The automotive aluminum market consists of aluminum and aluminum alloys used in automotive applications. Aluminum finds extensive use in manufacturing automotive components such as car bodies, chassis, wheels, and heat shields owing to its high strength-to-weight ratio and corrosion resistance. The rising demand for lightweight and fuel-efficient vehicles has been prompting automakers to increasingly adopt aluminum over conventional steel.
The global automotive aluminum market is estimated to be valued at US$ 48.69 billion 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:
One of the key trends driving the growth of the automotive aluminum market is the rising adoption of aluminum in electric vehicles. Automakers are proactively using aluminum to manufacture lightweight EV components like batteries, suspension systems, and body structures to enhance driving range. This is owing to aluminum’s high strength and conductivity properties. Using aluminum helps reduce the overall vehicle weight and supports longer distance travel on a single charge. With governments globally promoting electric mobility through incentives and regulations, the demand for aluminum from the EV industry is expected to rise substantially over the coming years.
Strength: Aluminum is lightweight and provides strength which helps in improving fuel efficiency and payload capacity of vehicles. Its corrosion resistance also enhances longevity of vehicles.
Weakness: Aluminum structures are more expensive as compared to steel ones. Processing of aluminum requires more efforts and costs for applications in automotive manufacturing.
Opportunity: Stringent regulations regarding emission reduction and fuel efficiency are generating demand for light weighting of vehicles. This provides opportunity for increased use of aluminum alloys in automotive manufacturing.
Threats: Fluctuations in prices of aluminum impact the automotive OEMs. Supply constraints of aluminum may also impede the growth of automotive aluminum market.
The global automotive aluminum market demand is expected to witness high growth. The global automotive aluminum market is estimated to be valued at US$ 48.69 billion in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030.
Regional analysis related content comprises Asia Pacific dominates the global market currently due to large automotive manufacturing bases in China, India, Japan and South Korea. New emission norms and increasing vehicle production are expected to drive the regional automotive aluminum market in the forecast period.
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. Stiff competition exists between these players in terms of product offerings, pricing and strengthening distribution networks globally. Players adopt strategies such as expansions, partnerships, new product developments and mergers & acquisitions to strengthen their position in the market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it