July 22, 2024
Aluminum Alloys Market

Aluminum Alloys Market is Expected to Driven by Growing Automotive Industry

Aluminum alloys are mixtures of aluminum and other elements like magnesium, manganese, silicon, copper and zinc, which enhance certain properties of pure aluminum such as corrosion resistance, strength and hardness. Aluminum alloys find wide application in automotive, aerospace, construction and packaging industries due to their light weight, high strength-to-weight ratio, corrosion resistance and other advantages. In the automotive industry, aluminum alloys are increasingly being used in engine parts, suspension components, wheels, and body panels to make vehicles lighter and more fuel efficient. The growing automobile manufacturing sector worldwide is driving the demand for lightweight aluminum alloys to meet stringent emission norms.

The global Aluminum Alloys Market is estimated to be valued at US$ 148.65 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the aluminum alloys market is the growing adoption of heat treatable alloys. Heat treatable alloys such as 6000 series alloys exhibit improved strength and corrosion resistance properties after heat treatment processes such as solutionizing, quenching and aging. This has increased their utilization in the aerospace and automotive industries where light weight and high-strength components are required. For instance, 6005A-T6 aluminum alloy is widely used in aircraft frames, cases and engine components. Their adoption is expected to rise significantly over the coming years driven by stringent fuel efficiency and emission norms. Other key trends include growing demand for recycled aluminum alloys and development of new high strength alloys for 3D printing applications.

 

Porter’s Analysis

Threat of new entrants: The aluminum alloys industry requires substantial investments in manufacturing plants and R&D which acts as a barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes like steel and composite materials. However, aluminum alloys have benefits of lightweight and corrosion resistance.
Bargaining power of suppliers: A few large companies dominate the supply of raw materials like aluminum which gives them significant bargaining power over buyers.
Threat of new substitutes: Ongoing R&D has increased applications of composite materials, however aluminum alloys still have advantages in terms of recyclability and cost that reduces threat from substitutes.
Competitive rivalry: The global market is consolidated with few big players having major market share. However there is intense competition based on product quality, pricing and innovation.

Key Takeaways

The Global Aluminum Alloys Market Demand is expected to witness high growth. The global Aluminum Alloys Market is estimated to be valued at US$ 148.65 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.

Asia Pacific holds the largest share due to growing construction and transportation industries in major economies like China and India. Growing automotive production in the region further propels the demand.

Key players operating in the aluminum alloys market are United Company RUSAL Plc, Alcoa Inc., Aluminum Corp. of China Ltd., Kaiser Aluminum Corporation, Norsk Hydro ASA, Dubai Aluminum Co., Constellium, Kobe Steel, Ltd., and Aluminum Bahrain B.S.C. Focus on developing innovative and lightweight alloys has been a key strategy among players to gain market share. Partnerships with OEMs in automotive and aerospace sectors ensures steady supply relationships.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it