Global Aluminum Market size worth over USD 210 Billion by 2027
Published Date: February 19, 2021 Authors: Kunal Ahuja, Sarita Bayas
According to a new research report by Global Market Insights, Inc., the global Aluminum Market size is set to surpass USD 210 billion by 2027. Surge in demand for semi-fabricated products from transportation, automotive, and packaging sector is propelling the global market growth during the study timeframe.
The rapid expansion in the automotive industry is likely to drive the demand for aluminum cast products. Nearly 60% of the cast products are directed toward the automotive industry. In addition, the growth of aluminum is supported by the rising demand for aircraft in developing nations such as China and India. Aluminum is a feasible option across a broad spectrum of sectors due to the rising prices of alternatives such as copper & zinc.
Lower cost of extrusion process compares to other processes led to fuel the growth of extrusion process in the aluminum industry
The extruded processing segment will show a substantial growth in the global market and expected to show CAGR of 3.8% in between 2021 to 2027. As extrusion process is relatively lower in cost than other processes give rise to extensively adaptation of extruded process by large aluminum manufacturers.
In addition, the product offers high strength-to-weight ratio and its ability to be extruded into any shape irrespective of its complexity and tight tolerances will caters to diverse design applications. The incorporation of computer-aided designs in the extrusion process will also fuel the aluminum market segment growth as they offer reduced design time, improved tolerances, and strong control over each stage of the process.
Extensive application areas of flat aluminum products are anticipated to accelerate the industry growth
The flat segment will hold a substantial share in 2020 and is expected to reach over USD 55 billion by 2027. Wide-ranging applications of flat piece and bars in industries such as transportation, food, and aerospace owing to its lightweight and resistance to corrosion should support the aluminum market growth. Flat products also consist of aluminum plates, which are used for tooling plates, architectural applications, bridge railing components, and welding structural applications.
Whereas the lightweight nature, corrosion resistance, and ease of fabrication of flat sheets are used for projects such as vehicle panelling, artwork, building cladding, and kitchen fitting. Flat products owing to their lightweight properties are easier and cheaper to transport than most other metals. Hence, this wide application of the flat product and their beneficial properties will drive the aluminum market share over the forecasted period.
Adaptation of light weight material in automotive and aerospace manufacturing should support the business growth in transportation application
The automotive sector holds a major share of the global aluminum consumption in 2020. The aluminum industry is focused on research & development of new body shells for trams, high speed trains, buses, regional and underground trains. Aluminum is used for manufacturing of car body structures and panels, suspension parts, safety systems, among others. As a result, up to 50% weight reduction can be achieved if aluminum parts are used.
Aluminum acts as a key material in aviation as lighter the plane body with the highest possible capacity. The material contributes to improved fuel efficiency along with offering improved corrosion resistance. In addition, the automotive industry has been highly effective in reducing CO2 emissions with improved usage of aluminum in varied products.
Browse key industry insights spread across 320 pages with 258 market data tables and 60 figures & charts from the report, “Global Aluminum Market By Product (Flat Products, Extruded Products, Forged Products, Long Products, Cast Products), By Processing Method (Rolling, Extruding, Drawn, Casting, Forging), By Application (Transport, Construction, Electrical & Electronics, Packaging, Equipment & Machinery, Consumer Durables, Foil Stock), Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021-2027” in detail along with the table of contents:
Rising demand for high quality material in construction and electronic industry should fuel the aluminum market growth.
North America holds a considerable share in 2020 owing to the increased expenditure on new residential construction as well as remodelling. In Canada, primary the industry is driven by rising demand for high quality materials in construction industry along with rapid urbanization. Moreover, supportive initiatives by the government of Canada to support & protect Canada’s aluminum industry to make it competitive. Whereas increasing trends in electronics industry to adopt low carbon and high-quality aluminum as it provides better conductivity and corrosion resistance is likely to boost aluminum market growth over the forecasted period.
Key companies in the aluminum industry are adopting various strategies such as merger and acquisition and which enhance their performance and product offering around worldwide In January 2021, Norsk Hydro entered into a partnership with Nuvosil to develop an advanced recycling technology for aluminum and other alloy metals. The key players in the market are Chalco, Rio Tinto, Norsk Hydro, Hongqiao Group, Alcoa Corporation, Hindalco and Hangzhou Jinjiang Group, hold more than 50% of share in the global market.
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