North America Automotive Heat Shield Market Size, Share & Trends Analysis Report By Product, By Application, By Material, By Vehicle-type, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The North America automotive heat shield market size was valued at USD 1.9 billion in 2020 and is expected to grow at a compounded annual growth rate (CAGR) of 3.6% from 2021 to 2028. The demand for automotive heat shields in North America is projected to grow over the forecast period owing to faster adoption of electric vehicles requiring heat shields for heat management and improving vehicle performance. The market was impacted during the initial lockdown in the region, as COVID-19 protocols led to disruption in the supply chain of components, resulting in delays in development & testing of vehicles. In 2020, the vehicle miles traveled declined to 2.8 billion in the U.S., which was due to the COVID-19 travel restrictions and lockdowns imposed across the country. However, post-pandemic trend of automotive movement is expected to return to normalcy leading to an increase in vehicle miles traveled in the country, thereby, increasing the demand for automotive heat shields over the forecast period.

Aluminum and steel are primarily imported from China, India, Australia, Japan, & Russia and there was disruption in the supply of raw material due to the stringent COVID-19 restrictions in countries. Furthermore, fluctuating oil prices coupled with increasing transportation cost due to logistical complexity is expected to impact demand in 2021.

Increasing demand for the product in the development of electric cars is expected to improve its penetration in the automotive industry. As compared to IC engines, electric cars are more susceptible to performance drops due to ineffective thermal management which significantly impacts the overall range. Heat shields used during battery pack manufacturing, battery housing and motor installations are key areas of focus for automotive manufacturers.

Product Insights

The single-shell segment dominated the market and accounted for over 55% of market share in 2020 owing to its prevalent use in passenger cars and HCVs. Single-shell is durable and lightweight insulating material made from either metallic or non-metallic materials. Metallic materials primarily include aluminum and steel, while non-metallic materials include single or multi-layer insulation made from various composites including super wool, glass, or silica fibers.

The double shell segment is expected to witness significant demand owing to its use in exhaust pipes and catalytic converters. In addition, a double shell heat shield optimizes the engine mount operation for higher performance as it cools the engine mount vents. Furthermore, the product can improve heat dissipation under the bonnet of the engine compartment at higher speeds.

Material Insights

The metallic material segment dominated the North America automotive heat shield market with a revenue share of 81.3% in 2020. The growth of the metallic material segment is attributed to the wide adoption of aluminum and copper in automobile industry owing to high-temperature resistance, durability, and moldability.

Various metal alloys, including aluminum and steel alloys are used in components including exhaust systems and turbocharger heat shields for improved thermal management. Furthermore, this segment is expected to dominate the market over the forecast period owing to its physical and chemical properties including lightness and thermal conductivity.

The non-metallic segment is anticipated to grow at a significant rate owing to the material's exceptional heat dissipation property. Increasing electric vehicle and hybrid sales in the developed economies are some of the factors promoting growth for the non-metallic segment.

Vehicle Insights

The passenger car vehicle type segment held around 68% of the revenue share in 2020 and is expected to witness significant growth owing to increasing demand for personal transportation in the post-pandemic period. Furthermore, advancements in electric vehicle technology focusing on improved range and efficiency are expected to propel the demand for heat shields in this segment.

In addition, the presence of large fleet services in the region, including Lyft, Uber, and Gett, deploying self-driving cars for improved mobility solutions is further expected to increase the demand for passenger cars in the region thereby promoting the growth for heat shields over the forecast period.

The electric vehicles segment is anticipated to be the fastest-growing segment over the forecast period. Introduction of new technologies in electric cars by Tesla and General Motors coupled with increasing awareness among consumers regarding the harmful effect of carbon emissions on the environment is expected to drive growth for electric cars over the forecast period, thereby fueling demand in the coming years.

Application Insights

The engine compartment segment was the largest application and accounted for more than 30% of revenue share in 2020. Automotive heat shield finds vast applications in various parts and components of engine compartment as this space accounts for the maximum heat dissipation.

Exhaust systems also accounted for a significant share in the market owing to increasing use of heat shields to improve thermal management for better vehicular efficiency. Furthermore, increasing demand for aftermarket exhaust modifications in automobiles is expected to propel growth over the forecast period.

In commercial vehicles, rising preference for Selective Catalyst Reduction (SCR) and Exhaust Gases Recirculation (EGR) methods to control emissions is expected to spur the demand for advanced automotive exhaust system designs, which, in turn, is contributing to the use of heat shields in exhaust systems. The application of heat shield in turbochargers is used in covering exhaust feed pipe with an effective heat shield to increase the turbo performance of a vehicle.

Country Insights

Rising demand for fuel-efficient and light-weighted vehicles is primarily driving the demand for automotive heat shields in the region. The adoption of different types of automotive heat shield products, including single shell, double shell, and sandwich heat shields to improve the longevity of engines and batteries is expected to propel the market growth.

However, the COVID-19 outbreak in 2020 hampered the growth of the automotive industry as countries including the U.S. and Mexico, were severely affected by the pandemic. The industry witnessed a decline in the demand for vehicles, leading to a drop in the demand for automotive heat shields, which is expected to gradually improve towards the end of 2021.

The U.S. dominated the market in terms of revenue share in 2020 and is expected to witness growth owing to increasing use of the product in IC and electric passenger vehicles. Excellent road infrastructure in the country and ever-increasing dependency on road transport for the movement of goods and passengers is expected to fuel demand for automotive heat shields over the forecast period.

Rising population, coupled with rapidly increasing estimates of vehicle miles traveled in the country, is expected to fuel the demand for vehicles in the region. As per the U.S. Department of Transportation and Federal Highway Administration, the country recorded 3.25 billion vehicle miles traveled in 2019, which was 0.5% higher as compared to 3.23 billion miles in 2018.

Key Companies & Market Share Insights

Key players operating in the market are DANA Inc., Lydall Inc., Tenneco Inc., UGN Inc., Shiloh Industries Inc., and others. These players compete based on product offerings in specified applications for vehicles, product quality, and prices.

European and Japanese manufacturers are operating in the region through third-party by entering into contracts and agreements with the local suppliers. For instance, UK-based Zircotec Group operates in North America through distributorship of Thermal Control Products Inc. New product development and product enhancement are other factors focused on by the domestic and international players to remain competitive in the market. For instance, in March 2021, Zircotec launched ZircoFlex SHIELD with superior thermal performance and lightweight characteristics. Some prominent players in the North America automotive heat shield market include:

• DuPont

• DANA Incorporated

• Zircotec

• Morgan Advanced Materials

• Autoneum

• ElringKlinger AG

• Lydall Inc.

• Tenneco Inc.

• Carcoustics

• UGN Inc.

• HKO Group

• Shiloh Industries, Inc.

• The Narmco Group

• NICHIAS Corporation

• Röchling SE & Co. KG

North America Automotive Heat Shield Market Report Scope

Segments Covered in the report

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the North America automotive heat shield market on the basis of product, application, material, vehicle-type and region:

• Product Outlook (Revenue, USD Million; 2017 - 2028)

  • Single-shell

  • Double-shell

  • Sandwich

• Application Outlook (Revenue, USD Million; 2017 - 2028)

  • Exhaust system

  • Turbocharger

  • Under Bonnet

  • Engine Compartment

  • Under Chassis

• Material Outlook (Revenue, USD Million; 2017 - 2028)

  • Metallic

  • Non-metallic

• Vehicle-type Outlook (Revenue, USD Million; 2017 - 2028)

  • IC Passenger Cars

  • IC Light Commercial Vehicles

  • IC Heavy Commercial Vehicles

  • Electric Vehicles

• Regional Outlook (Revenue, USD Million; 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico