The Automotive Aluminum Market size is predicted to grow from USD 47.64 billion in 2022 to USD 111.49 billion in 2028, with a CAGR of 8.5% from 2023-2028
The increased call for lightweight and efficient materials from The automotive industry is fueling the call for automotive aluminum as it not only reduces the weight of automotive components but also the entire car body by as much as 50%. The automotive industry is dedicated to the production of vehicles that offer excellent performance, superior fuel efficiency, a high level of safety, and passenger comfort. Due to properties such as low weight, high performance, corrosion resistance, and flexibility, aluminum has become one of the best options for automakers looking to build vehicles that rank well on all of these parameters. Using aluminum also makes the vehicle environmentally friendly, as most of the aluminum employed in a vehicle is recyclable. Aluminum is the most commonly employed metal in cars and commercial vehicles because it offers excellent safety and durability, as well as higher fuel efficiency and lower emissions. Additionally, the call for aluminum is accelerating in automotive applications due to its strength and environmental benefits. The recyclability associated with aluminum has triggered its call, which is predicted to gain popularity in the coming years.
The expansion of the automotive industry has driven the call for aluminum with applications in commercial and passenger vehicles. Additionally, performance advantages such as lightness and impact resistance associated with aluminum have increased its call among automakers. Luxury vehicles such as Ford, Audi, and Mercedes Benz have increased the adoption of aluminum as the versatile material of choice in body structures, including the engine, transmission, and wheels. In addition, strict environmental measures against rising carbon dioxide emissions have driven calls for aluminum.
Novelis launches a high-strength automotive aluminum product for next-generation body plate design. Novelis Inc., a world leader in aluminum rolling and recycling, today announced the launch of Advanz ™ 6HS-s650, a precision-engineered aluminum sheet product that exceeds industry standards. industry in terms of strength, weight reduction, formability, performance, and structural integrity.
One of the key drivers for the overall expansion of the worldwide automotive aluminum market is the sharp increase in production and sales of a variety of automobiles around the world. Especially in the developing economies of Asia and the Pacific, the sharp increase in the use of passenger cars has resulted in a significant increase in the call for aluminum employed in cars. With China overtaking the United States to rank first in the worldwide passenger vehicle market, Asia-Pacific and its strong appetite for passenger vehicles are predicted to continue to be a major driver of the worldwide alumina market. automobile during the foreseen period of the report. The escalating penetration of vehicle consumers leads to the production of vehicles and thus helps to accelerate the expansion of the market. In addition, the government's escalatingly concern about toxic gas emissions and concerns about vehicle safety have led to imposing positive factors on the market expansion. Furthermore, the call for the use of fuel-efficient vehicles is another expansion factor in the market. In the automotive aluminum industry, passenger cars will continue to be the largest market in value and volume and are also predicted to see the strongest expansion during the foreseen period due to increased small-car production. , compact and luxurious and the escalating penetration of aluminum per vehicle. reduce carbon emissions and increase energy efficiency.
The factor hampering the expansion of the automotive aluminum industry is the higher price of making aluminum in comparison to steel. The price fluctuation associated with aluminum coupled with rising operating costs has hampered the expansion of the market, but the increase in applications of aluminum as an alternative to steel is predicted to increase its call-in automotive applications.
Stringent government regulations advocating the increased use of lightweight, environmentally friendly materials in vehicle production are also leading to increased use of aluminum in automobiles. 90% of the aluminum employed in vehicles can be recycled. Also, aluminum has a lighter mass than steel, which makes aluminum vehicles much lighter than those that use steel. As a result, aluminum offers automakers the opportunity to make fuel-efficient and environmentally friendly vehicles that are also efficient and resistant to corrosion. Increased call for passenger cars has accelerated the call for aluminum due to consumer preferences for light vehicles. Furthermore, the call for aluminum in heavy-duty vehicles is predicted to generate lucrative expansion opportunities due to the increased call for transportation goods.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022-2028 |
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Base Year |
2022 |
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Forecast Period |
2023-2028 |
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CAGR |
8.5% |
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Segments Covered |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
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Market Leaders Profiled |
Alcoa Corporation, Rio Tinto, CHALCO (Aluminum Corporation of China Limited), United Company RUSAL, Alcan, China Hongqiao Group Limited, Shandong Xinfa Aluminum Group Co. Ltd., East Hope Group Company Limited, Norsk Hydro ASA. |
Market expansion is predicted to be limited to some extent due to the ready availability of alternative lightweight materials such as magnesium and reinforced plastic.
By Product form:
Cast aluminum
Rolled aluminum
Extruded aluminum
Among product forms, the cast aluminum sector is known to have the biggest share of the automotive aluminum industry in 2020.
Powertrain
Chassis & suspension
Car body
The powertrain applications segment dominated the automotive aluminum market in 2016, in terms of value.
Passenger car
LCV
HCV
In terms of revenue, Asia-Pacific is predicted to remain the largest regional market during the foreseen period. The region accounted for 38.1% of the revenue share in 2020. Growing call for cars in countries such as China and India, along with growing investments in the regional auto sector, are the main drivers of the expansion. In July 2020, the Volkswagen Group announced its intention to invest around $ 1.75 billion by 2025 in India to expand its presence in the country. In terms of revenue, North America is predicted to see expansion at the highest CAGR of 10.5% over the foreseen period. Consumer preferences for high-quality, fuel-efficient motor vehicles, along with strict CAFE regulations to improve vehicle fuel economy, are predicted to increase the use of aluminum in the region's automotive industry. . in the next years.
The European automobile industry should be driven by the establishment of new factories, policies, and innovations. For example, in July 2018, BMW announced its intention to invest $ 1.71 billion in a new car plant in Hungary. Therefore, the creation of new manufacturing plants should increase the call for aluminum in the European automotive sector. North America is predicted to dominate the automotive aluminum market during the foreseen period. This is mainly attributed to the rigorous application of the yield strength standards. The CAFÉ standards were implemented in the United States to reduce energy consumption by escalating the fuel consumption of cars, trucks, vans, and heavy trucks. This has increased market expansion in the region. Asia-Pacific is predicted to follow North America in automotive aluminum consumption.
The major players with major aluminum market share are
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