The global alloy market for automotives is projected to grow at a CAGR of 7.69 per cent from 2016 to 2021, to reach a market size of USD 177.47 billion by 2021, according to a recently published market research report.
The report segmented the alloy market for automotives by the alloy type (steel, aluminium, magnesium, and others), area of application (structural, powertrain, exterior and others), vehicle type (passenger car, LCV and HCV), and by region.
The major growth factors identified in the report are growing vehicle production, increasingly stringent regulations governing fuel efficiency and emissions, and the rising weight of the vehicles.
Adoption of lightweight aluminium alloys has increased in the LCV segment
In 2015, the use of aluminium alloy has increased in automotive manufacturing. Ford Motor Company (U.S.) used 6000 series aluminium alloy for its highest selling pick-up truck, F-150, in 2015, to reduce the overall weight of the vehicle by about 700 lbs. It is estimated that, almost seven out of ten pick-up trucks will feature an aluminium body in the North American region by 2025. North America is a major market for LCVs and the increasing adoption of aluminium owing to regulatory requirements pertaining to weight reduction are estimated to drive the overall market.
Aluminium alloys: High growth estimated
Share of aluminium alloys in automobiles is estimated to increase since automobile manufacturers are developing lightweight vehicles with aluminium alloys. Reduction in the vehicle's weight enables OEMs to reduce emissions, improve fuel efficiency and driving dynamics for the end users. A 10 per cent reduction in weight leads to an increase in efficiency by almost 6 per cent to 8 per cent. The changing regulatory requirements and rising demand for fuel efficient vehicles is estimated to drive the growth of aluminium alloys in automobiles.
Asia-Oceania is estimated to dominate the automotive alloys market, in terms of value, in 2016. It is followed by North America, Europe, and the Rest of the World (RoW). China, Japan, and India are key markets for automotive alloys, and contribute significantly to the Asia-Oceania market. North America is estimated to constitute the second-largest automotive alloys market, in terms of volume, in 2016. The European market is dominated by the use of steel, but the adoption of aluminium alloys is slowly increasing owing to the lesser weight of aluminium alloys.
