With the burgeoning requirement for greater fuel efficiency, many automobile manufacturers are focusing on developing lightweight vehicles. Additionally, lightweight automobiles have better braking and acceleration and are easier to handle than heavier vehicles. Moreover, the weight of the amount of aluminum needed for providing the same strength as that of steel is 40% lesser than steel. Furthermore, the implementation of stringent emission regulations in several countries is also pushing up the requirement for lightweight vehicles, as these vehicles generate lower emissions. This is, in turn, driving the demand for aluminum in the automotive industry.
Besides, 90% of the aluminum used in vehicles can be easily recycled. Owing to these factors, the global automotive aluminum market is exhibiting huge expansion. Currently, the industry is highly fragmented, with the presence of a large number of small organizations such as Alcoa Corporation, Norsk Hydro ASA, Aluminum Corporation of China Limited (Chalco), Aleris International Inc., Constellium NV, Rio Tinto plc, Novelis Inc., Kaiser Aluminum Corporation, and United Company RUSAL plc. However, in the coming years, the industry will witness the entry of several new firms that will develop innovative and advanced products.
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| Automotive Aluminum Market |
Aluminum is used in the manufacturing of light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and passenger cars. Out of these, the usage of aluminum is predicted to be the highest in passenger cars in the coming years. This will be because of large-scale manufacturing of passenger cars, particularly in China and India, and the soaring requirement for fuel-efficient vehicles. Extrude aluminum, rolled aluminum, and cast aluminum are the major types of aluminum used in automobiles.
This will be because of the surging demand for lightweight cars across the world. Globally, Asia-Pacific generated the highest revenue in the automotive aluminum market in the years gone by and this trend is predicted to continue in the coming years as well. This will be because of the extensive manufacturing of passenger cars in several regional countries such as India and China and the soaring investments being made by automobile manufacturing companies for the manufacturing of automobiles in the region.
Thus, it can be said without hesitation that the demand for aluminum will surge sharply in the automotive industry in the coming years, primarily because of the soaring requirement for lightweight vehicles, on account of their greater fuel efficiency and easier handling, and the increasing implementation of stringent emission regulations by the governments of several countries in order to mitigate vehicular emissions.
