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2020

Saudi Arabia Aluminum Market

Saudi Arabia Aluminum Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Processing Method, Series, End-Use Industry : Opportunity Analysis and Industry Forecast, 2019-2026

MC : Advanced Materials

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Author's: Krunal Yeware | Eswara Prasad
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Saudi Arabia aluminum market size was valued at $1.7 billion in 2018 and is anticipated to generate $2.4 billion by 2026. The Saudi Arabia aluminum market is projected to experience growth at a CAGR of 6.8% from 2019 to 2026.

Aluminum is the sixth most ductile and second most malleable metal present on earth. It possesses strong affinity for oxygen. It is exceptionally light having 2.7g/ccm density, is resistant to dust, possesses high degree of conductivity, and exhibits significant strength when alloyed. It is widely used in food & packaging and pharmaceutical industries, as it is nontoxic in nature, preserves food for prolonged times, and inhibits growth of microorganisms. It is a good electrical conductor, and thus is used frequently in electrical transmission lines. In addition, it is used as a primary propellant for solid rocket booster motor in space shuttle due to its high volumetric energy density. Corrosion resistance, reflectivity, and recyclability are other characteristics of aluminum, which makes it a favorable choice for various industrial applications.

Saudi-Arabia-Aluminum-Market-2019-2026

Aluminum is widely utilized in the production of aircrafts, automotive vehicles, rail transport, and ships, as the metal is light weight 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 lead to increased demand and Saudi Arabia being one of the major exporters acts as a driving factor for the aluminum market growth. The smelters built in Saudi Arabia are highly cost-efficient and possess latest manufacture and processing technologies. Thus, latest technologically advanced processes offer higher efficiency for production. This drives the growth of the aluminum market in Saudi Arabia. The country is aiming to diversify its economy by focusing on the development of non-petroleum sectors, mining and quarrying being one of them. The country benefits from various government policies such as lower interests on loans, lack of corporate tax, lower rents, and simple land grants. Thus, favorable government policies drive the market growth. However, increased circulation of Chinese products in the international market impacts the demand and supply from Saudi Arabia in the international market. Moreover, it is difficult to make new customers and when lower prices are offered the customers can be easily prompted to switch suppliers, thus, hampering the growth of the Saudi Arabia aluminum market.

The Saudi Arabia aluminum market is segmented into type, processing method, series, and end use industry. By type, the aluminum market is bifurcated into primary and secondary/scrap. Secondary aluminum/scrap is further sub segmented into tense/trump, taste, taint/tabor, tale, tata/toto, taldack, troma, and others. The processing method segment is divided into casting, extrusion, forging, pigments & powder, rods & bar, and flat rolled. By series, it is categorized into series 1, series 2, series 3, series 4, series 5, series 6, series 7, series 8, and series 9. By end-user industry, it is classified into building & construction, transportation, electrical, industrial, consumer durable, foil & packaging, and others. 

Market players operating and profiled in the Saudi Arabia aluminum market include Aboura Metals, Al Saudia metal scrap trading LLC, Al Taiseer Aluminium Company, Alcoa Corporation, Aluminum Product Company (Alupco), Maaden - Saudi Arabian Mining Company, Nesma Recycling Co. Ltd., Saudi Aluminium Recycling Company Ltd, Star Steel Factory Co. Ltd., and Tawfiq Al Saleh Trad. Co. 

Other players operating in the value chain of the Saudi Arabia aluminum market include Saudi Aluminum Manufacturing Co., ALUMATEC, Al Esra Aluminum Manufacturing and Casting Factory, Eastern Aluminum Extrusion Factory, and others.

Saudi Arabia Aluminum Market, by Type

By type, the primary aluminum segment holds the largest market share in terms of revenue, owing to its wide use in electrical applications and foil and packaging. In addition, it can be alloyed with other elements to provide higher strength. This is one of the factors that boosts the growth of the aluminum market in high mechanical strength applications.

Saudi Arabia Aluminum Market, by Processing Method

By processing methods, the extrusion segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 6.4%. Aluminum extrusions offer lightweight and durability to patio furniture, sports equipment and others. Flexible and low-cost extrusion tooling allows manufacturers to experiment with new applications and designs

Saudi Arabia Aluminum Market
By Processing Method
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Casting is projected as the most lucrative segment.

Saudi Arabia Aluminum Market, by Series

By series, series 1 segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 6.4%. Series 1 grade aluminum is used in applications such as chemical equipment, sheets, plates, foil and metal tableware, and others

Saudi Arabia Aluminum Market
By Series
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Series 7 is projected as the most lucrative segment.

Saudi Arabia Aluminum Market, by End-Use Industry

By end-use industry, the electrical segment accounted for more than one-fourth of the market share, in terms of revenue, in 2018. Aluminum products are extensively used in the electrical industry due to their performance, weight to strength ratio, thermal conductivity, corrosion resistance, safety, and environment benefits.

Saudi Arabia Aluminum Market
By End-use Industr
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Foil & Packaging is projected as the most lucrative segment.

Key Benefits

  • The report provides an in-depth analysis and market forecast along with the current and future market trends
  • This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period
  • Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the Saudi Arabia aluminum industry for strategy building
  • A comprehensive analysis of the factors that drive and restrain the Saudi Arabia aluminum market growth is provided
  • The qualitative data in this report aims on Saudi Arabia aluminum market trends, dynamics, and developments
  • The Saudi Arabia aluminum market size is provided in terms of revenue
  • The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable market share

Saudi Arabia Aluminum Market Report Highlights

Aspects Details
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By Type
  • Primary Aluminum
  • Secondary Aluminum/Scrap
    • Tense/Trump
    • Taste
    • Taint/Tabor
    • Tale
    • Tata/Toto
    • Taldack
    • Troma
    • Others
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By Processing Method
  • Castings
  • Extrusions
  • Forgings
  • Pigments & Powder
  • Rods & Bar
  • Flat Rolled
  • Post Processing Products
    • Casting
    • Extrusion
    • Forging
    • Rods & Bars
    • Pigments & Powder
    • Flat Rolled
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By Series
  • Series 1
  • Series 2
  • Series 3
  • Series 4
  • Series 5
  • Series 6
  • Series 7
  • Series 8
  • Series 9
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By End Use Industry
  • Transportation
  • Building & construction
  • Electrical
  • Consumer Durable
  • Foil & packaging
  • Others
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Key Market Players

ALCOA CORPORATION, TAWFIQ AL SALEH TRAD. CO., Star Steel Factory Co. Ltd., Ma’aden- Saudi Arabian Mining Company, NESMA RECYCLING CO. LTD., ALTAISEER ALUMINIUM COMPANY, ALUMINIUM PRODUCTS COMPANY (ALUPCO), ABOURA METALS FZCO, AL SAUDIA METAL SCRAP TRADING LLC, SAUDI ALUMINIUM RECYCLING COMPANY LTD.

Analyst Review

Saudi Arabia is one of the major producer and exporter of aluminum in the global market. Saudi Arabia government aims to grow economically in non-petroleum sectors such as mining & quarrying. The presence market player such as Ma’aden which is a mixture of public, private and joint venture (Alcoa) and is the largest aluminum producer positively impacts the industry growth. Saudi Arabia aluminum market is anticipated to grow at a considerable rate during the forecast period. This is attributed to the rise in demand for aluminum building & construction, aviation, automobile, rail, and packaging industries. Moreover, the country has manufacturing plants that have technologically advanced processing methods for aluminum production that offers increased efficiency and drive the market growth. Furthermore, several government policies that encourages foreign investments and joint ventures with local manufacturers such as lower electricity costs, lack of corporate tax, and lower interest on loans favors the market growth. Meanwhile, investments in aluminum scrap recycling plants for encouraging secondary aluminum production within the country offers lucrative opportunity for aluminum industry growth in Saudi Arabia.

Author Name(s) : Krunal Yeware | Eswara Prasad
Frequently Asked Questions?

CAGR of Saudi Arabia Aluminum Market by 2026 is 6.8%.

Growth in electrical industry, technological advancements and growth in aluminum demand from various end-user industries such as foil & packaging drive Saudi Arabia Aluminum Market.

Industries such as building & construction, transportation, electrical, industrial, consumer durable, and foil & packaging are potential customers of Saudi Arabia Aluminum Market.

Extrusion segment will drive market growth.

Building & construction, transportation, electrical, industrial, consumer durable, foil & packaging, and othersare the applications of Saudi Arabia Aluminum Market.

Developments in transport industry, technological advancements in aluminum processing methods and favorable government policies for increasing foreign investments in the country acts as driving factors for Saudi Arabia aluminum market growth.

Recycled aluminumis the major area of expansion for Saudi Arabia Aluminum market.

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Saudi Arabia Aluminum Market

Opportunity Analysis and Industry Forecast, 2019-2026