Aluminum Extrusion Market is Expected to Reach $118.7 Billion by 2027

According to a new report published by Allied Market Research, titled, “Aluminum Extrusion Market by Product Type and End-User: Global Opportunity Analysis and Industry Forecast, 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. It applies strong pressure on the aluminum and obtains required sections through directional deformation.

Later, the extruded products are cooled down and moved to a stretcher to make them fully straight. Aluminum extrusion can produce a wide range of extruded products with various shapes and sizes.

Increase in demand for lightweight materials in various end-user industries is the major driver of the aluminum extrusion market. Moreover, due to high strength to weight ratio of aluminum, a small section of the building structure is required for support purpose. Aluminum is 34 times stronger than vinyl and 43 times stronger than wood, and after treatment, it becomes stronger than steel. Such properties make it highly suitable for foundation of building structure. However, high capital cost and slow productivity of aluminum extrusion is a big challenge for industry players. 

Based on product, anodized extrusion is expected to witness the highest market growth. This is attributed to high chemical resistance of anodized extrusion, which is becoming increasingly important for industrial applications. Due to the thick layer of aluminum oxide, it is highly resistant to corrosion.

Based on end user, the building and construction segment accounted for the highest revenue share. 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. 

Region wise, Asia-Pacific garnered the highest aluminum extrusion market share. This is attributed to steady demand from construction, automotive, and electrical sectors. China is the largest producer in the power and automotive sector, which has strong demand for extruded aluminum in various automotive parts, electrical wires, and overhead cables.

Major players have adopted product launch, collaboration, 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, , and Constellium N. V.

COVID-19 scenario analysis

• The global 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.
• In addition, a large number of manufacturing industries and commercial areas went under complete lockdown for the last few months, thereby negatively impacting the market growth. 
• Furthermore, extended lockdown across the globe negatively affected the global supply chain of the 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 IoT, robotics, and artificial intelligence, may decrease the number of active labors on shop floor; thus, restricting further spread of the virus. This will slowly improve the market scenario.

Key findings of the study

• The anodised segment is projected to grow at the highest CAGR of approximately 6.7%, in terms of revenue, during the forecast period.
• By end-user, the building & construction segment held more than 60% market share with a CAGR of 5.0%, in terms of revenue, during the forecast period.
• By region, the Asia-Pacific dominated the market with more than 70% market share.