market as lockdowns and shutdowns of manufacturing facilities across Europe during 2020 resulted in delays in the delivery of key models and a decline in the production of the vehicles.
However, restrictions eased across major countries in Europe by the first half of 2021, and demand started slowly picking up pace however the market is still impacted by supply chain disruptions caused by the ongoing Russia-Ukraine war. Despite such challenges during the forecast period owing to the presence of key sports car manufacturers across countries like Germany, United Kingdom, etc. the market is anticipated to see positive trends in the market during the forecast period.
Over the medium term, increasing regulations to reduce emissions along with increasing demand for fuel economy are expected to grab the attention of OEM manufacturers to decrease the overall automobile weight. In addition, an increase in automotive production, and growing consumer interest to adopt safe and comfort features are anticipated to further boost demand in the market.
However, the high price of lightweight materials, such as carbon fibers as well as few composite materials compared to generic materials increases the overall cost of the vehicle and this is expected to restrict the market growth. Besides this, various research activities to reduce the cost of materials are expected to abate the effect of this restraint in the coming years.
The surge in the production of electric vehicles is expected to propel the growth of the lightweight car market over the coming years across the region. Lightweight materials such as carbon-fiber-reinforced plastic are used in modern electric vehicles, allowing them to run purely on electricity and avoid being classified as hybrids. Besides these, New product developments and compositions are gaining significant popularity in the market as the adoption of the latest technologies offers new opportunities for players in the market.
Germany, United Kingdom, France, and Italy are expected to play a dominant role in the growth of the market during the forecast period. These countries have stringent emission norms for automobiles because of increasing carbon percent in the environment at an alarming rate creating a positive outlook for the market. Further, the presence of key sports car manufacturers like Porsche, Lamborghini, and others is likely to augment the demand in the market during the forecast period.
Key Market TrendsContinuous Evolution in Automotive AHSS Technology to Enhance Market GrowthThere is a demand for reducing weight to enhance vehicle performance and safety. As a result, Advanced High Strength Steel (AHSS), an essential material for mass vehicle reduction, has become one of the fastest-growing materials in today's automotive industry. Steel makes up around 70 % of an average automobile's weight. Compared to standard steel, AHSS enables to reduce vehicle weight by 23-35% which is around 165 to 250 kg, for a regular passenger car, saving 3 - 4.5 tons of greenhouse gases over the vehicle's total life cycle. This saving in emissions is much more substantial than the CO2 emitted during the complete production of steel needed in a car.
The steel composition involves 34% of the body structure, panels, doors, and trunk closures, giving it energy absorption and high strength in case of a crash. 23% is the engine and machinable carbon steel for the wear-resistant gears. 12% is used in the suspension, using rolled high-strength steel, and the remainder in the wheels, tires, fuel tank, steering, and braking systems. In wake of such developments, some key companies operating are taking necessary initiatives in this regard to improve their presence in the market. For instance,
To produce higher strength for reduced steel section size and weight, automakers use less material, significantly reducing a vehicle's weight. The steel industry is focusing on developing different alloys for processing combinations, steel with high tensile strength and ductility, along with optimized chemical compositions to achieve multiphase microstructures of AHSS. Market players are developing new products to widen their consumer base. This is likely to intensify the competition in the global automotive lightweight materials market in the next few years.
Other advancements include the expanded capabilities of automotive steels that have high strength, which enable the design of thinner parts optimizing stiffness but maintaining geometries. AHSS such as Nano Steel helps deliver thinner gauges of steel and components to manufacture at room temperature. The aforementioned trends in the European market are anticipated to offer lucrative opportunities for players operating in the market during the forecast period.
Germany Expected to Lead the European lightweight Car Industry During the Forecast PeriodThe German segment of the market is expected to hold a significant share of the market during the forecast period. Germany is home to 41 automobile assembly and engine production plants with a capacity of more than one-third of European automobile production. Many German companies are experimenting with new composites that can reduce the vehicle's total weight to a great extent. The application of carbon-fiber-reinforced plastic (CFRP) has been widely adopted to produce automotive bodies, particularly in German-manufactured cars, such as BMW, Porsche, and Audi. For instance,
According to several research reports, vehicle manufacturers are likely to increase lightweight component levels from 30 percent to 70 percent by 2030 to compensate for electric drive weight increases and more efficient engine technology in the coming years. With the market for lightweight vehicles in development, various initiatives within Germany are driving technological advancements. As per, the regulatory framework (Euro 6 norms), there is a growing motivation for a low-carbon economy by 2050.
Besides these, European carmakers such as Daimler, Volkswagen, Fiat-Chrysler Research Centre, Volvo, Opel, and Toyota are also working together to produce more efficient vehicles. Their goal is to reduce energy consumption by 10% and global warming potential (GWP) by 6% by reducing the vehicle's weight by 31 to 33% while maintaining the cost. Such trends in the Market are expected to enhance the overall growth of the Germany segment of the market during the forecast period.
Competitive LandscapeThe Europe lightweight car market is moderately consolidated with existing players such as Volkswagen, Nissan Corporation, Toyota, Hyundai, and other key OEMs operating in the European market. As the demand for lightweight cars is growing in the region, while some key automotive manufacturers are trying to edge over their competitors by making joint ventures, partnerships, and launching new products with advanced technology, other raw material, and component suppliers are focusing on improving their product offerings. For instance,
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