Market Trends of Automotive Shielding Industry
This section covers the major market trends shaping the Automotive Shielding Market according to our research experts:
Passenger Car Segment is Expected to Grow with the Highest CAGR
By vehicle type, Automotive Shielding for passenger cars is expected to outperform passenger vehicles segment. During the forecast period, the production and demand for passenger cars is expected to rise by around 8%. The rising demand for fuel-efficient vehicles and the strict government norms for emission is enhancing the demand for heat shielding for passenger cars.
The adoption of advanced technologies like ADAS, connected cars, advanced infotainment systems etc. is high for passenger cars as compared to commercial vehicles. These advanced features are enhancing the demand for EMI shielding for passenger cars especially luxury and high-end cars.
In the year 2019, Electric vehicles witnessed a high demand and captured around 2.5% of the global vehicle market over the first 10 months and many new models were launched by the OEMs.
The major players in the market are spending heavily on research and development for EMI shielding for passenger cars looking at the high demand from the end-users. For instance, in May 2018, Global electro-chemicals manufacturer, Electrolube, introduced a new range of Form-In-Place EMI shielding materials and a silver conductive adhesive. The product has been successfully tested in China for mobile phones and will be launched for automotive products in Europe, who require reliable and high-performance EMI shielding materials for applications such as automatic mirrors, cameras, radar modules, rear/side detection systems and car audio/entertainment systems.
Asia-Pacific is Expected to be the Largest Market
The Asia-Pacific region is expected to be the market leader for automotive shielding market, followed by Europe and North America. The demand is driven by the high production and demand for automobiles during the forecast period. This demand is attributed by the growing income levels of the people living in the region, which is allowing the people to buy more high-end luxury automobiles.
The electric vehicle market in the region is increasing with a very high growth rate. China is the largest market for electric vehicle globally. The electric vehicle market share in the world's largest auto market, China, increased from 4.5% to 4.7% and around 1.8 million plug-in electric cars were sold in the country in 2019.
Electric vehicles sales, grew by 20 percent in India in 2019-20. As many as 1.56 lakh EVs were sold in the country in 2019-20 as against 1.3 lakh units in the previous financial year.
The major players in the region are investing heavily for incorporation of high-end technologies like connected vehicles to reduce the accidents and enhance the drivers' experience while driving. This will require enhanced electrical systems in the vehicle and this will generate high demand for EMI shielding in the market. The demand for electrical vehicles in the region is also high due to the awareness about environmental impact of conventional fuels and the financial benefits offered by the governments in the region.
