Automotive Aluminum Market Forecasts to 2028 – Global Analysis By Product (Cast, Rolled), Application (Powertrain, Car Body), Vehicle (LCV, HCV), and By Geography

Automotive Aluminum Market Forecasts to 2028 – Global Analysis By Product (Cast, Rolled), Application (Powertrain, Car Body), Vehicle (LCV, HCV), and By Geography

According to Stratistics MRC, the Global Automotive Aluminum Market is accounted for $44.20 billion in 2022 and is expected to reach $81.35 billion by 2028 growing at a CAGR of 10.7% during the forecast period. Aluminum is the most extensively used metal in automobiles automobiles owing to its properties such as being lightly weighted, corrosion resistance, high strength, and electrical and thermal conductivity and in commercial vehicles as it provides excellent safety and durability coupled with increase in fuel efficiency and reduced emissions.

Aluminium material can be recycled after the vehicle’s lifespan ends, which is the main advantage of using aluminium material in automotive applications. Almost 90% of automotive aluminium scrap materials are recycled annually. A single ton of recycled aluminium scrap creates an energy-savings equivalent of approximately 2,300 gallons of gasoline. This is anticipated to boost sales of automotive aluminium extruded parts across the globe.

Market Dynamics:

Driver:

The increasing penetration of vehicle consumers

Due to the increasing of vehicle usage there is a rise to the production of the vehicles. Moreover, the demand for the utilization of fuel-efficient vehicles influences the market growth.

Restraint:

High cost associated with the production of automotive aluminum products

Demand for aluminum is generally high and it’s produced more than any other non-ferrous metal. Related to cost are aluminum production technologies that are not yet advanced enough to produce aluminum components at low enough price points for aluminum to compete with traditional automotive materials.

Opportunity:

Growing adoption of aluminium from manufacturing industry

Strict government regulations encouraging the rising utilization of eco-friendly and lightweight items in the manufacturing of vehicles significantly boost the use of aluminum in automobiles. The advantage of aluminum being recyclable adds to the government demands, as 90% of aluminum of automobiles is recycled. Furthermore, aluminum is light in mass compared to steel, which makes the aluminum vehicles light in weight than steel.

The rolled segment is expected to be the largest during the forecast period

The rolled aluminum allows the manufacturer to be presented in different forms such as plates, foils, and sheets. The use of this form of aluminum allows more flexibility and increases the application of the material in modern industries.

The chassis & suspension segment is expected to have the highest CAGR during the forecast period

The chassis of a car is considered one of the most significant structures. It holds the body of the vehicle and its power train. The chassis offers strength to support different vehicular components and keep keeping the automobile rigid and stiff. Moreover, It ensures a low level of vibrations and noise, the harshness of the vehicle. The use of aluminum in the chassis makes it light in weight and durable. Suspension reduces the jerks in the vehicle and absorbs the shock during driving.

Region with largest share:

Asia Pacific is projected to hold the largest market share due to the increasing demand for luxury vehicle on account of the presence of disposable income in the region. Asia Pacific is the major contributor to the rise in production. The substantial growth in passenger vehicles use has boosted the preference for aluminum use in automobiles. The increasing population across the globe has increased the use of automobiles, which has boosted aluminum use. China, the US, and Asia Pacific are the key regions to propel aluminum use worldwide.

Region with highest CAGR:

North America is projected to have the highest CAGR due to the implementation of Corporate Average Fuel Economy (CAFE) standards in the region, which made automobile companies to strive for fuel efficiency of 27.5 miles per gallon (mpg) for cars and 23.5 miles per gallon (mpg) for trucks and 37.8 miles per gallon for cars (mpg) and 28.8 miles per gallon (mpg) for trucks within the next few years. Thus, automobile companies in the North American region prefer aluminum over steel as it helps to achieve improved aerodynamics and reduces weight of vehicles, thereby resulting in fuel savings.

Key players in the market:

Some of the key players profiled in the Automotive Aluminum Market include Novelis Inc., Constellium N.V., Rio Tinto, Dana Holding Corporation, Thermotec Automotive Products, Federal-Mogul Holding Corporation, Norsk Hydro ASA, Alcoa Inc, Lorin Industries and Aleris Corporation.

Key developments:

In September 2021: Novelis Inc., expanded its partnership with the Georgia Institute of Technology (Georgia Tech) with a focus on materials and process research to help Novelis fulfill its purpose of shaping a sustainable world together and reach a net zero carbon footprint.

In July 2020: Alcoa Inc partnered with Gränges AB aimed at reducing the aluminium value chain’s impact upon the climate.

Products Covered:
• Extruded
• Cast
• Rolled

Vehicles Covered:
• Cars
• Sport Utility Vehicles (SUVs) & Crossovers
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)
• Multi- Purpose Vehicles

Applications Covered:
• Car Body
• Chassis & Suspension
• Powertrain

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances