Automotive Ceramics Market

Automotive Ceramics Market Growth Outlook (2022-2032)

The global automotive ceramics market was valued at US$ 2.3 Billion in 2021 and market is valued at US$ 2.42 Billion in 2022.

During the 2022-2032 period of assessment, demand is expected to rise at a 5.4% value CAGR, likely to reach US$ 6.6 Billion by the end of the said forecast period.

The market for automotive ceramics experienced steady growth until 2020, closing in at approximately US$ 2 Billion amid high deployment across several automotive allied industrial domains, most notably across electronics manufacturing.

Report Attributes	Details
Market Size in 2021	US$ 2.3 Billion
Market Size in 2022	US$ 2.42 Billion
Projected Forecast Value (2032)	US$ 6.6 Billion
Global Growth Rate (2022-2032)	5.4%
Growth Rate of US (2022-2032)	32%
Key Companies Profiled	3M Company CeramTec GmbH CoorsTek Inc. Corning Inc. Dyson Technical Ceramics Ltd. Elan Technology IBIDEN Co. Ltd. Kyocera Corporation McDanel Advanced Ceramic Technologies LLC Morgan Advanced Materials Plc. NGK Insulators Ltd. Saint Gobain Performance Ceramics & Refractories

Automotive Ceramics Market Insights: Historical Trends from 2017-2021 Vs Future Market Outlook for 2022-2032

According to Fact.MR - a market research and competitive intelligence provider, from 2017 to 2021, automotive ceramics sales expanded at a CAGR of over 5%, attributed to extensive uptake across the automotive electronics domain. As emission standards toughen, consumers are opting for sustainable alternatives, including electric vehicles, which also elevated prospects.

As per Fact.MR’s insights into the automotive ceramics market, amidst the COVID-19 crisis, sales were estimated at nearly US$ 2 Billion during FY 2020-21. Imposition of mandatory lockdowns slowed expansion prospects, as key automotive companies temporarily ceased production. Adjusting for this downswing, prospects have been revised for the market to expand at a CAGR of 5.4% from 2022 to 2032.

Which Emerging Trends Are Driving Demand for Automotive Ceramics?

Increasing Deployment of Electronics Nudging Automotive Ceramics Demand

As technological advancements penetrate the global automotive industry, manufacturers are incorporating numerous electronic systems to streamline overall driving experiences for vehicle owners. Electronic systems such as in-car entertainment systems, radio, ignition, telematics and computers are becoming increasingly mainstream.

Modern electric cars rely on power electronics for the main propulsion motor control, as well as managing the battery system. Future autonomous cars will rely on powerful computer systems, an array of sensors, networking, and satellite navigation, all of which will require electronics. Hence, sales of automotive ceramics are bound to incline significantly.

Implementation of Strict Vehicle Emission Norms Catalyzing Demand for Automotive Ceramics

As greenhouse gas emission levels increase at an alarming rate, governments worldwide are attempting to rein in these harmful emissions, majority of which are generated from excessive automotive usage. In an effort reduce greenhouse gases, emission control regulations are becoming stringent, prompting vehicle manufacturers to introduce fuel-efficient automobiles.

For instance, the European Union is actively endorsing the Euro 6 emission standard since 2014. For a diesel car to be Euro 6 compliant, it should not emit more than 80 mg/km of NO­x gases, while a petrol car can emit no more than 60 mg/km. From 2025, the Euro 7 standards would be applicable. Such tough legislations are compelling auto manufacturers to incorporate automotive ceramics and enhance vehicular performance.

Which Challenges are Hampering Automotive Ceramics Market sales?

High Costs May Hamper the Market Growth

Although the automotive ceramics market has numerous end-uses, there are some obstacles that likely pose a challenge to market growth during the forecasting.

The high cost of solutions, as compared to plastic as well as metal alternatives may restrain the development of the global automotive ceramics industry in coming years. However, the increasing demand from the automotive electronics application segment is most likely to bode well for the expansion of the global automotive ceramics market over the forecast period of 2022 to 2032

Comparative View of Auto Infotainment Markets

Automotive Ceramics Market :

Attributes	Automotive Ceramics Market
Growth Factor	Increasing demand for electronics applications in vehicles are likely to drive the market over the course of the forecast period.
Opportunity	Increasing utilization of the ceramic materials in development and manufacturing of glow plugs, electronic fuel pumps, sealing and insulation rings, spark plugs, high pressure pumps, and valves are likely to positively influence market growth over the projection period.

Automotive Plastics Market :

Attributes	Automotive Plastics Market
Growth Factor	The huge demand for automobiles, improved vehicle design capabilities and the growing importance for weight reduction and emission control are some of the factors that drive the growth of the automotive plastics market.
Opportunity	Increasing demand in manufacturing electrical components, interior and exterior furnishings, power trains, under the hood components, chassis and other such critical automotive parts are major factor expected to fuel revenue growth of the market in the near future.

Ceramic Coatings Market :

Attributes	Ceramic Coatings Market
Growth Factor	Increasing application in automotive to drive the demand for ceramic coating market during the forecast period.
Opportunity	The growing demand for ceramic coatings in developing nations like India, China, Indonesia, and Brazil is anticipated to accelerate the ceramic coating market growth.

Country-wise Analysis

How Lucrative is the U.S Market for Automotive Ceramics?

Technological Advancement in Automotive Leads to Market Growth in US

As per Fact.MR, the automotive ceramics industry forecast for the U.S appears bright, surpassing US$ 465 Million in 2022, accounting for almost 32% revenue. A series of anticipated positive developments in automotive technology is likely to drive future expansion in the region.

Some of these developments include the introduction of self-driving vehicles, enhanced connectivity, electrification, shared mobility and artificial intelligence to name a few, which are motivating the establishment of numerous start-up companies, which are expected to invest heavily in high grade automotive ceramics for their manufacturing processes.

What are the Prospects for Future Automotive Ceramics Sales across China?

Presence of Numerous Major Automotive Ceramic Manufacturers in The Region Drive the Market Growth

China is forecast to register heightened sales of automotive ceramics, expanding at over 8.2% CAGR through 2032. As per Fact.MR’s automotive ceramics industry research, a valuation exceeding US$ 540 Million by 2032-end is projected for the Chinese market.

The International Trade Administration estimates that China continues to remain the world’s largest vehicle market, both in terms of annual sales and manufacturing output, with domestic production likely to reach 35 Million units by 2025. Hence, manufacturers are augmenting in high-grade ceramics for numerous automotive internal and external components.

Category-wise Insights

By Type of Ceramics Which Is the Most Prominent Segment in the Automotive Ceramics Market?

Demand for Functional Ceramics is high among other types

By type, functional automotive ceramics demand is projected to grow at over 5.2% CAGR by 2032, surpassing US$ 1.3 Billion. Automotive ceramics are experience high usage across engine & exhaust systems, electronics, internal parts and a host of other functionalities.

Manufacturers such as Advanced Ceramic Materials (ACM) offer a broad range of functional ceramics for automotive brakes, shock absorbers and engines respectively. The company manufactures ceramics from carbon fibers and zirconia.

By Material Which Segment Generates the High Revenue in The Automotive Ceramics Market?

Alumina Oxide Automotive Ceramics Remain Most Preferred

As per Fact.MR’s automative ceramics industry survey, sales of alumina oxide ceramics are anticipated to remain dominant. The segment accounted for more than 40.6% revenue in 2022.

Alumina oxide ceramics are the most widely used material, as it possesses superb characteristics, including high electrical insulation, enhanced mechanical strength and high wear & mechanical resistance. Moreover, alumina oxide ceramics help reduce fuel consumption by over 30%.

Based On Application, Which Segment Accounts for Maximum Automotive Ceramics Market Growth?

Automotive Electronics is the heaviest application segment

Fact.MR’s automotive ceramics sales forecast anticipates a healthy growth trajectory across the electronics segment, expanding at almost 5.2% CAGR until 2032.

Automotive engineers and designers use ceramic electronic substrates and components to provide better reliability, environmental performance, engines, transmission, chassis, safety, driver assistance, passenger comfort, and infotainment systems and modules.

Start-Ups for Automotive Ceramics Market

Some key startups in the automotive ceramics industry include Calix Ceramics solution, Astro Met Inc., Anoop ceramics, NGK Technologies India, Vinkayauto, Tecera, Otto Chemie Pvt. Ltd., among others.

• Astro Met Inc. - Manufacturer of high-purity components for wear and corrosive applications including alumina. Types include zirconia-toughened alumina, alumina-aluminum oxide cement and alumina ceramic. Used for wear, corrosion, thermal and electrical applications.

Competitive Landscape

Prominent players are reliant on designing automotive ceramics aimed at reducing the overall weight of vehicles. Additionally, extensive R&D activities are being undertaken for manufacturing ceramics for automotive electronics among other expansion strategies.

• For instance, CeramTec GmbH offers a broad range of silicate ceramics for automotive engineering and lighting technology. These ceramics are widely deployed for producing halogen and xenon headlights, as they continuously emit high amounts of UV light.
• Likewise, Corning Inc. offers the MACOR® high-tech glass ceramics which are non-porous and virtually impervious to electricity and heat. These are especially deployed by NASA for over 200 distinctly shaped components in hinge points, windows, and doors for the Space Shuttle orbiter series.
• In August 2022- Kyocera Corporation announced that it will construct a new production facility at its Kokubu Plant Campus in Kagoshima, Japan, to increase its production capacity of multilayer ceramic capacitors (MLCCs), strengthen engineering development capabilities, and ensure ample manufacturing space as Kyocera's business expands.
• In May 2022 - AlN HP is a new high-performance substrate by ceramics specialists CeramTec. AlN stands for aluminium nitride, a material with excellent thermal conductivity ideal for use in power converters in rail vehicle construction or in the alternative energy sector. HP means high performance and expresses the material’s superior flexural strength of 450 MPa.

Key Segments Covered in Automotive Ceramics Market Study

• By Type :

  • Functional 
  • Structural 

• By Material :

  • Alumina Oxide 
  • Titanate Oxide 
  • Zirconia Oxide 
  • Other Material 

• By Application :

  • Engine Parts
  • Exhaust Systems
  • Electronics
  • Other Applications

• By Region :

  • North America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Latin America
  • Middle East & Africa