The automotive alloy market is expected to be worth US$ 50,840.7 Million in 2033. The global demand for automotive alloys is driven primarily by fuel efficiency concerns and increased automotive vehicle production.
According to FMI, the global Market of Automotive Alloys is estimated to be valued at US$ 22,279.9 Million in 2023 and is projected to increase at a CAGR of 8.6% in the forecast period from 2023 to 2033.
| Attributes | Details |
|---|---|
| Market Size (2022) | US$ 20,572.4 Million |
| Market Size 2023 | US$ 22,279.9 Million |
| Market Size 2033 | US$ 50,840.7 Million |
| Value CAGR (2023 to 2033) | 8.6% |
The automotive industry is rapidly developing in terms of customer safety, fuel efficiency, comfort, and popular built-in advanced technologies. Nowadays, automotive vehicles are getting heavier as a result of an increase in demand for safety and comfort technologies. Vehicles with lighter weights are gradually becoming more popular in the global automobile sector due to their ability to consume less fuel and produce fewer emissions compared to other heavier vehicles. There is a clear relationship between vehicle weight and fuel efficiency, according to research and development on the fuel economy of motor vehicles. This has influenced the move toward lighter alloys and lighter body panels for cars. OEMs are hence more motivated to adopt lighter materials in their automobiles.
According to estimations, the utilization of light automotive alloys in automobiles will increase due to rising government regulations on reducing weight and rising demand for fuel-efficient vehicles. The several types of automotive alloys include aluminium, steel, magnesium, and others (composites).
Steel alloys hold the strongest market share in the global automotive alloys market as a result of an increase in demand for steel alloys in China and India for the production of automobiles. As a light metal alloy, magnesium alloy is preferred by Original Equipment Manufacturers (OEMs) in the automotive sector due to its advantages such as thermal stability, strength, stiffness, ductility, and specific strength of magnesium alloy as well as its lightweight. The automotive body and chassis structure of a vehicle (oil pumps, housings, the crankshaft, the cylinder crankcase, mounts, brackets, and radiator support) and other interior parts are the main applications of magnesium alloy.
The market for magnesium alloys is anticipated to expand steadily over the forecast period. Due to the increased demand for lightweight automobiles made of aluminum alloys the automotive alloy market is anticipated to develop at the quickest rate.
Automotive Alloys market analysis from 2018 to 2023 revealed a historical growth rate of around 6.3% CAGR, with the market expansion being fueled by rising demand for fuel-efficient mechanical solutions and increasing demand for passenger & electric vehicles across the globe.
The initial recessionary downturns brought on by the COVID-19 pandemic led to supply chain disruptions, decreased demand, and sales, and delayed deliveries, all of which had an impact on the expansion of the automobile sector in 2020. The market will thereafter expand due to the automobile industry's rapid growth and technological advancements.
After these pandemic conditions, individual vehicle demand is dramatically rising in order to prevent COVID infections and maintain a safe atmosphere for individuals and families. The development of the automobile sector is the result of increased consumer demand and rising purchasing power. All of these factors indirectly promote the expansion of the automotive alloy market during the projected time. As a result, the market demand forecast for Automotive Alloys by FMI projects a CAGR of 8.6% by 2033.
The manufacturing industry has experienced significant growth in competition over the past ten years, driving automakers to adopt new technology. The need for fuel-efficient automobiles has gradually improved due to rising automotive industry demands for lightweight materials and increased attention to fuel economy.
Compared to their steel counterparts, aluminum alloys stand out for their ability to resist corrosion and rust. As a result, in addition to being lightweight, it also offers a longer life, which is advantageous to the clients financially. Due to urbanization and rising consumer purchasing power, customers are also adopting a more upscale approach when purchasing automobiles which is expected to fuel the market's growth during the forecasted period.
The expanding mobility and investments in the transportation sector are predicted to enhance the sales and production of all sorts of vehicles in both developing and developed nations, which will support the expansion of the worldwide market's revenue.
The availability of iron and bauxite ore, the cost of fuel, and some other factors affect the price of steel and aluminium. However, steel is often less expensive than aluminum. The metal that is most prevalent in the crust of the Earth is aluminium but the extraction process of aluminium spikes its price in the global market. Additionally, the production process of components made of Alloy is more complicated than conventional ones, as a result, alloy wheels typically cost more than steel ones. It may be less expensive to fix steel wheels than alloy wheels. In light of this, the cost factor can limit market expansion.
The market for automotive alloys can be segmented geographically into different regions, such as North America, Europe, Latin America, South Asia & Pacific, East Asia, and the Middle East & Africa. East Asia is anticipated to be the world's largest market for automotive alloys over the forecast period due to reasons like sustained economic growth, increased vehicle production, rapid urbanization, and rising demand for lightweight automobiles.
The countries that have made the biggest contributions to the market growth for automotive alloys in the East Asia region are China, South Korea, Japan, and Thailand. Large populations in countries like China have fueled an increase in vehicle sales. Growing demand and automobile production will allow this region to hold a significant market share in the global market.
Over the projected period, consistent growth is anticipated in Latin America, and the Middle East & Africa. The markets for automotive alloys are well-developed in North America and Europe, where they are expected to grow moderately over the next few years.
The presence of OEMs in the automotive industry has led to a moderate level of market consolidation for automotive alloys. The Key players operating in the Automotive Alloys market include Constellium, AMG Advanced Metallurgical Group N.V., KOBE STEEL, LTD, Novelis, Inc., UACJ Corporation, ArcelorMittal S.A., Nippon Steel & Sumitomo Metal Corporation, Norsk Hydro ASA, Thyssenkrupp AG, and Alcoa Corporation.
Key market players are enhancing their regional and worldwide product networks through the introduction of new products, joint ventures, and partnerships with significant industry players.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 8.6% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2023 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million, Volume in Units and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis |
| Segments Covered | Type of Alloy, Application, Vehicle Type |
| Regions Covered | North America; Latin America; East Asia; Western Europe; Eastern Europe; Central Asia; Russia & Belarus; Balkan & Baltic Countries; South Asia & Pacific; Middle East and Africa |
| Key Countries Covered | USA, Canada, Mexico, Brazil, Argentina, Germany, Italy, France, United kingdom, Spain, BENELUX, Poland, Hungary, Romania, Czech Republic, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, Gulf Cooperation Council (GCC), Türkiye, South Africa, Northern Africa, Israel |
| Key Companies Profiled | Constellium; AMG Advanced Metallurgical Group N.V.; KOBE STEEL, LTD; Novelis, Inc.; UACJ Corporation; ArcelorMittal S.A.; Nippon Steel & Sumitomo Metal Corporation; Norsk Hydro ASA; Thyssenkrupp AG; Alcoa Corporation |
| Customization & Pricing | Available upon Request |
In 2022, the value of the Automotive Alloys Market reached over US$ 20,572.4 Million.
During the forecast period, the Automotive Alloys Market is estimated to expand at a CAGR of 8.6% during 2023 to 2033.
The Automotive Alloys Market is projected to reach US$ 50,840.7 Million by the end of 2033.
East Asia region is projected to lead the Automotive Alloys market in the forecast period.
The key players operating in the Automotive Alloys market are Constellium, AMG Advanced Metallurgical Group N.V., KOBE STEEL, LTD, Novelis, Inc., UACJ Corporation, ArcelorMittal S.A., Nippon Steel & Sumitomo Metal Corporation.
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Automotive Alloys Market
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