Automotive Shielding Market Expected to Reach $34.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automotive Shielding Market," The automotive shielding market was valued at $21.9 billion in 2022, and is estimated to reach $34.5 billion by 2032, growing at a CAGR of 4.7% from 2023 to 2032. 

Automotive shielding involves the use of specialized materials and techniques to manage electromagnetic interference (EMI) within vehicles. As vehicles become more technologically advanced and electronically integrated, the potential for electromagnetic fields generated by various components to interfere with each other's functioning increases. Automotive shielding is essential to mitigate these interferences and ensure the reliable operation of vehicle systems.

The development and integration of ADAS technologies and autonomous driving features require precise and reliable communication between sensors, cameras, radar systems, and other electronic components. Effective electromagnetic shielding is essential to prevent interference that could compromise the accuracy of these systems.

Moreover, government regulations aimed at reducing emissions and improving fuel efficiency have driven automakers to develop more efficient powertrain systems. These systems often involve a combination of electric and conventional components, creating potential EMI challenges that require proper shielding solutions.

However, as vehicles become more electrified and technologically advanced, the complexity of their electronic systems increases. Designing and integrating effective shielding solutions into these intricate systems can pose challenges in terms of space constraints, efficient layout, and overall design optimization.

However, the rapid growth of electric vehicles (EVs) offers a significant opportunity for automotive shielding solutions. EVs have complex electronic systems, including high-voltage components and sensitive electronics that require effective shielding to prevent interference and ensure safety and reliability.

The automotive shielding market is segmented on the basis of material, vehicle type, shielding type, application, and region. By material, the market is segregated into aluminum, copper, stainless steel, nickel, plastics, foam, and others. The copper segment dominated the global market, in terms of revenue in 2022. Copper's high conductivity and effectiveness in blocking electromagnetic radiation make it a valuable material for various automotive shielding applications. Engineers and designers often combine copper with other materials and techniques to create comprehensive shielding solutions that meet the specific electromagnetic compatibility requirements of automotive systems.

By vehicle type, the market is classified into passenger and commercial. The passenger segment dominated the global market, in terms of revenue in 2022. The shift towards electric and hybrid vehicles introduces new challenges related to electromagnetic interference. High-voltage components, batteries, and advanced electronics require robust shielding to prevent EMI from affecting critical systems and ensure passenger safety. Moreover, modern vehicles are equipped with advanced infotainment, communication, and driver assistance systems that rely on seamless connectivity.

Effective shielding is crucial to prevent electromagnetic interference that could disrupt communication and data transmission. In addition, advanced driver assistance systems (ADAS) technologies such as radar, LiDAR, and cameras require accurate sensor data. Shielding prevents interference that could compromise the accuracy of these systems, enhancing vehicle safety. These factors surge the popularity of automotive shielding process on passenger vehicles; thus, fueling the growth of the automotive shielding market.

By shielding type, the market is segregated into heat shielding and electromagnetic induction shielding. The heat shielding segment dominated the global market, in terms of revenue in 2022. The shift towards electric and hybrid vehicles introduces new thermal challenges. Batteries, electric motors, power electronics, and charging systems require effective heat shielding to manage heat generated during charging, discharging, and operation. These factors may surge the utilization of heat automotive shielding type over modern vehicles; thus, fueling the growth of the automotive shielding market.

By application, the market is divided into electromagnetic compatibility (EMC), infotainment systems, advance driver assistance systems (ADAS), electronic control modules, and others. The electromagnetic compatibility (EMC) application segment dominated the global market, in terms of revenue in 2022 with 28.2% share in the global market. The growth of automotive shielding for EMC is driven by technological advancements, increasing complexity of vehicle electronics, regulatory requirements, and the expanding use of electronic components.

Furthermore, the incorporation of advanced technologies such as infotainment systems, advanced driver assistance systems (ADAS), connectivity features, and autonomous driving functionalities require precise and reliable operation of electronic systems. Effective shielding is essential to prevent interference and ensure these systems function as intended. These factors surge demand for automotive shielding process for electromagnetic compatibility (EMC) application ;thus, fueling the market growth.

Region-wise, the automotive shielding market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific automotive shielding market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2022. The Asia-Pacific region has been a significant and rapidly growing market in the global automotive industry. The Asia-Pacific automotive shielding market is influenced by factors such as technological advancements, regulatory standards, consumer preferences, economic growth, and industry trends. Many countries in the Asia-Pacific region have experienced substantial economic growth, leading to increase in demand for vehicles, both personal and commercial. This growing automobile market contributes to rise in demand for shielding solutions to ensure vehicle performance and safety.

Furthermore, there is an increase in demand for electric vehicles (EVs) due to pollution concerns, government incentives, and technology advancements. EVs require effective shielding solutions to manage electromagnetic interference (EMI) and ensure safe operation. Moreover, the adoption of connected vehicle technologies, such as advanced infotainment systems and telematics, is on the rise in the region. This trend creates a need for reliable shielding to prevent electromagnetic interference and ensure seamless connectivity. In addition, regulatory standards and requirements vary across Asia-Pacific countries, thus influencing the adoption of shielding technologies. Some countries may prioritize certain types of shielding, such as those related to safety or emissions compliance. These factors altogether may fuel the demand for automotive shielding market in the Asia-Pacific region.

Key players operating in the global automotive shielding market include Tech-Etch, Inc., Morgan Advanced Materials PLC, 3M, Laird Technologies, Inc., PARKER HANNIFIN CORP, ElringKlinger AG, Henkel AG And Co. KGaA, Schaffner Holding AG, Dana Limited, Marian, Inc., and Tenneco Inc.

IMPACT OF  COVID-19 ON AUTOMOTIVE SHILEDING MARKET

The COVID-19 pandemic had several significant impacts on the automotive industry, including the automotive shielding market. Furthermore, many automotive component manufacturers faced disruptions in their supply chains due to factory closures, lockdowns, and transportation restrictions. This led to delays in the production and delivery of automotive shielding materials and components, affecting the overall supply of shielding products. Moreover, as automotive manufacturers temporarily shut down production facilities to comply with lockdown measures and faced reduced demand due to economic uncertainty, the need for automotive shielding components also declined.

However, the recovery of the automotive shielding market post-COVID has been influenced by a combination of factors, including the gradual resumption of vehicle production, supply chain adjustments, evolving consumer preferences, and ongoing technological advancements. The exact recovery trajectory varied across regions and segments. Moreover, as lockdowns and restrictions eased, automotive manufacturing gradually resumed. This led to increase in demand for automotive components, including shielding materials used in various vehicle systems.

In addition, the pandemic prompted a shift in consumer preferences towards personal vehicles over public transportation due to health and safety concerns. This lead to increase in demand for vehicles, thus positively impacting the automotive shielding market. The automotive industry's focus on electric vehicles (EVs) and connected technologies continued post-COVID. These segments often require advanced electronic systems, which drive the demand for effective shielding solutions to manage electromagnetic interference.

Furthermore, suppliers, manufacturers, and technology providers collaborated to innovate and develop shielding solutions that meet the evolving demands of the automotive industry. Also, the pandemic underscored the significance of trends such as vehicle electrification, connectivity, and autonomous driving. These trends continue to drive the development of advanced automotive technologies, including shielding solutions.

Key Findings Of The Study

• By material, the copper segment is estimated to attain the highest growth rate, in terms of revenue, registering a CAGR of 5.2% from 2023 to 2032.
• By vehicle type, the passenger segment is estimated to attain the highest growth rate, in terms of revenue, registering a CAGR of 4.9% from 2023 to 2032.
• By shielding type, the heat shielding segment is estimated to attain the highest growth rate, in terms of revenue, registering a CAGR of 4.6% from 2023 to 2032.
• By application, the electromagnetic compatibility (EMC) segment is estimated to attain the highest growth rate, in terms of revenue, registering a CAGR of 4.9% from 2023 to 2032.
• Asia-Pacific garnered the highest share of morethan 45% in 2022, in terms of revenue, growing at a CAGR of 5.2%.