Global Aluminum Market for the Automotive Industry 2016-2020
About the Aluminum Market for Automotive Industry
Aluminum is a preferred material in the automotive industry because of its strength, safety, and durability. Use of aluminum in passenger and commercial vehicles allows boosting of fuel economy and reducing vehicular emissions.
The global automotive industry is driven by improvements in macroeconomic conditions and demands from the developing market. Automotive manufacturers have been using steel products for engine parts and auto sheets, which are now being replaced with aluminum. With changing customer preferences, the automotive industry has seen changes in technologies focusing on safety, comfort, low carbon emission, fuel efficiency, and lightweight. Aluminum is used for lightweight design concept covering areas of drivetrain, heat exchangers, body, chassis, and related equipment.
Technavio’s analysts forecast the global aluminum market for automotive industry to grow at a CAGR of 4.5% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global aluminum market for automotive industry for 2016-2020. The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Aluminum Market for the Automotive Industry 2016-2020
Technavio recognizes the following companies as the key players in the global aluminum market for automotive industry: Alcoa, Aleris, Chalco, Constellium, Norsk Hydro, and Novelis.
Other Prominent Vendors in the market are: Kaiser Aluminum, Rio Tinto Alcan, and RUSAL.
Commenting on the report, an analyst from Technavio’s team said: “A trend which is driving market growth is the use of aluminum products in crash management systems. The crash management systems consider factors such as the ability to absorb collision energy, requirement of staying intact at high-speed impacts, weight management, initial and repair cost, and manufacturability. These are structural automotive models consisting of bumpers and other attachments connected to a longitudinal beam of the car to absorb maximum collision force during accidents. Aluminum extrusions are ideal material for crash management system as they are lightweight and cost effective.”
According to the report, a key growth driver is the shift from ferrous to non-ferrous casting. Over the last couple of years, there is a growing demand for aluminum and other non-ferrous materials in the automotive industry for developing lightweight and high-quality products. In addition, a shift from traditional metals such as steel to aluminum has been noted.
Further, the report states that one challenge that could curtail market growth is fluctuating LME prices. In July 2008, aluminum prices were $3,067. Post-recession during first half of 2010, the prices of aluminum, came down due to an oversupply of inventory and less demand. However, following the recovery of the economy, the prices rose during October 2010 to July 2010. Currently, the trend is again moving toward the recession period where the prices were low. Metal premiums on upstream products are increasing while the LME base price is in downturn from 2012 to 2015.
Alcoa, Aleris, Chalco, Constellium, Norsk Hydro, Novelis, Kaiser Aluminum, Rio Tinto Alcan, RUSAL.