Aluminum Market Size, Share, Growth, and Industry Analysis by Type (Aluminum Billets, Foundry Alloy Ingots), by Application (Construction Industry, Foundry Industry, Transportation Industry, Packaging Industry, Electronics Industry Others), and Regional Forecast to 2032

Updated On: 10 June 2024

ALUMINUM MARKET REPORT OVERVIEW

• 
• to learn more about this report

The global aluminum market size was USD 87820 million in 2020 and the market is projected to touch USD 126859.74 million by 2032, exhibiting a CAGR of 3.4% during the forecast period.

Aluminum is one of the most abundant metals found in the Earth's crust. The wide availability and numerous properties of aluminum make it a widely used metal across the world. Aluminum is used in various applications such as packaging, household products, electronics, and transportation. Aluminum is an ideal substitute for materials such as steel and iron, primarily due to its lower self-weight and high-strength properties. Rapid growth of cities and potential uses of aluminum as copper substitute in power industry further fuel the market growth.

The global construction industry is gaining momentum after a moderate contraction in developed regions. Aluminum and aluminum alloys are key materials used in the building & construction industry. Substantial growth in the construction industry is anticipated to augment the need for better materials with high durability & strength and low-self weight. Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Manufacturers need to stay updated with changing market trends and develop products that meet growing consumer needs. Companies coming up with progressive technological solutions for firming their positions.

COVID-19 Impact:  Pandemic Hampered The Market Due To Unexpected Disruption In The Sector

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID- 19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. COVID- 19 had negative impact on the market due to economic slowdown, unpredictability in financial sector and high unstable market. The pandemic resulted in decreased demand due to a disrupted supply chain, drop in sales of products, delivery schedules. Travel bans imposed affected business collaboration and partnership. Demand had recently reduced due to travel bans and lockdown during the COVID-19 pandemic. The continuous loss in the business due to the lockdown measures is projected to directly influence the growth of the investments in the market.

LATEST TRENDS

"Use Of Innovative Products To Boost The Market Growth "

Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological advancement with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Constant innovation in manufacturing of products is anticipated to stimulate product demand.

ALUMINUM MARKET SEGMENTATION

• 
• to learn more about this report

• By Type Analysis

According to type, the market can be segmented into aluminum billets, foundry alloy ingots

Aluminum billets will capture the maximum market share through forecast period.  

Aluminum billets: These are cylindrical or rectangular bars of aluminum that are produced through a casting process and are further processed through rolling or extrusion to produce materials for various applications.

Foundry alloy ingots: They are used to produce parts for the automotive industry, among others, through processes such as die casting, permanent mold casting, and sand casting. Although smaller in market share compared to billets, foundry alloy ingots are crucial for applications requiring specific alloy properties, such as enhanced strength, ductility, or heat resistance.

• By Application Analysis

According to application, the market can be segmented into construction industry, foundry industry, transportation industry, packaging industry, electronics industry, others

Aluminum market players cover segment as construction industry will dominate the market share during forecast period.

Construction Industry: Aluminum is used in the construction industry for a wide range of applications, including framing, roofing, windows, doors, and facades. Its durability, resistance to corrosion, and aesthetic appeal make it a popular choice.

Foundry Industry: It utilizes aluminum and its alloys to cast components for automotive, aerospace, machinery, and other industries. The foundry industry benefits from aluminum's excellent casting properties and the ability to achieve precise dimensions and finishes.

Transportation Industry: Aluminum is critical in the transportation sector, especially in automotive, aerospace, and marine applications. Its use in vehicle frames, body panels, and components helps reduce weight, improve fuel efficiency, and lower emissions.

Packaging Industry: The packaging sector relies on aluminum for containers, foils, and wraps, particularly in food and beverage packaging. Aluminum's barrier properties, recyclability, and lightweight make it an ideal packaging material.

Electronics Industry: In electronics, aluminum is used for casings, heat sinks, and circuit boards due to its excellent electrical conductivity and heat dissipation properties.

Others: This category includes miscellaneous applications of aluminum in sectors such as machinery, equipment, consumer goods, and renewable energy installations.

DRIVING FACTORS

"Increasing Demand In Automotive Industry To Boost The Market Growth"

Aluminum is widely used in the automotive industry due to its strength and lightweight, which helps in improving fuel efficiency and reducing emissions. As the automotive industry shifts towards electric vehicles (EVs) and more fuel-efficient models, the demand for aluminum is expected to increase. Manufacturers of electric vehicles use this metal to lighten their vehicles and increase their operating range. 

"Demand For Packing Industry To Upsurge The Market"

Aluminum's non-toxicity, light weight, and recyclability make it a preferred material for packaging, especially in the food and beverage industry. The demand for sustainable packaging solutions is likely to boost the aluminum market. Innovation motivate unique revenue augmenting opportunity which will upsurge the aluminum market growth.

RESTRAINING FACTOR

"Volatility in Raw Material Prices To Hamper The Market Growth"

The cost of raw materials, exclusively bauxite can be volatile. This affects the overall cost of aluminum production and can restrain market growth. Prices of aluminum fluctuate primarily due to its application in several end-user industries. Technical difficulties will reduce the industry revenue.

ALUMINUM MARKET REGIONAL INSIGHTS

• 
• to learn more about this report

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East and Africa.

"Asia Pacific to Dominate the Region Due To Growing Construction Activities"

Asia Pacific is further expected to witness growth in the aluminum market share. The region is dominating the market due to growing construction activities. The rising inhabitants and increasing income levels are also contributing to the development of the market. Upsurge in investments by key market players for the R&D undertakings and enlargement of their production abilities and product portfolios are projected to upsurge the growth. The expansion of regional market is being aided by technological developments.

KEY INDUSTRY PLAYERS

"Key Players Focus On Partnerships To Gain Competitive Advantage"

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger. The collective efforts of these major players expressively impact the competitive landscape and future path of the market.

List Of Market Players Profiled

• Rusal (Russia)
• Norsk Hydro (Norway)
• Yinhai Aluminum (China)
• Rio Tinto (U.K.)
• Xinfa Group (China)

INDUSTRIAL DEVELOPMENT

August 2022: Rio Tinto announced its plans to build a new AI recycling unit as its Arvida Plant in Quebec, Canada, with an investment of US$ 29 million. This move is aligned with the company's goal of expanding its portfolio of low-carbon aluminum solutions for customers in the automotive, packaging, and construction industries.

REPORT COVERAGE

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.