Lightweight body parts are quickly being absorbed into the automotive industry due to the stringent government regulations for fuel-efficient vehicles.
The rising production and demand for lightweight vehicles, alongside the growing production sales of electric vehicles, drive the market growth. These suppliers also buy tons of aluminum, lighter and much cheaper than copper, to make up portions of larger auto parts.
Theautomotive aluminum marketis expected to garner continual traction worldwide. According to Market Research Future (MRFR), the global automotive aluminum market valuation is expected to grow to USD 133.41 BN by 2030, with over 8.72% CAGR during the assessment period (2022-2030). Auto part manufacturers are looking to supply higher-value components required for vehicle development.
Automotive Aluminum Market Segments
The market is segmented into product type, vehicle type, application, and region. The product type segment is sub-segmented into cast aluminum, extruded aluminum, rolled aluminum, and others. The application segment is sub-segmented into chassis suspension, powertrain, car body, and others. The vehicle type segment is sub-segmented into passenger cars, LCVs, HCVs, and others.
Automotive Lightweight Body Panel Market Regional Analysis
North America is the largest market for automotive aluminum, headed by the rapid implementation of Corporate Average Fuel Economy (CAFE) standards in this region. Besides, rising sales of passenger cars and government initiatives to boost the automotive industry are major driving forces defining the growing market landscape. The rising pressure worldwide to promote lightweight vehicle body parts and stringent government regulations to control fuel emissions escalate the market value.
Also, the strong presence of notable automakers and industry players, alongside high automotive safety regulations, accelerates the region's market shares. Additional factors bolstering the market growth include high per capita income and the early adoption of advanced technologies. With the rise in aluminum production, a key material for electric vehicles, the US holds the largest market share.
Automotive Aluminum Market Competitive Landscape
The highly competitive automotive aluminum market appears fragmented, with many well-established players forming a competitive landscape. Major players initiate strategic approaches such as mergers acquisitions, collaborations, and product/technology development to gain a larger competitive share. Substantial investments are transpired to develop products and expand global footprints.
Electronic component manufacturers focus on high-power, high-energy component solutions for power electronics systems. To accelerate technological innovation in automotive applications, they use aluminum electrolytic capacitors delivering high-endurance CV and low-ESR performance in competitively compact and cost-effective form factors. The new range of surface-mount aluminum chip capacitors features three different electrolytic technologies.
Major Players
Active market players are Alcoa Corporation (US), Rio Tinto Group (UK), UACJ Corporation (Japan), Norsk Hydro ASA (Norway), ElringKlinger AG (Germany), AMG Advanced Metallurgical Group (Netherlands), Autoneum Holding AG (Switzerland), Novelis Inc. (US), Aluminum Corporation of China Limited (CHALCO - China), Progress-Werk Oberkirch AG (Germany), Aleris Corporation (US), Constellium (US), Dana Limited (US), Lorin Industries (US), Kaiser Aluminum (US), and Jindal Aluminium Ltd. (India), among others.
Industry/ Innovation/ Related News:
Nov.07, 2022 ---NovelisInc., a leading provider of sustainable, low-carbon rolled aluminum solutions, started the construction of its new aluminum recycling center in South Korea to expand sustainable, low-carbon aluminum production. Novelis is building a new recycling center to meet the global demand for sustainable, low-carbon aluminum sheets for automotive and high-end specialty products.
The recycling center is being built with an investment of US$50 million and is expected to come online in 2024. Processing an annual casting capacity of 100 kilotonnes of low-carbon sheet ingot, the new recycling center will contribute to Novelis' efforts to reduce its carbon emissions by over 420,000 tons each year, realizing its 2050 goal for carbon neutrality.
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