Automotive Ceramics Market

The global automotive ceramics market is projected to reach USD 3.2 billion by 2028, at a CAGR of 5.7% from USD 2.4 billion in 2023. The demand for automotive ceramics is increasing as the sector focuses on lightweight and resilient materials to enhance fuel efficiency, manage emissions, and elevate vehicle performance. The growing adoption of electric vehicles and strict environmental regulations magnify the crucial role ceramics play in essential components like exhaust systems, engine parts, and automotive electronics. This propels the overall growth of the market, underscoring the importance of ceramics in addressing the evolving needs of the industry.

Attractive Opportunities in the Automotive Ceramics Market

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Note: e-estimated p-projected.

Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

Automotive Ceramics Market Dynamics

Driver: Increased use as an alternative to metals and plastics

Automotive ceramics have superior wear resistance, high-temperature strength, and chemical stability in comparison to metals. Therefore, these ceramics have replaced metals in many applications such as pump components (sealing), brake discs, catalyst support, particulate filter, and other automotive structural applications. They are also being used in niche applications in automobiles such as turbochargers, glow plugs, and combustion chambers instead of metals. Therefore, the increased usage of automotive ceramics over metals in the automotive industry is driving its market, globally.

Automotive ceramics have also replaced plastics in many applications; for example, miniature components used in automotive electronic circuits. Hence, automotive ceramics are expected to replace metals and plastics in many automotive applications in the near future.

Restraint: Higher cost than the metals and alloys

The cost of automotive ceramics is higher than metals and plastics. The prices of automotive ceramics are largely controlled by the costs of R&D; ceramic raw materials, especially, carbides and nitrides, ceramic fibers; specific material preparation; and other factors. High cost is a major barrier to the growth of the automotive ceramics market. Another factor contributing to the higher prices is the generation of the ceramic matrix. Matrix production needs expensive batch processes at high temperatures in a controlled atmosphere in comparison to monolithic ceramics and other conventional materials. The automotive industry uses ceramic matrix composites for a few applications, and higher costs are incurred where silicon carbide is used as a raw material in the production of the matrix. Automotive ceramic products have higher production and raw material costs in comparison to other metals and alloys used in automotive applications. This high cost is a major restraint for the growth of the automotive ceramics market.

Opportunities:Development of low cost production technologies

There is an increased demand for lightweight parts and engine components in the automotive industry. Companies are trying to build fuel-efficient vehicles, particularly, in the US and European countries. Therefore, the use of ceramic components is expected to increase in the production of new automotive engines. This has led automobile manufacturers to focus on ceramics as a substitute for conventional alloys and metals. Manufacturers are developing lightweight ceramics, which will increase the efficiency as well as the safety & security of vehicles. New technologies are being developed to manufacture automotive ceramics that have a broad range of exceptional properties and increased capability of providing structural efficiency at lower weights in comparison to the current technologies. The new technologies are further expected to reduce the cycle time and manufacturing costs. Such advancements are expected to provide a competitive edge and high growth opportunities to the automotive ceramics manufacturers.

Challenges: Issues pertaining to recyclability and reparability

It is very difficult to find internal cracks or wear & tear in components made of ceramic matrix. Moreover, lack of skilled labor and proper techniques of repair pose issues in repairing. However, increasing awareness regarding automotive ceramics repairing techniques and the increasing skilled labor will lower the impact in the near future. Although automotive ceramics are durable, these components cannot be recycled for use in the same applications. Owing to the durability and various mechanical and optical properties of automotive ceramics, different compositions of ceramic material face the issues of recyclability and reparability. This is one of the major challenges for the market players.

Automotive Ceramics Market: Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of automotive ceramicss. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Kyocera Corpoatyion (Japan), Ceramtec GmbH (Germany), Niterra (Japan), Coorstek Inc (US), Morgan Advanced Materials (UK).

Based on material, zirconia oxide is projected to account for the second largest share of the automotive ceramics market.

Zirconia oxide secures the second-largest share in the material segment of the automotive ceramics market due to its exceptional properties that cater to the demanding requirements of the automotive industry. Renowned for its high mechanical strength, thermal resistance, and low thermal conductivity, zirconia oxide is a preferred material for critical applications in automotive components. Its remarkable resistance to corrosion and wear, combined with the ability to withstand extreme temperatures, makes it invaluable for exhaust systems, sensors, spark plugs, and other components. Zirconia oxide's prominence is further amplified by the growing adoption of electric vehicles, where it finds extensive use in battery systems. As the automotive industry prioritizes lightweight and durable materials to enhance efficiency and comply with stringent regulations, zirconia oxide emerges as a vital contributor, securing its significant market share and positioning itself as a key driver of innovation and advancement in automotive ceramics.

Based on vehicle type, commercial vehicle type is projected to account for the second largest share of the automotive ceramics market.

Commercial vehicles claim the second-largest share in the vehicle type segment of the automotive ceramics Market due to specific operational demands and industry trends. The durability and performance requirements of commercial vehicles necessitate advanced materials like ceramics in crucial components such as engine parts, exhaust systems, and braking systems. As commercial vehicles often undergo rigorous and continuous usage, the industry places a premium on materials that can withstand extreme conditions, reduce wear and tear, and enhance overall efficiency. Moreover, the increasing focus on emission control and fuel efficiency in the commercial transportation sector amplifies the demand for ceramics in exhaust systems. The sector's adoption of advanced braking systems, where ceramics play a pivotal role, further contributes to the significant market share. As the commercial vehicle segment continues to evolve with technological advancements, ceramics remain integral to meeting the stringent demands of durability and performance in this segment, solidifying its second-largest position in the market.

Based on application, exhaust systems application is projected to account for the second largest share of the automotive ceramics market.

Exhaust systems secure the second-largest share in the application segment of the automotive ceramics Market due to their critical role in addressing stringent emission regulations and optimizing engine performance. Automotive ceramics, particularly zirconia oxide, are extensively utilized in catalytic converters and diesel particulate filters within exhaust systems. These ceramics offer high thermal stability, corrosion resistance, and durability, crucial for withstanding the harsh operating conditions of exhaust gases. With global emphasis on reducing emissions and enhancing fuel efficiency, exhaust systems play a pivotal role in mitigating environmental impact. The growth of hybrid and electric vehicles further propels the demand for ceramics in exhaust systems, as they find application in components like thermal management systems. As the automotive industry continually evolves to meet environmental standards, exhaust systems with advanced ceramics continue to hold a significant market share, supporting the overall trajectory of the automotive ceramics market.

Asia Pacific is expected to be the fastest-growing market during the forecast period.

Asia Pacific region emerges as the fastest-growing market in the global Automotive Ceramics Market due to several pivotal factors. Renowned for its major automotive manufacturing hubs in nations like China, Japan, and South Korea, the region is swiftly becoming a dominant force in the automotive industry. The surge in consumer demand for vehicles, coupled with rising disposable incomes and urbanization, is propelling rapid growth in the automotive sector. Furthermore, the region's proactive stance on adopting advanced materials such as ceramics, driven by stringent emission regulations and the global push for sustainable transportation, fuels the market's accelerated expansion. The Asia Pacific's commitment to technological innovation, continuous research and development efforts, and a forward-thinking approach to electric vehicle adoption further contribute to its status as the fastest-growing market for automotive ceramics. Positioned at the forefront of automotive production and innovation, the region is rapidly solidifying its leadership in the global automotive ceramics market.

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Key Market Players

The automotive ceramics market is dominated by a few major players that have a wide regional presence. The key players in the automotive ceramics market are as Kyocera Corporation (Japan), Ceramtec GmbH (Germany), Niterra (Japan), Coorstek Inc (US), Morgan Advanced Materials (UK), Saint-Gobain Ceramic. (US), Elan Technologies (US), 3M (US), Ibiden Co., Ltd. (Japan), and Corning Incorporated. (US). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the automotive ceramics market.

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Scope of the Report

This report categorizes the global automotive ceramics market based on material, vehicle type, application, and region.

On the basis of material, the automotive ceramics market has been segmented as follows:

• Alumina Oxide
• Titanate Oxide
• Zirconia Oxide
• Others

On the basis of vehicle type, the automotive ceramics market has been segmented as follows:

• Passenger Vehicle
• Commercial Vehicle

On the basis of application, the automotive ceramics market has been segmented as follows:

• Engine Parts
• Exhaust Systems
• Automotive Electronics
• Braking Systems
• Others

On the basis of region, the automotive ceramics market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In July 2023, Niterra has acquired the Spark Plug business and the Exhaust Gas Oxygen Sensor business from DENSO CORPORATION. This acquisition has helped the company to strengthen its product portfolio in the automotive application.
• In April 2023, KYOCERA Corporation has invested in a new smart factory at the Minami Isahaya Industrial Park in Isahaya City, Japan. This has helped company production to meet the rising demand for electronics industry and to produce fine ceramic components used in semiconductor-related applications.
• In March 2023, Ceramtec GmbH launches a new product Rubalit ZTA, which is high-performance substrate, provides exceptional flexural strength, effective thermal conductivity, outstanding electrical insulation, and top-tier dielectric strength.
• In July 2020, Coorstek opened a new R&D center in Uden, the Netherlands. This new European R&D center is closely connected with CoorsTek’s R&D teams in the US and Japan and is dedicated to developing technical ceramics capabilities to support CoorsTek’s customers around the world.
• In October 2018, Morgan Advanced Materials launched the Cutting-Edge Carbon Science Centre of Excellence with Penn State University. The Centre of Excellence is utilized by Morgan’s wider businesses and, to date, has also become the home of research projects for the company’s thermal ceramics, technical ceramics, and braze alloys businesses.

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