Aluminum finds diverse applications in the automotive industry owing to its lightweight, high strength, and durability properties. It is commonly used for engine components, wheels, door panels, and other body parts of vehicles to enhance fuel efficiency and reduce emissions. The growing demand for electric vehicles has accelerated the adoption of aluminum as it allows manufacturers to develop lightweight vehicles without compromising payload capacity and performance.
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 key trends:
The growing adoption of aluminum in electric vehicles is one of the key trends driving the automotive aluminum market. Aluminum helps reduce the overall weight of electric vehicles, allowing automakers to maximize vehicle range on a single charge. This is a critical factor for consumer acceptance of electric vehicles. As per estimates, aluminum can reduce the weight of an electric vehicle by 180-200 kg. The reduced weight not only enhances the driving range but also the performance and handling of electric vehicles. Leading automakers are extensively utilizing aluminum alloys to manufacture EV components like batteries, frames, and bodies to make vehicles more energy-efficient. This rising focus on lightweight materials in electric mobility is expected to boost demand for automotive aluminum over the forecast period.
Segment Analysis
The global automotive aluminum market is dominated by the cast aluminum sub-segment, which holds around 45% share of the overall market. Cast aluminum is used extensively in engine components and wheels due to its wear resistance and light weight properties. The other major sub-segment is extruded aluminum, which finds wide application in the manufacturing of vehicle parts like doors, hoods, and trunk lids. Extruded aluminum accounts for 35% share owing to its high strength-to-weight ratio and extrudability into complex shapes.
Key Takeaways
The global automotive aluminum market analysis is expected to witness high growth over the forecast period of 2023 to 2030. Stringent emission regulations mandating the use of light weight materials in vehicles for improved fuel efficiency are driving the demand for aluminum across major automotive manufacturing regions. 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.
Regional analysis:
Asia Pacific currently dominates the automotive aluminum market with a share of over 40% globally. This can be attributed to the large automotive manufacturing base in China, India, and Japan. China is expected to remain the fastest growing market through 2030 supported by rising vehicle production and sale of electric vehicles in the country. Europe is another major region, led by Germany, France, and UK. The presence of leading automakers is boosting the adoption of aluminum body sheet and components.
Key players:
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. Ningxia Eppen Biotech is one of the largest producers of aluminum billets globally. Fufeng Group is a major supplier of aluminum extrusion ingots. Meihua Holdings Group is an integrated aluminum producer focused on automotive extrusion products. Gremount International is a tier one automotive components manufacturer. Cargill provides aluminum sheet and ingots to major automakers globally.
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