Automotive Aluminum Market to Increase $64B by 2026
Feb. 1, 2017—Increased demand for aluminum structuring to reduce vehicle weight is quickly propelling the growth of the automotive aluminum market, which is expected to reach $111.8 billion by 2026.
The report, conducted by MarketsandResearch, states that the car body application segment accounted for the third-largest share—totaling $47.91 billion—of the automotive aluminum market in 2016. Among applications and product forms, this segment is projected to grow at the highest CAGR from 2016 to 2026. The growth of this segment can mainly be attributed to increasing use of rolled aluminum by automobile manufacturers for manufacturing car bodies to reduce weight of cars, thereby resulting in improved fuel efficiency, as well as driving dynamics of vehicles.
The North American region accounted for the largest share of the automotive aluminum market in 2016. This increased demand of automotive aluminum in the North American region can be attributed to implementation of Corporate Average Fuel Economy (CAFE) standards, which mandate automobile companies to strive for increased fuel efficiency. Thus, automobile companies in the North American region prefer aluminum over steel as it helps to achieve improved aerodynamics as well reduces weight of automobiles, thereby enabling fuel savings.