Automotive Shielding Market

Market Overview

The global automotive shielding market size was valued at USD 12.3 billion in 2023 and is projected to reach USD 21.7 billion by 2031, registering a CAGR of 7.4% during the forecast period (2023-2031).

Increasing technical developments and modernization in machinery, as well as rising research and development efforts in the market, will generate new chances for the automotive shielding market over the forecast period. Automotive shielding uses specific materials and technology to protect sensitive electronic components and vehicle systems from electromagnetic interference (EMI) and radio frequency interference (RFI). These interferences can come from various sources, including the vehicle's electronic systems, external radio signals, and other electronic equipment, and they can impair the normal operation of crucial systems in modern automobiles.

The global automotive shielding market share is predicted to develop at a 7.4% CAGR due to rising demand for electric and hybrid vehicles, advancements in automotive electronics, and the necessity for electromagnetic interference (EMI) and radio frequency interference (RFI) protection. Increasing technical developments and modernization in machinery, as well as rising research and development efforts in the market, will generate new chances for the automotive shielding market over the forecast period. However, the rising complexity associated with developing such products for minimizing EMI and integrating automotive shielding components raises the overall cost of vehicles, one of the major factors restraining market growth. It will further challenge the automotive shielding market in the forecast period.

Market Dynamics

Market Drivers

Rise in Electrification and Hybrid Vehicles

As vehicles become more electric and hybrid, complicated electronic systems, including high-voltage components, are being integrated. Shielding is essential for preventing interference and ensuring the safety and operation of these systems. As a result, the automotive shielding market trend continues to expand. According to the IEA's Global EV Outlook 2021 study, more than 26 million electric vehicles will be on the road in 2022, a 60% increase over 2021 and more than five times the stock in 2018. According to the estimate, battery electric vehicles (BEVs) will account for two-thirds of new electric car registrations and two-thirds stock in 2020. Major automakers are making significant investments in electric and hybrid car technologies.

Tesla, a well-known electric vehicle manufacturer, announced delivering more than 185,000 electric automobiles in the first quarter of 2021. The desire for effective shielding solutions has fueled research in materials with strong conductivity and attenuation qualities, which fulfill the specific needs of electric and hybrid vehicles.

Market Restraints

Cost and Weight Consideration

Weight reduction in electric vehicles is crucial for increasing battery performance and extending vehicle range. Electric vehicle makers continuously look for ways to lower vehicle weight to increase energy efficiency and drive range on a single charge. On the other hand, including shielding materials can reverse these efforts. According to research by organizations such as the United States Department of Energy (DOE), reducing vehicle weight is closely related to improving fuel economy in internal combustion engine vehicles and expanding the range of electric vehicles.

While shielding is necessary for EMI and RFI protection, the additional weight of shielding materials might negate weight reduction efforts, reducing vehicle efficiency. Consumers frequently place a premium on vehicle range and efficiency. Manufacturers must strike a compromise between including electronic component shielding and retaining competitive vehicle performance. As a result, the weight and cost limit the expansion of the vehicle shielding market.

Market Opportunity

Demand for Connected and Autonomous Vehicles

Connected and autonomous vehicles rely on various sensors and communication systems to interact with one another and their surroundings. These cars exchange crucial information such as position, speed, and intent to ensure safe and coordinated driving. According to McKinsey research, autonomous driving could generate USD 300 billion to USD 400 billion in income by 2035. Shielding becomes critical to prevent electromagnetic interference from disrupting these communication systems. Shielding is essential for maintaining clear and reliable communication signals between cars and infrastructure. Any electromagnetic interference could disrupt communication and jeopardize the safety of self-driving cars.

Shielding can also contribute to the security of communication networks. It prevents accidental signal leakage, which hostile actors could exploit. The proliferation of connected and self-driving automobiles creates huge prospects for automotive shielding solutions. Shielding becomes vital in sustaining these vehicles' safe and efficient operation as they rely more on accurate and dependable communication systems.

Regional Analysis

The global automotive shielding market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America.

Asia-Pacific automotive shielding market is anticipated to exhibit a CAGR of 7.1% during the forecast period (2023-2031). Based on the automotive shielding market insights, the Asia-Pacific region is predicted to be the market leader. During the predicted period, high production and demand for autos drive demand. This demand is related to rising income levels in the region, which allows people to purchase more high-end luxury automobiles. The region's electric vehicle market is expanding at an alarming rate. China is the world's largest market for electric vehicles. China's electric vehicle market share climbed from 4.5% to 4.7% in 2019, with over 1.8 million plug-in electric automobiles sold nationwide.

Additionally, in India, electric car sales increased by 20% in 2019-20. In 2019-20, 1.56 lakh EVs were sold in the country, up from 1.3 lakh units in the previous fiscal year. The region's key players are spending extensively on the inclusion of cutting-edge technologies, such as connected automobiles, to prevent accidents and improve the driving experience. This will necessitate improved electrical systems in the car, resulting in a significant market demand for EMI shielding. The region's demand for electric vehicles is also high, owing to increased awareness about the environmental impact of conventional fuels and the financial benefits offered by the region's governments. The 5G Automotive Association (5GAA) and other members such as Huawei, China Mobile, SAIC Motor, and Shanghai International Automobile City have devised a roadmap for the world's first 5G-based intelligent transportation demonstration project, which will begin in 2020.

Europe is anticipated to exhibit a CAGR of 7.5% over the forecast period. This is due to significant technology improvements, such as enhanced driver assistance systems and the adoption of high-mobility logistics trucks for their greater capabilities. The European Government has implemented tough emission requirements to reduce rising emission levels. It has made it obligatory to use modern safety features and distinctive interior systems to increase fuel efficiency and safety of vehicles, resulting in the market's rise in this region.

The European Union's strict emission restrictions have hastened the transition to electric automobiles. Automakers are investing in electric mobility options in response to stricter CO2 emission requirements. The European Commission's commitment to improving charging infrastructure throughout member countries boost EV adoption. Manufacturers offering shielding solutions that comply with or surpass European EMC rules can establish themselves as trustworthy partners. Furthermore, important automobile manufacturing businesses such as Renault, Volkswagen, Daimler, BMW, Volvo, and PSA Group are pushing Europe's market expansion.

The region's leadership in advanced electronics, linked car technologies, and electric vehicle adoption define the North American automotive shielding industry. The demand for sustainable transportation in North America is boosting the adoption of electric vehicles. North America's electric vehicle market is expanding rapidly. Electric car sales in the United States accounted for about 2% of total vehicle sales in 2021, and this share is likely to grow dramatically in the next years. Thermal management systems are essential for keeping batteries performing and efficient. Effective shielding solutions are critical for preserving vehicle performance, safety, and connection, making the market a critical component of technical improvements in the automotive sector.

The Middle East, Africa, and Latin America are still in infancy. The Middle East and Latin America markets have unique prospects driven by regional trends, economic reasons, and the adoption of modern automotive technologies, leading to automotive shielding market growth in these regions.

Segmental Analysis

The global automotive shielding market is segmented based on type, vehicle type, heat application, EMI application, and region.

By type, the market is further segmented into heat and EMI.

The EMI segment holds the major share of the market. Electromagnetic interference (EMI) shielding keeps electromagnetic signals from interfering with the normal operation of a vehicle's electronic components. EMI shielding materials and solutions block or absorb electromagnetic radiation to ensure the integrity of signals and data transfer. Heat or thermal shielding uses materials and technologies to protect automotive components from excessive heat generated by internal or external systems. Heat shielding is essential for preventing component overheating, which can result in performance loss or even failure.

The market can be fragmented based on vehicle type into Passenger Vehicles, Light Commercial Vehicle, and Heavy Commercial Vehicle.

Passenger Vehicle is the main income generator, Passenger vehicles, often known as private vehicles, are primarily meant to transport passengers. Sedans, hatchbacks, SUVs, and crossovers are among the different varieties. Passenger cars are used for personal transportation and can seat various people. Light commercial vehicles are meant to move items and are frequently used by businesses for various functions, such as delivery, small-scale logistics, and service activities. When compared to passenger cars, LCVs typically have a higher payload capacity.

Heat application can further bifurcate the segment into Engine compartments, exhaust systems, and turbochargers.

Engine compartments are the commonly used heat application. The engine compartment of a vehicle is a vital region where the internal combustion engine operates. It generates significant heat during combustion, which must be regulated to avoid overheating and for efficient engine operation. Components of the exhaust system include the exhaust manifold, catalytic converter, and exhaust pipes. These components deal with high-temperature gases produced by engine combustion and require efficient heat control.

Based on EMI application, the market is divided into Adaptive Cruise Control (ACC), Intelligent Park Assist (IPA), Engine Control Module (ECM), Forward Collision Warning (FCW), Lane Departure Warning (LDW), and Electric Motor.

Engine Control Module (ECM) led the market. The Engine Control Module, often known as the Engine Control Unit (ECU), is a vital component that controls the engine's operation. It regulates many aspects of engine performance, such as fuel injection, ignition timing, and pollutants. Adaptive Cruise Control is a sophisticated driver assistance technology that automatically adjusts the speed of a vehicle to maintain a safe following distance from the vehicle ahead. It monitors traffic conditions using radar and sensor technology.

Recent Developments

• In July 2023, FERODO® expanded its Zero-Copper Brake Materials Portfolio to the OE Commercial Vehicle Segment.
• In July 2023, Laird Connectivity, a global pioneer in wireless technology and System-on-Modules (SOMs), announced the Tungsten700 SOM in SMARC form factor, developed in collaboration with MediaTek.
• In June 2023, The Ultra-Silent Tune technology from Autoneum considerably decreased external tire rolling noise while maintaining a quiet and comfortable driving experience inside the car. In addition to its sound-absorbing properties, Ultra-Silent Tune surpasses the highest ecological criteria.