Aluminum Extrusion Market

Aluminum Extrusion Market Outlook (2022 to 2032)

The global sales of aluminum extrusion is expected to garner a market value of US$ 89 Bn in 2022 and is expected to register a CAGR of 7% by accumulating a market value of US$ 175 Bn through the assessment period 2022-2032.

Increasing demand for aluminum extrusion in automotive & transportation sector along with Electrical Vehicles (EVs) is expected to boost the sales of the same. Moreover, automobile manufacturers are facing increasing pressure to abide by the regulatory requirements pertaining to the environmental impact of vehicles.

Report Attributes	Details
Market Size Value in 2022	US$ 89 Bn
Project Market Forecast Value in 2032	US$ 175 Bn
Global Growth Rate (2022-2032)	7%
Market Share of Asia Pacific	70%
Key Companies Profiled	Hindalco Industries Ltd. Novelis Norsk Hydro ASA Constellium N.V. Arconic Corp. Kaiser Aluminum QALEX Alupco Gulf Extrusions Co. LLC Balexco (Bahrain Aluminium Extrusion Company) China Zhonwang Holdings

Demand Analysis of Aluminum Extrusion from 2015 to 2021 Vs Market Projections for 2022 to 2032

As per Fact.MR’s report, from 2015 to 2021, global sales of aluminum extrusion market surpassed US$ 85 Bn by the end of 2021. According to Fact.MR- market research and competitive intelligence provider, the industry flourished at a CAGR of 6.2% during the aforementioned historical period. Extensive aluminium mining due to its innumerable end-uses has led to a proliferation of market demand in recent years.

Growth prospects took a significant hit during the COVID-19 pandemic. Imposition of lockdowns to curb spread of infections adversely impacted industrial output. As a result of logistical constraints, aluminium extrusion and mining activities ceased in the first two quarters of 2020. Eventually, however, prospects regained momentum. Lifting of sanctions since 2021 in response to falling infection rates and extensive vaccination drivers is the key growth accelerator.

Manufacturers of aluminum extrusion are focusing on following the emission guidelines set by the government. In addition, demand from end user sectors for light weight aluminum extrusion is positively influencing the demand for the same. Thus, the sales of aluminum extrusion are expected to exceed US$ 175 Bn by registering a CAGR of 7% in the forecast period 2022-2032.

Emission Regulations Increasing Demand for Aluminum Extrusion in End User Sectors?

Rising concerns regarding carbon emissions resulting from mining and extraction activities have widened usage of alternative raw materials, including aluminium. The NHTSA has issued strict emission regulations standards in recent years. As per these regulations, stringency for carbon dioxide standards and fuel economy has increased by 1.5% from model years 2021 to 2026. This is expected to boost the demand for various aluminum components in automobiles over the coming years.

The aerospace & defense, automotive, and construction industries are playing a crucial part in increasing the sales of aluminum extrusion. Moreover, construction activities are leading to the opening of material inflow for construction purposes. Furthermore, low costs and weight of extrusion products are contributing to the rising demand in various industrial applications, mainly in the automotive and aerospace & defense sectors.

Country-wise Analysis

China’s Construction Sector Increasing Demand for Aluminum Extrusion in Asia Pacific?

Dominating presence of major manufacturing sectors of aluminum extrusions in countries, such as China, India, Vietnam, Japan, and South Korea are positively influencing the demand for the same. China is projected to play a crucial part for increasing the sales of aluminum extrusion owing to its extensive construction sector.

The Chinese government is planning to invest in transport and energy infrastructure. This, in turn, is likely to increase the demand for aluminum extrusion. Thus, Asia Pacific is expected to possess nearly 70% market share for aluminum extrusion.

Government Initiatives Surging Demand for Aluminum Extrusions in North America?

Resumption of industrial operations post-pandemic is projected to provide a push to the market growth. In addition, initiatives by government regarding economic development is expected to create lucrative opportunities for aluminum extrusion in North America

• For instance, in October 2020, Canada unveiled a new infrastructural plan worth CAD 7.5 billion (~USD 5.8 billion). The country is planning on launching renewable energy initiatives and creating jobs in the country, which were impacted by the pandemic. Thus, North America is expected to hold more than 40% market share for aluminum extrusion.

Category-Wise Insights

Automotive and Transportation Industry Accelerating Sales of Aluminum Shapes?

Aluminum possesses malleability. This, in turn, makes it easy to produce shapes using the extrusion process. Moreover, aluminum billets are heated and forced with ram or hydraulic press with high pressure on steel dies. Aluminum shapes are formed after this process, which contains the shape of dies.

Furthermore, aluminum extrusions are used in the automotive & transportation sector in chassis, roof rails, panels, transmission housings, and engine blocks for trucks, cars, boats, and railways. In addition, demand for structural components is increasing in vehicles to make them lighter. Thus, by product, shapes are expected to possess nearly 80% market share.

Demand for Residential Sectors Driving Adaption of Aluminum Extrusion in Building and Construction Industry?

Increase in population along with rapid urbanization has increased the demand for residential sectors. Thus, the use of extruded products in construction activities has been greatly influenced by investment in the housing sector. In addition, in terms of nominal value, China holds the largest construction sector.

Moreover, the country’s inclination to invest in new housing development is likely to escalate the growth of aluminum extrusion market over the forecast period. Thus, the building & construction sector is expected to hold more than 60% market share for aluminum extrusion.

Competitive Landscape

• In December 2021, Hindalco Industries Ltd acquired Hydro’s aluminum extrusions business in India. Through this acquisition, the company is focusing on expanding its presence in the upper end of the value added market.
• In February 2022, Novelis launched a net zero lab by collaborating with HES-SO Valais-Wallis to develop carbon neutral solutions for aluminum manufacturing.  Through this, the company will invest in researching on decarbonizing and is aiming at becoming carbon neutral by 2050.

Report Scope

Attribute	Details
Forecast Period	2022-2032
Historical Data Available for	2015-2021
Market Analysis	US$ Mn for Value ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe Asia Pacific Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Germany U.K France Italy BENELUX Nordics China Japan South Korea GCC Turkey South Africa
Key Segments Covered	Product Application Region
Pricing	Available upon Request

Key Segments Covered in the Aluminium Extrusion Market Report

• By Product 

  • Shapes
  • Rods & Bars
  • Pipes & Tubes

• By Application 

  • Building & Construction
  • Consumer Goods
  • Automotive & Transportation
  • Electrical & Energy
  • Others