In its latest report, the Intergovernmental Panel on Climate Change (IPCC) states that the world temperature will rise by 3* Celsius by 2100 unless urgent action is taken. The automotive sector accounts for a huge chunk of emissions and national governments have forced carmakers to improve their fuel efficiency figures. Until the year 2017, several original equipment makers (OEMs) had already reduced their carbon emissions and others plan to do so in the near future. This has a compounding effect on ancillary parts such as automotive heat shields.

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Carmakers and Retailers Seek Partnerships in Automotive Heat Shield Market

Electric vehicles have seen a spike in demand as governments encourage adoption with favorable policies and consumers prefer EV’s over ICE options. The California Zero Emission (ZEV) Program is an example of state-level policy that promotes EV uptake. Even retailers such as Walmart have entered the arena. In 2019, it announced its partnership with Volkswagen to build EV chargers. Stricter norms make it essential for automakers to reduce their engine displacement and carbon emissions. Turbochargers and superchargers have been introduced to ensure a high power output is maintained. Both necessitate automotive heat shields for smooth performance, boosting demand in the automotive heat shield market.

High Cost of Automotive Shields and Phasing Out of ICE Vehicles Restraints to Overcome

Automotive heat shields must be changed frequently for optimal performance, but drivers are unaware of this. Even if they are aware, they overlook it as automotive heat shields are prohibitively expensive. The cost of replacement parts in the aftermarket is much higher than OEM offerings. COVID-19 has significantly impacted the automotive heat shielding market as manufacturing units shut down and shortages become commonplace. Consumers have paused purchases on account of the economic uncertainty. Nonetheless, it is anticipated that sales in the automotive heat shielding market will soon rise as the fear of contracting COVID-19 will push people towards personal mobility options.

In addition, some European countries such as Italy have begun restricting internal combustion engines (ICE) vehicles – especially in cities such as Rome and Milan. ICE vehicles use automotive heat shields and any regulation concerning the former will hit the latter. Norway, Denmark, and the United Kingdom are other countries that have announced their intent to gradually phase out ICE vehicles, posing challenges for the automotive heat shielding market.

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Metallic Heat Shields Hugely Popular in North America Automotive Heat Shields Market

China is the largest market in the global automotive heat shields market on account of its cheap labor, abundance of raw materials, and low CAPEX requirement. Europe and North America follow and demand there is particularly high for metallic heat shields. Automotive electronics, sophisticated exhaust systems and higher integration of turbocharger and auto integration is responsible for the demand observed in the North America automotive heat shields market. Metallic heat shields are popular as they can withstand the greater temperature extremes typical in North America.

Companies Analyzed

Companies profiled in the report on the automotive heat shields market include Autoneum Holding AG, Morgan Advanced Materials, Carcoustics International GmbH, UGN, Inc., and Dana Incorporated.

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