According to a new research study by Transparency Market Research (TMR), the global automotive heat shield market demonstrates a moderately fragmented structure. The top four vendors of automotive heat shields across the world, namely, Federal Mogul Corp., Autoneum Holding AG, Dana Holding Corp., and Lydall Inc., that held nearly 50% of the overall market in 2015, are investing heavily in product innovation and emphasizing on technological advancements of current offerings. Over the coming years, these players are anticipated to increasingly engage into mergers, acquisitions, and strategic alliances, states the research report.
As per TMR’s estimations, the opportunity in the worldwide market for automotive heat shields, which was worth US$11.4 bn in 2015, is anticipated to rise at a CAGR of 9.70% during the period from 2016 to 2024 and attain a valuation of US$25.3 bn by the end of the forecast period. The demand for exhaust heat shield insulation systems is greater than other products available in this market. In the near future, analysts expect this trend to remain so, notes the research study.
Flexible heat shield, rigid heat shield, and textile heat shield are the main types of automotive heat shields available across the world, states the report. Rigid heat shields enjoy a stronger demand in comparison with other types of automotive heat shields, thanks to their durability. Textile heat shields are also expected to experience a rise in their demand in the coming years.
In terms of the geography, Asia Pacific lead the worldwide market for automotive heat shields on the grounds of the increased demand for automobiles, boosted by the rising disposable income of consumers in this region. The regional market is likely to maintain its dominance throughout the forecast period, owing to the swift industrialization in countries, such as China, India, and Japan. North America is also projected to witness a high growth rate in its market for automotive heat shield in the years to come on account of its improving economic condition, reports the market study.
Increasing Vehicle Production to Reflect Positively on Demand for Automotive Heat Shields
“The significant surge in vehicle production, stimulated by the high demand for automobiles due to the increase in the purchasing power of consumers across the world, is reflecting greatly on the sales of automotive heat shields across the world,” says a TMR analyst. Along with this, the global automotive heat shields market is anticipated to gain substantially from the accelerating industrialization in the years to come.
Overall, the market’s future looks flourishing. However, it may face several challenges from the high cost of raw materials, especially aluminum. Nonetheless, the advent of electric and hybrid vehicles is projected to have a positive impact on this market over the next few years, states the report.