Global Statistics Representing Automotive Metal Market Scenario
Automotive metals are metals used in the manufacturing of automotive bodies or vehicle parts, such as steel, aluminum, and others. Chassis, body, and drivetrain components include bumpers, engine oil systems, doors, body panels, exhaust systems, suspensions & steering systems, fuel supply systems, wheels, transmission systems, and tire parts are some of automotive parts where metals are used in the manufacturing. Automotive metal components are made through processes such as cutting, bending, and drawing. Additionally, various types of press and dies are also used in the manufacturing of automotive components.
Globally, increasing demand for vehicles, owing to population growth, improving standard of living, and increasing disposable income, is expected to accelerate vehicle production. Additionally, technological advancements and their rapid adoption in the automotive industry are expected to further fuel the growth of the automotive metal market during the forecast period, 2019–2026.
Regulatory policies and support for fuel-efficient and lightweight vehicles are anticipated to positively influence the use of aluminum, magnesium, high strength steel, and advanced high strength steel in the automotive industry. Aluminum is largely used in the manufacturing of different vehicle parts, due to its light weight and high strength.
Growing cost of automotive metal and increasing use of high-performance plastics such as polyamide, polypropylene, polyurethane (PUR), poly-vinyl-chloride (PVC), acrylonitrile butadiene styrene, POM (polyoxymethylene) and others can be considered as the key restraints hampering market growth.
The global automotive metal market was valued at USD 226.41 billion in 2018 and registering a CAGR of 291.52% during the forecast period, 2019–2026.
The automotive metal market has been segmented on the basis of product type, application, and end-use.
By product type, the global market has been segmented into aluminum, steel, magnesium, and others. Aluminum is expected to hold a major share in the global automotive metal market during the forecast period, 2016–2026. The use of aluminum in the automotive industry, owing to benefits such as environment-friendly, and safe nature, has been increasing over the years. Furthermore, the high strength and lightweight of aluminum make it an ideal choice for the automotive industry.
Based on application, the market has been segmented into body structure, power trains, suspensions, and others. Body structure is expected to gain traction in the global automotive market, owing to the large amount of steel required in the making of vehicles’ body structure as compared to other parts of vehicles. According to the World Steel Association, 34% of steel is used in the production of body structure for vehicles. Furthermore, advanced high-strength steels (AHSS) are increasingly being used in the manufacture of lightweight and optimized vehicles to enhance performance, safety and fuel efficiency.
In terms of end-use, the market has been segmented into passenger vehicles and commercial vehicles. Commercial vehicles are expected to witness tremendous growth in the global market, owing to the growing logistics & transportation business, easy availability of finance for vehicles from private and government institution. For instance, various commercial and non-commercial vehicles are supported under the FAME scheme (The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles), which actively promotes eco-friendly vehicles and especially focuses on electric commercial vehicles. The FAME scheme is regulated under the Ministry of Heavy Industries and Public Enterprises.
Geographically, the automotive metal market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America is expected to witness considerable growth in the automotive metal market during the assessment period (2019–2026) with countries across the region taking initiatives to increase the production of fuel-efficient vehicles in order to reduce carbon dioxide emission. Additionally, the region is home to a majority of automotive manufacturers such as Ford Motor Company, Fiat, Toyota, Volkswagen Group and others.
Asia Pacific is anticipated to hold a prominent share in the global automotive metal market, owing to the increasing demand for passenger and commercial vehicles, primarily from emerging markets such as China, India, Taiwan, Thailand, Korea, Malaysia and others. According to the International Organization of Motor Vehicle Manufacturers, total car, and commercial vehicle production amounted to 1,117,389 units in 2016 and increased to 1,343,714 units in 2018.
The Middle East & Africa region is expected to witness sluggish growth in the global automotive metal market, owing to unfavorable government policies, and the presence of under-developed economies. For instance, the GCC countries such as Oman, Qatar, UAE, and Saudi Arabia are suffering from low oil prices and high fiscal spending.
Latin America is expected to witness noteworthy growth in the global automotive metal market during the forecast period, 2019–2026, backed by growth in the region’s emerging countries such as Brazil, Ecuador, and Chile. According to information provided by International Organization of Motor Vehicle Manufacturers, the total production of cars and commercial vehicles in Brazil amounted to 2,699,672 units in 2016, which later increased to 2,879,809 units in 2018; these figures are indicative of the region’s growth potential in the automotive market.
Some of the prominent players operating in the automotive metal market are ArcelorMittal SA, Voestalpine Steel Division, Magna International Inc., Alcoa Corporation, Hyundai Mobis, Schaeffler AG, Benteler International, Gestamp, Dana Limited, and GKN plc.
Automotive Metal Market Segmentation
By Product Type
By End Use