by The automotive aluminum market offers lightweight and durable materials to deliver advanced performance in modern vehicles. Aluminum is used in a variety of automotive components such as engine parts, wheels, vehicle body, and more due to its corrosion resistance and high strength-to-weight ratio. This helps increase fuel efficiency and payload capacity while reducing emissions. As global emission regulations become more stringent, automakers increasingly opt for aluminum over heavier traditional steel to comply with strict carbon norms. 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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Major automakers are developing aluminum intensive vehicles to improve efficiency. For instance, the 2022 Ford F-150 Lightning is built with military grade aluminum alloy as its main construction material. This makes the electric pickup truck durable yet lightweight for extended range. Casting and extrusion technologies are also advancing to produce more complex automotive aluminum components with tighter tolerances. On the supply side, aluminum producers are investing in low carbon smelting methods like inert anode technology to lower the carbon footprint of primary aluminum production. This supports automakers in meeting their sustainability targets. As electric vehicles emerge, demand for aluminum to package batteries is rising rapidly given its energy absorption ability in crash situations. The automotive aluminum market is well positioned to benefit from these key trends driving increased adoption of the metal across new vehicle platforms in the coming years.
Porter’s Analysis
Threat of new entrants: Medium. Entry barriers like high capital requirements and established brands favor existing automakers. However, new electric vehicles offer opportunities.
Bargaining power of buyers: High. Large automakers can negotiate lower aluminum prices. Buyers can also opt for substitutes like steel, plastics or carbon fiber composite materials.
Bargaining power of suppliers: Medium. Major aluminum producers dominate supply but automakers can source from different regions to avoid dependence on any single supplier.
Threat of new substitutes: Medium. Alternatives like steel continue to be used but aluminum is gradually replacing them due to benefits of lightweighting and sustainability.
Competitive rivalry: High. Automakers compete intensely on pricing, fuel efficiency, performance and design to capture market share.
Key Takeaways
The Global Automotive Aluminum Market Size is expected to witness high growth over the forecast period of 2023 to 2030. North America currently dominates the market due to high vehicle production while Asia Pacific is expected to grow at the fastest pace with increasing automotive manufacturing in China and India.
Regional analysis: North America accounted for the largest share of over 30% of the global automotive aluminum market in 2023. This was driven by high per capita vehicle ownership and presence of automotive giants like General Motors and Ford in the US. Asia Pacific is anticipated to witness growth at a CAGR of around 13% during the forecast period with China, India, Japan and South Korea emerging as major aluminum consuming nations for automotive applications.
Key players: Key players operating in the automotive aluminum market are Iron Mountain, ARC, Access, Shred-it, Restore plc, Cintas, Proshred, National Document Shredding Service, Shred Station, Red Dog Shred, Shred-X, Secured Document Shredding, Shred Works, Guardian Data Destruction, EndoShred, Mobile Shred, ShredQuick, ProShred Chicago, Shreds Unlimited. Iron Mountain is one of the leading players focused on developing innovative shredding and destruction solutions for automotive applications.
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