Impact Analysis of Covid-19
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.
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. The global aluminum market is estimated to reach 102,976.2 Thousand Tons by the end of 2027 in terms of volume, exhibiting a CAGR of 6.1% during the forecast period (2020 to 2027).
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.
Among region, Asia Pacific held dominant position in the global aluminum market in 2019, accounting for 61.2% market share in terms of volume, followed by North America and Europe.
Figure 1. Global Aluminum Market Volume Share (%), By Region, 2019
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.
Aluminum Market Report Coverage
||Market Size in 2019:
||72,050.0 Thousand Tons
|Historical Data for:
||2017 and 2018
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||102,976.2 Thousand Tons
- Regions: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
- By Product Type: Extrusions, Rolled, Castings, Wire & Cable and Others
- By Application: Automotive & Transportation, Construction, Packaging, Electrical & Electronics, Consumer Durables and Others
Rio Tinto Plc, Norsk Hydro ASA, UC RUSAL, Alcoa Inc., China Hongqiao Group Ltd., Aluminum Corporation of China Limited, Emirates Global Aluminum PJSC, Noranda Aluminum Holding Corporation, Aditya Birla Management Corporation Pvt. Ltd. and China Power Investment Corporation.
- Rising demand for aluminum from the various end-user industries
- Increasing application of aluminum from industries such as oil and gas, solar energy, and telecommunication
|Restraints & Challenges:
- Decrease in profit margin due to oversupply of aluminum
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– Opportunity Analysis
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.
Figure 3. Global Aluminum Market Volume Share (%), By Application, 2019
On the basis of application, in 2019, the construction segment accounted for 23.1% in terms of volume, followed by Automotive & Transportation and Packaging, respectively. This is owing to growing application in construction industry such as for manufacturing roofs, façades, venetian blinds and doors.
Global Aluminum Market - Impact of Coronavirus (Covid-19) Pandemic
The pandemic impact on global economic activity is expected to be profound. The demand for aluminum has been hit already, owing to downturn in automotive and aerospace sector. According to International Aluminum Institute, the global aluminum demand will contract by 5.4% in 2020, followed by a prolonged period of slow and staggered recovery. According to the same source, the impact on China’s aluminum demand is expected to be severe over the short term, although a strong recovery in demand in 2021 is forecast, followed by a return to pre-Covid growth rates beyond 2022.
Key players operating in the global aluminum market include Rio Tinto Plc, Norsk Hydro ASA, UC RUSAL, Alcoa Inc., China Hongqiao Group Ltd., Aluminum Corporation of China Limited, Emirates Global Aluminum PJSC, Noranda Aluminum Holding Corporation, Aditya Birla Management Corporation Pvt. Ltd. and China Power Investment Corporation.