Global automotive aluminium market to be valued at US$111.8 bln growing at 8.8% during 2016-26

The global automotive aluminium market is slated grow at a CAGR of 8.8 per cent (value-wise) during 2016-2026, revealed data published in a recent market research report. The market will be valued at US$111.80 billion by 2026. The powertrain application segment which accounted for the largest share of the market is projected to grow at the highest CAGR, while cast aluminium will top the product category as the fastest growing segment during the forecast period, the report says. Region-wise, Asia-Pacific automotive aluminium market will register the highest growth rate from 2016 till 2026.

Aluminium is preferred by the modern-day vehicle manufacturers due its lightweightness, rigidity, and formability. The metal has been found to be far more versatile than steel in a number of specific application areas of vehicle manufacturing. The high manufacturing cost of aluminium happens to be the only deterrent that still keeps it away from the reach of many manufacturers but given its all-rounder performance as a durable, energy-efficient, and environmental-friendly material it is soon expected to replace traditional metals in far more areas of automotive manufacturing.

The powertrain application segment accounted for the largest share of the automotive aluminium market in 2016. This segment is projected to grow at the highest CAGR during the forecast period, 2016 to 2026. Among the product forms, cast aluminium product segment accounted for the largest share of the automotive aluminium market last year. Owing to increasing demand for lightweight materials in the automobile industry, the demand for automotive parts made of cast aluminium is projected to grow manifold in the coming years.

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The North American market is still leading the global automotive market. Its growth can be attributed to implementation of the Corporate Average Fuel Economy (CAFE) standards in the region. These standards make it mandatory for automobile companies to strive for a fuel efficiency of 27.5 miles per gallon (mpg) for cars and 23.5 miles per gallon (mpg) for trucks by 2016 and 37.8 miles per gallon (mpg) for cars and 28.8 miles per gallon (mpg) for trucks within the next few years. While the growth is expected to continue in the coming years, the Asia-Pacific region is projected to make it even bigger by 2026. The demand for automotive aluminium from the region will surge at the highest rate during the forecast period, the report suggests.