The global automotive mold market will reach USD 54 billion by 2024, growing at a CAGR of 7% during 2019-2024. The emergence of lightweight vehicles is the most important trend witnessed in the automotive industry. Hence, one of the crucial technologies to develop lightweight vehicles is compression (hot-pressing) technology of molding. Hot-pressing parts can reduce energy consumption and improve passenger comfort, without compromising on safety. The finished part usually has a lightweight and ultra-high strength. Therefore, with the increased focus on maintaining fuel efficiency, the production of lightweight material is expected to increase significantly.
The introduction of new energy vehicles (electric ones) in the automobile market is another key growth opportunity for mold manufacturers. A significant factor driving the demand in new energy vehicles is the high degree of lightweight hot-pressing parts adoption. There have been significant developments in the new energy vehicles segment. Backed by favorable government initiatives, the new energy vehicle market is expected to witness growth in the coming years.
The automotive mold industry is set to witness the launch of virtual molding via enhanced digital software. This enables vendors to deliver high-quality parts. The software calculates an initial heating phase along with several injection cycles to arrive at a thermal steady state. Further, the software enables its users to evaluate and test planned configurations before the mold is prepared. The global automotive molding market is expected to grow at a CAGR of over 7% during the forecast period 2018-2024.
AUTOMOTIVE MOLDING MARKET: SEGMENTATION
This research report includes detailed segmentation by
- Vehicle Type
AUTOMOTIVE MOLDING MARKET: TECHNOLOGY
The injection mold segment is expected to grow at a CAGR of 7% during 2018–2024
Casting mold is a preferred source of technology in the automotive industry. These have witnessed a steady growth in the market as this technology offers consistent part quality, decreases the tooling cost, and offers excellent part-to-part repeatability. These factors are expected to drive the growth of the casting segment. Further, the growing innovation is encouraging vendors to enhance die-casting offerings. The injection mold segment is expected to grow at a CAGR of 7% from 2018–2024. A few key features offered by injection mold include a short cycle and high production efficiency.
Compression mold is increasingly finding its application in cockpits, air outlet grilles, and mirror shells. APAC is expected to lead this segment by 2024. Hydroforming and forging mold are other forms of molding technology. These technologies are in demand due to the growing demand for lightweight components in the automotive industry.
AUTOMOTIVE MOLDING MARKET: APPLICATION
The rise in demand for sturdy vehicles and durability is expected to drive the interior parts market during the forecast period
The exterior parts segment dominated the market in 2018. Exterior parts are widely molded worldwide in the automotive market as they are crucial for the vehicle’s outer body. The segment is expected to grow due to the increased demand for exterior parts from emerging markets.
The rise in demand for strong vehicles and durability is expected to drive the interior parts market during the forecast period. The APAC region is expected to grow at a robust CAGR during 2018−2024. Vendors expect the market for interior parts/components to maintain a steady growth due to designing changes and standard modifications taking place in other industries.
AUTOMOTIVE MOLDING MARKET: VEHICLE TYPE
The rise in construction activities worldwide is driving the demand for light commercial vehicles.
The introduction of stringent regulations at regular intervals has pressurized OEMs and their suppliers to develop better safety components for vehicles. The passenger car segment dominates the vehicle type segment. The consistent demand for mold and persistent, innovative offerings by automakers is the major driver for the considerable demand for passenger cars.
The demand for light commercial vehicles has remained a substantial factor in the global automotive mold market. The growth in the e-commerce sector and the popularity of online shopping has led to considerable demand for light commercial vehicles. The rise in construction activities worldwide is further driving the demand for light commercial vehicles.
Vendors catering to the automotive molding market can look forward to a steady demand curve regarding the molded product development for trucks. The expansion of heavy truck manufacturers across borders has further driven the heavy trucks market. For instance, Chinese truck manufacturers have successfully expanded in Europe and Latin America regions.
AUTOMOTIVE MOLDING MARKET: GEOGRAPHY
China, Japan, South Korea, India, and Taiwan are expected to lead the market in APAC
In 2018, APAC accounted for the highest share in the global automotive molding market. China, Japan, South Korea, India, and Taiwan, where the production is witnessing a surge due to low labor and logistical costs, are leading the APAC market. Although Japan is attaining maturity in the auto mold market, China is the leading in production. While Japan, China, India, and South Korea are the major automobile markets, countries such as Vietnam, Thailand, the Philippines, and Indonesia are expected to witness high demand due to the improving living standards in these countries during the forecast period.
Germany, the UK, and France constituted the highest market shares in Europe in 2018. The increasing demand for electric vehicles in the European market is one of the major driving forces for the growth of the mold market. Further, Western European economies are maturing, there is low product differentiation. Central and Eastern European economies are growing rapidly. Major countries in the region are expected to perform significantly well. The downturn in the industrial sector concerning investors across the region is getting negated due to robust domestic demand. However, the uncertainty over the key question of the Brexit is expected to affect the European market.
KEY VENDOR ANALYSIS
The automotive molding market is highly competitive and fragmented. The demand remains directly proportional to the production in the automotive industry. Thus, an increase or a decline in the sale has a significant impact on the auto mold market. The market is primarily concentrated in APAC, followed by Europe and North America. China has witnessed an influx of several vendors in the market due to the availability of economical labor and the presence of the automotive market. The market is highly price-sensitive with several vendors competing to establish business relations with OEMs. However, devising the price strategy of the product must consider the target margin percentage and the production cost. Thus, a blend of technical complexity, customer relationships, and market competition comes into the picture for vendors competing in such a highly competitive environment. Technological upgrades and enhanced production methodology remain highly crucial in the market. Vendors are continually working on upgrading their existing production technology.
The automotive molding market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Market Segmentation by Technology
- Casting Mold
- Injection Mold
- Compression Mold
Market Segmentation by Application
- Exterior Parts
- Interior Parts
Market Segmentation by Vehicle Type
- Passenger Car
- Light Commercial Vehicle
- Heavy Trucks
Market Segmentation by Geography
- South Korea
- Latin America
- Saudi Arabia
- South Africa
- North America