Cast aluminium segment took the largest share of 2016 automotive aluminium market

A recent report from ReportLinker has projected that the automotive aluminium market would grow at a CAGR of 8.8% from 2016 to 2026, in terms of value.

Aluminium is slowly substituting steel as a preferred material for automotive manufacturers, due to a number of performance benefits like its excellent strength and weight ratio, environmental benefits, fuel efficiency, and durability. The high manufacturing cost of aluminium for the automotive industry in comparison to steel is one factor that can be a hurdle in the growth of the automotive aluminium market during the period.

According to the report, the powertrain application segment of automotive aluminium took the largest share of the automotive aluminum market in 2016. This segment is projected to grow at the highest CAGR during 2016 to 2026. North American and Asia-Pacific regions would drive the growth of powertrain application segment of the market with their growing use of aluminium in automotive manufacturing.

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The cast aluminium product segment accounted for the largest share of the automotive aluminium market in 2016. Casting is an aluminium product manufacturing technology that is old, inexpensive, simple, and versatile and perfect for making variety of aluminium automotive components. Various automotive components, such as power transmitters and car engines are manufactured using aluminium casting process. Aluminium casting includes three major types, known as die casting, permanent mould casting, and sand casting. Driven by the growing demand for lightweight materials in the automobile industry, cast aluminium automotive parts market is expected grow more in the coming years.