Market Leaders - Automotive Alloy Market
Growing stringency of emission regulations and government norms for reduction in fuel consumption has changed the market dynamics for automotive alloy manufacturers. Asia-Oceania holds the largest market share in the automotive alloy market, which includes maximum share for steel and aluminium. Following Asia-Oceania, North America and Europe are leading regions for automotive alloys demand respectively. Legislations requiring weight reduction in vehicles, and increasingly stringent emission norms, have collectively boosted the demand for lightweight alloys like aluminium and magnesium. Alternatively, high pricing of aluminium and magnesium and low price of steel is an important challenge for the global automotive alloy market. The demand for high strength, safer, and weight reducing alloys in the North American and European countries is also another factor increasing the demand for aluminium and magnesium.
Top players involved in the automotive alloys market include ArcelorMittal SA (Luxembourg), Alcoa Inc. (U.S.), Novelis, Inc. (U.S.), UACJ Corporation (Japan), Norsk Hydro ASA (Norway), ThyssenKrupp AG (Germany), Kobe Steel, Ltd. (Japan), among others. ArcelorMittal SA is a major automotive alloys supplier that deals with the production and sale of automotive steel alloys. The company is the largest producer of steel with 98.1 million tons of steel produced in 2014. It is also one of the largest suppliers of steel to the automotive industry with approximately 13.3 million tonnes of flat steel deliveries to automotive manufacturers in 2014. The company’s automotive business operates in 22 countries and has 12 centres for research & development. ArcelorMittal plans to invest USD 20 million to establish its 12th global research and development center in Tubarão, Brazil. Owing to increasing adoption of aluminium in key markets such as North America & Europe, the company plans to increase its focus in developing markets such as Mexico, India and Brazil where steel is predominantly used. For instance, the company signed a MoU with the Steel Authority of India Limited and invested USD 11.1 million for the expansion of its facility in Monterrey, Mexico. The company has established captive mining operations for the production of its products which has significantly reduced the risk of raw material sourcing. The company’s global base of operations has enabled them to benefit from economies of scale, strong research and development activities and downstream integration.
Another important player in the automotive alloys market is Alcoa Inc. (U.S.) which operates through 200 locations in 30 countries across Europe, the Americas and the Asia-Pacific. The company has focused on development of new products and processes to increase its competitiveness in this high growth market. For instance, the company developed a new manufacturing technology which would enable them to produce an automotive alloy that is 40 percent more malleable and 30 percent stronger than aluminum. The company’s expertise in aluminum production and presence in various end markets has enabled it to form partnerships and supply contracts with major North American OEMs such as Ford. It supplied material for various components in the 2016 Ford F-150 and signed a collaborative agreement to develop advanced aluminum alloys. Other major players in the automotive alloys market include Novelis, Inc. (U.S.), UACJ Corporation (Japan), Norsk Hydro ASA (Norway), ThyssenKrupp AG (Germany), and Kobe Steel, Ltd. (Japan) among others. These companies are mainly focusing on expanding their regional presence to achieve continuous and sustainable development. This is evident from several collaborations and joint venture projects these companies have undertaken in recent years.
Related Reports:
Alloy Market for Automotive by Alloy Type (Steel, Aluminum, Magnesium, and Others), Area of Application (Structural, Powertrain, Exterior and Others), Vehicle Type (Passenger Car, LCV and HCV), & by Region - Global Forecast to 2021
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