by Automotive aluminum is extensively used in the automobile industry for manufacturing various vehicle components including engine blocks, wheels, vehicle body parts and more. Automotive aluminum is a lightweight metal offering superior properties like high strength-to-weight ratio, corrosion resistance and recyclability. The increasing focus on fuel efficiency and emission reduction has led automakers to prefer light weight materials like aluminum over conventional steel. Aluminum helps reduce the overall weight of the vehicle, thereby improving fuel economy and performance.
The global automotive aluminum market is estimated to be valued at US$ 58.33 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising demand for light weight vehicles from automakers and stringent emission norms by regulatory bodies are significantly driving the growth of the automotive aluminum market. As mentioned in the heading, the growing preference for light weight construction by OEMs to comply with emission reduction targets is a major factor augmenting the demand for automotive aluminum. Aluminum with its light weight property helps automakers to meet Corporate Average Fuel Economy (CAFE) standards set by regulatory agencies like EPA. Furthermore, aluminum components also improve the acceleration and torque of vehicles. With growing environmental concerns, automakers are under increasing pressure to manufacture fuel efficient vehicles, thereby propelling the need for advanced lightweight materials like automotive aluminum.
Segment Analysis
The automotive aluminum market is dominated by the passenger cars segment. Within passenger cars, the engine component segment dominates due to increasing use of aluminum in engine blocks and cylinder heads to reduce vehicle weight and improve fuel efficiency. The engine component segment accounts for over 30% of the total automotive aluminum market. Other major segments include wheels, heat shields and thermal shields, body parts, and chassis.
PEST Analysis
- Political: Stricter emission norms enforced by governments across the world are encouraging automakers to reduce vehicle weight and adopt lighter materials like aluminum to meet regulatory norms.
- Economic: Rising disposable incomes are fueling automobile sales globally. Auto manufacturers are opting for aluminum to provide vehicles with fuel-efficient drivetrains and deliver performance at competitive prices.
- Social: Growing environmental concerns are pushing consumers towards fuel-efficient vehicles. This is spurring automakers to develop lightweight vehicles using aluminum.
- Technological: Advancements in aluminum alloy formulations, forming techniques, and recycling technologies are aiding increased usage of aluminum in vehicles.
Key Takeaways
The global automotive aluminum market is expected to witness high growth during the forecast period of 2024 to 2031. The global automotive aluminum market is estimated to be valued at US$ 58.33 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Regional analysis: Asia Pacific dominates the market and is expected to remain the fastest growing region due to flourishing automotive industries in major countries like China and India.
Key players operating in the automotive aluminum market are Alcoa Inc., Arconic Inc., UACJ Corporation, CHALCO, AMG Advanced Metallurgical Group, Norsk Hydro ASA, Constellium N.V., Novelis Inc., and Rio.
