Growth Drivers
Rising Demand for Electric Vehicles – Electric vehicle (EV) manufacturing inevitably requires installing electronic systems in confined spaces and also needs to refrain the electromagnetic energy generated from these systems from “cross talking” and causing malfunctions and failures. As EMI shielding is important for EVs, the surge in the demand for EVs is expected to boost the automotive shielding market in the forecasted period. It was found that the global sales of EVs were over 3 million units in 2020 which was more than 4% of global vehicle sales.
Increasing Production and Sales of Vehicles – The International Organization of Motor Vehicle Manufacturers (OICA), released global sales of vehicle statistics which revealed that it rose to 56 million in 2021 from 53 million in 2020. Whereas, the global production of vehicles was calculated to be 57 million in 2021.
Growing Penetration of Automotive Radars – It is estimated that the utilization rate of automotive radars is anticipated to reach nearly 65% in Europe and 50% in the United States by 2030.
Rising Trend of Hydrogen Fuel Cell Technology – Fuel cell electric vehicles (FCEVs) are powered by hydrogen and manufactured using the latest technology. Thus, the integration of advanced systems is generating the need for automotive shields to protect the vehicle from malfunctions. It was found that there were more than 25,000 hydrogen fuel cell road vehicles registered worldwide in 2020.
The Surge in the Demand for Automotive Electronics – With the rising spending capacity, individuals are propelled towards adopting technologically advanced electronic systems in vehicles. As these electrical components control various electrical and mechanical functions in a vehicle, sometimes interference and cross-connections happen between the systems leading to malfunctions. Thus, to handle complex electronic circuitry, automotive shields are required. Thus, the higher integration of electronics in vehicles is estimated to bring lucrative growth opportunities for market growth. For instance, it is projected that by 2030, electronics will make up approximately 50% of a cost of a new car worldwide.
Challenges
Base Year |
2022 |
Forecast Year |
2023-2033 |
CAGR |
~4% |
Base Year Market Size (2022) |
~ USD 21 Billion |
Forecast Year Market Size (2033) |
~ USD 32 Billion |
Regional Scope |
|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.9% |
Base Year Market Size (2024) |
USD 22.65 billion |
Forecast Year Market Size (2037) |
USD 37.25 billion |
Regional Scope |
|
Author Credits: Saima Khursheed
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