According to a new market research report published by Credence Research, Inc. “Aluminium Market in Automotive Industry – Growth, Opportunities, Share & Competitive Analysis, 2017 – 2025,” Aluminium market in automotive industry was valued at US$ 27,356 Mn in 2016, and is expected to reach US$ 52,407 Mn by 2025, expanding at a CAGR of 7.4% from 2017 to 2025.
Aluminum has properties such as low weight, high performance, corrosion resistance and durability, making it an ideal material for the construction of more efficient vehicles. Aluminum is used in the automotive industry to deliver outstanding performance, high level of passenger safety, superior fuel efficiency and comfort. The metal used in the car is recyclable. Reducing weight with Aluminum increases the fuel efficiency of a car, which in turn creates less tailpipe emissions as lighter cars use less energy (fuel or battery power) to drive around.
As a result, vehicle manufacturers are gradually using aluminum to reduce carbon emissions from the atmosphere. Government regulations on fuel prices and the reduction of carbon emissions in developed countries are expected to drive the growth of aluminum materials in the automotive industry. Such countries are likely to provide global aluminum producers with excellent growth and profit prospects.
Cast Aluminum was the largest value segment in 2016, followed by rolled aluminum and reflects a high growth opportunity. Environmental regulations, government policies, consumer desire to reduce fuel consumption and increased driver safety have driven car manufacturers and suppliers of aluminum materials to develop a wide range of solutions to meet these requirements. All these factors are expected to increase the demand for aluminum in the global automotive industry during the forecast period.
Asia Pacific was the largest region in the automotive industry in terms of aluminum use, led by Europe, North America and ROW due to higher vehicle production in Asia Pacific. From 2017 to 2025, Aluminum consumption in the global automotive industry is projected to grow at a CAGR of 7.4%.
Some of the major companies on the market are Alcoa Inc., Aleris International, Aluminum Corporation of China Limited, BHP Billiton Limited, Constellium NV, Kaiser Aluminum Corp., Norsk Hydro ASA, Novelis Inc., United Company Rusal Plc., Vedanta Resources Plc, and Vimetco N.V.