Global Body in White Market is Expected to Increase With Increasing Vehicle Production During the Forecast Period (2019–2027)

The Global Body in White Market for Automotive is projected to reach USD 90.5 billion by 2027 from an estimated value of USD 77.0 billion in 2019, growing at a CAGR of 2.0% during the forecast period.

The growth of the body in the white market is influenced by the implementation of stringent emission regulations on the automotive industry to reduce CO2 emissions by the adoption of electric vehicles to employ lightweight solutions and at the same time comply with the safety standards. Manufacturers are focusing on upgrading their facilities to accommodate advanced materials which are high in cost and require different manufacturing process and production techniques like hot stamping, roll forming, and other methods. This makes the process costlier than the usual cold stamping manufacturing process. Additionally, upgrading the materials to ultra-high-strength steel or aluminum will increase the material cost, thereby impacting the BIW component costs. These factors will ultimately drive the global market growth.

The body in white market is led by globally and regionally established players such as Gestamp Automoción (Spain), Voestalpine Group (Austria), Magna (Canada), Benteler International (Austria), CIE Automotive (Spain), Tower International (US), Martinrea International (Canada), Aisin Seiki (Japan), KIRCHHOFF Automotive (Germany), Dura Automotive (US), Thyssenkrupp (Germany), and JBM Auto (India).

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Electric vehicles sales segment is estimated to witness the fastest growth during the forecast period

Increasing electric vehicle sales is another driver for the BIW revenue growth, as these vehicles require lightweight solutions in the form of material as well as manufacturing methods to achieve higher mileage by the battery. The majority of the BIW component manufacturers have introduced new lightweight solutions for their customers, which are in line with the electric vehicles manufacturing safety standards.

 The Asia Pacific is expected to be the largest market during the forecast period

The Asia Pacific region was the largest market for a body in white in the world in 2018. This market has witnessed rapid year-on-year growth, even with a slowdown in the production of passenger cars; however, the other vehicle segments have been steadily growing, and there is no adverse impact on the market revenue with the increase in the adoption of lightweight solutions.

China has been the major contributor to the BIW market in the APAC region, with approximately 25 million cars produced every year. It is the largest revenue generator for the market. However, Japan is estimated to be the fastest-growing market with the adoption of strong emission regulations and the purchase of electric vehicles with lightweight solutions, which makes the region the largest revenue market for BIW globally.

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Europe market is expected to register the fastest growth during the forecast period

Europe is estimated to be the fastest-growing market during the forecast period. Germany is expected to lead the market due to the presence of large automakers and focus on R&D on new technology. The massive sales of electric vehicles in the region coupled with the projected boost in sales due to the presence of supporting regulations towards the manufacture and use of these automobiles is expected to subsequently drive the growth of the market during the forecast period.

Recent Developments:

• In July 2019, Tower International Inc. was acquired by Autokiniton Global Group at a value of USD 900 million. Autokiniton agreed to buy all outstanding shares of Tower for USD 31 per share in cash.
• In June 2019, Gestamp inaugurated a new plant specializing in aluminum in Nitra (Slovakia). The company invested nearly EUR 130 million for the new facility that intends to serve Jaguar Land Rover who recently commenced operations in Slovakia. The plant manufactures several skin panels and structural parts for the body made mainly using aluminum together with steel.
• In June 2019, Benteler opened a new plant in Mos, Spain. The plant is part of the company’s Automotive Division and will produce rear-axle components for a new platform for its customer PSA, a global automotive manufacturer. Additionally, the production in Mos will focus on welding, painting, and laser cutting.
• In June 2019, CIE Automotive acquired 100% of the share capital of the companies Maquinados de Precisión de México S. de R.L de C.V. and Cortes de Precisión de Mexico S. de R.L de C.V. The facilities are located in Celaya, in the Mexican state of Guanajuato – the largest automobile corridor in Mexico – and were key suppliers of machining components to Tier I automotive companies.
• In May 2019, Voestalpine opened a new R&D facility in Donawitz, Austria. The facility will cater to the development of steel, which will serve as the base for new concepts in mobility, energy, and infrastructure.
• In May 2019, KIRCHHOFF Automotive opened its second plant in Piteºti, Romania. KIRCHHOFF Automotive invested around USD 10 million in the plant. The automatic servo presses with pressing forces from 250 to 630 tons are state-of-the-art for cold forming. The plant in Piteºti supplies European KIRCHHOFF Automotive locations as well as customers in Eastern Europe with stamping parts.

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