Market Trends of Aluminium Forging Industry
Automotive and Transport Industry to Dominate the Market
- Aluminum is commonly utilized in the automobile sector. It is used in automotive components such as engine radiators, wheels, bumpers, suspension elements, engine cylinder blocks, gearbox bodies, and body pieces such as hoods, doors, and even the frame. Because of its lightweight, durability, and appealing look, aluminum is also famous for its exterior components.
- Furthermore, Aluminum forged components play an important role in the automotive industry. As the industry is focused on fuel efficiency, weight reduction, and reducing CO2 emissions, aluminum plays an ever-more-critical role in modern cars. Kilograms of aluminum used in an automobile decreases the vehicle's overall weight. For this reason, more and more car parts are made from aluminum, driving the market demand in the sector.
- Aluminum is very good at absorbing shock, and aluminum is twice as effective as steel, which is a beneficial property. As a result, manufacturers have been employing aluminum in bumpers for a long time. Furthermore, an aluminum body is safer than a steel body because when aluminum pieces are deformed or bent, the deformation is restricted to the impact regions. In contrast, the remainder of the body preserves its original shape, assuring passenger compartment safety.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), around 85.01 million vehicles were produced globally in 2022, a growth rate of 5.99% compared to 2021. This indicates an increased demand for aluminum forging from the automotive industry.
- According to the European Automobile Manufacturers Association, the car production rate in the North American region rose 10.3% in 2022 to 10.4 million units, primarily driven by strong demand in the United States. In 2022, global new car registrations reached 66.2 million units.
- According to the International Energy Agency (IEA), Electric car (including both battery electric vehicles as well as hybrid electric vehicles) markets observed exponential growth in 2022 as sales globally exceeded 10 million. A total of 14% of all new cars sold in 2022 were electric. Furthermore, as per IEA estimates, by the end of 2023, a total of 14 million electric vehicles were sold, representing a 35% year-on-year increase.
- Therefore, considering the abovementioned factors, the demand for aluminum forging products is expected to rise significantly soon.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region dominated the global market, with a considerable revenue share, and is expected to maintain its dominance during the forecast period.
- China is known for its Industrialization and manufacturing sector, where aluminum-forged products are widely required. Some significant sectors where aluminum forged alerts are used in the country are Automotive, construction, air, space, and other Industrial sectors.
- In the Asia-Pacific region, China, Southeast Asia, and South Asia aerospace markets are expected to rise at a significant rate, which will further support the demand for the studied market. In China, around 8,560 deliveries will be made by 2042.
- China is the world’s biggest automobile market in production and sales. According to OICA (The Organisation Internationale des Constructeurs d'Automobiles), vehicle production in China reached a total of 27.02 million units in 2022, which is an increase of 3% over 2021 for the same period.
- According to the International Trade Administration (ITA), China remains the world's largest auto market in annual sales and production. Domestic production is expected to reach 35 million units by 2025. The Chinese government is boosting car consumption following the COVID-19 pandemic.
- China accounts for over half (58%) of all new electric vehicles sold worldwide. According to the International Energy Agency (IEA), 5.9 million new electric cars will be sold nationwide in 2022, an increase of more than 80% compared to 2021.
- India is the second largest producer of aluminum and its forms, including aluminum forgings, to meet the demand from various industries in the country.
- In India, according to the Society of Indian Automobile Manufacturers, the total automotive production was estimated to be close to 25.9 million units in FY 2023. Out of the total, two-wheelers held a significant share, accounting for about 74% of the total production.
- All factors above are likely to fuel the growth of the aluminum forging market in Asia-Pacific over the forecast period.
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