Eco-Friendly Materials Technology Trends for Automotive Market - Forecast (2023 - 2028)

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)

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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 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.