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According to the report, the global automotive aluminum alloy OE market is anticipated to expand at a CAGR of more than 5 percent during the forecast period.
The global automotive aluminum alloy OE market is anticipated to surpass $46 billion by 2026, according to a new report by Transparency Market Research titled, “Automotive Aluminum Alloy OE Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-2026.”
According to the report, the global automotive aluminum alloy OE market is anticipated to expand at a CAGR of more than 5 percent during the forecast period. Aluminum being light in weight is gradually replacing the steel content in automobiles. The usage of aluminum alloy reduces the load on the vehicle, therefore less power is required by the engine to drive the vehicle, which increases fuel efficiency and reduces pollution. Rising consumer demand for fuel-efficient vehicles is estimated to drive the automotive aluminum alloy OE market.
Increase in level of pollutants in the environment is compelling governments to enforce regulations leading to lightweighting of vehicles and reduction of emissions. Aluminum can absorb two times more collision energy than mild steel. Hence, the utilization of aluminum alloy in body panels improves the crashworthiness of the vehicle. The lower weight of the vehicle enabled by utilization of aluminum alloy improves vehicle handling and also reduces braking distance, thus enhancing safety.
Usage of aluminum body closures such as door panels and hoods is rising even in premium cars. Automakers can utilize more material and improve the dent resistance of the body panel due to the low weight of the material. Luxury car makers such as Jaguar Land Rover have switched from steel to aluminum body-in-white due its light weight and recycling capabilities. Utilization of aluminum alloy for body-in-white structure reduces the vehicle weight by nearly 70 Kg in a passenger vehicle. Adoption of aluminum alloy in body structures and panels by automakers is expected to rise in order to achieve fuel economy and emission targets and hence, the demand for aluminum alloy is expected to rise.
Aluminum alloys are also employed in driveline and engine component products due to their high casting ability. In electric vehicles, lightweighting becomes crucial due to the additional weight of the battery. Adoption of aluminum alloy in engine components and driveline in plug-in hybrid vehicles and hybrid electric vehicles is expected to rise during the forecast period. Usage of two-stage transmission and direct drives in electric vehicles is a major opportunity for the expansion of the aluminum alloy OE market.
Asia Pacific is expected to dominate the global automotive aluminum market owing to high volume production of vehicles and changing emission norms in China and India in order to achieve Euro 6 equivalent emission norms. High affordability and stringent emission norms in Europe are expected to boost the aluminum alloy OE market in the region.
To read the full report, click here.