Automotive Aluminum Market

Automotive Aluminum Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2022-2031

Aluminum is a lightweight metal and the third-most common element in the Earth’s crust. It can easily form a bond with other elements. Usually, it is found in minerals such as cryolite and bauxite. Aluminum is a widely used metal in automobiles and commercial vehicles because it offers superior safety and durability while also improving fuel efficiency and lowering pollutants. Lighter vehicles need less fuel to operate and hence play an important role in improving energy efficiency. Currently, automotive emissions account for 27% of total carbon dioxide emissions. Furthermore, aluminum is gaining popularity in automotive applications due to its strength and environmental benefits. Aluminum's recyclability has fuelled its demand, which is likely to rise further in the near future.
Rise in preference for light weight vehicles due to better fuel efficiency and performance across the world is increasing the demand for lightweight and durable metals. This is anticipated to enhance the growth of automotive aluminum market during forecast period.

Rapid expansion of the automobile industry due to high demand for personal vehicles and increase in demand for fuel-efficient vehicles are some of the major factors boosting the demand for lightweight metals (aluminum). Furthermore, performance benefits of aluminum, such as its dent-resistance, have also boosted its demand among automakers. Aluminum is increasingly being used in body structures, including the engine, transmission, and wheels, by luxury vehicles such as Audi, Mercedes Benz, and Ford.
Stringent environmental laws aimed at reducing carbon dioxide emissions are also driving the automotive aluminum market. Demand for aluminum has increased owing to demand for lightweight automobiles among consumers, as the demand for passenger cars has increased. Furthermore, a surge in the demand for transporting commodities is expected to offer significant opportunity for application of aluminum in large commercial vehicles. Volatility in prices of aluminum, combined with an increase in operational costs, has hampered the market; however, increased use of aluminum as a steel substitute is likely to boost its demand in automotive applications.

High cost of aluminum is a key factor hampering the market. Rise in adoption of alternative materials is a concern for the automotive aluminum market. Researchers from the Indian Institute of Technology (IIT) Madras (India), the University of North Texas, and the US Army Research Laboratory have created a magnesium alloy that has significantly better characteristics and can be used to replace steel and aluminum in automotive and aerospace components.
The current industrial application of wrought magnesium alloys in structural components is limited Due to its poor moderate or low strength. The carbon footprint of vehicles reduces significantly through the use of lightweight materials in their bodywork.

Increase in sales of passenger as well as commercial vehicles is creating a large market for automotive aluminum so that fuel efficiency and performance can be increased and consumers can get an affordable ride.
Emergence of electric vehicles is providing a large market for automotive aluminum, which is gaining popularity as an automotive material. The automotive aluminum extrusion industry is being driven by electric vehicles (EVs). Increasing use of aluminum in chassis applications, vehicle closing parts, and body-in-white parts is propelling the market. Therefore, automakers are adapting to new mobility norms, which is estimated to boost the use of aluminum in the EV sector. Several manufacturers and providers of aluminum extrusion parts are focusing on the development of new products. For instance, Constellium NV has developed a revolutionary cold-plate technology for efficient cooling of battery modules in electric vehicles. The revolutionary bent extrusion corner design was created with no wasted space, no drilling chips, and only a minor degree of bending.

The market in North America is expected to expand at a rapid pace during the forecast period. Consumer preferences for fuel-efficient vehicles; stringent CAFE or Corporate Average Fuel Efficiency/Economy regulatory requirements to improve vehicle fuel economy; proper implementation of yield strength standards; CAFE standards being used in the U.S. to reduce energy demand by raising fuel economy in large trucks; commercial vehicles, vans, and automobiles; rising discretionary income in the region; and favorable government initiatives in the region all contribute to the expansion of the market in the region. Moreover, in countries in Asia Pacific, such as India and China, the adoption of fuel-efficient vehicles is increasing. Increased vehicle sales in Asia Pacific, as well as increased per capita income due to an increase in the number of working people, is expected to provide lucrative opportunities for the automotive aluminum market in Asia Pacific.

The global automotive aluminum market is moderately consolidated. A few of the key players operating in the global automotive aluminum market are:

Global Automotive Aluminum Market, by Product Form

Global Automotive Aluminum Market, by Application

Global Automotive Aluminum Market, by Vehicle Type

Global Automotive Aluminum Market, by Region

North America
- U.S.
- Canada
Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Nordic Region
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- Nigeria
- South Africa
- Rest of Middle East & Africa