The global automotive ceramics market was valued at USD 2 billion in 2021. It is projected to reach USD 3.21 billion by 2030, growing at a CAGR of 5.4% during the forecast period (2022-2030). Ceramic materials are widely used in automotive designs due to the increasing demand for robust and reliable materials in the automotive industry. Due to their favorable thermal and electrical properties, ceramic materials can be used in a wide range of sensors, mechanical seals, ceramic bearings, and valves. Ceramics are more cost-effective than metal and more durable than plastic. The automotive industry has grown significantly due to advances in mechanical technology, and additional advancements in automobiles have also been made possible by technologies like electronics and advanced materials.
Ceramic materials have improved driving dynamics, the purification of exhaust gases, and fuel efficiency in automobile technologies. Automobiles have used parts made of advanced ceramic materials, such as silicon nitride engine parts, oxygen sensors, exhaust gas catalysts, and knock sensors. Increased durability, high-temperature resistance, and better thermal insulation will contribute to the growing demand for advanced ceramic materials in the automotive industry over the forecast period.
Get more information on this report Download Sample Report
Rising Stringent Vehicle Emission Control Regulations Worldwide
Emissions from vehicles are one of the primary reasons for increasing air pollution leading to global warming and climate change. Government bodies worldwide are enacting stricter emission regulations, which has prompted efforts to create filters that are ever more effective, particularly for diesel exhaust systems. Ceramics in exhaust systems offer a highly effective way to reduce car emissions, improve air quality, and make cities a better place to live. Some ceramic Diesel Particulate Filters (DPF) remove nearly 100% of the soot from exhaust emissions, making them particularly efficient.
Many diesel vehicles, massive trucks, coaches, and heavy machinery, now come standard with DPF systems. They are made to be highly durable and simple to maintain to function while traveling. Most carbon particles and other fine particulates with diameters smaller than 100 nanometers are removed by ceramic wall-flow filters. Compared to other filter materials like metal fibers, ceramics are relatively inexpensive. They have a longer lifecycle because regeneration makes it simple to maintain them. According to a study by The Engineering Society for Advancing Mobility - Land, Sea, Air, and Space, ceramic filters' main benefit is their ease of maintenance. Ceramics like cordierite and silicon carbide produce less of a pressure drop when compared to other materials. Thus, several benefits of advanced ceramic materials in reducing vehicle emissions increase their adoption in manufacturing several automotive components.
Increasing Demand for Higher Fuel Efficiency
The consumer demand for fuel-efficient passenger vehicles has grown steadily over time as crude oil prices worldwide have continued to rise. Numerous strategies have been used to increase a vehicle's fuel efficiency. In the internal combustion engine, refractory ceramics have gained traction as discrete parts and as coatings for metallic components. Due to their higher operating temperatures, higher thermal efficiency, and lighter weight, ceramic parts and coatings have the definite advantages of lower fuel consumption and exhaust emissions due to the complete combustion of fuel at higher operating temperatures.
High Cost of Automotive Ceramics Development
Ceramics have a higher material cost than metal and other alloys. This might prevent ceramics from being widely used in the production of automobiles. The difficulty of recycling ceramics further complicates the problem of using ceramics in the automotive industry. The high design and development cost of automotive ceramics restrains the market's growth during the forecast period, limiting the global automotive ceramics market scope. Ceramic automotive component development is a highly capital-intensive endeavor that requires significant R&D spending.
Increasing Demand for Electric Vehicles
In recent years, electric vehicles have advanced significantly, from the first basic lead acid batteries powering primary industrial vehicles to mass market transportation via F1 and Formula E race cars. The lithium-ion battery technology and lightweight aluminum body and structure are used in today's electric cars. The improvements in power control made possible by fast electronic circuits and high thermal conductivity ceramics allow for precise and effective use of the battery life. Advanced ceramics are used in various applications, including circuitry, manufacturing tools, thermal shielding, energy recovery, and metal processing.
Compared to steel, using alumina shafts and bearings has several benefits, primarily due to its superior wear resistance qualities. The use of alumina ensures precision fit components, reducing vibrations and noise levels to match the general "feel" of electric and hybrid vehicles because the wear is reduced. The use of technical ceramics in battery electric vehicle (BEV), hybrid electric vehicle (HEV), and fuel cell vehicle (FCV) systems has the potential to increase system life, increase range, and improve safety. The enormous benefits of advanced ceramics in electric vehicles will increase its adoption by electric vehicle manufacturers, thus creating opportunities for the growth of the automotive ceramics market.
The global automotive ceramics market is segmented by application, material, and component.
Based on application, the global market is bifurcated into passenger and commercial vehicles.
The passenger segment is the highest contributor to the market and is expected to grow at a CAGR of 8.3% during the forecast period. The passenger segment includes all motor vehicles with at least four wheels to transport general people and does not have more than eight seats, excluding the driver. The rise in per capita income and ease of obtaining a loan in developing countries is increasing the sales of passenger vehicles. Moreover, the government actively participates in supplying lucrative opportunities for the expansion of the passenger vehicle segment. For instance, it may offer tax advantages to encourage automakers to build new factories in their home nations.
The adoption of EVs will increase due to price reductions and government incentives for buying EVs. Easier availability of loans, improved living standards in developing nations, and a rise in per capita income will contribute heavily to the growth of the passenger vehicle segment, eventually driving the automotive ceramics market over the forecast period.
Based on material, the global market is bifurcated into alumina oxide, zirconia oxide, and titanate oxide.
The alumina oxide segment owns the highest market share and is expected to grow at a CAGR of 5.8% during the forecast period. The rising demand for thermal barrier coatings for automobiles is a significant factor driving the use of alumina oxide in the automotive industry. Due to their mechanical and electrical properties, alumina-based technical ceramics can also be engineered for various automotive electronic components. They provide high strength and wear resistance in automotive applications, increasing global demand. As alumina wears less quickly than other materials, it ensures precision fit components and lowers vibration and noise levels to enhance the experience of electric and hybrid vehicles. Technical ceramics can extend system life, extend range, and improve safety in battery electric vehicles (BEV), hybrid electric vehicles (HEV), and fuel cell vehicle (FCV) systems.
Based on components, the global market is bifurcated into automotive engine parts, automotive exhaust systems, and automotive electronics.
The automotive engine parts segment is the highest contributor to the market and is expected to grow at a CAGR of 6.3% during the forecast period. The advanced ceramics reduces wear and tear of the components and increases fuel efficiency due to proper fuel consumption at high temperatures. A few essential ceramic engine parts are spark plug insulators, piston rings, and engine coatings. Ceramic coatings are applied to pistons and piston rings to lower the coefficient of friction and increase wear resistance. An engine's combustion chamber receives electric spark energy from a spark plug, which ignites the fuel/air mixture.
Higher voltages are provided without an electrical breakdown by the ceramic insulator. The central electrode extends through the ceramic insulator into the combustion chamber, preventing flashover of high voltage into the vehicle and conducting heat produced by combustion toward the cylinder head. High-purity alumina is used to make spark plug insulators because it has excellent anti-corrosive and anti-abrasive wear resistance, even at higher temperatures.
The global automotive ceramics market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
Regional Growth Insights Request Sample Pages
Asia-Pacific is the most significant shareholder in the global automotive ceramics market and is expected to grow at a CAGR of 6.8% during the forecast period. The higher share is linked to the mass production of automotive components and the surge in the production of electric vehicles in China. China, India, Japan, and South Korea are driving the growth of the automotive ceramics market in the region. The automotive sector will continue to grow in the region due to the availability of raw materials, low cost of transportation, and workforce.
The Made in India initiative taken by the Indian government is also attracting investments in the automotive sector. In order to lower the dependency on China, vital automotive manufacturers in the west are expected to establish new manufacturing facilities in India. Japan is one of the leading countries in the automotive sector. Home for three leading automotive companies, Toyota, Nissan, and Honda, are focusing on scaling their manufacturing capacity to meet the growing demand for more fuel-efficient vehicles. Therefore, the automotive sector is anticipated to grow in the region over the forecast period.
Europe is expected to grow at a CAGR of 3.4% during the forecast period. Stringent regulations by the European Union to control fuel emissions in the region will increase the adoption of automotive ceramics in vehicle manufacturing. Germany is the leading automotive manufacturer and holds more than 29% market share in the European Union. The presence of key automotive manufacturers in Germany is collaborating with the government to reduce vehicle emissions and contribute to tackling climate change. For instance, in March 2022, Tesla opened up its Gigafactory in Germany to manufacture 500,000 electric vehicles annually and batteries for electric vehicles. The growth in the manufacturing of electric vehicles in the region is anticipated to drive the automotive ceramics market over the forecast period.
North America is growing due to Tesla's rapid technological advancements in automotive sectors in the region. Due to the high living standard and disposable income, most people buy a car for their routine travel. Moreover, the recent surge in fuel prices due to the Russia-Ukraine war has affected the general population in USA and Canada, increasing the demand for electric and energy-efficient vehicles. Therefore, the demand for automotive ceramics will increase in the region for manufacturing fuel-efficient cars, contributing to the growth of the market in the North American region.
The LAMEA region is projected to grow due to the use of advanced technology in countries such as the UAE and Saudi Arabia (KSA). In UAE, the public transport system is getting revamped with electric vehicles. In July 2022, Dubai's road and transport authority cracked a deal with Australian bus manufacturer BusTech Group to test eco-friendly and zero-emission electric buses for public transport and increase their feasibility in Dubai's environment. Saudi Arabia has also pledged to reduce carbon emissions by 278 mtpa by 2030 and go carbon neutral by 2060, due to which stringent regulations are applied on several vehicles, which will increase the demand for less carbon-emitting vehicles in the region.
South American region is also contributing to the growth of the automotive ceramics market with the establishment of new manufacturing facilities in the region and increasing per capita income of the population. Moreover, the improvement in Brazil's economy has also pushed the demand for automobiles in the country.
Morgan Advanced Materials, CoorsTek, NGK spark plug, CeramTec, Kyocera, Corning, Ceradyne, IBIDEN, and Saint Gobain Ceramic Materials.