Aluminium Market

According to Stratistics MRC, the Global Aluminium Market is accounted for $172.22 billion in 2022 and is expected to reach $274.82 billion by 2028 growing at a CAGR of 8.1% during the forecast period. In the periodic table, aluminum (Al) is the 13th element and is a silvery-white, non-magnetic, and ductile metal. Tungsten makes up more than 8% of the mass of the Earth's core, making it the most common metal on the planet. Al is the symbol for this metal, which is mostly used in consumer durables, automotive, electronics, packaging, and construction. The market is anticipated to be driven by the rising demand for packaged foods and the increasing use of aluminum in place of stainless steel in the aerospace and automotive sectors.

According to the China Association of Automobile Manufacturers, in 2022, automotive production in the country reached 27.02 million units, which increased by about 3.4%, compared to 26.08 million vehicles produced in 2021.



Market Dynamics:

Driver:

Increasing popularity of secondary aluminium

Aluminum can be recycled into many different items, including tractor-trailers and automotive bodies. Aluminum cans, however, typically turn into new cans made of the same metal. Moreover, recycling secondary aluminum will not really degrade the metal's purity, allowing for continuous recycling. The ongoing demand for these cans contributes to the rise in metal consumption. Recycling cans relieves pressure on landfills and conserves energy and natural resources. Almost 95% less energy is required to produce new cans from recycled metal than is required to produce cans from bauxite ore.

Restraint:

Implementation of strict environmental regulations

Due to the growing number of environmental issues and rising public expectations for government action to minimize pollution, several nations throughout the world have been forced to implement new rules. Governments and organizations are expected to impose such strict environmental laws in order to control commercial expansion. Additionally, a number of nations have been obliged to adopt additional regulations as a result of growing environmental concerns and rising citizen expectations for the improvement of rising pollution levels.

Opportunity:

Rising product incorporation in the automotive & transportation industry

Al has been used in autos for a long time, but its share of modern cars is growing. With its ability to lower emissions and improve fuel efficiency, this metal is highly favored by automobile engineers and designers. The use of this metal by electric car producers helps the vehicles be lighter and have longer driving ranges. Due to aluminum's similar physical characteristics and lightweight nature, automotive manufacturers like Mercedes and BMW are replacing stainless steel with it more frequently. It is predicted that the following factors will fuel market expansion.

Threat:

Decarbonization poses a challenge for the worldwide aluminum industry

One of the biggest challenges facing the global aluminium industry is decarbonization. The vast majority of companies in the aluminium industry are under intense pressure to run more sustainably. They can only achieve this by using moderate amounts of low-quality steel. These are the factors threatens the market growth.

Covid-19 Impact:

Extended lockdowns in major manufacturing sectors like construction, automotive, electronics, industrial machinery, and consumer appliances across all regions during the COVID-19 pandemic resulted in temporary production halts. As a result, the industrial sector's need for aluminum abruptly decreased. The global market's year-over-year growth rate significantly decreased in 2020 compared to 2019 because of supply chain interruptions in major consumer nations across all regions. Additionally, the demand for bauxite ore was significantly impacted across all regions due to a lack of raw materials and inventory, a temporary suspension of production, a slowdown in the economy, trade restrictions, changes in consumer behavior in response to the COVID-19 outbreak, and other considerations.

The wrought alloy segment is expected to be the largest during the forecast period

The wrought alloy segment held the largest market share globally and is anticipated to continue to dominate the market during the projected period as the metal is subjected to mechanical operations like forging, rolling, and extrusion for making wrought alloys. As a result, wrought alloys are more ductile and mechanically robust than cast alloys. As wrought alloy usage expands, more high-strength materials are needed for pressure vessels, welding rods, aircraft, and motorcycle frames, among other applications.

The building and construction segment is expected to have the highest CAGR during the forecast period

Building and Construction segment is anticipated to have the highest CAGR over the forecast period as aluminum is the second-most widely utilised metal in the building and construction sector. It is commonly used in windows, curtain walls, roofing, cladding, solar shades, solar panels, railings, shelves, and other temporary structures. The primary drivers of segment growth are the expansion of the construction and infrastructure sectors as well as the expanding product acceptance in interior countertops and cladding.

Region with largest share:

Due to the presence of large consumers such as China, Japan, and India, the Asia Pacific region dominated the global market during the projection period and was the main contributor to its growth. It is anticipated that accelerating infrastructure development and rising technological advancements will fuel market expansion. Furthermore, the market is growing as a result of expanding packaging industries in developing nations and increased metal recycling. Moreover, countries like China, India, and Japan are seeing growth in industries like electronics, building and construction, aerospace, etc.

Region with highest CAGR:

As in Japan, it is forecasted that over the forecast period, retail sales in the packaged food market will have the highest CAGR in the Asia Pacific region. Throughout the projection period, it is probable that the anticipated expansion of the packaging sector will increase demand for aluminum foil. Another significant reason propelling the market expansion in this region is the use of this metal by EV manufacturers to reduce the weight of the vehicles.



Key players in the market

Some of the key players in Aluminium market include RIO TINTO ALCAN INC, Alcoa Corporation, Aluminum Corporation of China Limited, China Hongqiao Group Limited, CHINA POWER INVESTMENT CORP, EAST HOPE GROUP COMPANY LIMITED, Emirates Global Aluminum, Hindalco Industries Ltd, Norsk Hydro ASA, UNITED COMPANY RUSAL PLC and Vedanta Aluminium & Power.

Key Developments:

In August 2022, Rio Tinto revealed its plans to invest USD 29 million in building a new Al recycling facility at its Arvida Plant in Quebec, Canada. The move is aimed toward the company’s goal to expand its offering of low-carbon aluminium solutions for customers in the packaging, automotive, and construction industries.

In July 2022, Rio Tinto announced its plans to invest USD 188 million to increase the production capacity for high value Al billets at its Alma smelter in Quebec, Canada. The investment will be used to expand the existing casting center at Rio Tinto's Alma plant. This includes the addition of new equipment such as a casting pit and furnaces, enabling a larger portion of the Al produced to be converted to higher value billets.

In February 2022, RUSAL announced to have developed an optimized 5xxx series Al alloy with anodizing ability. The company has started production of this new alloy at its Bratsk Aluminium Smelter. Due to the anodization of alloys, the final product is covered with a protective oxide film. This also improves the corrosion resistance of products, increasing their service life and enhancing their aesthetic appearance.

Products Covered:
• Plate
• Sheet
• Cast Products
• Extrusion
• Other Products

Alloy Types Covered:
• Cast Alloy
• Wrought Alloy

Processing Methods Covered:
• Castings
• Forgings
• Pigments & Powder
• Flat Rolled
• Rod & Bar
• Extrusions

End Users Covered:
• Transportation
• Construction
• Packaging
• Consumer Durables
• Electrical
• Machinery & Equipment
• Building
• Foil
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances