Automotive Heat Shield Market worth $13.9 billion by 2025

Thursday 20 August 2020, Amsterdam

The report "Automotive Heat Shield Market by Application (Engine, Exhaust, Under Bonnet, Under Chassis, Turbocharger), Product (Single Shell, Double Shell, Sandwich), Function (Acoustic, Non-Acoustic), Material, Vehicle Type, EV, and Region - Global Forecast to 2025", The global automotive heat shield market is projected to reach USD 13.9 billion by 2025 from USD 11.7 billion in 2020, at a CAGR of 3.4% during the forecast period. Automotive heat shields are used at various locations within a vehicle to protect the vehicle body and components from excessive heat generated by the engine and exhaust systems. These exhaust gases can reach temperatures up to 900 degrees. Technological advancements have made automotive heat shields safer and more effective over the past few years. The materials used in automotive heat shield fabrication include aluminum, nylon, and ceramic.

Due to the increasing number of automotive sales across the globe, there is immense scope and opportunities for the automotive heat shield market. Automotive heat shield manufacturers have been able to bring innovation to their products. Integration and customization of heat shields with advanced technologies have been able to ensure new and innovative heat shielding components for hybrid and electric vehicles as well.

Vehicle production remained low in April and May 2020 in major European countries and the US due to the ongoing COVID-19 pandemic. Tier I component manufacturers had to follow the same as demand weakened rapidly. Earlier, the automotive heat shield market was expected to witness rapid growth due to implementation of stringent fuel efficiency standards in Europe and other major countries. As vehicle production is suspended, any new investments in advanced technologies are unlikely. OEMs and Tier I players are either using cash reserves or acquiring funds to continue operations during the crisis. OEMs are still skeptical about the recovery of vehicle sales to 2019 levels in 2020. Hence, demand for automotive heat shield is estimated to be low in 2020 and 2021.

Double shell segment, by product type, is estimated to be the fastest growing automotive heat shield market share during the forecast period.
The double shell heat shields are made of two aluminum sheets. These are designed to tolerate low to medium temperatures. Just like in single shell, aluminum sheets of 0.3–1.0 mm thickness are utilized for double shell technology. These are offered as exhaust manifold heat shields, catalytic converter heat shields, turbocharger heat shields, and starter motor heat shields.

Double shell is useful to reduce the under-bonnet temperatures, allowing for lower air intake temperatures and thus enabling increased power output. These heat shields keep more heat in the exhaust, thereby reducing exhaust back-pressure. All these factors would drive the growth of the double shell automotive heat shield market.

HEV electric vehicle segment is estimated to hold the largest market share during the forecast period.
HEVs combine the conventional ICE and electric propulsion system. There are three types of hybrids, namely, parallel hybrids, series hybrids, and power split hybrids. Modern HEVs are enabled with efficiency improving technologies such as regenerative brakes, electric motor drive, and automatic start/shutoff. Regenerative brakes convert the vehicle’s kinetic energy into electric energy to recharge its electric battery. The electric motor drive and automatic start/shutoff improve the efficiency of an HEV as these save energy by smart operations. These technologies have made HEVs successful in recent years.

Hybrid vehicles are equipped with electrical components that are highly temperature-sensitive. Therefore, working outside specified temperature ranges can lead to their failure. Consequently, the goal of superior thermal management system is to keep the main component—the Li-ion battery—within the optimal working temperature and consume the minimum possible electrical energy through the cooling circuit actuators. Such systems would fuel the demand for heat shields in the HEV segment.

Asia Pacific is estimated to be the largest market for automotive heat shield during the forecast period.
Asia Pacific is expected to account for the largest market share during the forecast period, followed by Europe and North America. China is the untapped heat shield market for many companies. Autoneum and Lydall are expanding their presence in the country. Autoneum expanded its presence in China with a plant for the production of lightweight acoustic and thermal management components in the eastern Chinese city of Yantai in 2016. Chinese vehicle manufacturers are supplied with thermal components from Yantai since then. Renowned heat shield manufacturer Lydall generated 6% of sales from China in 2019, which is its largest market in Asia Pacific.

The automotive heat shield market is dominated by globally established players such as Dana Incorporated (US), Morgan Advanced Materials (UK), Autoneum (Switzerland), ElringKlinger AG (Germany), Lydall Inc. (UK), Tenneco Inc. (US), Carcoustics (Germany), and UGN Inc. (US).