April 20, 2024

Aluminum Alloys Market is Estimated to Witness High Growth Owing to Increasing Usage in Automotive and Aerospace Industry

They find wide applications in automotive, aerospace, defense and construction sectors due to their characteristics like lightweight, high ductility, corrosion resistance and recyclability. The automotive industry uses aluminum alloys extensively to reduce vehicle weight and improve fuel efficiency.

The Global aluminum alloys market is estimated to be valued at US$ 171.25 Mn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the aluminum alloys market are Haitian International Holdings Limited (China), Chen Hsong Holdings Ltd. (China), Engel Austria GmbH (Austria), Sumitomo Heavy Industries Limited (Japan), Hillenbrand, Inc. (U.S.). These key players are focusing on new product launches and expansion strategies to gain a competitive edge in the market.

The aluminum alloys market provides opportunities for growth owing to increasing demand from automotive, aerospace and construction industries. Stringent emission norms are prompting automakers to use lightweight materials like aluminum alloys.

The aluminum alloys market is witnessing rising global demand driven by expanding manufacturing and industrial sectors across Asia Pacific, North America and Europe. China dominates the global aluminum production owing to presence of key automotive OEMs and suppliers.

Market drivers

Increasing usage of aluminum alloys in automotive industry is one of the major drivers for this market. Automakers are opting for aluminum alloys to reduce vehicle weight and meet stringent emission norms. About 30-35% of an average vehicle content can be made from aluminum alloys without compromising on performance or safety. This helps automakers enhance fuel economy by 7-10% and reduce CO2 emissions.

PEST Analysis
Political: The aluminum alloys industry is influenced by governmental policies and regulations regarding environmental protection and resource mining. Changes in trade policies could impact import/export dynamics.
Economic: Macroeconomic factors like GDP growth, disposable income levels, and industrial production trends determine the demand for aluminum alloys from end-use industries. Fluctuations in raw material prices also affect the industry’s profits and costs.
Social: Rising population and increasing urbanization are leading to greater infrastructure development and construction activity worldwide, driving the need for aluminum alloys. Environmental consciousness is encouraging the use of recycled aluminum.
Technological: Developments in aluminum alloy formulations allow for improved corrosion resistance, strength-to-weight ratios, and other properties. Additive manufacturing techniques are expanding application areas for aluminum.

Around 60% of the global  Aluminum Alloys Market Size value is concentrated in the Asia Pacific region due to high consumption from countries like China, Japan, and India. The construction and transportation sectors in these growing economies utilize significant amounts of aluminum alloys. North America is another major regional market assisted by aircraft, automobile, and infrastructure projects.

The fastest growing regional market for aluminum alloys is expected to be Africa over the forecast period. Countries throughout Africa are experiencing increased investment in public infrastructure like roads, bridges, and buildings. Additionally, local production of aluminum is rising to meet this demand and support industrialization. Aluminum alloy consumption in Africa will likely expand at a higher rate than mature regions as development continues on the continent.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it