Automotive Elastomers Market Trends

Growth Drivers

• Rising Adoption of Lightweight Materials for Vehicles - By 2030, 25% of U.S. vehicles are expected to reduce fuel consumption by using lightweight components and high-performance engines enabled by advanced materials, saving more than 5 billion gallons of fuel annually.
• Modern automobiles require advanced materials to maximize fuel efficiency while maintaining safety and performance. Lightweight materials have the potential to increase vehicle efficiency. A 10% reduction in vehicle weight can improve fuel economy by 5%-7%. In the automotive field, thermoplastic elastomers and high-performance fiber composite materials have become key materials for lightweight design. These factors are estimated to propel the demand for automotive elastomers over the forecast period.
• Increase in the Production of Motor Vehicles Globally - According to data from the International Organization of Motor Vehicle Manufacturers (OICA), the global production of motor vehicles rose from 583,74,162 vehicles in 2000 to 917,86,861 vehicles in 2019. 
• Growing Demand for Autonomous Vehicles and Autopilot Technology - For instance, industry analysts project an annual growth rate of 15% for self-driving vehicles. As many as 65% of all Chinese passenger vehicles will be automated by 2040. Also, 34% of Americans say self-driving vehicles are safer than traditional vehicles. 
• Luxury Car Sales Increased Worldwide – It was observed that in the period January-May 2022, 16,500 luxury vehicles were sold in India, a 53% increase from 10,500 units sold in the previous year.
• Increasing Investment and Development in Electric Vehicles - For instance, a line-up of five electric vehicles will be produced by Mahindra & Mahindra in the next five years with an investment of USD 1 billion. With a goal to sell 2 lakh electric vehicles by FY-2027, they are taking a new approach to electric vehicles.

Challenges

• High Cost of the Elastomer
• Fluctuating Price of Raw Material for Thermoplastic Elastomers The changing price of raw materials that are made from petrol is estimated to restrain the market growth. Also, the change in the import and export cost has a great impact on the market prices. The shortage of raw materials and shipping delays can lead to a rise in prices.
• Strict Government Regulations