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Market Overview
According to Fortune Business Insight, The global automotive heat shield market size was valued at USD 6.82 billion in 2024. The market is projected to grow from USD 7.05 billion in 2025 to USD 11.61 billion by 2032, exhibiting a CAGR of 7.4% during the forecast period.
Fortune Business Insights™ has deep-dived into these insights in its latest research report, titled “Automotive Heat Shield Market, 2025-2032.”
The analysis shows that the market is characterized by growing demand for lightweight heat shield materials and the integration of noise-dampening features. This aligns with broader automotive trends such as electrification and engine downsizing. For example, in 2024, ElringKlinger AG introduced customized battery thermal insulation modules to support major EV manufacturers in Europe, highlighting the shift toward specialized protection for electric powertrains.
Major Players Profiled in the Market Report:
• Dana Incorporated (U.S.)
• Tenneco Inc. (U.S.)
• ElringKlinger AG (Germany)
• Autoneum Holding AG (Switzerland)
• Sumitomo Riko Co. Ltd. (Japan)
• Lydall Inc. (U.S.)
• Morgan Advanced Materials (U.K.)
• Zircotec Ltd. (U.K.)
• Talbros Automotive Components Ltd. (India)
• Happich GmbH (Germany)
Segments
Aluminum Heat Shields Dominate Market Owing to Superior Performance and Cost Efficiency
Based on material type, the market is classified into aluminum heat shields, stainless steel heat shields, and composite & multilayer materials. Aluminum heat shields hold the largest market share due to their heat reflectivity, corrosion resistance, and cost-effectiveness, allowing for mass production of various shield types.
Rising Consumer Preference for Advanced Safety Features and Higher Ground Clearance Fueled Demand for SUVs
In terms of vehicle type, the market is categorized into hatchback/sedan, SUV, light duty vehicle, and heavy duty vehicle. The SUV segment dominated the market in 2024, driven by consumer preference for spacious interiors and higher ground clearance, which require larger heat shield components to manage higher heat loads.
Increasing Safety, Emission Control, and Performance of Vehicles Fosters Adoption of Exhaust Heat Shields
Based on application type, the market is segmented into exhaust heat shields, engine compartment heat shields, underbody heat shields, turbocharger heat shields, and battery & EV component shields. The exhaust heat shields segment leads the market as exhaust systems generate temperatures above 900°C, requiring robust protection for catalytic converters and particulate filters.
Single-Shell Heat Shields Led Market Owing to Their Cost-effectiveness
Based on product type, the market is segmented into single-shell, double-shell, and sandwich-type heat shields. Single-shell heat shields hold the largest share due to their simplicity in design and low production cost, making them ideal for mass-produced passenger cars.
ICE Propulsion Dominated Market Due to Its High Thermal Output and Emission Compliance
Based on propulsion, the market is segmented into ICE and EV. The ICE segment held the leading market share in 2024 because internal combustion engines generate intense heat in the engine bay and exhaust systems, necessitating extensive thermal protection solutions.
Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Source: https://www.fortunebusinessinsights.com/industry-reports/automotive-heat-shield-market-101904
Report Coverage
The report offers:
• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
• Comprehensive insights into regional developments.
• List of major industry players.
• Key strategies adopted by the market players.
• The latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints
Electrification of Vehicles and Battery Thermal Protection Accelerates Demand for Advanced Heat Shield Solutions
The rapid shift toward electric mobility is emerging as a major driver for market growth. EVs and HEVs depend on high-capacity batteries and power electronics that generate substantial heat. Effective thermal management is critical to prevent overheating and thermal runaway, making advanced heat shields indispensable.
However, high volatility in raw material prices, particularly for aluminum and stainless steel, acts as a restraint. Supply chain disruptions and energy cost hikes can significantly increase input costs, hampering the large-scale adoption of advanced heat shields.
Regional Insights
High Volume of Vehicle Production Drives Asia Pacific Dominance
Asia Pacific dominated the global market with a share of 48.68% in 2024 and is the dominating region. This is attributed to the high volume of vehicle production and sales in China, India, Japan, and South Korea, coupled with rapid urbanization and rising disposable incomes.
North America is expanding steadily, driven by the strong popularity of SUVs and pickup trucks, along with stringent fuel efficiency standards in the U.S. and Canada.
Automotive Heat Shield Market Future Growth:
The automotive heat shield market is evolving rapidly with the integration of advanced thermal management systems. Future growth is fueled by the demand for holistic thermal strategies where heat shields work in combination with liquid cooling and phase-change materials, especially in EVs. There is a significant opportunity in the development of lightweight and sustainable materials, such as fiber-based shields that offer recyclability. While competition from alternative technologies like thermal interface materials (TIMs) presents a challenge, the industry's shift toward electrification and stringent emission targets ensures continued demand for innovative shielding solutions.
Competitive Landscape
Strong Tier-1 Supplier Presence and Strategic Partnerships Driving Market Leadership
The market is moderately consolidated and driven by Tier-1 suppliers like Dana Incorporated and Tenneco Inc. These companies are maintaining leadership by investing in lightweight composites and aligning with the electrification trend. Strategies include developing heat shields for EV batteries and expanding into the Asia Pacific market through collaborations and acquisitions.
Key Industry Development
• September 2025: Zircotec unveiled a new range of ceramic coatings enabling lighter EV battery designs and advanced heat-shield products.
• May 2025: Freudenberg announced new materials & component solutions for rapid charging and battery thermal management at Battery Show Europe 2025.
• May 2025: Tenneco’s Systems Protection business received supplier awards, validating its capability in complex protection systems.
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