Global auto alloy to reach $233.44B

According to Stratistics MRC, the Global Automotive Alloy market is estimated at $126.13 billion in 2016 and is expected to reach $233.44 billion by 2023 growing at a CAGR of 9.1% from 2015 to 2022. Rapid urbanization, rising fuel prices, strict environmental rules and increasing demand for light weight vehicles are some of the key factors favoring the market growth. However, huge cost of the automotive alloy is hampering the market. The increasing demand for electric vehicles (EV) is creating huge opportunities for the automotive alloy market.

By Alloy type the steel segment is anticipated to hold the largest market share owing to large usage of steel alloys in the production of vehicle especially in the developing countries such as China and India. The usage of steel helps the automobile manufacturers to achieve desired standards of strength and safety for their vehicles at relatively low costs. Steel is the most strongest and affordable material available today for its application in automobiles and it can be engineered in a lot of different ways to meet the needs of crash safety and the performance of the vehicle.

Geographically, Asia Pacific is the leading market owing to rise in vehicle production, soaring demand for light weight vehicles, rapid urbanization and development in the economic growth of the countries. China, India, Indonesia, Thailandand South Korea are the countries which contribute to the growth of the market in the region. In addition, due to the presence of large population in China and India the increase in automobile sales is very high.

Some of the key players in the automotive alloy market are Thyssenkrupp AG, Sumitomo Metal Corporation, AMG Advanced Metallurgical Group, UACJ Corporation, Arcelormittal SA, Nippon Steel & Sumitomo Metal Corp., Constellium N.V., Alcoa Inc., Norsk Hydro ASA, Novelis, Inc. and Kobe Steel, Ltd.