Expanding Lightweight Materials: Alloy Market for Automotive Forecasted to Grow at 6.5% CAGR by 2031

One of the major drivers for the growth of the Alloy Market for Automotive Market is the rising automotive production across the globe to meet the increasing consumer demand. According to OICA, global passenger car production reached over 77 million units in 2021, witnessing a 3.9% growth from 2020. Another driver is the increasing stringency of emission norms worldwide, which is pushing automakers to use lightweight alloys like aluminum and magnesium for better fuel-efficiency and performance. Alloys help reduce vehicle weight and accelerate adoption of advanced automotive technologies. Moreover, the development of electric vehicles is boosting the demand for lightweight alloys to enhance driving range on single battery charge.

Alloy Market Drivers for Automotive Market

Increasing Vehicle Production and Sales is Driving Market Growth

The global automotive production has been consistently growing over the past few years and this upward trend is projected to continue in the coming years. The growing demand for passenger vehicles and commercial vehicles across major economies is propelling the automotive production volumes. According to various estimates, the global vehicle production is likely to surpass 100 million units annually by 2023-2024. With the increasing vehicle production, the demand for various automotive components and materials such as alloys is also witnessing a parallel rise. Various alloy types find widespread application in the production of engine components, transmission components, suspension parts, and other structural components of vehicles. The surging automotive output directly contributes to the increasing consumption of alloys in the sector.

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Key Company Profiles:

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.

This Report lets you identify the opportunities in Alloy For Automotive Market by means of a region:

⦿ North America (the United States, Canada, and Mexico)
⦿ Europe (Germany, UK, France, Italy, Russia and Turkey, etc.)
⦿ Asia-Pacific (China, Japan, Korea, India, Australia, and Southeast Asia (Indonesia, Thailand, Philippines, Malaysia, and Vietnam))
⦿ South America (Brazil etc.)
⦿ The Middle East and Africa (North Africa and GCC Countries)

Volatility in Raw Material Prices poses Major Challenge

The prices of key raw materials used in alloy production such as aluminum, magnesium, and steel are highly unpredictable and volatile in nature. Their prices continuously fluctuate depending on various global and regional socio-economic and geopolitical factors. For instance, aluminum prices witnessed a significant increase in recent years due to supply constraints. Similarly, US-China trade tensions have impacted steel prices to a large extent. Steep fluctuations in raw material costs directly affect the overall production cost of alloys. With tight profit margins in the automotive industry, alloy manufacturers find it difficult to fully pass on the high raw material costs to OEMs. This, in turn, squeezes their margins. Price volatility poses a major production planning and pricing challenge for alloy suppliers and can restrain the market expansion.

Alloy Market Opportunity for Automotive Market

Growing Electrification of Vehicles to Drive Demand for Specialized Alloys

The automotive industry is vigorously advancing towards electrification with global automakers aggressively pushing electric vehicles (EVs). Battery electric vehicles and plug-in hybrid electric vehicles require high-performance alloys and metals in specialized formulations for their critical propulsion components like electric motors. Alloys demonstrating properties such as high strength, corrosion resistance, and conductivity find application in rotor and stator parts, current collectors, charging contacts and battery housing of EVs. Specialty alloys are also gaining prominence in high-voltage busbars and wiring harnesses. The rising EV production worldwide is opening lucrative opportunities for alloy manufacturers to develop customized grades for next-gen automotive applications and gain an early mover's advantage in this evolving landscape. OEMs' focus on reducing EV costs and improving driving range through advanced materials also works in favor of alloy suppliers.

Alloy Market Trends for Automotive Market

Growing Adoption of Magnesium Alloys

Magnesium alloys are emerging as an attractive alternative to aluminum and steel alloys for automotive applications due to their light weight. Weighing around two-thirds of aluminum and one-fourth of steel, magnesium alloys allow designers to develop parts that reduce vehicle curb weight. Their increasing utilization helps comply with stringent emission standards and enhances fuel efficiency. Magnesium alloys also demonstrate good mechanical properties and corrosion resistance. The rising popularity of magnesium is attributed to the development of advanced die-casting techniques as well as stable and consistent magnesium supply. Automakers are extensively employing magnesium in power trains, chassis, closures, and other structural and safety components. The growing acceptance of lightweight magnesium alloys is a key trend being observed in the global automotive alloy market landscape.

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Research Scope

Scope - Highlights, Trends, Insights. Attractiveness, Forecast


Market Sizing - Product Type, End User, Offering Type, Technology, Region, Country, Others


Market Dynamics - Alloy For Automotive Market Segmentation, Demand and Supply, Bargaining Power of Buyers and Sellers, Drivers, Restraints, Opportunities, Threat Analysis, Impact Analysis, Porters 5 Forces, Ansoff Analysis, Supply Chain


Business Framework - Case Studies, Regulatory Landscape, Pricing, Policies and Regulations, New Product Launches. M&As, Recent Developments


Competitive Landscape - Alloy For Automotive Market Share Analysis, Market Leaders, Emerging Players, Vendor Benchmarking, Developmental Strategy Benchmarking, PESTLE Analysis, Value Chain Analysis
Key questions answered in the report include:

ᗒ How Alloy For Automotive Market industry market will boom in 2024?

ᗒ which are prominent key players will be growing the market?

ᗒ Which enterprise size accounted for the largest data center colocation market share?

ᗒ What is the Compound Annual Growth Rate(CAGR) of the market during the forecast period (2024-2031)?

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