Automotive Aluminum Market, By Type (Sub-structures, Door Beam, Bumpers, and Pillars Sub Frames), By Vehicle (Mini-compact, Supermini, Compact, Mid-size and Executive), By Aluminum Grade (5000 Series, 6000 Series, 7000 Series and Others), By Region - Global Analysis Forecast Till 2030

The global automotive aluminum market was worth USD 36.86 billion in 2021 and is expected to grow at a CAGR of 10.4% between 2022 and 2030.

Aluminum is a light metal that is the third most abundant element in the Earth's crust. It is easily able to form bonds with other elements. It is commonly found in minerals such as cryolite and bauxite. Aluminum is a common metal used in automobiles and commercial vehicles because it provides superior safety and durability while improving fuel efficiency and lowering pollutants. Lighter vehicles require less fuel to operate and thus contribute significantly to energy efficiency. Automobile emissions currently account for 28% of total carbon dioxide emissions. Furthermore, aluminum is gaining popularity in automotive applications due to its strength and environmental benefits. The recyclability of aluminum has fuelled its demand, which is expected to rise further in the near future.

The global preference for lighter vehicles is increasing due to improved fuel efficiency, performance, and durable metals. This is expected to boost the growth of the automotive aluminum market during the forecast period.

Market Dynamics

Drivers:

Rapid expansion of the automobile industry due to the high demand for personal vehicles and an increase in demand for fuel-efficient vehicles are two major factors driving demand for lightweight metals (Aluminium). Furthermore, Aluminium performance benefits, such as dent resistance, have increased its demand among automakers. Aluminium is increasingly being used in the body structures of luxury vehicles such as Audi, Mercedes-Benz, and Ford, including the engine, transmission, and wheels.

Strict environmental regulations aimed to reduce emissions are also driving the automotive aluminium market. Aluminium demand has increased as consumer demand for lightweight automobiles and passenger cars have increased. Furthermore, a surge in commodity transportation demand is expected to provide significant opportunity for using aluminium in large commercial vehicles. The market has been hampered by price volatility in aluminium, combined with an increase in operational costs; however, the increased use of aluminium as a steel substitute is likely to boost its demand in automotive applications.

Restraints:

The high cost of aluminium is a major impediment to the market. The increased use of alternative materials is a source of concern for the automotive aluminium market. Researchers from India's Indian Institute of Technology (IIT) Madras, the University of North Texas, and the US Army Research Laboratory developed a magnesium alloy with significantly improved properties that can be used to replace steel and aluminum in the automotive and aerospace components. These Factors might impede the growth of the market.

Key players:

• Hindalco Industries Ltd.

• Alcoa Corporation

• Kaiser Aluminum        

• Constellium

• AMG Aluminum

• Norsk Hydro ASA

• Rio Tinto

• Sapa Group

• Novelis Aluminum

• ElringKlinger

• Farinia Group

• Endurance Technologies Limited

Market Segmentation:

Automotive Aluminum Market, By Type

• Sub-structures

• Door Beam

• Bumpers

• Pillars

• Sub Frames

Automotive Aluminum Market, By Vehicle

• Mini-compact

• Supermini

• Compact

• Mid-size

• Executive

Automotive Aluminum Market, By Aluminum Grade

• 5000 Series

• 6000 Series

• 7000 Series

• Others

Automotive Aluminum Market, By Region

• North America

• Latin America

• Europe

• Asia Pacific

• Middle East & Africa

Regional Analysis:

The market in North America is expected to expand rapidly. Consumer preferences for fuel-efficient vehicles; stringent CAFE (Corporate Average Fuel Efficiency/Economy) regulatory requirements to improve vehicle fuel economy; proper implementation of yield strength standards; CAFE standards being used in the United States to reduce energy demand by increasing fuel economy in large trucks, commercial vehicles, vans, and automobiles; rising discretionary income in the region and favorable government initiatives all contribute to the expansion of the market in the region.

Furthermore, the adoption of fuel-efficient vehicles is increasing in Asia Pacific countries such as India and China. Increased vehicle sales in Asia Pacific, as well as higher per capita income due to an increase in the number of working people, are expected to provide profitable opportunities for the Asia Pacific automotive aluminum market.

Scope of the Report:

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