The automotive aluminum market is projected to grow from USD 47.91 Billion in 2016 to USD 111.80 Billion by 2026, at a CAGR of 8.8% from 2016 to 2026. Increased demand for lightweight and efficient materials from the automotive industry is fueling the demand for automotive aluminum as it not only reduces weight of automobile components, but also of the complete body of automobiles by up to 50%.

The powertrain application segment led the automotive aluminum market in 2016, in terms of value. The growth of the powertrain application segment of the automotive aluminum market can be attributed to increased use of aluminum in automotive manufacturing in the North American and Asia-Pacific regions.

Among product forms, the cast aluminum segment accounted for the largest share of the automotive aluminum market in 2016. The growth of this segment of the automotive aluminum market can be attributed to increasing demand for lightweight components made of cast aluminum for engines and powertrains that improve both, fuel efficiency as well as overall dynamics of vehicles.

The North American region accounted for the largest share of the automotive aluminum market in 2016. The growth of the North America automotive aluminum market can be attributed to implementation of Corporate Average Fuel Economy (CAFE) standards in the region, which mandate automobile companies to strive for fuel efficiency of 27.5 miles per gallon (mpg) for cars and 23.5 miles per gallon (mpg) for trucks by 2016 and 37.8 miles per gallon for cars (mpg) and 28.8 miles per gallon (mpg) for trucks within the next few years. Thus, automobile companies in the North American region prefer aluminum over steel as it helps to achieve improved aerodynamics and reduces weight of vehicles, thereby resulting in fuel savings.

The factor inhibiting the growth of the automotive aluminum market is higher manufacturing cost of aluminum as compared to steel. Key market players operating in the automotive aluminum market, such as Alcoa Inc./Arconic Inc. (U.S.), Novelis Inc. (U.S.), UACJ Corporation (Japan), Norsk Hydro ASA (Norway), AMG Advanced Metallurgical Group (Netherlands), Constellium N.V. (Netherlands), CHALCO (China), and Rio Tinto (U.K.), among others have adopted various strategies to increase their market shares and strengthen their position in the market. New product launches, expansions, acquisitions, and agreements are some of the key strategies adopted by market players to achieve growth in the automotive aluminum market.

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