Automotive Shielding Market Size, Share & Industry Analysis, By Shielding Type (Heat Shield and Electromagnetic Interference [EMI] Shield), By Vehicle Type (Passenger Cars and Commercial Vehicles) and Regional Forecasts, 2020-2032

The global automotive shielding market size was valued at USD 7.54 billion in 2019 and is projected to reach USD 29.4 billion by 2027, exhibiting a CAGR of 12% during the forecast period.

The growth is attributed to factors such as, increasing demand for electric vehicles (EVs) and advanced driver-assistance systems (ADAS) globally. In addition, increasing demand for in-car connectivity to boosts shielding materials, driven by advanced lightweight materials and manufacturing.

The automotive shielding is a method of protecting the automotive components with the help of heat insulating materials. They are majorly of two types, namely, heat shields and electromagnetic interference (EMI) shields. Heat shields are used to protect the components from overheating and avoid heat damages. Compartments of combustion engine, exhaust systems, under bonnet, under chassis, and turbochargers are some of the major automotive parts that require heat shielding. A heat shield is made up of thin sheets of aluminum, steel, or various other composite materials. These heat shields absorb, dispel, or reflect the heat, thereby, reducing the temperatures of the components and help in efficient working of the systems. Whereas, the EMI shields are used to cover the electronic systems and components to protect them from cross connecting and interfering with each other’s electromagnetic fields and radiations which is caused owing to their integration into a very compact interior space in the vehicle. The increasing use of electronic systems and the adoption of technologically advanced systems in vehicles are penetrating the demand for EMI shields in the automotive industry. The automotive shields also enhance the performance of the vehicle and reduce fuel consumption to a great extent. Automotive manufacturers are working towards developing high quality and highly durable shields to give maximum protection to the systems and components from damages and hazards. Also, the stringent emission control regulations imposed by the government on the automotive OEMs are compelling them to find out new ways, such as reduce the engine size, apply protective shields, and install high efficiency systems to enhance the performance and reduce fuel consumption of vehicles. Moreover, the increasing rate of sales and production of vehicles is leading to the growth of the market across the globe.

COVID-19 Impact on Market

The outburst of COVID-19 firstly in Wuhan, China during December 2019, and then its rapid spread across the world has impacted the global economy as well as the total civilization. The World Health Organization (WHO) declared the COVID-19 outbreak a pandemic virus. This pandemic situation, the increasing number of diseased patients, as well as the complete lockdown announced by the government of various regions has compelled the whole manufacturing operations as well as the service sector to shut down until further notice. This has created a massive impact on the manufacturing supply chain worldwide, especially those industries that are highly dependent on China for several materials, goods, or services.

The COVID-19 pandemic has also impacted the automotive industry by several challenges. The governments of various regions have imposed total lockdown to curb the rapid spread of the disease owing to which the global economy is dipping down. This global economic crisis has affected the revenue of numerous industries. Thus, people are now prioritizing their basic needs and utilities instead of spending on buying vehicles and other luxury items. Moreover, the restricted parts supply and a just-in-time production strategy, coupled with the reduced workforce and quarantine measures has compelled the manufacturers to close down their production line. This situation has propelled the need to secure liquidity and control over production owing to a decrease in the sales. Also, the legal trade restrictions such as sealed borders has increased the shortage of essential parts and restricted the distribution of supplies. Owing to this situation, the global automobile sales have dropped nearly 80%, with the highest drop ever seen in the first quarter of the financial year of 2020. However, as per the experts’ forecast, it is projected that the impact of this COVID-19 pandemic may perhaps last for at least a couple of years. All these conditions taken into consideration are expected to reduce the overall sales of vehicles, thereby reducing the demand for automotive shields in the automotive industry across the globe.

LATEST TRENDS

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Increasing Production of Electric Vehicles as well as Rising Popularity of Autonomous Vehicles are Accelerating the Automotive EMI Shielding Market

The automotive industry is shifting towards the electrification of vehicles owing to the increasing carbon footprints which is leading to a rise in air pollution and global warming. The automotive manufacturing companies are spending a high percentage on research to develop electric vehicles and are innovating techniques to upgrade the levels of autonomy in self driving vehicles over the past few years. This rapid development in automobiles is leading to high utilization of electrical and electronic systems and components. The shift from conventional combustion vehicles to electric vehicles is creating high demand for electromagnetic interference (EMI) shields in comparison with heat shields. The electric vehicles consist of features such as advanced driver assistance system, infotainment systems, vehicle communication systems, and various other advanced functionalities. These advanced systems function with the help of several components such as the sensors, radars, GPS, cameras, and are driven by the software technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and cloud computing systems. All these applications create high electromagnetic noise and increase the complexity of electronic components and devices in the limited interior space of the vehicle, thereby leading to high risk of malfunctioning, failures, and damages of systems owing to an intersection of cables, wires, and cross connection of magnetic fields. To overcome this problem, to prevent further damages, and to avoid failures, the electromagnetic interference shields are applied to all these electrical and electronic components which further reduces the electromagnetic field and protects these systems from intersecting with each other. Thus, the demand for automotive EMI shields is expected to boost in the coming years across the global market.

DRIVING FACTORS

Rising Adoption of Technologically Advanced Electronic Systems is Estimated to Boost Market Growth

Since the past few years, the automotive industry has been exhibiting a significant development in the designs, performance, and functioning of the automobiles. The changing demand of the customers towards technologically advanced systems, rising popularity of fuel efficiency, high performance, and light weight vehicles have given rise to the adoption of electronic systems and components in vehicles. With this advancement in technology, the number of electronic components in an automobile has increased, which, in turn, has driven the market for automotive shielding across the globe. The electronic components and installed systems control various electrical and mechanical functions in a vehicle and thus, play a crucial role in the automotive technology. The increasing number of electronic components and technologically advanced systems are generating high demand for comfort and safety features in a vehicle, which is driving the need for complex electronic circuitry. The installation of a large amount of electronics into a small interior space can cause interference and cross connection of systems with each other. Failures or malfunctions caused by intersection can not only lead to high risk, but also the strong electromagnetic fields can affect human health. To avoid these threats, electromagnetic interference (EMI) shielding is practiced in vehicles. These EMI shields are used to reduce the electromagnetic field in the interior space by obstructing the field with blockades made of magnetic or conductive materials. EMI shielding is usually applied to enclosures to insulate electrical devices from their surroundings and to cables to isolate the wires from the environment. Moreover, a rise in the demand for luxury and high performance vehicles is ultimately leading this market owing to the integration of technologically advanced systems, such as the advanced driver assistance systems and vehicle connectivity systems. These advanced technologies in automobiles function with the help of sensors, radars, and cameras and are driven by the advanced software systems such as Internet of Things, cloud computing, and more Thereby, giving rise to the EMI issues. The automotive manufacturers are thus, adopting EMI shielding technology to protect the systems and avoid malfunctioning and failures in vehicles. All these factors are therefore driving the demand for automotive shields.

Increasing Number of Production and Sales of Automobiles is Expected to Drive Growth

The automotive industry is always under the scanner of the governing authorities and is required to adhere to several guidelines issued from time to time. These regulations imposed on the automotive industry compel the OEMs to manufacture automobile products that are compatible with the present regulatory environmental norms. These regulatory norms also demand low fuel emissions, owing to which the manufacturing companies are focusing on reducing the engine size by decreasing the number of cylinders. So as to maintain the output power of the engine, a turbocharger or a supercharger is integrated to boost the power of the engine. These devices are insulated with heat shields for effective operations. Increasing penetration of turbochargers instead of compression ignition engines or spark engines is driving the demand of automotive heat shields. The rising number of electronic systems and components is creating high demand for EMI shields to avoid and protect these systems from intersecting and cross connecting with each other. Moreover, the demand for high performance vehicles is increasing across the globe. The enhancement in the power and speed increases the heat produced by various components such as exhaust system, combustion engine, and other parts. The heat shields play a vital role in preventing heat generation within the interior of the vehicle, thus enhancing the vehicle performance and ensuring the driver’s safety. Furthermore, the increasing urbanization, enhancement in the standard of living, developing infrastructures, and a hike in the disposable income have propelled the number of sales and production of vehicles across the world. Also, the young generation is more attracted towards fuel efficient and high performance vehicles which are boosting the sales of vehicles, thereby generating high demand for automotive shields.

RESTRAINING FACTORS

High Cost of Maintenance May Hamper Market Growth

The automotive shielding is a process of protecting the automotive components from overheating and avoiding the interference of electromagnetic fields radiated from the electronic systems. These are made up of metals and other composite materials. The automotive shields that are applied to the components are actually supposed to last as long as the vehicle does. But the extreme conditions of the environment as well as the constant heating of the systems reduce the efficiency of the shields. The heat shields that are mounted on the turbochargers, engines, and exhaust systems degrade within a couple of years as they are in direct contact with high temperatures and excessive heat released from these components. Also, electromagnetic interference shields are used to protect the electronic systems and components in the vehicles. The electrical wirings, cables, sensors, ECUs, and various other electronic devices are shielded with the EMI shields which tend to lose their effectiveness in a few years owing to the internal electric sparks, constant electromagnetic radiations, moisture, or rusting. Thus, the wear and tear of the shields may lead to system damages and failures. So the replacement of these shields from time to time is necessary for efficient and safe functioning of the vehicles. The integration of shielding components increases the overall cost of the vehicle. Also, the frequent replacement and maintenance of the shields incurs high cost to the vehicle owners. Therefore, the replacement and maintenance of the automotive shields may restrain the automotive shielding market growth across the globe.

SEGMENTATION

By Shielding Type Analysis  

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Heat Shield Segment is Expected to Dominate the Global Market

Based on shielding type, the market is segmented into heat shields and electromagnetic interference shield systems. The heat shields are widely used in automobiles owing to the high volume of internal combustion engine vehicles across the globe. Heat shields are mainly used in exhaust systems, under chassis, engine compartment, turbocharger, and various other applications in automobiles. A heat shield protects the automotive components and devices from overheating by absorbing, reflecting, or dispelling the heat. High amount of heat is produced by the internal combustion engines. Heat shields are majorly used in engines and exhaust systems to protect the body parts and components of vehicles from heat damage. These heat shields can reduce around 70% of the heat radiating from the exhaust system. Heat shields also enhance the vehicle performance by reducing the temperatures produced by various systems and components and minimize fuel consumption. They are either rigid or flexible. The rigid heat shields are made of solid steel, aluminum, or other composite materials with a coating of ceramic to improve the heat insulation and are usually fitted by metal clips or high temperature tapes. The flexible heat shields are usually made of thin aluminum sheets and can be molded as per the required shape. The commercial vehicle segment is expected to propel the demand for a heat shields in the forecast period as the rising demand for electric car will surge the adoption of EMI shields.

Electromagnetic interference shields are also gaining high demand in the automotive industry owing to the rising demand for electric vehicles as well as higher adoption of technologically advanced systems in vehicles. Also, the extensive use of electronic devices and components is expected to fuel the growth of the EMI shields segment during the forecast period at a faster pace. Electromagnetic interference is a process by which the electromagnetic waves are transmitted from one electronic device to another through radiation or conducted paths. In a vehicle’s electronic system, the EMI can adversely hinder the performance of an internal electric circuit, as well as can affect the mechanisms of other electronic components in the internal proximity. Installation of several electrical and electronic systems into a very limited space causes problems of EMI of these systems from interfering and cross connecting with each other through conducted emissions and radiations. The EMI shields reduce the electromagnetic field in the space by blocking the field with magnetic or conductive barriers. Shielding isolates the electrical devices from their surroundings and also isolates cables and wires from the environment.

By Vehicle Type Analysis

The Passenger Car Segment is Anticipated to Hold the Largest Market Share

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. The passenger car segment holds the largest share of the global market. The increasing demand for fuel efficient vehicles, coupled with the rising stringency in emission norms is driving the growth of this segment in the market. However, the technologically advanced systems and increased application of electronics components in automobiles is penetrating the automotive electromagnetic interference shielding in the passenger cars. Moreover, the increasing urbanization, expansion of the industrial sector, and improvement in the standard of living are the major reasons that are propelling the sales and production of vehicles across the globe. Also, the increasing per capita income and the rising demand for personal mobility have boosted the sales of passenger cars. The adoption of technologically advanced systems continues to be high owing to the greater sales and production of passenger cars across the globe. Furthermore, the automotive manufacturing companies are working towards developing high performance passenger cars that are equipped with advanced functionalities such as innovative instrument cluster, advanced driver assistance systems (ADAS), vehicular communication systems, and more. Therefore, the rising number of advanced systems, integration of electronic devices, and the rising fuel emission concerns are propelling the demand for automotive shields.

REGIONAL INSIGHTS

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Asia Pacific holds the largest share of this global market and is expected to uphold its leading position over a long period of time. Some of the developing countries such as China and India have seen a hike in the automotive industry over the past few years. The rapid development of connected mobility and smart transportation systems in countries such as Japan and China are the foremost reasons for the growth of the market in this region. Smart mobility projects such as the Vehicle-to-Infrastructure (V2I), Vehicle-to-Vehicle (V2V), and Vehicle-to-Pedestrian (V2P) and the advancement of communication technologies in vehicles have taken the automotive industry to the next level. These communication systems and connected systems are prone to electromagnetic interference or cross-connections. Hence, the advanced EMI shielding systems are adopted by the OEMs to avoid electromagnetic interference among electronics systems. Moreover, the stringent emission norms and active measures taken by the governments to curb the increasing pollution levels are fostering the demand for a heat shielding system as well. Also, the rising inclination of people towards high fuel efficiency and greater performance vehicles has led to the advancement in automotive systems thus, propelling the demand for automotive shielding in this region. The 5G Automotive Association (5GAA) along with the other members such as Huawei, China Mobile, SAIC Motor, and Shanghai International Automobile City have developed a roadmap for the world’s first 5G-based intelligent transportation demonstration project from 2020 onward.

Europe is projected to hold the second largest share of the global market owing to the rapid technological advancements such as the advanced driver assistance systems and use of high-mobility logistics trucks for their greater capabilities. The European Government has imposed stringent emission norms to curb the rising emission levels and has made it mandatory to use advanced safety features and unique interior systems for increasing the fuel efficiency and safety of vehicles which have led to the growth of the market in this region. Also, the presence of prominent automotive manufacturing companies such as Renault, Volkswagen, Daimler, BMW, Volvo and PSA Group is leveraging the growth of the market in Europe.

KEY INDUSTRY PLAYERS

Morgan Advanced Materials is the Top Player in Automotive Shielding Market

Morgan Advanced Material is the leading company that makes use of advanced materials to produce highly efficient insulation products. The company has highly experienced engineers and scientists to find new solutions to complex and technologically demanding challenges. It is taking the leading products and expertise to develop thermal management systems in the automotive sector. It also has highly efficient solutions for the next generation hybrid and electric vehicles that are expected to boost the growth of this company.

LIST OF KEY COMPANIES PROFILED:

• Tenneco Inc.


• Laird


• Autoneum


• 3M


• Marian, Inc.


• Kitagawa Corporation


• ElringKlinger AG


• Henkel AG & Co. KGaA


• Lydall, Inc. 


• PARKER HANNIFIN CORP


• Morgan Advanced Materials


• SCHAFFNER HOLDING AG

KEY INDUSTRY DEVELOPMENTS 

April 2019 – Toyochem Produces Low Modulus and Heat Dispelling Adhesive Sheets for Power Devices

Toyochem Co., Ltd., an active member of the Toyo Ink Group of Japan, launched the LIOELM FTS series of thermally conductive adhesive sheets as a heat-dissipation solution in high power electronic devices. LIOCHEM FTS rapidly transfers heat from the source to the heat sink, whereas consistently insulating the electronic device from high voltages and thermal shock in particular for the next generation electric vehicles.

May 2019 – Autoneum with Ultra-Silent Innovates Battery Undercovers for Electric Vehicles

Autoneum extends its product portfolio by developing textile battery undercovers made by Ultra-Silent that optimally meets the precise requirements for acoustic and thermal management of the electric vehicles. Lightweight components made of Ultra-Silent are mostly made from recycled PET fibers that can be entirely cultivated, making them particularly environmentally-friendly. 

REPORT COVERAGE

The automotive shielding market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product.

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Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

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