Automotive Heat Shield Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Engine Compartment, Exhaust Compartment, and Other Types), By Vehicle Type (Passenger Cars and Commercial Vehicle Types), By Demand Category (OEM's and Aftermarket), By Regional, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.99 Billion
CAGR (2026-2031)	5.21%
Fastest Growing Segment	Passenger Cars
Largest Market	Asia Pacific
Market Size (2031)	USD 25.76 Billion

Market Overview

The Global Automotive Heat Shield Market will grow from USD 18.99 Billion in 2025 to USD 25.76 Billion by 2031 at a 5.21% CAGR. Automotive heat shields are specialized thermal management components engineered to isolate high-temperature areas, such as engines and exhaust systems, from heat-sensitive parts and the passenger cabin. The primary drivers propelling market growth include the enforcement of stringent global emission regulations, which necessitate lightweight materials to enhance fuel efficiency, and the sustained global demand for passenger vehicles. Additionally, the increasing prevalence of high-performance engines creates elevated thermal conditions that mandate effective heat dissipation solutions to ensure vehicle safety and component longevity.

Conversely, a significant challenge impeding market expansion is the accelerating transition toward battery electric vehicles, which generally require fewer heat shielding components due to the elimination of internal combustion engines and exhaust systems. This technological shift poses a structural risk to volume growth in the traditional heat shield segment. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2024, global motor vehicle production reached 92.5 million units. While high production volumes currently sustain demand, the evolving powertrain mix within this output presents a complex landscape for future market application.

Key Market Drivers

The surging adoption of electric and hybrid electric vehicles significantly influences the demand for advanced thermal management systems to ensure battery safety and performance. While pure electric powertrains eliminate exhaust heat, they introduce critical requirements for thermal barriers to prevent thermal runaway in lithium-ion battery packs and protect sensitive electronic components from external temperature variations. Hybrid vehicles, which integrate internal combustion engines with electric propulsion, compel manufacturers to utilize complex heat shielding configurations to manage the heat generation of the engine alongside the thermal sensitivity of the battery system. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', sales of electric cars reached nearly 14 million in 2023, representing a substantial expansion of the market for specialized thermal protection solutions.

Implementation of stringent global emission and fuel economy regulations compels automotive engineers to adopt aggressive engine downsizing and turbocharger integration strategies. These modifications increase the thermal load within the engine compartment, necessitating the use of high-performance heat shields to protect surrounding components and maintain vehicle integrity without adding excessive weight. To meet these rigorous standards, manufacturers are increasingly selecting lightweight materials such as aluminum and reinforced composites for shielding applications. According to the United States Environmental Protection Agency, March 2024, in the 'Final Rule: Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles', the new standards aim to reduce fleet average greenhouse gas emissions by approximately 50% by 2032. Furthermore, according to the European Automobile Manufacturers’ Association, in 2024, EU car production grew by 11.3% in 2023, underscoring the recovery in manufacturing volumes that supports component demand.

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Key Market Challenges

The accelerating transition toward battery electric vehicles represents a structural impediment to the growth of the automotive heat shield market. Conventional heat shield revenue relies heavily on internal combustion engine applications, where components are essential for isolating extreme temperatures generated by exhaust manifolds, turbochargers, and catalytic converters. As automotive manufacturers reallocate production capacity toward electric architectures, the demand for these traditional thermal management systems declines because battery-powered drivetrains operate at significantly lower temperatures and lack exhaust infrastructure.

This shift directly reduces the volume of heat shielding material installed per unit, creating a tangible contraction in the addressable market for high-temperature applications. According to the International Energy Agency, in 2024, global electric car sales were projected to reach approximately 17 million units. This substantial volume of vehicles, which requires fewer thermal isolation components compared to gasoline or diesel counterparts, indicates a sustained displacement of internal combustion engine production. Consequently, the rising market share of electrified platforms limits the potential for volume growth in the traditional heat shield sector.

Key Market Trends

The integration of acoustic dampening functions into thermal management systems represents a pivotal shift toward multifunctional component design. Manufacturers are increasingly engineering heat shields that simultaneously isolate high temperatures and mitigate noise, vibration, and harshness levels within the vehicle cabin. This dual-purpose approach allows automotive engineers to reduce part counts and streamline underbody assembly while enhancing passenger comfort, particularly in premium and electrified segments where road noise is more perceptible. According to Autoneum, July 2024, in the 'Semi-Annual Report 2024', the company reported consolidated revenue of CHF 1,212.3 million, a performance sustained by the stable demand for its specialized acoustic and thermal management technologies across global markets.

A parallel trend involves the utilization of eco-friendly and recycled manufacturing materials to align with corporate sustainability mandates and circular economy principles. Suppliers are substituting conventional fiberglass and non-recyclable resins with bio-based fibers and recycled thermoplastics to lower the carbon footprint of thermal barriers without compromising heat resistance. This transition is heavily influenced by original equipment manufacturers demanding higher percentages of secondary raw materials in their supply chains to meet aggressive environmental targets. According to the BMW Group, March 2024, in the 'BMW Group Report 2023', the automotive manufacturer established a strategic objective to increase the use of secondary materials in its vehicles to 50 percent, creating direct pressure on component suppliers to adopt sustainable inputs.

Segmental Insights

The passenger car segment is projected to experience the fastest growth in the global automotive heat shield market due to increasing vehicle production and the demand for improved fuel efficiency. Manufacturers are frequently adopting turbochargers to comply with rigorous emission norms set by agencies such as the United States Environmental Protection Agency. These systems significantly raise engine compartment temperatures, requiring effective thermal management to prevent component damage. Consequently, the installation of heat shields in passenger vehicles has become essential to ensure safety and regulatory compliance, directly contributing to the accelerated expansion of this market segment.

Regional Insights

Asia Pacific dominates the Global Automotive Heat Shield Market due to extensive vehicle manufacturing volumes in China, Japan, and India. This leadership is driven by rising consumer demand for passenger vehicles and the subsequent need for efficient thermal management. Furthermore, compliance with rigorous emission norms, such as China 6 and Bharat Stage VI, compels manufacturers to utilize heat shields to protect temperature-sensitive components. The continuous expansion of production facilities by major original equipment manufacturers within the region further secures the steady demand for these essential automotive parts.

Recent Developments

• In March 2025, Autoneum launched a new product known as the E-Fiber flame shield, designed specifically for the electric vehicle market. This innovation offers a mica-free solution for flame protection and electrical insulation within battery housings, directly addressing the risks associated with thermal runaway. The company reported that the E-Fiber flame shield is significantly lighter and more cost-effective than traditional mineral-based alternatives while maintaining high mechanical strength and resistance to extreme temperatures. At the time of the announcement, the product had already been validated in battery tests and was being prepared for adoption by various European vehicle manufacturers.
• In June 2024, Aspen Aerogels, Inc. secured a significant design award from Valmet Automotive to supply its PyroThin thermal barriers for a future electric vehicle platform. This contract involved the provision of cell-to-cell barriers for the next-generation electric-only series of a major European luxury sports car manufacturer. The PyroThin technology was selected for its ability to mitigate thermal runaway propagation, ensuring passenger safety and battery integrity. This order marked a continued expansion of the company's customer base within the high-performance automotive sector, validating the commercial viability of its aerogel-based heat shield solutions.
• In May 2024, Sumitomo Riko Company Limited showcased its latest thermal management innovations at the Automotive Engineering Exposition 2024 in Yokohama. The company exhibited "Finesulight," a thin-film high thermal insulation material that utilizes silica aerogel technology to achieve superior insulation properties. Additionally, the firm presented "MIF," a magnetic induction foaming product that serves as a heat-dissipating and sound-absorbing material for electric vehicle components. These technologies were developed to address the critical need for efficient heat shielding and thermal control in modern electric powertrains, contributing to extended vehicle range and improved cabin comfort.
• In April 2024, Alkegen announced a strategic collaboration with Jaguar Land Rover (JLR) to supply advanced thermal protection solutions for the automaker's next-generation electric vehicles. JLR selected Alkegen's new range of anti-thermal propagation products to enhance the safety and performance of its battery packs. These specialized materials are designed to prevent thermal runaway by providing robust heat shielding between battery cells and modules. The partnership highlighted the increasing industry focus on integrating high-performance thermal barriers to meet stringent safety standards in electric mobility, positioning Alkegen as a key supplier in the premium electric vehicle market.

Key Market Players

• Dana Incorporated
• Lydall Inc.
• Elringklinger AG
• Federal-Mogul Corporation
• Morgan Advanced Materials
• Autoneum Holding AG
• Nichias Corporation
• Talbros Automotive Components Ltd

By Type	By Vehicle Type	By Demand Category	By Region
Engine Compartment Exhaust Compartment Other Types	Passenger Cars and Commercial Vehicle Types	OEM's and Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Heat Shield Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Heat Shield Market, By Type:

• Engine Compartment
• Exhaust Compartment
• Other Types

• Automotive Heat Shield Market, By Vehicle Type:

• Passenger Cars and Commercial Vehicle Types

• Automotive Heat Shield Market, By Demand Category:

• OEM's and Aftermarket

• Automotive Heat Shield Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE