Growth Opportunities for Aluminum in Global Automotive Industry 2015-2020: Trend, Forecast, and Market Analysis
According to a new market report published by Lucintel, the future of aluminum in the global automotiveindustry looks strong with increasing penetration of lightweight materials and rising vehicle production.Aluminum in the global automotive industry is forecast to grow at a CAGR of 7.4% from 2015 to 2020.
The major drivers of growth for this market are government regulations, a growing demand forlightweight,fuel efficient vehicles, and better price performance benefits of aluminum compared to otherlightweight materials. High tensile strength, corrosion resistance, and recyclability of aluminum alloysare additional factors contributing to accelerated growth.
In this market, cast aluminum, rolled aluminum, and extruded aluminum are some of the major productforms used for automotive applications. Cast aluminum is the largest segment by product forms and isexpected to remain the same during the forecast period. Lucintel predicts that the demand for rolledaluminum is likely to experience the highest growth in the forecast period supported by growingapplication of rolled aluminum in the structural component of the vehicle. On the basis of itscomprehensive research, Lucintel forecasts that structural components, engine, and wheel and brakesare expected to show above average growth during the forecast period.
Within the aluminum in automotive industry, the passenger car segment is expected to remain as thelargest market by volume consumption. The development of new applications and material joiningtechnologies for automotive industry is expected to spur growth for this segment over the forecastperiod.
Asia Pacific (APAC) is expected to remain the largest market due to increase in the passenger car andlight commercial vehicle production in China and India. North America and Europe are expected towitness significant growth over the forecast period because of strict government regulations for fueleconomy and carbon emission reduction.
For market expansion, the report suggests innovation and new product development; this is where theunique characteristics of aluminum material can be capitalized. The report further suggests thedevelopment of partnerships with customers to create win-win situations and the development of lowcostsolutions for the end users.
Emerging trends, which have a direct impact on the dynamics of the industry, include the increasinguse of aluminum in chassis and structural applications and advanced manufacturing technology. AlcoaInc., Aleris International, Novelis Inc., Norsk Hydro ASA (ADR), and Constellium N.V. are among themajor suppliers of aluminum material to the automotive industry. Some companies are opting for jointventure and M&A as a strategic initiative for driving growth.aluminum in global automotive industry by application, product form and region, and has come up witha comprehensive research report, “Growth Opportunities for Aluminum in Global AutomotiveIndustry 2015-2020: Trend, Forecast, and Market Analysis.” The Lucintel report serves as a springboard for growth strategy as it provides a comprehensive data and analysis on trends, key drivers, anddirections. The study includes a forecast of opportunities for aluminum in global automotive industrythrough 2020, segmented by application, product form and region as follows:
By application [Volume (Mil lbs /Kilotons) and $ Mil shipment analysis for 2009 – 2020]:
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