Aluminum Spacers Market Expected to Reach $866.4 Million by 2031—Allied Market Research

The global aluminum spacers market size was valued at $550.0 million in 2021, and is projected to reach $866.4 million by 2031, growing at a CAGR of 5.5% from 2022 to 2031.

Aluminum spacers are lightweight and non-magnetic material used to bridge the gap between the two objects. These are designed to reduce wear and tear, eliminate friction & vibration, and provide basic sealing properties between the objects. Aluminum spacers possess various properties, such as high strength, tenacity, corrosion, heat resistance, and it is dimensionally stable. Owing to such functionalities, it is extensively used in various end-use industries such as electrical, automotive, building & construction, industrial, manufacturing, and others.

The utilization of aluminum spacer has increased in the automotive sector owing to rise in population, growing consumer demand for vehicles, and expansion of automobile industry, which has escalated the demand for aluminum spacers. Aluminum spacers are used in automotive components to create a space between the stepper motor and motor mounting plate. In addition to this, aluminum spacer has good insulating property that keep two parts away from touching, which prevents electrical shorts in the vehicle and automotive components. These factors are expected to drive the aluminum spacers market during forecast period.

However, the production of aluminum spacer excretes various toxic chemicals and fine materials during manufacturing process. If it is exposed beyond concentration limit, the labor may cause several health-related issues such as irritation in eye, vision failure, respiratory problems, dizziness, genotoxic, cardiovascular, and gastrointestinal problems. This factor is anticipated to hamper the market growth.

Aluminum spacers are widely used as a substitute over metals in several end-use sectors, such as building & construction, and automotive, owing to its resistance to corrosion, lightweight, and better insulation property. In addition, factors such as growing manufacturing industry, availability of feedstock at reduced prices, and arrival of local players have led manufacturers to offer aluminum spacer at low prices. This factor is predicted to create remunerative opportunities for expansion of the aluminum spacers market in the future.

The aluminum spacers market forecast is segmented on the basis of product type, end use, and region. By product type, the market is segregated into bendable and non-bendable. The bendable segment dominated the global market, in terms of revenue in 2021. This is attributed to the fact that growing demand for double glazed insulating glasses in residential and commercial industry has spurred the growth of aluminum spacers where it is used in insulating glass unit as it reduces heat loss, prevents sunlight from entering into buildings through glasses, and helps in reducing the visible lights transmittance on glasses.

By end use, the market is divided into transport, building and construction, and machinery and equipment. The transport segment dominated the global market, in terms of revenue in 2021, with 40% share in the global market. This is attributed to the fact that rise in industrialization, urbanization, increase in disposable income, and demand for electric vehicles, which have increased significantly where the aluminum spacer is a good  source of  insulating agent that keep two parts away from touching, preventing electrical shorts in the vehicle.

Region-wise, the aluminum spacers market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific aluminum spacers market size is projected to grow at the highest CAGR of 5.3% during the forecast period, and accounted for a major market share in 2021, owing to rise in the automotive sector, which has enhanced demand for aluminum spacer in Asia-Pacific. The electric vehicle sector in China is increasing rapidly, which has forced aluminum spacer manufacturers to produce high-quality and different types of aluminum spacer for use in sealing systems to enhance aerodynamics of vehicles.

Key players operating in the global aluminum spacers market analysis include, Allmetal, Inc., ALU-PRO Srl, AM Industries, Inc., Avantus Aerospace, Bokers Inc., Fenzi North America, JINSHANG NEW ENERGY TECHNOLOGY GROUP CO., LTD, Keystone Electronics Corp, LISI AEROSPACE, Merk KGaA, MW Industries (MWI), NEDEX, Phoenix Specialty, Ramapoglass, and SMC electric.

Key findings of the study

• In terms of type, the bendable segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.1% from 2022 to 2031.
• In terms of end use, the transport segment is anticipated to register the highest CAGR of 5.3% during the forecast period.
• By region, the Asia-Pacific garnered the highest aluminium spacer share of 38% in 2021, in terms of revenue, and is expected to grow at a CAGR of 5.3%.