Aluminum Extrusion Market Outlook - 2020–2027
The global aluminum extrusion market size was valued at $77.8 billion in 2019, and is projected to reach $118.7 billion by 2027, growing at a CAGR of 5.4% from 2020 to 2027.
Aluminum extrusion is the process of shaping the aluminum with the help of a shaped opening in a die. During the extrusion process, a ram pushes the aluminum product through the die shape and it comes out taking the same shape of the die. After the extruded products are cooled down, they are moved to a stretcher to make them fully straight. Basically, aluminum extrusion is found in three shapes, namely hollow, semi-hollow, and solid. Aluminum extrusions are widely used in building & construction, automotive & transport, and electrical industries.
Increase in demand for lightweight and durable extruded products in various industries is expected to drive the market growth of aluminum extrusion during the forecast period. The lightweight and high strength to weight ratio of aluminum makes it ideal for large constructions and buildings to provide added strength at decreased weight. Aluminum products possess high tensile strength and high rigidity, which make it highly resistant to deformation. In addition, the high corrosion resistance of extruded aluminum is expected to fuel the demand in electrical, electronics, and medical sectors. Due to thick layer of aluminum oxide, after anodizing or powder coating, such type of extrusion becomes highly resistant to corrosion, unlike steel and iron. This leads to reduced maintenance cost for various industrial products. However, high initial set up cost and low production efficiency may negatively impact the aluminum extrusion market growth. Due to slow extrusion process, aluminum extrusion cannot achieve continuous production.
Nonetheless, surge in demand for flexible design is expected to create lucrative opportunities for the aluminum extrusion market players. With aluminum extrusion, industry players can produce wide range of extruded products with various shapes and sizes on the same equipment.
The global aluminum extrusion market is segmented on the basis of product and end user. On the basis of product, it is divided into mill-finished, anodized, and powder coated. Based on end user, it is categorized into building and construction, electrical and electronics, automotive & transportation, industrial, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Major players have adopted business expansion, merger, and acquisition to sustain the intense market competition. Some of the key players profiled in the report include Hindalco Industries Limited, Aluminium Products Company (ALUPCO), Arconic Corporation, Bahrain Aluminium Extrusion Co. (BALEXCO), China Zhongwang, Constellium N. V., and Gulf Extrusion Co. LLC.
Global Aluminum Extrusion Market, By Region
Asia-Pacific accounted for the highest revenue share in 2019, owing to large application of aluminum extrusion in construction and automotive industries across China, India, and Japan. For instance, the dome spans of Hunan provincial government office and the exhibition centers in Changsha are made of aluminum extrusion alloys. Moreover, China being the largest producer of automotive, has significant demand for aluminum extrusion in passenger and light trucks.
Asia-Pacific exhibits highest CAGR of 5.9%
Global Aluminum Extrusion Market, By Product Type
Mill-finished extrusion accounted for highest revenue share in 2019, owing to rise in demand for low-cost extruded aluminum products for electrical and automotive applications such as cylinder heads, blocks, and covers.
By Product Type
Anodised is projected as the most lucrative segment
Global Aluminum Extrusion Market, By End User
The building and construction segment accounted for the highest revenue share in 2019. Due to high strength to weight ratio of aluminum, it is more suitable for large buildings in seismic zones. For instance, aluminum's strength to weight ratio is 1/8, whereas for stainless steel it is 1/16. Industrial end user is expected witness highest market growth, owing to rise in demand of lightweight aluminum profiles in various industrial applications, which is expected to drive the market growth. Aluminum extrusion is expected to replace conventional materials in many industrial places, due to its lightweight, high corrosion resistance, and high strength to weight ratio.
Industrial is projected as the most lucrative segment
COVID-19 scenario analysis
- The aluminum extrusion market is expected to witness temporary downfall, owing to decline in demand for automotive and constructions. Consumers intend to leave home to shop for necessities, but maintain low engagement in shared services.
- According to the United Nations Environment Programme (UNEP), in 2020, the global construction industry market growth witnessed sharp decline of around 6% from 2019. Also, the construction projects across the globe slowed down by 24%, after the pandemic.
- In addition, a large number of manufacturing industries and commercial areas went under complete lockdown for the last six to eight months, thereby negatively impacting the market growth.
- Furthermore, extended lockdown across the globe negatively affected the global supply chain of alumina and bauxite mining. Regulations on cross-border imports and exports delayed the lead time for replenishment of raw materials, thereby negatively affecting the upstream process.
- However, implementation of intelligent mining, robotics, and artificial intelligence in construction and mining sites will decrease the number of active labor on the shop floor; thus, restricting further spread of the virus. This is expected to slowly improve the market scenario.
Key benefits for stakeholders
- The global aluminum extrusion market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global aluminum extrusion market forecast for the period 2020–2027.
- The report outlines the current global aluminum extrusion market trends and future estimations of the market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- The key drivers, restraints, & market opportunity and their detailed impact analysis are explained in the study.
Aluminum Extrusion Market Report Highlights
By END USER
Key Market Players
JINDAL ALUMINIUM LIMITED, Aluminium Products Company (ALUPCO), Bahrain Aluminium Extrusion Co. (BALEXCO), China Zhongwang, Kaiser Aluminum, Arconic Corporation, CENTURY EXTRUSIONS LIMITED, Constellium N. V., GALCO GROUP, Hindalco Industries Limited
According to the CXOs of leading companies, the global aluminum extrusion market is heading toward an expansion phase. This is mainly attributed to a significant surge in demand for building and construction projects. Furthermore, increased emphasis on lightweight materials for automotive and transport body parts is expected to positively impact the market growth. High chemical resistance of aluminum extrusion and the tough layer of aluminum oxide prevents electronics products and automotive from corrosion; thereby, positively influencing the market growth. However, the sharp decline in construction, automotive, and other end-use industries has largely impacted the market growth of aluminum extrusion. In March 2020, the production of aluminum extrusion reduced by around 13%. Moreover, in 2020, the automotive sector in China witnessed drop in auto sales of around 6.8%, whereas in first half of 2020 it was around 10%.