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Automotive Ceramics Market to Record 5.7% CAGR Growth Through 2029 | Global Analysis Report
Use ONLINE30 for 30% savings on global market reports and stay on top of tariff updates, market trends, and economic shifts worldwide.Automotive Ceramics Market Outlook: How is the Market Expected to Grow by 2025?
The sector of automotive ceramics has robustly multiplied in size over the past few years. An increase from $2.29 billion in 2024 to $2.41 billion in 2025 with a compound annual growth rate (CAGR) of 5.3% is projected. This previous growth expansion is associated with the escalating requirement for fuel efficiency, severe emission guidelines, the surge in acceptance of electric cars, improved resilience and lifespan, and the rising demand for superior performance brake systems.
Automotive Ceramics Market Forecast: What Size Will It Reach By 2029?
In the coming years, the automotive ceramics market is projected to witness robust growth, hitting the target of $3.02 billion in 2029 with a compound annual growth rate (CAGR) of 5.7%. The anticipated growth within the forecast period can be credited to factors such as the increasing applications of automotive sensors, the rising trend of hybrid vehicles, amplified usage in turbochargers, a boost in the demand for autonomous vehicles, as well as the surging interest in hydrogen fuel cell vehicles. Among the major trends to be expected during the forecast period are the creation of low-cost production techniques, the inception of affordable innovative technologies, progress in battery and fuel cell technologies and electronic components, technological evolution, and the formulation of rapidly evolving technologies.
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Which Key Market Drivers Will Shape Automotive Ceramics Industry Trends in 2025-2029?
The expansion of the automotive ceramics market is expected to be fueled by the escalating demand for electric vehicles (EVs). These vehicles, powered by rechargeable batteries through electric motors as opposed to traditional internal combustion engines, have seen a significant increase in popularity. This rise is largely attributed to increasing environmental consciousness, governmental incentives and regulations, and advancements in the technology of electric vehicles. The mounting concern over climate change and the harmful impact of fossil fuels have inspired consumers to turn to more environmentally-friendly options like electric vehicles, which produce no emissions. Using automotive ceramics in these vehicles can significantly boost their performance, durability, and efficiency due to their unique properties, including high-temperature resistance, wear resistance, and light weight, making them perfect for various EV applications. For instance, the International Energy Agency, a US-based intergovernmental organization, noted that in December 2024, electric car sales saw a rise of 35% from the previous year, with an additional 3.5 million units sold compared to 2022. As a result of this increasing demand for electric vehicles, the automotive ceramics market is experiencing significant growth.
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What Are the High-Growth Segments in the Automotive Ceramics Market?
The automotive ceramics market covered in this report is segmented -
1) By Material: Alumina, Zirconia, Other Materials
2) By Vehicle Type: Passenger Vehicles, Commercial Vehicles
3) By Application: Engine parts, Automotive electronics, Exhaust systems
Subsegments:
1) By Alumina: High-Purity Alumina, Alumina-Based Composites, Toughened Alumina
2) By Zirconia: Yttria-Stabilized Zirconia (YSZ), Magnesia-Stabilized Zirconia (MSZ), Partially Stabilized Zirconia (PSZ)
3) By Other Materials: Silicon Carbide (SiC), Silicon Nitride (Si3N4), Titanate-Based Ceramics
Which Global Trends Are Driving Automotive Ceramics Market Expansion?
Leading firms in the automotive ceramics marketplace are concentrating their efforts on the creation of state-of-the-art products like superior grade ceramic substrates to enhance heat regulation, elevate efficiency, and facilitate the continuous growth of electric vehicles. A top-grade ceramic substrate used in automotive equates to a particular ceramic element utilized as a base or groundwork in various automotive parts, primarily the electronic system. For instance, in May 2023, CeramTec GmbH, a chemical corporation based out of Germany, introduced Rub alit ZTA, a top-grade ceramic substrate. This new substance provides substantial flexural toughness, commendable thermal conductivity, superb electrical insulation, and elite dielectric strength. Tailor-made for highly electrified industries and electronic transportation, Rub alit ZTA aims to cater to the increasing demand for superior ceramic solutions in electric autos and other high-end automobile applications.
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Who Are the Fastest-Growing Companies in the Automotive Ceramics Industry?
Major companies operating in the automotive ceramics market are Saint-Gobain Ceramic Materials, Sumitomo Electric Industries Ltd., Kyocera Corporation, Corning Incorporated, Murata Manufacturing Co. Ltd., Hitachi Metals Ltd., Tosoh Corporation, NGK Insulators Ltd., Ibiden Co. Ltd., Denka Company Limited, CoorsTek Inc., Morgan Advanced Materials plc, Ferrotec Holdings Corporation, CeramTec GmbH, CTS Corporation, Schunk Ingenieurkeramik GmbH, 3M India Limited, Maruwa Co. Ltd., Ceradyne Inc., Nippon Carbon Co. Ltd.
What Is the Regional Outlook for the Automotive Ceramics Market by 2029?
Asia-Pacific was the largest region in the automotive ceramics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive ceramics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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