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Press Release: Aluminum Market to Reach 117,499.4 Thousand Tons by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
Aluminum is a silver-white element and belongs to group 13 of the periodic table. It is durable, light, and functional that makes the aluminum ideal as an engineering material since it is highly resistant to corrosion. Moreover, aluminum metal is nontoxic (as the metal) and nonmagnetic. It has a wide range of applications across various industries for making different products. Aerospace, construction, manufacturing, electronics, packaging, etc. are some of the major end-user industries of the aluminum. It is also used as an electrical transmission line and packaging materials such as cans and containers.
Statistics:
The global aluminum market is estimated to account for 72,050.0 thousand tons in terms of volume by the end of 2019
Drivers:
Rising demand for aluminum from the various end-user industry due to its excellent property of durability, ductility, and lightweight is primarily fueling the market growth of aluminum. Rising usage of aluminum because it helps to minimize the carbon emission is further propelling its demand across transportation, automotive, renewable energies and green buildings, and air conditioning & refrigeration. Hence this is also expected to favor the market growth of aluminum.
Increasing application of aluminum from industries such as oil and gas, solar energy, and telecommunication is projected to boost the market growth of aluminum. Moreover, it easily gets recycled which makes it ideal raw materials for various applications is also expected to foster market growth. Furthermore, across various industries, it is gaining demand as a substitute for various metal. For instance, aluminum is replacing steel materials in the automotive industry due to its lightweight, ability to enhance fuel-efficiency of the vehicle as well as contributing towards meeting standards set by Corporate Average Fuel Economy (CAFE). For instance, in January 2015, Ford introduced an F-150 pickup truck with aluminum body. This is expected to propel the market growth of aluminum.
Statistics:
Asia Pacific excluding Japan region dominated the global aluminum market in 2018, accounting for 60.96% share in terms of volume, followed by North America and Western Europe, respectively
Figure 1. Global Aluminum Market Share, By Region, 2018
Market Restraints
The aluminum industry is witnessing a decrease in profit margin due to oversupply is a major factor expected to hamper the market growth of the aluminum. Moreover, the lack of clean energy that curbs the Co2 emission is also projected to hinder the market growth of aluminum.
Few regions with high energy costs, such as few parts of the U.S. and China are becoming less attractive as a location for aluminum production which is expected to hamper the market growth of aluminum. Moreover, rising competition in the industry coupled with the fluctuating prices of raw material is also expected to limit the market growth of aluminum over the forecast period.
Market Opportunities
Growing capacity of aluminum smelting plant in order to meet the rising demand for energy around the globe is projected to fuel the market growth of aluminum over the forecast period. For instance, new smelters are established in the region such as Russia, Malaysia, Africa, the western and north-western provinces of China, India and other developed regions where stranded energy can be available.
Shifting focus of the manufacturers on recycling of aluminum is projected to offer new growth opportunities to the market of aluminum. Rising volatility in commodity prices, increasing volumes of waste and growing implementation of environmental rules and regulations are some of the major factors fueling the demand for recycling. Hence this is expected to augment the market growth of aluminum.
Figure 2. Global Aluminum Market Share, Opportunity Analysis
Statistics:
Global aluminum market was pegged at 67,744.0 thousand tons market in 2018 and is forecast to reach a volume of 117,499.4 thousand tons by 2027 at a CAGR of 6.3% between 2019 and 2027
Market Trends/Key Takeaways
The rising preference of the user for application-specific aluminum has been observed as a major trend in the industry. For instance, lightweight aluminum material for various transport vehicles for improving fuel efficiency and high-tensile aluminum for enhancing vehicle safety. Therefore, this factor is presumed to foster the market growth of aluminum over the forecast period. Furthermore, rising demand for extruded aluminum products from the construction industry is also projected to fuel market growth. For instance, the GCC region is emerging as a major market in extruded aluminum products, deriving a majority of demand from the building and construction industry, which consumes about 400,000 tons of aluminum annually.
Rising demand for a pre-fabricated aluminum product for increasing construction activities process is another major trend that has been observed in the market. Moreover, the growing demand for high-resistant aluminum components for developing transportation infrastructures such as the construction of rails and bridges is further projected to propel the market growth of aluminum over the forecast period.
Competitive Section:
Company Names
Few Recent Developments
Rio Tinto Plc
Aluminum is one of the abundant element found in the Earth’s crust after silicon and oxygen incorporated in a mineral, bauxite ore. It weighs about one-third as much as copper or steel. It is ductile, malleable, and exhibits excellent durability, corrosion resistance and significant strength when alloyed. It is widely used in automobiles, cans, foils, windows, cooking utensils and others
Market Dynamics
Increasing demand from automotive sectors where reduced weight is significant for emission control, is fueling the growth of aluminum market. Furthermore, new technological advancements in aluminum is expected to drive the aluminum market growth. For instance, in May 2018, Rio Tinto and Alcoa Corporation announced a free aluminum smelting process to make aluminum which produces oxygen and eliminates emissions of all direct greenhouse gases. Apple is investing in this joint venture on carbon-free smelting process.
However, increasing presence of aluminum substitutes such as zinc and copper is restraining the growth of aluminum market.
Various manufacturers are focused towards organic and inorganic growth strategies such as mergers, acquisition and joint venture to enhance their global footprint. For instance, in February 2018, Patrick Industries, Inc. acquired assets of Aluminum Metals Company, LLC (AMC), the distributor and manufacturer of aluminum products which includes extrusions, fabricated sheets and coils. This acquisition allows them to be an expertise as a high quality supplier of a variety of customized fabricated aluminum products.
Asia Pacific is expected to be the fastest growing region in the global aluminum market over the forecast period, owing to large presence of bauxite mining in countries such as China and India. According to the Aluminum Association, China accounted for total 32% of bauxite mining in 2016 and is expected to show the continuous growth. Also, China is the world’s largest producer and a huge exporter of semi-manufactured aluminum products. According to United States, Geological Survey (USGS), the smelter production in China was 24,400 thousand metric tons and increased up to 32,000 metric tons in 2015.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
Table of Contents
* Browse 150 market data tables* and 82 figures* on “Aluminum Market” - Global forecast to 2027.
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