Lightweight vehicles demand to spur growth of aluminium in global automotive industry

The market for aluminium in the global automotive industry is likely to grow at a CAGR of 7.4% over 2015-2020, a recently published market report data reveals. A high demand for lightweight vehicles will catalyse the growth across major economies of the world.

The demand of lightweight vehicles is highly influenced by factors such as high fuel price, government regulations (CAFÉ and Euro emission standards), and environmental impacts (carbon footprint). Aluminium is the fastest growing material in the automotive industry, as it offers the cost-effective way to boost fuel economy and reduce carbon emissions. Asia Pacific (APAC) has been identified as the the top region in terms of total automotive aluminium consumption, followed by North America, Europe, and Rest of the World (ROW) in 2014.

Presently, aluminium (in the form of cast aluminium, rolled aluminium, extruded aluminium, and forged aluminium) finds use in various vehicle parts including engine, transmission and driveline, heat transfer, wheels and brakes, and other structural components. From passenger cars to light commercial vehicles it is presently being used in a large variety of automobiles by some of the leading automakers of the world.

Some of the aluminium industry players who have been leveraging their technology expertise in cashing on the lightweight automotive boom are Alcoa Inc., Aleris International, Novelis, Norsk Hydro, Rio Tinto Alcan, RUSAL Plc, Aluminium Corporation of China Limited, Constellium NV, and Kaiser Aluminium Corp.