Aluminum in the automotive industry: Key market research findings
- Shift towards non-ferrous casting to drive market growth
- APAC dominates the market geographically
- Key vendors – Alcoa, Aleris, Chalco, Constellium, Norsk Hydro, and Novelis
Technavio’s market research analysts predict the global aluminum market for the automotive industry to grow at a CAGR of almost 5% between 2016 and 2020. The demand for aluminum in the automotive industry is stimulated by the shift from ferrous to non-ferrous casting for the development of lightweight and high-quality products. Automobile manufacturers are replacing ferrous casting materials, such as iron, which are used for manufacturing auto components with non-ferrous casting materials like alloys of aluminum, zinc, and magnesium. These materials are lightweight, resistant to corrosion, and have high conductivity and are more stable under high temperature and high pressure. During 2015, APAC dominated the global aluminum market for the automotive industry by accounting for around 50% of the overall market share. The increase in production of passenger cars and light commercial vehicles in China and India and the fast-growing automotive industry in the region will propel growth in the aluminum market for the automotive industry in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the aluminum segments based on the type.
“Recently, there has been a rise in the use of aluminum in crash management systems. Crash management systems consider factors such as the ability to absorb collision energy, requirement of staying intact at high-speed impacts, weight management, initial and repair cost, and manufacturability. The lightweight and cost-effective nature of aluminum extrusions make it an ideal material for crash management systems,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
The casting and forging segments dominated the global aluminum market for the automotive industry in 2015 by occupying around 45% of the total market space. Automotive manufacturers make use of aluminum forged products due to the high strength, reliability, and economic viability of the parts. Casting products are also largely used in an effort to comply with the stringent emission norms implemented by government authorities such as the US Environmental Protection Agency.
The key vendors in the market include Alcoa, Aleris, Chalco, Constellium, Norsk Hydro, and Novelis. The market is highly fragmented due to the presence of many vendors; however, the top players account for a major part of the overall market share and will lead this market during the next four years. This market is marked by rapid technological advancements and frequent changes in consumer preferences. The influx of private labels is very high in the market which, in turn, has intensified the level of competition. The market will also witness several new entries that will pose a tough challenge to the established players as these players will offer advanced and innovative products at reasonable prices.
A more detailed analysis is available in the Technavio report, Global Aluminum Market for the Automotive Industry 2016-2020.
We can customize reports by other regions and specific segments upon request.
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