Automotive NVH Materials market is forecast to reach $8 billion by 2026, after growing at a CAGR of 6% during 2021-2026, owing to the rising demand for automobiles with an equivalent level of comfort in noise, vibration, and harshness (NVH).
NVH Materials Market by Application: The rubber segment held the largest share in the automotive NVH materials market in 2020, owing to its excellent characteristics such as lightweight, high density, and consistency, rubbers are widely utilized for the application of sound absorption in vehicles. It provides optimum noise insulation and vibration damping. The growing demand for quieter and safe vehicles is boosting the market for NVH rubber materials.
Vehicle Type: The passenger car segment held the largest share in the automotive NVH materials market in 2020 and is growing at a CAGR of 5%. The growing awareness of the benefits of NVH reduction and acoustic management in cars among customers is leading to an increase in the use of NVH materials in passenger vehicles. Consumers are demanding more comfort and safety in passenger vehicles. Increasing awareness among consumers along with the stringent government regulations for damper and safer vehicles are driving the demand for NVH materials in passenger vehicles.
Market by geography: Asia Pacific region held the largest share in the automotive NVH materials market in 2020 up to 53%, owing to the increasing automotive manufacturing coupled with population growth in the region. China is the world’s largest vehicle market, according to the International Trade Administration (ITA), and the Chinese government expects automobile production to reach 35 million by 2025. The rising per capita income of the individuals leads the massive demand for automotive NVH materials in APAC region.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian automotive industry has attracted Foreign Direct Investment (FDI) worth US$ 22.35 billion during the period June 2019 -to April 2000. The increasing automation industry in the Asia Pacific is likely to influence the growth of the automotive NVH materials market in the APAC region.
Emission and fuel economy regulations
Several governments across the world have imposed stringent standard noise regulations for vehicles. These standard regulations have compelled automotive OEMs to increase the use of NVH materials such as nitrile rubber (NBR), polyurethanes (PU) and polycarbonate (PC) as these NVH materials assist in reducing the noise of a vehicle while ensuring safety and performance. Larger vehicles with larger engines are generally capable of making more noise. By 2026, the limit will be 68 dB for most new passenger cars.
Increasing government initiatives for Battery Electric Vehicles (BEV)
- Globally, governments are implementing laws and regulations to limit noise pollution. Most of the regulations are entailed in limiting the noise levels of automobiles. As a result, automotive producers are continuously working to offer high-quality and durable NVH materials. In addition, stringent government regulations for a quieter and safer automobile are expected to drive the automotive NVH materials market during the forecast period. By 2030, 140 million cars will have either a full electric or hybrid powertrain, according to the International Energy Agency (IEA). Various governments are taking initiatives, each with their schemes, to opt for electric mobility.
- Norwegian government is offering a broad subsidy package amounting to EUR 17,000 on the purchase of a compact ICE car class.
- UK government is paying a one-time premium of GPB 4,000-7,000 back to vehicle buyers (emitting less than 75 g/km).
- In addition, few Australian states offer savings from stamp duty for EV owners, such as EVs registered in the ACT.
- Germany has become the third market for electric vehicles (EV) worldwide. In order to stimulate the demand for electric vehicles, Germany has increased EV incentives. In late 2019, policymakers raised targets, pledging to have 10 million EVs on the roads by 2030 to meet their climate targets.
Automotive NVH materials are being extensively used in electric vehicles to reduce unfamiliar powertrain noises. And all these government initiatives are promoting the use of electric vehicles, which act as a driver for the automotive NVH materials market during the forecast period.
