The Automotive Body-In-White Component Market is expected to grow from US$ US$ 90.88 Bn in 2017 to US$ 125.61 Bn by 2025 at a CAGR of 4.1% between 2017 and 2025.
The automotive body-in-white component market has experienced significant growth rate in the past few years owing to increasing vehicle production worldwide. The BIW components accounts for 20 – 33 % of curb weight of the vehicle and therefore represents high revenue potential for component suppliers across the automotive value chain. Despite disruptions in the automotive sector such as evolution of electric / hybrid vehicle, development of driverless and connected vehicles, BIW components is invariable segment of automotive sector and therefore associated as the major business segment in overall automotive industry. Only a handful of players dominate the global automotive body-in-white component market owing to high investments, enhanced R&D capabilities, and strong supplier relationships among others.
Exhibit: Automotive Body-In-White Component Regional Markets
Steel material type accounted for highest market share in global automotive body-in-white component market
Steel is the most widely used material for BIW component production and is accounted for the largest share in the global automotive body-in-white component market in 2016. Based on material type, this sub-segment of automotive body-in-white component market is expected to remain dominant over the forecast period owing to low cost and enhanced strength of the material. However, steel may not be utilized in its conventional form but is widely utilized under different grades classified based on strength of the material.
Adoption of costly materials combined with rise in overall material consumption is driving the automotive body-in-white component market revenue growth
Low emission standards across developing & developed economies are pushing the demand for lightweight vehicle. To further comply with stringent emissions and fuel economy standards vehicle manufacturers are focusing towards overall weight reduction and enhance propulsion efficiency. This unwavering focus towards weight reduction is encouraging the adoption of lightweight materials for vehicle component production. Employing light weight material and achieving safety standards at the same time urges manufacturers to seek for materials which are not only high in cost but also requires superior production and fabrication techniques. Cost of such materials may sometimes reach three to four times of conventional material thereby pushing the overall cost of vehicle component. Although, adoption of lightweight material is leading to net reduction in average mass per vehicle, but overall material demand remains high owing to increase in the production of CUV’s and SUVs. Thus, high material cost combined with upsurge in overall material consumption will drive the revenue growth in global automotive body-in-white component market.
Exhibit: Automotive Body-In-White Component Market by Component Position
Market initiative was observed as the most adopted strategy in global automotive body-in-white component market. Few of the recent strategies by some of the players in automotive body-in-white component landscape are listed below-
2017: Gestamp Automición SA opened its new R&D centre in Auburn Hills, Southeast Michigan, which will house robotic prototype assembly cells, durability performance test labs and metallurgical and metrology labs.
2017: Gestamp Automición SA opened its new R&D centre in Japan, which will be equipped with simulation resources, and advanced simulation of hot stamping process.
2017: BENTELER International AG opened its new sales and service centre in Coventry.
Global Automotive Body-In-White Component - Market SegmentationBy Material Type