Automotive ceramics for electronics to spur demand
The global automotive ceramics market is expected to top $2bn by 2031, expanding at a CAGR of five percent across the decade, concludes a recently published research study by a market research and competitive intelligence provider. A surging global automotive market and its allied industries are catalysing demand for automotive ceramics.
High uptake in electronic component manufacturing majorly drove the market’s historical growth. From 2016 to 2020, a CAGR exceeding four percent was registered, growing from over $1bn to reach nearly $2bn, representing almost twofold growth. Recessionary impacts induced by COVID-19 temporarily stalled expansion, as compulsory lockdowns forced automotive manufacturers to cease production in the first half of the year.
Sales of automotive ceramics for electronics are especially likely to gather momentum amid the rising popularity of electric vehicles. With stricter emission norms being enforced, automotive companies are conforming to mandatory compliance requirements, prompting an increase in adoption of more sustainable alternatives.
For instance, in April 2021, the US government announced a new emissions reduction target of 50-52% by 2030, while the UNEP calls for a 7.6% reduction target each year.
Key takeaways from market study
- By type, functional automotive ceramics to top $1bn by 2031, increasing at over five percent CAGR.
- Sales of structural automotive ceramics accounted for over 40% of total revenue in 2020.
- Alumina oxide automotive ceramics to generate more than two out of five sales by 2031.
- By application, automotive ceramics for electronics to generate heightened sales, expanding at nearly five percent CAGR.
- The US topped $450m in 2020, accounting for nearly three out of ten automotive ceramics sales.
- Market in China to expand at over eight percent CAGR, surpassing a valuation of $500m by 2031.
- Japan and Canada markets to expand a CAGRs of approximately seven percent across the forecast period.
“Prominent manufacturers are incorporating carbon and silk fiber as well as other lightweight construction material in automotive ceramics with the objective of enhancing vehicular performance and minimising energy expenditure,” commented Senior Research Analyst.
3M Company, CeramTec, CoorsTek, Corning, Dyson Technical Ceramics, Elan Technology, IBIDEN, Kyocera, and McDanel Advanced Ceramic Technologies are some key automotive ceramics manufacturers profiled in market intelligence report.
Elan Technology, a prominent ceramics manufacturer, offers a broad range of advanced automotive ceramics for the production of vehicle sensors, valves, mechanical seals and bearings respectively. Its proprietary materials include 96% alumina ceramic and yttria (three percent) stabilised zirconia.
Similarly, IBIDEN offers Substrate Holding Mats for automobiles. These are manufactured from high temperature resistant ceramic fibers, capable of holding catalyst substrates and particulate filters of exhausted gas in severe environments.