Automotive Ceramics Market is Expected to Reach $3.1 Billion by 2027

According to a new report published by Allied Market Research, titled, "Automotive Ceramics Market by Material, Component, and Application: Opportunity Analysis and Industry Forecast, 2020-2027," 

The global automotive ceramics market was valued at $1.9 billion in 2019, and is projected to reach $3.1 billion by 2027, growing at a CAGR of 6.5% from 2020 to 2027.

Automotive ceramics are engineered components made from ceramics such as zirconia, alumina, silica, and others. Automotive parts made from ceramics include various spark plug insulator, foundry cores, sensor disks, dosing tubes, armor, welding nozzle, part holder, ceramic rings for brake calipers, fluid seals, and resistor cores. They have replaced conventional materials, such as plastic and metals, due to their excellent performance at higher temperatures and chemical resistance. Ceramic-based components are lighter, durable, and offer better corrosion resistance performance. 

Presently, the global automotive ceramics market is driven by increasing global motor vehicle production. Increasing population and rise in disposable income have increased sales of passenger vehicles. In 2019, 92.8 million motor vehicles were produced globally. The market for automotive ceramics is also driven by changes in emission control regulations globally. For instance, the European Union is actively engaged in the reduction of greenhouse gases and pollutant emissions. Therefore, the evolution of emission regulation is expected to remain the main driver for changes in vehicle technology, thereby leading to production of new ceramic products. Newer emission control regulations demand modifications in vehicle components and lead to improved ceramic components. The global automotive ceramics market growth depends on the level of innovation in the automotive industry. One such innovation is the development of electric and hybrid vehicles. Another key trend in the automotive industry that diversifies the industry is the level of automation. Automating vehicle operations is expected to utilize more sensors and electronic components. In 2019, CoorsTek, a global manufacturer of ceramics, showcased its portfolio of automotive ceramics for electric & hybrid vehicle technology. 

High cost of developing automotive ceramic components as compared to metals and alloys is expected to hamper the market growth of automotive ceramics. Developing automotive components made from ceramics is highly capital-intensive and requires robust R&D investment. This limits the entry of new players in the automotive ceramics market. On the contrary, development of low-cost manufacturing technologies to manufacture ceramic-based components is expected to offer lucrative opportunities for the automotive ceramics market growth. 

The global automotive ceramics market is segmented into material, component, application, and region. 

Based on material, the global automotive ceramics market is divided into alumina oxide, titanate oxide, zirconia oxide, and others. 

Alumina held the largest market share in 2019, alumina is mainly used for automotive electronic components and thermal barrier coating for engine parts

On the basis of component, the global automotive ceramics market is classified into automotive engine parts, automotive exhaust systems, automotive electronics, and others.

The engine parts segment held the largest market share in 2019. Ceramic-based engine parts include spark plug insulators, glow plugs, valves, pump seals, seal, and nozzles. Based on vehicle type, the passenger segment held the largest automotive ceramics market share in 2019. Compared to commercial vehicles, passenger vehicles production is expected to grow during the forecast period, owing to the growth of the electric vehicle market. 

Region-wise, the automotive ceramics market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered the largest market share in 2019, and is estimated to register the highest CAGR of 7.3%. Countries in Asia-Pacific, such as India, China, and Japan, have a well-established automotive industry, which is growing in terms of volume as well as revenue. These countries are major players in the supply chain of automotive manufacturing.  

Key Findings Of The Study

• The automotive ceramics market is projected to grow at a CAGR of nearly 6.5%, in terms of revenue, during the forecast period.
• Asia-Pacific dominated the automotive ceramics market with a revenue share of over 52.1% in 2019, and is estimated to register the highest CAGR of 6.5%.
• On the basis of material, the alumina oxide segment held the largest market share in 2019, and is expected to grow at a CAGR of 5.9%.
• On the basis of component, the engine parts segment held the largest market share in 2019, and is expected to grow at a CAGR of 6.1%.
• On the basis of application, the passenger segment held the largest market share in 2019, and is expected to grow at a CAGR of 8.07%.

Impact Of Covid-19 On The Global Automotive Ceramics Market

• The automotive industry was one of the worst affected industries due to the COVID-19 pandemic as it disrupted the entire supply chain, starting from material sourcing to the end-use consumer.
• On the supply side of automotive ceramics, the closure of operations in China deeply impacted the supply of ceramic materials. China is a key region for the supply of ceramic raw materials such as zirconia and alumina. 
• On the demand side, there was a change in consumer spending patterns as consumers delayed purchasing new vehicles to minimize the spending. This decline in automotive sales led to loss of revenue of all automobile manufacturing companies. The decline in consumer demand was evident in their quarterly sales. 
• Major car companies, such as Toyota, have temporarily suspended or intend to temporarily suspend production of automobiles and components at selected plants in Japan and overseas.