Increasing applications of metal foam in the automobile industry will mainly drive metal foam market size. There has been a rising trend of reducing vehicle weight, especially since the entry of electric vehicles (EV) in the automotive market. The shifting preferences towards electric vehicles and the role of metal foam to reduce body weight of such vehicles will help to fuel metal foam market share.
U.S. Metal Foam Market Share, By End-Use Sector, 2014 – 2025 (USD Million)
The cellular gas filled structure of metal foam permits the development of complex geometrical shapes, which can be used for varied applications in the automobile sector. Owing to the capability of metal foam to block engine noise and heat from reaching the passenger compartment, it is utilized as a sound damper and thermal insulator in automobiles. Despite being lightweight, metal foam withstands great damage with a very little deformation due to its optimal stiffness characteristic, thereby helping to create an array of body parts which can considerably reduce the body weight without compromising on vehicle safety. Surging use of sandwiched metal foam panels in automobiles to reduce vehicle weight and improve fuel efficiency is slated propel metal foam market size over the coming years.
The rising awareness about depleting fossil fuel reserves has shifted the automakers’ focus towards more greener options like electric vehicles. The proliferation of EVs and their hybrid siblings will be well supported by the utilization of metal foam in EV manufacturing. The increased weight of electric vehicles imposed by the batteries being a major concern among the EV manufacturers once, the introduction of metal foam will not only lower the body weight but also help to improve vehicle’s efficiency. Growing demand for electric vehicles pertaining to its fuel efficient and eco-friendly nature is likely to enhance metal foam industry trends over the years ahead.
Additionally, the rising trend of EVs and hybrid cars will drive more investments by the automotive giants over the forecast period. For instance, in 2017, Volvo declared its plan to manufacture only electric cars by 2019. In addition, company aims for 50% of sales to be fully electric vehicles by 2025. In this regard, Volvo has been working to introduce fully electric vehicle variants in the coming years. Such aggressive steps from an auto giant like Volvo will surely influence other auto manufacturers to invest in the development of EVs and hybrid vehicles. The presence of a competitive business scenario in EV industry will notably strengthen metal foam market forecast.
Speaking about regional trends, governments have been promoting use of electric vehicles to control rising environmental concerns due to vehicle emissions. For instance, in order to dominate global EV industry and reduce carbon emissions, the Chinese government has been providing subsidies to buyers of electric vehicles. According to the China Association of Automobile Manufacturers (CAAM), 777,000 EVs were sold in China in 2017, which was 53% more compared to 2016. As a result of rapid expansion of EV industry, China metal foam market players will experience strong business growth opportunities over the estimated timeframe.
The formation of joint ventures to innovate and improve the EV technology will support metal foam industry outlook. For instance, in 2019, the French auto maker Renault formed a joint venture with the Jiangling Motors Corporation Group (JMCG) to expand electric vehicles business across China. Through this strategic move, Renault is looking forward to enhancing China’s battery electric vehicle industry share by investing USD 144 million.
According to International energy agency (IEA), global electric car sales hit 1.98 million in 2018. Increasing acceptance for electric vehicles along with shifting focus of automakers toward development of fuel efficient and green vehicles is slated to accelerate the product demand over the coming years. As per a research report from Global market insights, Inc., metal foam market size is expected to cross USD 100 million by 2025.