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Thursday, January 18, 2024

Alloys for Automotive Market Projected a Rise at a CAGR of 7.60%

 Alloys for Automotive Market Overview:

The alloys for automotive market 2023 can record a growth rate of close to 7% between 2016 and 2022 (review period), reveals Market Research Future (MRFR). We will provide covid-19 impact Analysis with the report.

The Alloys for Automotive Market plays a pivotal role in the manufacturing of vehicles, contributing to the development of lightweight, durable, and high-performance components. Automotive alloys, which are often composed of a combination of metals like aluminum, magnesium, and titanium, are widely used in the automotive industry to enhance fuel efficiency, improve safety, and meet stringent environmental regulations. The market has seen significant growth as automakers strive to design and produce vehicles that are both efficient and sustainable.

One of the primary drivers behind the adoption of alloys in the automotive sector is the constant pursuit of weight reduction without compromising structural integrity. Lightweight alloys contribute to fuel efficiency, reducing overall vehicle weight and improving performance. Additionally, alloys are employed in critical components such as engine parts, chassis, and body structures, where their superior strength and corrosion resistance enhance the longevity and safety of vehicles.

Get Free Sample Report of Alloys for Automotive Market

As the automotive industry undergoes transformative changes with the advent of electric and hybrid vehicles, the Alloys for Automotive Market is expected to evolve further. The demand for materials that balance strength, durability, and weight will remain crucial, driving innovation in alloy compositions and manufacturing processes. The market's trajectory underscores its significance in shaping the future of automotive design and manufacturing, aligning with the industry's commitment to sustainability and efficiency.

Latest News

May 2020

Auto giant Suzuki (Japan) recently revealed its 2020 edition of the popular car, Swift in the country. The updated model comes with a few changes this time, featuring new alloy wheels, dual-tone paint-work as well as blacked-out B-pillars.

Leading Competitors

Leading competitors in the market are UACJ Corporation (Japan), Aditya Birla Group (India), Alcoa Inc. (U.S.), Norsk Hydro ASA (Norway), Kobe Steel, Ltd. (Japan), ArcelorMittal SA (Luxembourg), Constellium (Netherlands), ThyssenKrupp AG (Germany), AMG Advanced Metallurgical Group NV (Netherlands), AGCO Corporation (U.S), to name a few.

COVID-19 Analysis

An impact analysis on COVID-19 by MRFR reveals that there has been a significant drop in vehicle sales in the first few months of 2020, given the shutdowns across countries and the oil price fluctuations. Leading automotive OEMs are adopting several tactics to mitigate the negative impact on their businesses by assessing their dealerships to resume services.

The short-term impact of COVID-19 in the automotive sector has led to shutting down of assembly plants in the United States (US), manufacturing interruptions across Europe and ceased export of Chinese components. However, till the time a COVID-19 breakthrough is not achieved, the automotive industry can remain resilient, given the ongoing efforts by leading companies to curb revenue losses by adopting recovery tactics such as mergers and acquisitions and more.

Top Boosters and Main Restraints

Despite the COVID-19 crisis, the alloys for automotive market can remain steady in the coming years, thanks to the expanding worldwide population and the consequent boost in the need for efficient conveyance. This has evidently been the main reason for the rising number of commercial and passenger automobiles across the world. Alloys are being increasingly used for the manufacturing of vehicles as they offer more number of advantages compared to individual components. Resistance to corrosion, improved strength and higher ductility are some of the prominent benefits of alloys and as result, their rising deployment in automobiles can benefit the automobile sector in a major way.

The automotive industry has been gradually shifting towards light weighted vehicles, with major focus on research and development to facilitate fuel economy of vehicles. High fuel efficiency has a direct impact on the vehicle weight, leading to reduction in the weight of automobiles. This results in higher demand for light weighted alloys for different automotive body parts, which compels OEMs to use lighter weight materials in their vehicles.

Some macroeconomic factors that can also benefit the automotive alloys market include the rapid urbanization along with regulations pertaining to fuel efficiency as well as greenhouse emissions. Moreover, with the increasing use of magnesium and aluminum alloys, their prices are falling and can therefore, note higher demand in the years to come. 

Market Segmentation

·        The alloys for automotive market can be considered for type, backing application and vehicle type.

·        The market segmentation by type includes titanium, steel and iron.

·        Backing applications covered in the market study are powertrain as well as chassis.

·        Vehicle types are passenger vehicles and commercial vehicles.

Regional Insight

Europe, North America, APAC or Asia Pacific and the Rest of the World or RoW are the top markets for allows for automotive, across which the prevalent trends and opportunities have been reviewed in the report.

APAC is the most bankable market for alloys for automotive, followed by North America and Europe. The market performance in the region has been remarkable as a result of the rising annual vehicle production as well as the surge in the demand for vehicles. Japan, India and China are the most profitable markets in the region, as they are known for housing a number of leading automobile manufacturers. The region is also known for being homes to a large number of well-established vendors dealing in alloys for automotive. High availability raw metals, like aluminum, iron, steel, copper, and more that are used to fabricate automotive alloys can also accelerate the growth of the regional market in the following years.

With a considerable share in the global market, North America ranks among the strongest regions across the globe. The market in North America benefits from the extensive consumption of cars among people for commuting. Not only is the U.S. the second biggest car producer in the world but also houses some of the most prominent giants of the automobile sector, including General Motors, Chrysler and Ford. These factors induce massive market growth in the region. Moreover, strict government norms are prompting automotive producers to increasingly use alloys in their vehicles, leading to better business growth in the region.

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