Aluminium Alloy Market

Aluminium Alloy Market Outlook (2024 to 2034)

Expanding at a CAGR of 8.1%, the global aluminium alloy market size is expected to increase from a valuation of US$ 150.1 billion in 2024 to US$ 327 billion by 2034, as per the latest study by Fact.MR.

Aluminium alloys are exhibiting increasing use in the transportation, and building & construction sectors. Metal alloy use case in the automotive industry can be mainly seen to produce body and engine parts, while in building and construction, aluminium alloy is being extensively used for siding and roofing, windows and doors, railings, and staircases.

Cast aluminium alloys are gaining traction owing to their lightweight properties and are extensively used in automotive and aerospace applications. Moreover, the introduction of electric vehicles is uplifting the demand for aluminium-tin alloys.

Projections are that growing demand for fuel-efficient vehicles to reduce carbon emissions will provide a major thrust to the application of aluminium alloys over the decade. This is mainly attributed to aluminium being a preferred material over steel in terms of weight and strength. Thus, the high strength aluminium alloys are expected to exhibit increasing applications across various end-use industries during the coming decade.

Furthermore, surging investments in housing activities globally are being identified as a potential aluminium alloy market trend that is set to drive sales of aluminium-silicon alloys, especially in the high-growth region such as Asia Pacific during the next 10 years.

• The North American aluminium alloy market size is projected to reach US$ 57.2 billion by 2034.
• East Asia is estimated to account for 25.6% of the global aluminium alloy market share in 2024.

Report Attributes	Details
Aluminium Alloy Market Size (2024E)	US$ 150.1 Billion
Forecasted Market Value (2034F)	US$ 327 Billion
Global Market Growth Rate (2024 to 2034)	8.1% CAGR
South Korea Market Value (2034F)	US$ 11.2 Billion
Heat Treatable Aluminium Alloy Demand Growth Rate (2024 to 2034)	8.1% CAGR
Key Companies Profiled	Rio Tinto Rusal Slovalco Hydro Nortan aluminium Alvance CBA Alcoa Aluar Chalco Rheinfelden alloys Trimet Press Metal PT Inalum

Why is Need for Aluminium Alloys Increasing at a Fast Pace?

“Extensive Use of Aluminium Alloys in Automotive and Marine Component Manufacturing”

Adoption of lightweight materials such as aluminium for the manufacturing of various parts such as engines, wheels, suspensions, powertrains, and automotive aluminium extruded parts is gaining traction.

The automotive industry is observing a transformative shift towards the launch of electric vehicles, which require extensive use of aluminium alloys to compensate the weight of li-ion batteries. Also, governments across the world are incentivising electric vehicles, which are boosting their sales, thus further providing a positive outlook for aluminium alloy providers.

Moreover, aesthetic look with the use of aluminium alloy properties in automotive is driving the sentiments of consumers, thus compelling them to demand automobiles made from wrought aluminium alloys. Likewise, the use of aluminium alloy in the marine industry is surging, thus providing a positive outlook to the top producers of aluminium alloys.

“Secondary Recycling - Transformative Shift in Aluminium Alloy Product Manufacturing”

Most of the manufacturers are focusing on recycling the waste generated from the industries such as beverage can, machinery and equipment, and automotive due to cost-effectiveness. Scrap material recycling needs less energy compared to producing new metals from ore. This secondary type of recycling does not reduces the quality of aluminium metal and helps in saving natural resources and energy.

Are Aluminium Alloy Producers Facing Any Challenges?

“Raw Material Price Volatility and Strict Environmental Regulations”

Some of the factors hampering the aluminium alloy market growth are the high price of bauxite ores and energy cost associated with extracting aluminium from ores. The presence of alternative such as advanced high strength steel is also challenging the adoption of aluminium alloys. Rising environment-related issues are compelling governments across the world to implement necessary mandates. Such policies are set to hamper the extracting process of aluminium alloys.

What Tactics are New Companies Resorting to in This Market?

“Introduction of Innovative Products and Niche Marketing Campaigns”

Aluminium being a modern marvel is creating numerous opportunities for producers. New companies eager to enter aluminium alloy industry are expected to earn more in long run.

New companies should focus on introduction of innovative product such as high strength aluminium alloys. This move may increase their market reach. From battery technologies to solar panel to use of aluminium powder for 3D printing, the market for aluminium is limitless. Considering these aspects new companies can also focus on niche marketing. This will help them to earn more without relying on single market.

Country-wise Analysis

North America, besides being a large market, is expected to register 7.5% of CAGR through 2034. The presence of leading producers is benefitting the market growth in North America. Furthermore, sales of aluminium alloys in East Asia are estimated at US$ 38.4 billion in 2024.

How is the United States Aluminium Alloy Market Faring?

“Aluminium Alloys Finding Extensive Usage in Aircraft Component Manufacturing”

Attribute	United States
Market Value (2024E)	US$ 19.8 Billion
Growth Rate (2024 to 2034)	7.8% CAGR
Projected Value (2034F)	US$ 42.1 Billion

The United States is identified as one of the leading consumers of aluminium alloys. Major demand for aluminium alloys is anticipated to come from infrastructural development in the country. Presence of key market players and growing demand from aircraft frame and component manufacturing is boosting the United States market growth.

Why is There High Consumption of Aluminium Alloy in China?

“Major Consumer of Aluminium Alloy in Asia Pacific”

Attribute	China
Market Value (2024E)	US$ 21.9 Billion
Growth Rate (2024 to 2034)	7.7% CAGR
Projected Value (2034F)	US$ 46.1 Billion

China has huge consumer base for aluminium alloys. Demand for alloyed aluminium mainly comes from automotive, building and construction, and consumer electronics. China is hub for electric vehicle manufacturing as well as a leading market for vehicle sales. Going further, the electric vehicle demand is projected to see an upward rise, which is expected to directly influence aluminium alloy sales in the country.

Will Germany Be a Profitable Market for Aluminium Alloy Suppliers?

“Rising Utilization of Aluminium Alloys in Automotive Manufacturing”

Germany is a dominant market in the European region. This can be due to the presence of major automobile manufacturing units. Aluminium due to their high strength-to-weight ratio, flexibility, durability, and lightweight properties is finding increasing application in automotive sector in Germany.

Category-wise Analysis

Fact.MR, a market research and competitive intelligence provider estimates in its recently updated report that the non-heat treatable aluminium alloys are estimated to hold 69.3% of the global market share in 2024. The high durability factor is boosting the sales of non-heat treatable aluminium alloys.

What’s Driving Sales of Non-Heat Treatable Aluminium Alloys?

“High Strength Non-Heat Treatable Aluminium Alloys Widely Popular Among End Users”

Attribute	Non-Heat Treatable Aluminium Alloys
Segment Value (2024E)	US$ 104 Billion
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 226.3 Billion

Demand for non-heat treatable aluminium alloys are widely used for welding fabrication process. Non-heat treatable aluminium alloys are produced using aluminium, silicon, magnesium, and manganese alloys. The cold working and strain hardening process increases strength of these alloys.

Which Casting Type is Poplar in This Space?

“Permanent Mold Casting Aluminium Alloys Majorly Used in Automotive and Aircraft part Manufacturing”

Attribute	Permanent Mold Casting Aluminium Alloys
Segment Value (2024E)	US$ 38.4 Billion
Growth Rate (2024 to 2034)	7.8% CAGR
Projected Value (2034F)	US$ 81.4 Billion

Permanent mold casting aluminium alloys are widely used in automotive manufacturing sector to create parts such as fuel injection housings, suspensions, castings, gears, and engine pistons. The increasing application of permanent mold casting is likely to boost the market growth.

Furthermore, in permanent mold casting aluminium alloys are exhibiting increasing demand from aircraft component manufacturing sector. Permanent mold casting is gaining traction due to low labor costs, reusability, and high production rates.

Competitive Landscape

Some of the key players in the aluminium alloy market include Rio Tinto, Rusal, Slovalco, Hydro, Nortan aluminium, Alvance, CBA, Alcoa, and Aluar. Leading aluminium alloy manufacturers are investing heavily in R&D to introduce innovative alloys to increase their application areas. They are also advancing their production process to produce high-strength aluminium alloys. Continuous focus on innovations is set to attract a wider consumer base and boost the profits of key market players.

They are also adopting tactics such as mergers and collaborations to increase their market reach. To strengthen their market position, global expansion is widely used by leading companies.

• Feb 2023, United Co. Rusal IPJSC a Russia-based manufacturer of aluminium alloy planned to increase its operations in China and also to boost the sales of low-carbon products in the Chinese market.

Key Segments of Aluminium Alloy Market Research

• By Type :

  • Heat Treatable Aluminium Alloys
  • Non-Heat Treatable Aluminium Alloys

• By Casting / Operation :

  • Sand Casting Aluminium Alloys
  • Investment Casting Aluminium Alloys
  • Permanent Mold Casting Aluminium Alloys
  • Die Casting Aluminium Alloys
  • Others

• By Application :

  • Packaging
  • Automotive
  • Marine
  • Consumer Durables
  • Aerospace
  • Building & Construction
  • Others

• By Alloy :

  • Cast Aluminium Alloys
  • Wrought Aluminium Alloys

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa