The global aluminum market was pegged at 72,050.0 thousand tons in 2019, according to Aluminum Market Report, by Product Type (Extrusions, Rolled, Castings, Wire & Cable and Others), by Application (Automotive & Transportation, Construction, Packaging, Electrical & Electronics, Consumer Durables, Others), and by Region (North America, Latin America, Western Europe, Eastern Europe, APEJ, Japan and Middle east & Africa) published by Coherent Market Insights.
The global aluminum market is expected to reach 102,976.2 thousand tons by 2027, exhibiting a CAGR of 6.1% during the forecast period (2020-2027). Growing demand for aluminum from the building and construction industry as the material is highly preferred as a green building material is a prime factor propelling the market growth of Aluminum. Rising construction of skyscrapers as Aluminum is widely used in high rise buildings due to its high corrosion and strength that are very important for constructing modern skyscrapers is further projected to boost the market growth. For instance, Yanchep Aluminum Bridge is a 143-meter long and 2.5-meter wide pedestrian bridge in Australia. Also, Sugar City Silos is a 50-meter tall cylindrical building in the Netherlands that is built with Aluminum cladding material. Therefore, the rising demand for Aluminum from the construction and building industry is projected to foster the market growth of Aluminum.
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Browse 150 market data tables* and 82 figures* on "Aluminum Market” - Global Forecast to 2027.
Key Trends and Analysis of the Aluminum Market:
- Increasing investment by major players in the automotive and aerospace industry is increasing the demand for high-performance aluminum. Therefore, this is projected to boost the market growth of aluminum. The rising number of mergers and acquisitions is another major factor propelling the market growth of aluminum. For instance, in July 2018, Novelis Inc., the world leader in aluminum rolling and recycling, announced it has signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminum products, for approximately $2.6 billion including the assumption of debt.
- Rising concern over the environment is shifting preference of consumers towards green products with lower carbon footprint is projected to offer immense growth to the market of aluminum over the forecast period. Moreover, the growing demand for longer life-span appliances is another major factor that is projected to stimulate market growth over the forecast period.
Key Takeaways of the Market:
- Rolled aluminum product type segment dominated the global aluminum market in 2019, accounting for 32.6% share in terms of volume, followed by Extrusions and Castings, respectively. This is attributed to its increasing demand from food and pharmaceutical industry for packaging purpose.
- Increasing reliance on the import of aluminum in the U.S region is expected to serve as a growth driver to the market of Aluminum. For example, Canada is a leading supplier of Aluminum, accounting for about 65% of crude Aluminum, 21% of semi-manufactures and 54% of total aluminum imports. Increasing production of lightweight automobiles in order to enhance the fuel-efficiency is further expected to propel the market growth of Aluminum over the forecast period. For instance, in July 2015, Audi announced to launch new Audi A4 and A4 Avant with lesser weight from other A4s of nearly 265 pounds current A4s, by using a mix of Aluminum and high-strength steel in the major component.
- Major 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.
Global Aluminum Market - Impact of Coronavirus (Covid-19) Pandemic
- The coronavirus and the accompanying lockdown measures in various countries has impacted the demand for aluminum. At the start of February 2020, price of aluminum sank to a three year low of US$ 1,685.0 per ton at the London Metal Exchange (LME). Aluminum’s main end markets are construction and transportation sector. Lockdown restrictions has restricted the construction activities and automotive manufacturing, which has led to a low demand for aluminum. Weak automotive sales across the globe is also expected to impact demand for aluminum. For instance, according to China Passenger Car Association, passenger car sales in China slumped by 92% in first of February 2020. According to Alcoa, Inc., the outbreak had most impact on alumina supply. According to the company, bauxite shipments to Chinese ports have continued as normal, but transport of bauxite from ports to refineries has impacted due to the virus outbreak. According to Coherent Market Insights analysis, coronavirus is expected to have a long time impact on aluminum market.