The global automotive aluminum market is expected to observe
an extensive growth in the coming years, due to the increased demand for
lightweight material in automobile industry, coupled with growing vehicle
production in many countries around the world. Aluminum considerably reduces
the overall weight of a vehicle and thus increases the fuel efficiency of the
vehicle, which in turn, produces fewer tailpipe emission. Apart from this, 90%
of aluminum used in automobile can be recycled. Mandatory regulations and
strict emission norms in many countries have increased the demand for aluminum
in the automotive industry.
Based on vehicle type, the automotive aluminum market is
classified into passenger car, light commercial vehicle (LCV), and heavy
commercial vehicle (HCV). Among these, the passenger car is expected to
continue dominate the automotive aluminum market over the forecast period,
owing to its high production, especially in India and China, coupled with
rising demand for fuel-efficient vehicle.
On the basis of application, the automotive aluminum market
is categorized into powertrain, car body, and chassis. The car body is expected
to be the fastest growing category during the forecast period. The growth of
this category is mainly driven by increasing use of aluminum in car body to
reduce the overall weight of the car.
Geographically, Asia-Pacific has dominated the automotive
aluminum market and is foreseen to continue the domination during the forecast
period as well. The growth will be driven by high production of passenger cars
in many countries of the region such as China and India, coupled with
increasing investments by automakers for the production of automobiles in the
region.
The steady rise in production of automobiles in many
countries, coupled with growing demand for lightweight material in automobiles
has fueled the demand for aluminum in the automobile industry. There is growing
demand for lightweight material in automobiles as lightweight vehicles have
better acceleration, braking, handling, and fuel efficiency, and low emission.
The amount of aluminum required to provide the same strength as that of steel
weighs 40% less than the steel. The inherent advantages of aluminum will
attribute its high demand in the industry. Apart from this, strict emission
regulation in many countries to reduce the automobile emission is expected to
benefit the automotive aluminum market.
Fluctuation in price of aluminum, coupled with high cost of
aluminum as compared to steel is one of the major restraints affecting the
growth of the automotive aluminum market. In addition, easy availability of
other lightweight materials such as magnesium and reinforced plastic is further
expected to negatively affect the industry.
Major key players operating in the market are Norsk Hydro
ASA, Alcoa Corporation, Aluminum Corporation of China Limited (Chalco),
Constellium NV, Aleris International Inc., Novelis Inc., Rio Tinto plc, Norsk
Hydro ASA, United Company RUSAL Plc, and Kaiser Aluminum Corporation.
