North America is expected to dominate the automotive aluminum market over the forecast period.

 

Aluminum is found in nature as aluminum sulfates and can likewise be delivered from bauxite, which includes different components like aluminum hydroxide, silicon, titanium, sulfur, gallium, vanadium oxides, chromium, iron, sulfuric calcium, and magnesium carbonates, among others. Aluminum is fundamentally lighter than steel, has great elasticity, and is simpler to shape, settling on it a favored decision in different ventures.

Aluminum castings are utilized in different pieces of vehicles, for example, alternator lodging, carburetors, wheels, valve covers, motor square, transmission lodgings, wheel spacer, impellers, and fan grip. Aluminum sheets are utilized in complete vehicle body, primary parts, vehicle trims and fixing, body boards, side dividers, hood, entryways, and trunks. Expelled aluminum is utilized to produce rooftop rails and sunroofs. The utilization of aluminum in autos has given various advantages like great formability, extraordinary potential in weight decrease, incredible erosion conduct in presence of warm burden, high return strength, and gouge obstruction capacity, top notch surface completion and recyclability. Unique gear producers contribute a significant offer in the automotive aluminum market.

Market Forecast

North America is expected to dominate the automotive aluminum market over the forecast period. This is mainly attributed to the stringent implementation of yield strength standards. CAFÉ Standards were implemented in the U.S. in order to reduce energy consumption by increasing fuel economy in cars, vans, light trucks, and heavy trucks. This has augmented growth of the market in the region. Asia Pacific is expected to follow North America in the consumption of automotive aluminum. This is mainly attributed to increasing discretionary income in the region and supportive government initiatives, especially in the growth engines of the region — China and India. For instance, the Indian government allows for 100% FDI in the automotive industry, which accounts for 7.1% of the country’s GDP.

Key Players

High cost of automotive aluminum as compared to steel and cast iron is one of the restraining factors for the automotive aluminum market. Also, introduction of new materials like reinforced plastic has restrained the market growth of automotive aluminum on a global scale. Research and development on alternative methods to produce aluminum at a lower cost and eco-friendly manufacturing processes to reduce environmental damage are some of the key strategies adopted by the top market players. Some of the companies operating in the global automotive aluminum market are Alcoa Inc., Arconic Inc., UACJ Corporation, CHALCO, AMG Advanced Metallurgical Group, Norsk Hydro ASA, Constellium N.V., Novelis Inc., and Rio.