Automotive Aluminum Market To Hit Value .58 Billion By 2025Posted by Mrudula Anil Karmarkar on February 4th, 2022 The global automotive aluminum market size is expected to reach USD 60.58 billion by 2025, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 8.7% during the forecast period. Rising emission standards and concerns regarding environment protection are triggering the growth. In August 2018, as per the new agreement between U.S, Mexico, and Canada, around 75% parts of cars or trucks must be manufactured in these three countries to qualify for zero tariffs. North American Free Trade Agreement (NAFTA) announced that the cars and trucks need to achieve the 54.5 mpg fuel efficiency by 2025. These government initiatives are focused on facilitating the auto manufacturers to reduce the weight of the car body by 25%. The major aluminum forms used in the automotive industry are castings, rolled products, extruded products, and stampings. Aluminum coupled with copper, manganese, or silicon is used in the automotive industry to manufacture components with high strength. The benefits such as light weight, high strength, and lower emission are expected to encourage car manufacturers to choose aluminum as a material of choice. According to OICA, the global automotive production including passenger cars and commercial vehicles was 89.8 million units in 2014 and it reached 97.3 million units in 2017. This shows an increasing demand for vehicles, which in turn is anticipated to fuel the utilization of aluminum in the forthcoming years. Automakers are now using lightweight materials such as aluminum to improve the fuel efficiency of vehicles. The primary restraint for the industry is rise in the input costs such as energy, wage, and production, to name a few. In addition, changes in the regulatory landscape and growing concern regarding environment have pushed the manufacturers of the sector to opt for new technologies which can provide measures to save energy and enhance production output. To Request Sample Copy of this report, click the link: https://www.grandviewresearch.com/industry-analysis/automotive-aluminum-market/request/rs1 Growing demand for automobiles in North America, Europe, and Asia Pacific countries namely the U.S., Germany, and China are likely to propel the demand for aluminum components in these regions. Germany with its close association with Original Equipment Manufacturers (OEMs) of high-end passenger cars such as Audi, Mercedes, and BMW is likely to ensure long-term growth prospects in the forthcoming years. Further key findings from the report suggest:
The vendors in the market are focused on organic growth strategies to achieve a competitive edge. For instance, in Nov 2018, Constellium launched its new automotive structures facility in Zilina, Slovakia. The new plant is an expansion strategy to enter into the Eastern European market. It produces body structure components and aluminum crash management systems. Industry participants include Constellium N. V.; AMG Advanced Metallurgical Group; Martinrea Honsel Germany GmbH; UACJ Corporation; Norsk Hydro ASA; Bodine Aluminum, Inc.; Aleris, Federal-Mogul Holding Corporation; Consolidated Metco, Inc.; Dana Holding Corporation; Farinia Group; Dynacast; Aluminium Bahrain (Alba); Granges Innovative Aluminum Engineering; Kaiser Aluminum; Gibbs Die Casting Corporation; Endurance Technologies Limited; Ryobi Ltd; NEMAK Innovative Lightweighting; and CITIC Dicastal Co., Ltd. About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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