Automotive Ceramics Market Trends

Growth Drivers

• Growth in Population Across the World - The rapid multiplication of population along with recent modernization is generating the need of vehicles worldwide. Thus, an increase in demand of vehicles is expected to escalate the need of automotive ceramics for increasing the durability, upgrading the looks and enhancing on-road performance. Thus, the rapid growth in the population is expected to fuel the automotive ceramics market growth in the assessment period. As per World Bank, it is estimated that the world population stood at 7.84 billion in 2021, an increase from 7.09 billion in 2021. This number is anticipated to rise to 9.8 billion in 2050 and 11.2 billion in 2100, as per United Nations, Department of Economic and Social Affairs.
• High Number of Vehicles on the Roads – The recent urbanization has led the number of vehicles on the roads to increase. As a result, the utilization of automotive ceramics is expected to also surge considerably. As per the calculations, it was forecasted that were approximately 2 billion vehicles on roads across the globe by the end of first quarter of 2022.
• Rapid Production Rate of Vehicles - International Organization of Motor Vehicle Manufacturers (OICA), released the global sales of vehicles statistics which revealed that it rose to 56 million in 2021 from 53 million in 2020. Whereas, the global production of vehicles calculated to be 57 million in 2021.
• Growing Electric Vehicle Sales and Production - In 2021, one out of every ten new cars sold was an electric vehicle. The rate has increased from one in forty in 2019 and is currently higher. There are 15.9 million electric cars on the road right now.
• Increasing Need of Luxury Cars - A latest report suggested that the global sales of luxury cars are anticipated to stand at 200K vehicles in 2026, a rise from 190K vehicles in 2022. 

Challenges

• Increased Concerns Regarding Capital Intensive Development
• High Final Costs of the Product
• Strict Government Limits Regarding Carbon Dioxide Emission - In December 2021, the Environmental Protection Agency of the United States (EPA) established new national greenhouse gas (GHG) emissions regulations for model years 2023–2026 of passenger cars and light trucks. GHG emissions and other criteria pollutants would be significantly reduced as a result of the final recommendations.