Stricter implementation of emission standards drive the growth for lightweight materials, and this phenomenon fuels the growth of the global sales of automotive aluminium extruded parts, which is set to reach over $ 93.6 billion by 2031, states the latest industry analysis by Persistence Market Research (PMR).
According to PMR, the third-party research organisation that helps businesses ride high, the market is estimated to expound at a steady CAGR of over 5.8% between 2021-2031.
In addition to growth driven by emission standards that drive aluminium extruded parts in automotive applications, the demand for electric vehicles also catalyses the growth since aluminium is used in these new mobilities to up the range of these vehicles.
According to the research and consulting firm, the sub-structure segment dominated the market in terms of products. As the demand for lightweight vehicles grows, leading vehicle manufacturers are turning to aluminium for sub-structures.
Amongst all, the 7000 series aluminium material is anticipated to remain one of the fastest-growing segments. Due to the higher strength among all aluminium alloys, the 7000 series is mainly used in the automotive and aerospace industry, finds the report.
Passenger vehicles
Passenger vehicles dominate the market due to the increasing need for compact and mid-sized cars.
East Asia and Europe will be highly profitable markets due to the significant automobile sector in China, Japan, Germany, and Spain is the primary reason for this.
The global automotive aluminium extruded parts market is highly competitive at regional and global levels and is highly consolidated in nature.
Some of the key players in this space include Novelis, Benteler International, Bonnell Aluminum Extrusion, CAPALEX, Constellium, Kaiser Aluminum, Kobe, Norsk Hydro, Omnimax International, ProfilGruppen Extrusions, SMS Schimmer, UACJ Automotive Whitehall Industries and Walter Klein.
According to the research firm, the top companies operating in the market occupy hefty revenue shares. With compliance to governmental standards and regulations, these companies have a global and regional presence. Prime manufacturers are also updating their technologies to improve their market share.
Demand for automotive aluminium extruded parts has shown significant growth over the years. With the increasing production of passenger cars, light commercial vehicles, and heavy commercial vehicles, various manufacturers aim to provide custom-built extruded parts as per OEM requirements.
Also, manufacturers are updating their product portfolios to increase their market presence. According to the report, East Asia and Europe hold significant market share. As a result, the demand for automotive body panels and sub-structures are expected to remain high over the coming ten years, the research organisation added.
Courtesy: Persistence Market Research. NB: Photo is representational; courtesy: Benteler International.