Aluminum Market Expected to Reach $258.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Aluminum Market," The aluminum market was valued at $148.1 billion in 2021, and is estimated to reach $258.3 billion by 2031, growing at a CAGR of 5.82% from 2022 to 2031.

Aluminum is a lightweight, nonmagnetic, soft, and ductile metal present in the boron group. It is the third most abundant element found in the earth’s crust, but is seldom found uncombined in nature. It is usually extracted from minerals such as cryolite and bauxite. It forms a reflective coating when evaporated in vacuum, which is utilized to of manufacture telescope mirrors, packaging, and toys. It is used in production of variety of products such as foils, window frames, kitchen utensils, airplane parts, beer kegs, and others.

Aluminum is utilized in various industries, including airline, automotive, rail transport, and ship building. China is one of the major producers and exporters of aluminum in the global market; thus, the developments in transportation sector involving aluminum directly impacts the China aluminum industry. Aluminum is widely utilized in the production of aircrafts, automotive vehicles, rail transport, and ships, as the metal is lightweight and offers significant strength. There has been an increase in the production of aircrafts where the 20% of the aircraft body (Boeing 787) is aluminum. Such applications of aluminum in transportation leads to increased demand and China being one of the major exporters acts as a driving factor for the aluminum market growth. Aluminum faces a lot of competition from a variety of substitutes across various end-user industries which can hinder the growth of the aluminum market.

The aluminum market is segmented on the basis of series, processing method, end-user industry, and region. By series, series 1 is expected to continue its leading position and expected to grow with CAGR 5.4% over the forecast period. For fabrication among overall aluminum series 1 aluminum is selected in response to its superior corrosion resistance in specialized chemical tanks and piping; or for excellent electrical conductivity in bus bar applications.

By processing method, extrusion segment is leading segment in 2021and expected to grow with a CAGR 5.47% by the end of the 2031. With the use of aluminum extrusion process, it transforms aluminum alloy into various products for consumer and industrial markets. Increase in producing electricity from renewable sources such as solar and other renewable sources, fuels the demand for aluminum extrusion products, which further drives the growth of the aluminum market.

By end use industry, the transport segment accounted for around 32.0% of the global aluminum market share in 2021. High strength, durability, and lightweight of aluminum has made it an ideal material for transport applications such as cars, buses, coaches, lorries, trains, ships, aircraft and bicycles. Aluminum is used widely for components such as engines, chassis, driveline, suspension, steering, brakes, closures, heat shields, and others.

By region, Asia Pacific is expected to continue its dominance over the forecast period, as industrialization and urbanization is growing rapidly in the region.

The major players operating in the industry include, Alcoa Corporation, Aluminium Corporation of China Limited, China Hongqiao Group Ltd., Hindalco Industries, East Hope Group Company Limited, Emirates Global Aluminum PJSC, Norsk Hydro ASA, Rio Tinto Alcan Inc., United Company Rusal Plc., and Xinfa Group Co., Ltd.

KEY FINDINGS OF STUDY

• By series, series 7 is anticipated to be the fastest-growing technology segment in terms of value, growing at a CAGR of 7.11%, throughout 2022–2031. The series 1 segment occupied the maximum share of the market with 20.4% of the total revenue in 2021.
• By processing method, the rod & bar is expected to grow with CAGR 7.07% over the forecast period.
• By end-use industry, the transport segment emerged as the global leader by acquiring around 32.0% market share in 2021 in terms of revenue and is anticipated to show a significant growth rate over the forecast period.
• Region-wise, Asia Pacific is the major consumer of aluminum among other regions. It accounted for around 64.3% of the global market share in 2021 and Asia-Pacific is expected to show a lucrative growth rate over the forecast period.

COVID-19 Impact on Market

• During the COVID-19 pandemic, the aluminum industry was impacted in terms of distribution and logistics due to lockdown across the globe. Aluminum production and distribution came to a halt because of the economic downturn due to the pandemic.
• The COVID-19 pandemic disrupted the transport, building & construction, and machinery & equipment industries, resulting in reduced usage of aluminum in these industries.
• The global COVID-19 pandemic hindered inter-country activity and import & export of aluminum due to varied economic and legal limitations globally. As a result, the aluminum market impacted moderately in 2020. However, by the beginning of 2021, all the industries started their operation due to which the demand for aluminum improved in the transport, building & construction, and machinery & equipment industries.