The segment is divided into passenger cars, LCV and HCV. Due to stringent CO2 emission regulations being implemented globally, there is an increasing demand for lightweight items in passenger cars. A car's different Applications can be made significantly lighter by using aluminum, which improves fuel efficiency. As a result of improvements in logistics and transportation as well as stricter fuel pollution regulations, there is expected to be an increase in the production of pickup vans, small trucks, and small electric trucks. Lightweight commercial vehicles, like those made of aluminum, offer safety, fuel economy, and efficient hauling solutions.
What is the Market Size of Automotive Aluminium in terms of value?
The market for automotive aluminum is expected to grow significantly over the next several years, with a CAGR of 8.50%. In 2021, the market for automotive aluminum was estimated to be worth USD 71.2 billion; by 2028, it is anticipated to have increased to USD 116.16 million. The leading companies in the sector anticipate that the demand for automotive aluminum will rise significantly over the next few years, creating revenue opportunities totaling USD 44.96 million between 2022 and 2028.
Is Automotive Aluminium fragmented?
Due to the existence of numerous local businesses, the market is fragmented. The market is moderately fragmented. By using various marketing techniques, including the launch of new products, investments, collaborations, and mergers and acquisitions, these market participants aim to increase their market share. Additionally, businesses are investing in the creation of enhanced items. Furthermore, they are concentrating on offering competitive prices.
Interesting Facts about Automotive Aluminium Industry
The top 5 countries for automotive aluminum exports are the U.S., Canada, Russia, China, and the Netherlands.
The top 5 importers of automotive aluminum are Mexico, Turkey, France, Japan, and India.
The main reasons for the market's expansion are rising fuel efficiency and pollution standards, as well as developments in driving dynamics and other areas.
The primary elements anticipated to restrain the worldwide automotive aluminum market's expansion are, as a result of the availability of product alternatives, hindering the growth of the automotive aluminum market over the forecast period.
In terms of volume and value, the North American region dominated the worldwide Automotive Aluminum market in 2021, and it is anticipated that this dominance will last throughout the forecast period.
Who are the Top 10 players/companies in the Automotive Aluminium market regarding value and volume?
The key players in the global Automotive Aluminium market in terms of value and volume include Alcoa Inc., Arconic Inc., CHALCO, UACJ Corporation, Norsk Hydro, ASA, AMG Advanced Metallurgical Group, Constellium N.V., Novelis Inc., and Rio Tinto. These prominent companies are focusing on new product developments as well as technical advancements to improve their automotive aluminum production and capture a competitive market share globally. Additionally, several national and regional firms are making significant investments to diversify their product offerings and boost sales. For instance, in March 2019, after acquiring Arconic's two extrusion facilities in Brazil, Norsk Hydro has a stronger downstream position and a solid foundation for future expansion. The two extrusion facilities in southern Brazil's Utinga and Tubaro have a combined workforce of about 600 people, one casthouse, seven extrusion presses that range in size from 7 to 14 inches, and value-added capabilities.
Who are the Top 10 Countries in the Automotive Aluminium Market?
The major global automotive aluminum market countries are the U.S., Canada, Russia, China, the Netherlands, India, the U.K., Germany, France, and Mexico. The United States will be the primary producer and consumer of automotive aluminum in the global market in 2021. In the upcoming years, the automotive sector in the region is projected to use aluminum more due to consumer desire for high-quality, fuel-efficient automobiles and strict CAFE rules to increase the fuel economy of the vehicles.
Which is the Key Application Area in the Automotive Aluminium Market?
The critical applications of automotive aluminum include powertrain, chassis & suspension, and car body. The market for electric vehicles has benefited from rising interest in hybrid technology, which has also improved fuel efficiency and reduced fuel pollution. The rising demand for electric cars in the upcoming years is expected to create several prospects for hybrid and electric powertrains utilizing aluminum.
One of an automobile's essential parts is the power plant system. All the parts that generate power for the vehicle and transfer it simultaneously to the wheels, allowing the car to drive, are collectively referred to as the powertrain.
The driveshafts, differentials, and engine are part of the powertrain system. The characteristics of the powertrain system affect the vehicle's overall performance and efficiency. Strict government regulations, rising interest in environmentally friendly cars, and technological advancements in powertrain systems to increase overall efficiency contribute to the market's expansion.
What are the Major Driving Factors for Automotive Aluminium Market?
The rising demand for electric vehicles and the adoption of new systems that will provide comfort and safety are likely to temper the growth of the automotive aluminum market throughout the forecast period, further paving the way for market expansion., as well as improvements in driving dynamics, are the main factors driving the market's growth rate. The rise in rules and regulations governing fuel economy and emissions. The rising demand for electric vehicles and the adoption of new systems that will provide comfort and safety are likely to temper the growth of the automotive aluminum market throughout the forecast period, further paving the way for market expansion. Additionally, its widespread use due to qualities like thermal and electrical conductivity, recyclability, corrosion resistance, and high strength is further anticipated to temper the expansion of the overall market. Additionally, the deployment of government rules encouraging the production of vehicles that lower greenhouse gas emissions and the carbon footprint of automobiles positively affects market expansion. It is anticipated that additional factors, such as increased consumer disposable income and significant research and development (R&D) activities will fuel the industry.
What are the Major Restraints for Automotive Aluminium Market?
The main factors that are expected to limit the growth of the global automotive aluminum market are Due to the availability of product substitutes, and the market for automotive aluminum is predicted to experience substantial difficulties. Increased operating expenses and fluctuating aluminum prices have hindered market growth.
Which Region Dominated the World Automotive Aluminium Market?
As a result of the adoption of corporate average fuel economy standards, which give automakers direction to maintain fuel efficiency within the region, North America controls the automotive aluminum market. In the upcoming years, the automotive sector in the area is projected to use aluminum more due to consumer desire for high-quality, fuel-efficient automobiles and strict CAFE rules to raise the fuel economy of the vehicles. The region's adoption of Corporate Average Fuel Economy (CAFE) norms requires automakers to work toward fuel efficiency of 27.5 miles per gallon for cars and 23.5 miles per gallon for trucks by 2019; and 37.8 miles per gallon for cars and 28.8 miles per gallon for trucks in the coming years, can be attributed to the growth of the North American automotive aluminum market. Because aluminum helps create better aerodynamics and decreases vehicle weight, leading to fuel savings, auto manufacturers prefer it over steel in the North American region. Asia-Pacific is expected to grow in the upcoming years. The primary growth causes are the rising demand for automobiles in nations like China and India and the increasing investments in the local automotive industry.
Segmentation of Global Automotive Aluminium Market-
Global Automotive Aluminium Market – By Application
Powertrain
Chassis & Suspension
Car Body
Global Automotive Aluminium Market – By Product Form
Cast Aluminium
Rolled Aluminium
Extruded Aluminium
Global Automotive Aluminium Market – By Vehicle
Passenger Car
LCV
HCV
Frequently asked questions about the global Automotive Aluminium industry
North America accounted for the highest share in the global Automotive Aluminium market in terms of value and volume.
Throughout the projected period, the increased demand for electric vehicles and the adoption of innovative systems that provide comfort and safety will likely restrain market growth for automotive aluminum, further opening the door for market expansion.
LCV had a significant share in 2021 with more than 50% of the market revenue share.
Powertrain had a significant share in the global market in 2021.
