Aluminum is approximately 10%-40% lighter than steel. Aluminum helps the vehicle to enhanced acceleration, improved braking, and superior handling. The stiffness of aluminum offers instant and specific control. Aluminum has the capacity of energy absorption in vehicle’s front and back crumple, along with the light weight property it ensures the improved safety, as it can stop at a short distances, and prevent collisions. Nearly 90% of automotive aluminum can be recycled. Aluminum acts as a fuel efficient component in vehicle, it makes the vehicle 24% lighter than those with steel components. Which in turn helps to save 15% in fuel consumption. 

Aluminum market in the automotive industry was valued at US$ 35,453.3 Mn in 2020, and is expanding at a CAGR of 7.4% from 2021 to 2029. Government regulations on fuel pricing and carbon emission reduction in developed countries are expected to be the growth drivers of aluminum materials in the automotive industry. The versatility of aluminum products and the processes used to manufacture them allow automotive designers to incorporate aluminum in a wide range of products, such as engine, transmission and driveline, heat transfer, wheels and brakes, structural components of vehicles, and others. Beyond the designing flexibility, aluminum’s greatest competitive advantage rests with its ability to reduce a vehicle’s weight without any loss in performance. Although the cost of aluminum compared to steel is a competitive disadvantage, the technology being developed, combined with the lifecycle economies aluminum offers can offset this factor. Aluminum usage in automotive applications has grown substantially. The global demand for aluminum has been increasing, and it is now the second most widely used metal after steel in the automotive industry.

The report titled “Aluminum Market in Automotive Industry - Growth, Future Prospects and Competitive Analysis, 2021– 2029” offers strategic insights into the aluminum market in the global automotive industry along with the market size and estimates for the duration 2019 to 2029. The said research study covers in-depth analysis of multiple market segments based on vehicle type, application, product form, and cross-sectional study across different geographies. The study covers the comparative analysis of different segments for the years 2020 & 2029. The report also provides a prolific view on market dynamics such as market drivers, trends, restraints and opportunities. The report incorporates a separate section highlighting key trends analysis of the overall automotive aluminum market.

In order to help the strategic decision makers, the report also includes profiles of the leading automotive aluminum manufacturers, their business strategies and key developments. Some of the major players profiled in the report 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. The section further includes a brief on key strategies adopted by the major players operating in the market. Other in-depth analysis provided in the report includes:

• Current and future market trends to justify the forthcoming attractive markets within the aluminum market in the automotive industry
• Market driver, market impediments, and their impact on the market growth
• In-depth competitive environment analysis
• Trailing 2-Year market size data (2019 – 2020)
• SRC (Segment-Region-Country) Analysis

Overall, the research study provides a holistic view of the aluminum market in the automotive industry, offering market size and estimates for the period from 2021 to 2029, keeping in mind the above mentioned factors.

The SUVs and crossovers segment was the major segment of aluminum market in the automotive industry in 2020 and is projected to grow with a CAGR of 7.3% from 2021 to 2029; followed by compact cars segment, which was another major lucrative segment of aluminum market in the automotive industry in 2020. Asia Pacific and Europe are the largest market for the vehicle types and is expected to remain the largest region in forecast period. The growth is majorly driven by the rise in disposable income and a major positive shift towards average amount of spending done on automotive interiors.

Cast aluminum was the largest market segment and accounted for more than 70% of aluminum market in the automotive industry in 2020. Casting is a modest and economical method, and can be used as multipurpose in forming aluminum into various products. The aluminum die casting process gives stronger finished parts at a minimum cost. Aluminum casting allows manufacturers to produce complex design parts for different auto parts. Aluminum casting allows manufacturers to produce parts at faster rate. The rolled aluminum segment is anticipated to grow with the highest growth rate from 2021-2029. The applications of sheet or rolled aluminum materials in the structural component of a vehicle is going to increase the demand for rolled aluminum during the forecast period 2021-2029.

Engine was the largest market segment in the automotive aluminum industry in 2020. It accounted for more than 35% of aluminum market in the automotive industry and is projected to grow at the fastest rate in 2029. Aluminum engine block significantly reduces the weight of the engine and assists the vehicle in obtaining a better power to weight ratio. Wheels and brakes is another lucrative market over the forecast period and is expected to grow at the fastest rate between 2021 and 2029. Aluminum wheels are stronger and more delicate. They are strong enough for use in cars, thereby making the vehicles easier to manage, deliver quicker response on applying the brake and accelerator.

Asia Pacific market had the largest share, accounted for more than 35% of the total aluminum market in automotive industry in 2020. Growth in Asia Pacific market is attributed to increase in production of passenger cars and light commercial vehicles in China and India. Government regulations to control CO2 emission have increased the demand for aluminum in the automotive industry. In 2020, Europe was another leading region for aluminum market in the automotive industry. Favorable regulations set by the European Union are projected to induce automobile manufacturers to use lightweight materials, such as aluminum. The automotive industry in Europe is in close cooperation with the European aluminum industry and has developed and introduced numerous innovative lightweight solutions, based on aluminum and aluminum alloys. Through the intensive use of safe and cost-efficient lightweight aluminum concepts, European vehicle manufacturers have taken technological global leadership in making passenger vehicles more lightweight.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Aluminium market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Aluminium market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Aluminium market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Aluminium market?
• Which is the largest regional market for Aluminium market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Aluminium market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Aluminium market worldwide?