Automotive aluminum widely used in automotive vehicles provides benefits such as reduction in vehicle weight and improved fuel efficiency. Aluminum based automotive parts include engine components, wheels, drivetrain components and vehicle body among others. Growing demand for lightweight materials from automotive OEMs to meet stringent emission standards is driving increased adoption of aluminum. Automobile manufactures are increasingly utilizing aluminum due to its higher strength to weight ratio as compared to steel and other metals.
The global automotive aluminum market is estimated to be valued at US$ 48.69 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for light weight vehicles: Growing preference of customers towards fuel efficient and high performance vehicles is a key factor spurring automobile manufacturers to focus on developing lightweight vehicles. Use of aluminum helps reduce vehicle curb weight by over 50 to 100 kgs. This provides benefits such as improved fuel efficiency, acceleration and braking performance. The growing demand for light weight vehicles is expected to drive increased adoption of aluminum in automotive production over the forecast period.
Increasing adoption for emission compliance: Stringent emission norms by regulatory bodies are compelling automakers to focus on reducing vehicle weight and improving fuel efficiency. Replacing steel with aluminum helps OEMs comply with corporate average fuel economy (CAFE) standards. Developing lighter vehicles through use of materials such as aluminum helps automobile manufacturers meet emission targets. This is expected to significantly support growth of automotive aluminum market during the forecast period.
Segment Analysis
The global automotive aluminum market is dominated by the passenger vehicles sub-segment. Around 65-70% of aluminum used in the automotive industry is consumed by passenger vehicles owing to continuous efforts by automakers to reduce vehicle weight and increase fuel efficiency. Besides this, the commercial vehicles sub-segment is also expected to witness steady growth in demand for aluminum over the forecast period.
PEST Analysis
Political: Stable political landscape and supportive regulations regarding fuel emission standards in regions like Europe and North America are positively impacting the adoption of lightweight materials like aluminum in automotive manufacturing.
Economic: Strong GDP growth in developing economies is driving automotive production volumes up. This is creating demand for aluminum from the automotive sector.
Social: Growing consumer preference for fuel-efficient and high-performance vehicles is a key trend fueling the use of aluminum in automobiles.
Technological: Ongoing R&D towards developing advanced aluminum alloys with improved formability and crashworthiness is supporting wider application of aluminum across different automotive components.
Key Takeaways
The global automotive aluminum market share is expected to witness high growth over the forecast period of 2023 to 2030. The global automotive aluminum market is estimated to be valued at US$ 48.69 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regionally, Asia Pacific currently accounts for over 50% of global automotive aluminum consumption due to the large automotive manufacturing base in China, India, and Japan. The automotive aluminum market in Asia Pacific region is witnessing strong growth led by China and India. China, being the largest automobile producer globally, is a major consumer of aluminum. Supported by the ‘Make in India’ initiative, aluminum usage is increasing in the Indian automotive industry as well.
Key players operating in the automotive aluminum market are Ningxia Eppen Biotech Co., Ltd, Fufeng Group, Meihua Holdings Group Co., Ltd, Gremount International Co.,Ltd and Cargill Inc. Major automakers prefer to partner with integrated aluminum suppliers that can provide customized aluminum alloy grades and composites.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
