Aluminum alloys are alloys in which the composition of the aluminum metal is higher in content. Aluminum is one of the popular metal that is widely used across various industries such as transportation, transportation, and electronics. In aluminum alloys, alloying metal is added with the base metal aluminum in order to enhance the properties of pure aluminum and make it suitable for a wide range of applications.
The global aluminum alloys market is projected to surpass US$ 184,419.8 million by the end of 2028, in terms of revenue, growing at CAGR of 4.8% during the forecast period (2021 to 2028).
The rapid growth of the automotive industry is primarily fueling the market growth of aluminum alloys. The automotive industry is one of the largest consumers of aluminum alloys. The growing production of automobiles around the globe is increasing consumption of these alloys, thereby escalating the market growth. According to the European Automobile Manufacturers Association, more than 80 million passenger cars were produced around the world in 2017 and 98.1 million motor vehicles were produced around the world in 2018.
Increasing cargo transportation is fueling the growth of marine industry. Metal such as aluminum is widely used across the shipbuilding industry to reduce the overall weight of the ship without compromising on strength of the ship. Moreover, aluminum alloys are highly resistant to corrosion compared to other metal which is again boosting demand for aluminum alloys from the shipbuilding industry. Thus, growth in the marine industry is propelling the market growth of the aluminum alloys.
Asia Pacific held dominant position in the global aluminum alloys market in 2020, accounting for 62.4% share in terms of revenue, followed by North America and Europe, respectively. As a result of rising rapid growth of the automotive industry around the globe.
Figure 1. Global Aluminum Alloys Market, Revenue Share (%), By Region, 2020
Environmental concerns such as increasing pollution and growing energy costs are the compelling government to implement strict rules and regulations for the production of aluminum alloys. This factor is expected to hinder the market growth of the aluminum alloys over the forecast period.
Expensive fabrication process coupled with the availability of the other low-cost substitute products is expected to restrict the adoption of aluminum alloys. Steel is one of the common substitutes that is widely used across various industries in place of aluminum. This factor is expected to restrict market growth.
Robust growth in the construction industry due to rapid urbanization and increasing population that require shelters is expected to bring new market opportunities. Aluminum alloys are broadly used across the construction industry for producing different materials such as door, window, panel, etc. due to their lightweight and high strength property. Also, increasing adoption of advanced construction materials in the industry is further expected to foster the market growth.
The rise in the various manufacturing industries around the globe is projected to serve major market opportunities. Also, increasing production id aluminum is another major factor fostering the market growth of the aluminum alloy. According to the Aluminum 13th World Trade Fair & Conference, around 63.2 million tons of aluminum were produced worldwide in 2017. Thus, increasing production of aluminum is projected to propel the market growth in the near future.
|Base Year:||2020||Market Size in 2020:||US$ 126,500.8 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||4.8%||2028 Value Projection:||US$ 184,419.8 Mn|
United Company RUSAL Plc, Alcoa Inc., Aluminum Corp. of China Ltd., Kaiser Aluminum Corporation, Norsk Hydro ASA, Dubai Aluminum Co., Constellium, Kobe Steel, Ltd., and Aluminum Bahrain B.S.C.
|Restraints & Challenges:||
Figure 2. Global Aluminum Alloys Market – Opportunity Analysis
Continuous product innovation in the aluminum alloy by key players in the market is one of the growing trends and this is expected to bolster the market growth. For instance, in September 2019, National Aluminium Company Ltd (Nalco) launched Aluminium Alloy 1200 (AA 1200), that has wide application in manufacturing of LED lamp cap. Moreover, it has high corrosion resistance and boasts of high thermal conductivity and reflectivity.
Increasing use of the aluminum alloy in the production of an electronic component is augmenting the market growth. Increasing demand for portable electronic devices such as tablets, smartphones, and wearable devices is a growing trend in the market. These gadgets are gaining huge demand especially from teenagers and the adult population. Also, changing lifestyles and increasing purchasing power of the consumers is further driving demand for such gadgets which in turn propelling the market growth of the aluminum alloys.
Figure 3. Global Aluminum Alloys Market, Revenue Share (%), By End-user, in 2020
Key Takeaways of the Graph:
Global Aluminum Alloys Market - Impact of Coronavirus (Covid-19) Pandemic
The Covid-19 pandemic has had a substantial negative impact on the Global Aluminum Alloys Market, During the COVID-19 outbreak, the aluminium alloys market sustained a significant loss as manufacturing in the automobile and aerospace industries halted. Only the medical supply and life-support sectors were permitted to operate. Other sectors' demands, such as buildings and construction, machineries, and the marine industry, were also reduced to some proportion. The supply chain was also disrupted as a result of global logistical restrictions. As a result, the transportation sector's growth was also hampered.
Key players are operating in the global aluminum alloys market are United Company RUSAL Plc, Alcoa Inc., Aluminum Corp. of China Ltd., Kaiser Aluminum Corporation, Norsk Hydro ASA, Dubai Aluminum Co., Constellium, Kobe Steel, Ltd., and Aluminum Bahrain B.S.C.
Few Recent Developments
Aluminum alloys are metals in which aluminum is the dominant material used. In the olden days, Aluminum was the most commonly used metal in the world for the construction of ships, tanks, weapons, airplanes, and airplanes. The alloys that are made today are much stronger and lightweight than the original ones. They are used in a wide range of industries, as they are highly reliable and economical. Aluminum alloys are mainly used for making frames, motors, exhaust systems, etc. Aluminum is also used in making hot-spray heaters and in manufacturing various types of food products.
Rapid industrialization and urbanization is a major factor driving growth of the aluminum alloys market. According to the United Nation, by 2019, the share of the urban population increased to 55.7 percent. It is generally higher in the developed (80.5 percent in 2019) than in the developing countries (51.1 percent), with transition economies in between the two (65.4 percent).
On the other hand, strict environmental regulations is expected to hinder growth of the aluminum alloys market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective.