Eco-Friendly Materials Technology Trends for Automotive Market - Forecast(2024 - 2030)

Report Code: AIR 0436 Report Format: PDF + Excel

Eco-Friendly Materials Technology Trends for Automotive Market Overview

Eco-friendly materials technology trends for automotive market size is forecast to reach US$6.1 billion by 2027 after growing at a CAGR of 15.9% during 2022-2027. Going green in every industry is critical for the environment's long-term survival. Because of how large of an impact automobiles and vehicles have on the environment, the automotive industry may be the most important. To reach zero-emission automobiles and carbon-neutral manufacturing targets, all automotive businesses should have a sustainability strategy and program in place. Materials such as biodegradable plastic, thermoplastic olefin, bio based polyurethanes are generally used eco-friendly materials. In the long run, OEMs or automakers should concentrate on producing electric vehicles and phase out combustion engines. To maintain sustainability in each production phase, they must employ new technologies. 

Impact of Covid-19

COVID-19 has negatively impacted the automotive market in 2020 with the halt in the production across various countries. As stated by OICA, the vehicle production declined by 18% in 2020. The global lockdowns to curb the virus have led to the disruption in manufacturing, distributing and sales network in the automotive sector which significantly resulted in the decline of market. Adding to this, the development of new COVID strains in countries such as US, UK, Nigeria and so on during end of 2020 to the beginning of 2021 has resulted in the lockdown and had major impact across the manufacturing sector ,thereby constraining the market growth rate.

Report Coverage

The report “Eco-Friendly Materials Technology Trends for Automotive Market– Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the eco-friendly materials technology trends for automotive industry.
By Battery: PEMFCs and Hydrogen Powered Fuel Cells
By Material: Thermoplastic Olefin (TPO), Bio-based polymers, Bio-PET, Wood Cellulose (Fiber), Bio-Polyurethane, Bio-Plastic, and Others
By Application: Interior and Exterior
By End Use: Gasoline Vehicle, Diesel Vehicle, Fuel Cell Vehicle (FCV), Electric Vehicle (EV), and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Russia, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia and New Zealand, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

  • Asia-Pacific region dominated the eco-friendly materials technology trends for automotive market due to the growing automotive industry coupled with technological advancements contributed to the market growth. According to a recent article published on January 2021, South Korea's environment-friendly vehicle sales jumped 54 percent to exceed 200,000 units in 2020.
  • Innovations in the manufacturing of car batteries would also drive the market growth in the forecast period. In May 2021, Exide launched new eco-friendly premium battery design. The change will lead to savings of 2,700 tons of CO2, 8 million litres of water and 1.2 million litres of crude oil in Exide’s manufacturing each year. 
  • Rising growth of electric vehicles is further estimated to drive the market growth. For instance, In November 2020, General Motors announced an increase in investment in the electric vehicles to US$27 billion through 2025. The major aim of this investment is to increase the manufacturing capacity of BEV.

    Eco-Friendly Materials Technology Trends for Automotive Market Revenue Share, by Material, 2021 (%)
     
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Eco-Friendly Materials Technology Trends for Automotive Market Segment Analysis – By Material

TPOs are thermoplastic olefinic elastomers that have hard segments made of PP, PE, or another polyolefin and soft segments made of ethylene propylene rubber (EPM, EPDM). TPOs are classified into three types such as blended (made up of polyolefin and rubber components); dynamically cross-linked (also known as thermoplastic vulcanizates, TPV); and polymerized (made up of polyolefin and rubber components) (Reactor-TPO, R-TPO). A thermoplastic olefin is a chemical substance that is composed of a high molecular weight polyethylene, rubber and a reinforcing filler. The dashboards of C-segment and larger automobiles, bumpers and so on are made from Thermoplastic Olefin (TPO) plastic sheets. TPO plastic may be recycled, however its constituent ingredients, polypropylene and polyethylene, need the conversion of petroleum to naphtha, which emits CO2. It is highly used in electric vehicles, hence the growing EV market is analyzed to boost the market growth rate.

Eco-Friendly Materials Technology Trends for Automotive Market Segment Analysis - By End Use

Gasoline Vehicle held the largest share with 68% in the eco-friendly materials technology trends for automotive market in 2021 and is anticipated to grow at a CAGR of 14.7% during the forecast period 2022-2027. The growing usage of gasoline for cars, motorcycles and others in the U.S. is expected to positively influenc its market growth in the future. For instance, according to U.S. Energy Information Administration, in 2020, Americans used about 123 billion gallons of motor gasoline or about 337 million gallons per day and about 166 millions of gallons of aviation gasoline. In March 2017, the Venezuelan government and the auto sector signed a plan to “re-launch” the Automobile industry called “Venezuela in Motion” (Decree 2.787, Gazette 41.122) with the intended goal of strengthening the national auto sector, specifically vehicles and motorcycle assembly, auto parts manufacturing, and related metallurgical businesses. Hence, such supportive policies by the government bodies is expected to fuel its market growth in the upcoming years.

Eco-Friendly Materials Technology Trends for Automotive Market Segment Analysis – By Geography

Asia-Pacific region dominated the eco-friendly materials technology trends for automotive market in terms of revenue with a share of 43% in 2021 and is projected to dominate the market during the forecast period (2022-2026). China, Japan, and India are the major producers of automobiles and owing to the increasing environmental concerns, government in these countries have undertaken certain initiative on alternative energy based vehicles, propelling the electric vehicles market, thus creating need for eco-friendly materials. As stated by IEA, registration of new electric cars was lower than the overall car market in the first-half of 2020. This trend reversed in the second-half as China constrained the pandemic. The result was a sales share of 5.7%, up from 4.8% in 2019. BEVs were about 80% of new electric cars registered. In the APAC region the majority of this growth is from the South-East countries which are undergoing a transformational change in terms of both the economic and the infrastructure developments. New investments mainly in China in the sectors of automobile would present high growth opportunities for eco-friendly materials technology trends for automotive market in the region.

Eco-Friendly Materials Technology Trends for Automotive Market Drivers

Rising demand for Electric Vehicles

Electric vehicles have a reduced climate impact compared to internal combustion engine vehicles. The massive demand for electric vehicles is fueled by the technological progress and governmental subsidies. Electric vehicles have a greater impact on the eco-friendly materials technology trends market owing to the integration of the sustainable products in these vehicles. As stated by IEA, after a decade of rapid growth, in 2020 the global electric car stock hit the 10 million mark, a 43% increase over 2019 despite COVID-19. Global electric car sales share rose 70% to a record 4.6% in 2020. The significant rise in the expansions of the manufacturing units with the growing demand for passenger electric vehicles is set to significantly boost the market growth rate. In November 2019, Volkswagen announced that it began the construction of its electric vehicle production facility in Tennessee, US, with an estimated investment of $800M. In April 2021, Toyota announced that it is establishing a full line-up of electrified vehicles, which has worked in reducing carbon emissions, based on the concept of introducing sustainable vehicles practically to the market. The number of electrified models will reach around 70 by 2025. In establishment of a full line-up of electrified vehicles, Toyota is underway to introduce 15 BEVs, including seven Toyota bZ models, by 2025.

Shift towards sustainable interiors & Eco-efficient Tires

Sustainability is currently one of the main issues and is increasingly discussed in science from different sides and areas. Especially for the automotive industry, sustainability becomes highly important owing to the electric motors, lightweight construction and CO2 emission reduction. In a bid to improve the sustainability of their operations, more automotive manufacturers are making use of recycled materials in vehicle interiors. Jaguar Land Rover (JLR) announced to use Econyl nylon for floor mats and other trim. This novel material is made from recycled industrial plastic, fabric offcuts from clothing manufacturers and abandoned fishing nets recovered from the ocean. In January 2021, BMW announced that their interior designs now use more and more sustainable materials. Econyl yarns are produced out of recycled fishing nets and other nylon waste. BMW uses ECONYL® yarns to make its headliners and floor mats for the BMW i3, BMW iX and other models. Mercedes-Benz announced to use Econyl in the floor mats of the new S-Class. It claims that using the material instead of the usual oil-based products reduces emissions in production by 90%. Audi offers seat upholstery and interior carpets made from a yarn consisting of up to 89% recycled PET bottles in its popular A3 model. In September 2021, Continental announced sustainable vehicle interior of the future, The concept makes use of a range of new materials and sustainable vehicle solutions, and the very vehicle that the interior sits within, a classic VW T2 microvan, is in keeping with the upcycling and environmentally friendly theme of the concept.

Eco-Friendly Materials Technology Trends for Automotive Market Challenges

High Cost of Raw Materials

Due to the fast growth of the EV market, sustainable supply of battery materials has been the major concern. These include supply risks due to high geopolitical concentrations of cobalt, and social and environmental impacts associated with mining as well as the availability of cobalt and lithium reserves and the required rapid up scaling of supply chains to meet expected demand. Energy-intensive conversion of nickel, cobalt, and manganese to sulfate, and lithium carbonate to hydroxide is a costly process in battery development and the cost & environmental factors are affected to ship large quantities of water and sulfur. It involves the costly intermediate extra step of making precursor cathode active material, and a large waste stream of sulfur and water, among other significant benefits. Moreover, the adoption rate is gradual, with conventional vehicles contributing to more than 50% of the sales share thereby challenging the market growth rate. 

Eco-Friendly Materials Technology Trends for Automotive Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the eco-friendly materials technology trends for automotive market. Major players in the eco-friendly materials technology trends for automotive market are 
  1. Lenzing
  2. Mitsubishi Chemical Corporation
  3. Braskem S.A
  4. COVESTRO AG
  5. BASF SE
  6. Celanese Corporation
  7. The Dow Chemical Company
  8. Evonik Industries AG
  9. LyondellBasell
  10. RÖCHLING and Others

Recent Development

  • In February 2021, Braskem has announced plans to increase the capacity of its green ethylene unit in Triunfo, Rio Grande do Sulhe. Derived from sugarcane ethanol, the ethylene produced here is used in the production of Braskem’s renewable PE and EVA resins.

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1. Eco-Friendly Materials Technology Trends For Automotive Market- Market Overview
    1.1 Definitions and Scope
2. Eco-Friendly Materials Technology Trends For Automotive Market- Executive Summary
    2.1 Key Trends by Battery
    2.2 Key Trends by Material
    2.3 Key Trends by Application
    2.4 Key Trends by End Use
    2.5 Key Trends by Geography
3. Eco-Friendly Materials Technology Trends For Automotive Market– Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Eco-Friendly Materials Technology Trends For Automotive Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Eco-Friendly Materials Technology Trends For Automotive Market– Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Eco-Friendly Materials Technology Trends For Automotive Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Eco-Friendly Materials Technology Trends For Automotive Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Eco-Friendly Materials Technology Trends For Automotive Market– By Battery (Market Size -US$ Million/Billion)
    8.1 PEMFCs
    8.2 Hydrogen Powered Fuel Cells
9. Eco-Friendly Materials Technology Trends For Automotive Market – By Material (Market Size -US$ Million/Billion)
    9.1 Thermoplastic Olefin (TPO) 
    9.2 Bio-based polymers 
    9.3 Bio-PET 
    9.4 Wood Cellulose(Fiber) 
    9.5 Bio-Polyurethane
    9.6 Bio-Plastic
        9.6.1 Polyhydroxyalkanoates (PHA) 
        9.6.2 Poly-3-hydroxybutyrate (PHB) 
        9.6.3 Polylactic acid (PLA) 
    9.7 Others
10. Eco-Friendly Materials Technology Trends For Automotive Market – By Application (Market Size -US$ Million/Billion)
    10.1 Interior
    10.2 Exterior
11. Eco-Friendly Materials Technology Trends For Automotive Market – By End Use (Market Size -US$ Million/Billion)
    11.1 Gasoline Vehicle
    11.2 Diesel Vehicle
    11.3 Fuel Cell Vehicle (FCV)
    11.4 Electric Vehicle (EV)
12. Eco-Friendly Materials Technology Trends For Automotive Market -By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Russia
        12.2.6 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia & New Zealand
        12.3.6 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 RoW
        12.5.1 Middle East
        12.5.2 Africa
13. Eco-Friendly Materials Technology Trends For Automotive Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Eco-Friendly Materials Technology Trends For Automotive Market – Industry/Segment Competition Landscape Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product Type/Product category- Major companies
15. Eco-Friendly Materials Technology Trends For Automotive Market – Key Company List by Country Premium Premium
16. Eco-Friendly Materials Technology Trends For Automotive Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Lenzing
    16.2 Mitsubishi Chemical Corporation
    16.3 Braskem S.A
    16.4 COVESTRO AG
    16.5 BASF SE
    16.6 Celanese Corporation
    16.7 The Dow Chemical Company
    16.8 Evonik Industries AG
    16.9 LyondellBasell
    16.10 RÖCHLING and Others
"*Financials would be provided on a best efforts basis for private companies"