Automotive Aluminum Market: Current Analysis and Forecast (2022-2028)

Automotive Aluminum Market: Current Analysis and Forecast (2022-2028)

Automotive Aluminum is a form of aluminum sulfate made up of a number of different elements including vanadium oxides, sulfuric calcium, silicon, magnesium carbonates, and many others. In addition, aluminum is majorly preferred in automobiles due to its high tensile strength, lightweight, and moldability factors. Furthermore, aluminum is most popular in metal used in cars and commercial vehicles because aluminum offers excellent safety and durability making it a preferred material in automotive. This is expected to drive the demand for automotive aluminum in the global markets.

The Automotive Aluminum Market is expected to grow at a steady rate of around 9% owing to the increasing number of vehicle production coupled with the growing regulations towards fuel efficiency and emissions. Major companies in the market are introducing the use of green aluminum or aluminum with a low carbon footprint in bolstering the endeavors of automakers to decarbonize the products. For instance, in July 2022, Vedanta Aluminium strengthened its efforts towards sustainability in the auto industry at a national webinar at the Automotive Component Manufacturers Association (ACMA) of India to decarbonize its products.

• Based on product form, the market is segmented into cast aluminum, rolled aluminum, extruded aluminum, and others. The rolled aluminum category is to witness the highest CAGR during the forecast period as rolled aluminum helps in the reduction of vehicle weight, helps in increasing fuel efficiency, and offers high stability, durability, and cost-effectiveness of the vehicle. In addition, many manufacturers use rolled aluminum which can be molded into many different forms such as plates, foils, and sheets. As the use of this form of aluminum allows more flexibility and increases the application of the material in modern industries which will increase the demand for rolled aluminum in the market.
• On the basis of vehicle type, the market is categorized into passenger car, LCV, and HCV. Among these, the passenger car is expected to grow significantly during the forecast period. This is mainly due to its high use of aluminum in passenger cars making the vehicle lighter weight and high in strength. That is further helping in improving fuel efficiency and reducing emissions in the vehicle. Additionally, aluminum has a longer lifespan than other materials, making it a cost-effective option for automakers. Thus, increasing the use of aluminum in passenger vehicles will increase the market growth of automotive aluminum.
• Based on application, the automotive aluminum market has been classified into car body, chassis & suspension, and powertrain. The car body category is expected to grow with a considerable CAGR during the forecast period owing to its lightweight, high strength, and corrosion resistance properties. As, aluminum in car body applications is used in making hoods, doors, and fenders, that further helps in reducing the overall weight of the vehicle. Thus, improving fuel efficiency and reducing emissions from the vehicle. Furthermore, the use of aluminum in car bodies also enhances vehicle safety as aluminum has a high level of crashworthiness and deformability, making it an ideal material for body structures in cars.
• For a better understanding of the market adoption of the automotive aluminum industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Rest of Asia-Pacific), Rest of World. APAC is expected to grow with a robust CAGR during the forecast period. Countries such as China, India, and Japan are the major producer of automotive parts leading to drive the demand for automotive aluminum within the region. Rising demand for fuel-efficient and lightweight vehicles, along with the increasing production of vehicles in the region, has led to the growth of the automotive aluminum market in the APAC region. Additionally, the region is increasing its focus on reducing emissions and improving fuel efficiency which led to a growing demand for lightweight aluminum components in the automotive industry. Additionally, the presence of several large aluminum producers and manufacturers in the region also contributes to the growth of the automotive aluminum market in the APAC region.
• Some of the major players operating in the market include Alcoa Corporation, UACJ Corporation, Rio Tinto, Norsk Hydro ASA, Novelis, Constellium, Jindal Aluminium Limited, AMG, ElringKlinger AG, and Dana Limited.