Automotive aluminum is mainly used in the production of wheels, heat shields, car bodies, and other lightweight components to reduce the weight of vehicles. Aluminum improves fuel efficiency and performance of vehicles due to its lightweight properties as compared to other commonly used 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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand for fuel-efficient and lightweight vehicles is a major trend contributing to the growth of the automotive aluminum market. Stringent emission regulations to curb vehicular pollution have prompted automakers to use lightweight aluminum alloys that can help achieve better mileage and reduce emissions. Aluminum is around 30% lighter than steel but provides equal strength, making it an excellent material for automotive manufacturing. The increased use of aluminum for automotive components allows original equipment manufacturers to develop fuel-efficient vehicles without compromising on performance. This is expected to drive significant demand for automotive aluminum over the forecast period.
SWOT Analysis
Strength: Automotive aluminum provides lighter weight and higher strength than steel which improves fuel efficiency. It also enhances safety in vehicle crash management.
Weakness: The initial costs for manufacturing automotive with aluminum components are higher than conventional steel components. Aluminum is difficult to join and repair compared to steel.
Opportunity: Stringent emission norms by regulatory bodies are fueling demand for lightweight materials. Expanding electric vehicle market also drives the demand for aluminum as it enhances driving range per charge.
Threats: Volatility in aluminum prices impacts profit margins for automakers. Trade wars and economic downturns can potentially reduce automobile production volumes.
Key Takeaways
The Global Automotive Aluminum Market Size is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis comprises Asia Pacific dominates the market currently due to large automobile production hubs in China, India, and Japan. It is also the fastest growing regional market supported by increasing vehicle volumes and usage of aluminum.
Key players operating in the automotive aluminum market are Iron Mountain, ARC, Access, Shred-it, Restore plc, Cintas, Proshred, National Document Shredding Service, Shred Station, Red Dog Shred, Shred-X, Secured Document Shredding, Shred Works, Guardian Data Destruction, EndoShred, Mobile Shred, ShredQuick, ProShred Chicago and Shreds Unlimited.
Major automakers are increasingly adopting aluminum components to comply with tightening emissions norms. This is supporting the demand from original equipment manufacturers segment. Growth in the aftermarket segment is driven by repair and replacement of older aluminum parts in existing vehicles. Stringent fuel efficiency and emissions targets are elevating aluminum usage thus facilitating market expansion over the forecast period.
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