Automotive alloys are easy to mold as well as more ductile in nature and provide more strength to pure metals. These alloys are of aluminum, magnesium, and other metals. Increasing demand for electric vehicles (EV) across the globe is expected to aid in growth of the market. This is owing to factors such as it is environment friendly and energy efficient. As per the report of International Energy Agency (IEA), over 750 electric vehicles were sold globally, in 2016.
Driving factors for growth of alloy market of automotive
Automotive alloys are easy to forge by forming, machining, and welding, and thus, find application in various industries such as automobile, aerospace, wind, and others. The recent past has witnessed an increase in production of automobiles, owing to factors such as increasing global demand for automobiles and rising disposable incomes especially in emerging economies. According to the report by Bureau of Economic Analysis (BEA), Disposable Personal Income (DPI) in the U.S. increased by US$ 39.8 billion (0.3 %) in April 2018 as compared to 2017. Demand for passenger cars, light and heavy duty commercial vehicles have directly impacted growth of the global alloy market for automotive. Moreover, stringent regulations on fuel efficiency & greenhouse gas emissions are expected to increase the use of alloys for automotive, which is expected to boost demand for automotive alloys. These alloys have very low carbon footprint, which reduces carbon dioxide emissions and therefore, have high application in the automotive sector. According to the report by The International Council on Clean Transportation (ICCT), the U.S. Environmental Protection Agency (EPI) and the National Highway Traffic Safety Administration (NHTSA) released the final rules for heavy-duty vehicle fuel-efficiency and greenhouse gas standards in August 2016.
Magnesium alloy segment is expected to exhibit high growth during the forecast period (2018-2026), owing to increasing demand for magnesium alloy in automotive. This is owing to the fact that, it shows properties such as high strength and creep resistance. Magnesium alloys are unique with characteristics such as ability to absorb energy, high specific strength, high vibration absorption, and excellent corrosion resistance. These are mainly being used in interior parts and frameworks of vehicles such as oil pumps, crankshaft, cylinder crankcase, and radiator support. Moreover, automotive OEMs are more focused towards lowering the weight of a vehicle without conceding the strength capabilities for which adoption of magnesium alloys is one of the viable solution.
Furthermore, aluminum alloy is also being increasing used in automotive as it offers high tensile strength, excellent corrosion resistance, and thermal conductivity. Aluminum alloys have great barrier properties against UV light, moisture, and odor. Aluminum is mainly used food packaging, truck. Moreover, it has crack and corrosion resistance, which improves the performance of vehicle and reduces the cost associated with frequent repairs.
Relatively high cost of magnesium and aluminum alloys may hamper growth over the forecast period. Engineering barriers such as high-quality casting, technological issues can negatively affect adoption of lightweight alloys. Availability of high strength composite material such as carbon fibre, fibreglass and Kevlar that can be used as a substitute for alloys is another factor restraining the market growth.
Regional Analysis of Alloy market for Automotive
On the basis of geography, the global alloy market for automotive is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa Asia Pacific is expected to be the largest alloy market for automotive, over the forecast period. This is owing to increasing demand for automobiles among consumers, which has led to high growth of the automotive industry. This in turn is expected to aid in growth of the market. For instance, according to report by, India Brand Equity Foundation (IBEF), the Indian automotive industry (including component manufacturing) is expected to reach US$ 251.4-282.8 billion by 2026. North America and Europe markets have been witnessing high growth in the alloy market for automotive in the recent past. This is due to increasing production and sales of automobiles in the region in North America. For instance, according to report by World Trade Organization (WTO), in year 2017 the sales of automobiles increased by 50% in Canada from 2015.
Key Players in the global alloy market for automotive
Major Key players operating in the automotive alloy market are ThyssenKrupp AG, Sumitomo Metal Corporation, AMG Advanced Metallurgical Group, UACJ Corporation, Arcelormittal SA, Nippon Steel & Sumitomo Metal Corp., Constellium N.V., Alcoa Inc., Norsk Hydro ASA, and Novelis Inc.
Global Alloy Market for automotive segmentation
Alloy market size for automotive is segmented on the basis of Product Type, Applications, Vehicle Type and Region.