Automotive and Transportation Market: Markets and Markets Spotlight
16 Aug 2021 • by Natalie Aster
Go green at large as a major trend has been gaining more and more importance as a design concept for the automobile industry. The industry is at a point where the complexity, the cost of technology, market dimensions and market positioning are determining the consolidation of nature and science for sustainability. The percentage of semiconductors installed in modern cars is expected to increase for two prominent reasons: first, more and more functions with high semiconductor content are being installed in cars, involving safety, infotainment, comfort and engine control. The second main driver, for long term, is expected to be the development of electric cars. Smart electronics is expected to be the heart of the cars where semiconductors are will play a vital role in the field of energy electronics for controlling power.
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- Electric Trucks Market - Global Forecast to 2030
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Electric Trucks Market by Propulsion(BEV, PHEV & FCEV), Type (Light, Medium & Heavy-duty Trucks), Range (upto 200 miles & above 200 miles), Battery Type, Battery Capacity, Level of Automation, End User, Payload Capacity & Region - Global Forecast to 2030
The electric truck market, by value, is estimated to be 69,597 units in 2021 and is projected to reach 1,413,694 units by 2030, at a CAGR of 39.7% from 2021 to 2030. Increased focus of Government on emission free vehicles and policies would drive adoption of electric trucks in the e-commerce and logistics sector. Further, It will create opportunities for OEMs to expand their revenue stream and geographical presence in electric commercial vehicle industry.
North America is projected to experience steady growth owing to the high demand for electric trucks for logistics transport fleets. Europe is projected to be the fastest-growing market due to the high adoption rate of electric pick-up trucks in the logistics sector in the region. Factors such as rise in pollution and environmental hazards, stringent government regulations, and stiff competition have compelled automotive OEMs to make fuel-efficient and environment-friendly vehicles. In this pursuit, automotive OEMs and component manufacturers are exploring ways to develop and design trucks that can meet the standards of fuel efficiency as well as vehicle emission.
The COVID-19 pandemic has decelerated the growth of the electric truck market. Lower vehicle sales post the pandemic will be a major concern for automotive OEMs for the next few quarters. According to industry experts, there is a very thin chance of vehicle sales recovery in 2021. However, the electric truck market is expected to witness a significant boost in 2022 due to recovery and developments.
Some of the major players in the electric trucks market are BYD(China)., Daimler AG (Germany), AB Volvo (Sweden), PACCAR(U.S.) and Scania (Sweden) and others. These players have long-term supply contracts with leading automotive manufacturers and autonomous vehicle technology developers. These companies have adopted the strategies of new product developments, acquisitions, agreements, collaborations, expansions, joint ventures, partnerships, and supply contracts to gain traction in the electric truck market. Partnership and collaboration are the most widely adopted strategies by major players.
COVID-19 Impact on Electric Truck Market:
The overall automobile market suffered losses in the initial months of the pandemic when sales of vehicles reduced drastically due to lockdowns. However, during the second half of 2020, the sales increased and in most cases reduced the losses for those past months. The sales of electric vehicles increased in 2020 and 2021 due to the growing trend of vehicle electrification around the world. This sector was thus, less affected by the pandemic. The demand for electric trucks had similarly decreased in first half of 2020 and increased thereafter. Being a newly growing segment of the EV market, the demand of these vehicles has been increasing in the past months in countries like China, US, Germany, France, UK, etc. Top OEM’s like Ford, GM, Volkswagen, Stellantis, BYD, Daimler AG, AB Volvo, etc. had varying amount of losses in the overall market, but their electric truck divisions had a steady growth rate during the pandemic.
The automotive brake system market is projected to reach USD 26.5 billion by 2026 from an estimated USD 20.9 billion in 2021, at a CAGR of 4.9% during the forecast period. Factors such as rollout of stringent safety regulations, adoption of high-end and luxury cars, and growing adoption of air disc brakes in commercial vehicles are expected to drive the demand for the brake system market.
COVID-19 Impact on The automotive brake system market:
The automotive industry plays a crucial role in building the global economy. However, the COVID-19 outbreak disrupted the entire automotive supply chain on a global scale during the second and third quarters of 2020, impacting new vehicle sales in FY 2020. According to OICA and MarketsandMarkets analysis, vehicle production (including LDV and HDV) witnessed a decline of 19.6% in 2020. The pandemic presented an uncertain recovery timeline for the automotive industry due to lockdowns and shutdown of manufacturing facilities in various parts of the world. The automotive industry faced four major challenges amid COVID-19—limited supply of vehicle parts, reduced sales of new vehicles, the shutdown of production facilities, and a decline in working capital. As the brake system market is dependent on the production of vehicles, this market is expected to be impacted due to the outbreak. However, according to various industry experts, the recovery may regain momentum by the second half of 2021.
The Exhaust System (OE) Market, by vehicle type is projected to grow from USD 36.9 billion in 2021 to USD 47.9 billion by 2026, at a CAGR of 5.3% during the forecast period.
Exhaust gases released from engine cylinders are accumulated and cooled down by the exhaust manifold and passed to the catalytic converter through the downpipe. The catalytic converter and after-treatment devices act as an exhaust gas purifier and remove the harmful constituents from the gases. These gases travel through the muffler, minimizing the noise level, and finally emit the cleansed exhaust gases from the tailpipe. The exhaust system consists of an exhaust manifold, downpipe, catalytic converter, sensors (oxygen, temperature, and others), mufflers, resonators, clamps, and tailpipes. The exhaust system also consists of various after-treatment devices, along with the catalytic converter, which is used to remove harmful constituents such as carbon monoxide (CO), carbon dioxide (CO2), nitrogen oxides (NOX), and particulate matter (PM) from the exhaust gas. After-treatment devices installed in the diesel engines are diesel particulate filter (DPF), diesel oxidation catalyst (DOC), lean NOx trap (LNT), and selective catalytic converter (SCR); and for gasoline engines include gasoline particulate filter (GPF).
COVID-19 Impact on Market
The outbreak of the COVID-19 has severely impacted the overall supply chain of the automotive industry. The halt in production and logistics created affected raw material suppliers. The pandemic has affected the overall growth of the industry in 2020, as major automotive players such as Fiat, Volkswagen, PSA Group, General Motors, and BMW had to suspend their production. This scenario impacted the automotive exhaust market, especially in European and North American countries, as the growth of this market is directly related to the production of vehicles.
According to the European Automobile Manufacturers Association, the automotive industry in Europe has been severely impacted due to the pandemic. The passenger car market in the region contracted by 23.7% to 9.9 million units in 2020. This represents a drop of 3 million units compared to 2019. The export of vehicles in Europe also reduced in 2020, as the European Union exported passenger cars worth USD 130 billion between January and November last year, some USD 24.9 billion less than the year before.
The US experienced a drop in automotive production by 19%, slightly more than average worldwide; it produced a combined 8,822,399 cars and commercial vehicles in 2020.
Despite encouraging reports on vaccine development, numerous risks remain, and automotive production will not rebound to pre-COVID levels until 2023 at the earliest. This scenario is expected to affect the exhaust system market as the growth of this market is directly related to the production of vehicles. However, the strong vehicle demand and vaccine rollouts, easing of lockdowns, and the resumption of economic and social activities are expected to revive the global automotive vehicle production in 2021.
Though the vehicle production in China was back on track by the end of 2020, other key vehicle manufacturing countries such as India, Japan, Germany, Spain, and the UK have been severely impacted by the COVID-19 pandemic. The second wave of the COVID-19 and resultant lockdowns impacted Europe by the end of 2020 and Asian countries in Q1 of 2021 and disrupted the automotive supply chain. This, in turn, impacted estimations of the exhaust system market in the post-COVID-19 situation.
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