ALLOY MARKET FOR AUTOMOTIVE ANALYSIS

Market Challenges And Opportunities

Relatively high cost of magnesium and aluminum alloys may hamper growth over the forecast period. Engineering barriers such as high-quality casting, technological issues can negatively affect adoption of lightweight alloys. Availability of high strength composite material such as carbon fibre, fibreglass and Kevlar that can be used as a substitute for alloys is another factor restraining the market growth.

Market Drivers

Automotive alloys are easy to forge by forming, machining, and welding, and thus, find application in various industries such as automobile, aerospace, wind, and others. The recent past has witnessed an increase in production of automobiles, owing to factors such as increasing global demand for automobiles and rising disposable incomes especially in emerging economies. According to the report by Bureau of Economic Analysis (BEA), Disposable Personal Income (DPI) in the U.S. increased by US$ 39.8 billion (0.3 %) in April 2018 as compared to 2017. Demand for passenger cars, light and heavy duty commercial vehicles have directly impacted growth of the global alloy market for automotive. Moreover, stringent regulations on fuel efficiency & greenhouse gas emissions are expected to increase the use of alloys for automotive, which is expected to boost demand for automotive alloys. These alloys have very low carbon footprint, which reduces carbon dioxide emissions and therefore, have high application in the automotive sector. According to the report by The International Council on Clean Transportation (ICCT), the U.S. Environmental Protection Agency (EPI) and the National Highway Traffic Safety Administration (NHTSA) released the final rules for heavy-duty vehicle fuel-efficiency and greenhouse gas standards in August 2016.