Strict government regulations for environmental safety are also driving the alloys for automotive market size. Global market is expected to register a CAGR of about 7.60% by 2032
Alloys for the Automotive Market: COVID-19 Analysis
A COVID-19 impact analysis conducted by MRFR reveals a significant decline in vehicle sales during the initial months of 2020 due to widespread shutdowns across countries and volatile oil prices. Leading automotive Original Equipment Manufacturers (OEMs) are implementing various strategies to mitigate the adverse effects on their businesses. They are assessing their dealerships to resume services and adapt to the changing landscape.
The short-term repercussions of COVID-19 on the automotive sector led to the closure of assembly plants in the United States, manufacturing disruptions across Europe, and the suspension of Chinese component exports. However, until a breakthrough in the fight against COVID-19 is achieved, the automotive industry is expected to remain resilient. Leading companies are actively pursuing recovery strategies such as mergers and acquisitions to mitigate revenue losses.
Key Competitors in the Alloys for Automotive Market: • ArcelorMittal SA (Luxembourg) • Aditya Birla Group (India) • Alcoa Inc. (U.S.) • UACJ Corporation (Japan) • ThyssenKrupp AG (Germany) • Kobe Steel Ltd. (Japan) • Norsk Hydro ASA (Norway) • AMG Advanced Metallurgical Group NV (Netherlands) • Constellium (Netherlands) • AGCO Corporation (U.S)
Top Drivers and Main Challenges
Despite the challenges posed by the COVID-19 crisis, the alloys for the automotive market are expected to remain stable in the coming years. This resilience can be attributed to the global population's continuous growth and the resulting increase in demand for efficient transportation. This heightened demand has driven the expansion of both commercial and passenger vehicles worldwide. Alloys are increasingly preferred in vehicle manufacturing due to their numerous advantages over individual components. These benefits include resistance to corrosion, enhanced strength, and increased ductility, making alloys a valuable addition to the automotive sector.
The automotive industry is progressively moving towards lightweight vehicles, with a strong focus on research and development to improve fuel efficiency. Improved fuel efficiency directly correlates with reduced vehicle weight, which necessitates the use of lighter alloys in various automotive body parts. Consequently, OEMs are increasingly adopting lightweight materials in their vehicles, boosting the demand for lightweight alloys.
Several macroeconomic factors are poised to benefit the automotive alloys market. These include rapid urbanization, regulations promoting fuel efficiency, and greenhouse gas emissions reduction. Additionally, as the usage of magnesium and aluminum alloys increases, their prices are expected to decrease, further driving demand for these alloys in the years ahead.
Alloys for Automotive Market Segmentation
The automotive alloys market share 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.
Alloys for Automotive Market 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.
Alloys for Automotive Market 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.
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