The global automotive alloys market is estimated to grow phenomenally owing to rapid urbanization, increasing vehicle production and fuel efficiency regulations. The global automotive alloy market has immense growth potential in terms of electric vehicle production and integration of advanced safety and comfort technologies in vehicles.
The global automotive industry is gradually transitioning towards light weighted vehicles. Due to a growing demand for safety and comfort technologies, automotive vehicles are becoming heavier. Light weighted vehicles are more fuel efficient and contribute to reducing emissions. Research and development on fuel economy of automotive vehicles shows a direct correlation between fuel efficiency and vehicle weight. This has influenced the trend to reduce weight in automobiles and to opt for light weighted alloys in automotive body panels. Thus, OEMs are now getting inclined to use lighter materials in vehicles. Growing demand for fuel efficient vehicles, and government regulations on reduction in vehicle weight are estimated to drive the growth of light weighted automotive alloys in automobiles. Automotive alloys are classified as steel alloys, magnesium alloys, aluminium alloys and others (composites).
In the global automotive alloys market, steel alloys account for the largest market share owing to a growing demand for steel alloys in India and China for manufacturing vehicles. Original Equipment Manufacturers (OEMs) in the automotive industry use magnesium alloy as a light metal alloy. Magnesium alloy offers thermal stability, strength, rigidity, ductility and specific strength; it also weighs lighter. Magnesium alloy is primarily used in the automotive body & chassis structure of a vehicle (oil pumps, housings, the crank shaft, the cylinder crankcase, mounts, brackets and the radiator support), and other interior parts. The market for magnesium alloys is estimated to grow at a stable rate over the forecast period. The aluminium alloy segment is estimated to grow fastest owing to a high demand for light weighted vehicles with aluminium alloys.