Global Automotive Heat Shield Market Competitive Analysis with Growth Forecast Till 2025
The Automotive
Heat Shield Market is estimated to be worth USD 11.7 billion in
2020 and is projected to reach USD 13.9 billion by 2025, at a CAGR of 3.4%
during the forecast period. The growing adoption of electronics in automobiles,
increasing demand for luxury vehicles, and technological advancements in heat
shields are key factors driving the automotive heat shield market. The market
has witnessed substantial growth in developing and developed countries.
Asia Pacific is the largest
market for automotive heat shields. The Asia Pacific automotive heat shield
market accounted for 51.0% of the global market, by value, in 2020. The
implementation of new technologies, establishment of additional manufacturing plants,
and creation of value-added supply chains between manufacturers and material
providers have created a platform for future growth in this region.
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Major players like Dana and
Lydall are investing and increasing their footprint in the Asia Pacific market.
For instance, in 2018, Dana inaugurated a plant that would manufacture
thermal management products for conventional and new-energy vehicles in
Yancheng, China. The rising penetration of such companies in Asia Pacific
will drive the overall market.
China is the untapped heat shield
market for many companies. Autoneum and Lydall are expanding their presence in
the country. Autoneum expanded its presence in China with a plant for the
production of lightweight acoustic and thermal management components in the
eastern Chinese city of Yantai in 2016. Chinese vehicle manufacturers are
supplied with thermal components from Yantai since then.
Increasing innovations and
investments in automotive systems such as powertrain and engine technologies
have escalated the demand for efficient heat shield solutions. However, due to
the COVID-19 pandemic, major Tier I component manufacturers and OEMs have
postponed or limited the developments and investments for financial stability
during the pandemic. In addition, leading heat shield manufacturers such as
Dana and Morgan Advanced Materials have adopted immediate measures to preserve
cash and safeguard financial flexibility due to the pandemic. These players are
less likely to invest in new product development as COVID-19 has caused
significant damage to the whole automotive ecosystem and vehicle sales have bottomed
rapidly. Such enforced measures would restrict the growth of lightweight
non-metallic heat shields.
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The turbocharger heat shield
provides thermal insulation for the automotive turbocharger. It usually takes
the form of coatings, wraps, or blankets. The turbocharger heat shield reduces
turbo lag while serving as a heat barrier that shields and protects engine
components, hoods, and painted surfaces from radiant heat. The automotive
industry has always been under the regulations of authorities to adhere to
guidelines issued as per initiatives. OEMs are compelled to develop products
compatible with the present regulatory environment. The regulations demand
lesser carbon emissions from vehicles by reducing the engine size and number of
cylinders. To maintain high power output of engines, turbochargers or super
chargers are added. The turbochargers are provided with heat shields for
effective operations. Rising penetration of turbochargers and compression
engines is expected to increase the adoption of automotive heat shields, as
turbochargers mandatorily need to be installed with heat shields. The
turbocharger heat shield market is projected to grow at a CAGR of 7.0%, during
the forecast period. The increasing demand for fuel-efficient vehicles and the
growing trend of engine downsizing are expected to propel the demand for
turbocharger heat shields in the coming years.
COVID-19 impact on automotive
heat shield market:
The COVID-19 pandemic is expected
to have a severe impact on the automotive heat shield market. Both the
production and sales of new motor vehicles have come to a halt across the
globe; the whole ecosystem has been disrupted. OEMs must wait until lockdowns
are lifted to resume production. Post the pandemic, the demand for new vehicles
will be significantly low. Hence, they would need to adjust the production
volume. Component manufacturing is also suspended, and small Tier II and Tier
III manufacturers could face liquidity issues. The auto industry is highly
capital-intensive and relies on frequent financing to continue operations.
Thus, the production suspension during the outbreak and lower demand post the
pandemic will have an unprecedented impact on automotive heat shield
manufacturers.
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