Aluminum Market Research Report Information By Product (Flat-Rolled, Castings, Extrusions, Forgings, Pigments & Powder, Rod & Bar), By Type (Primary, Secondary), By Application (Building & Construction, Transportation, Electrical, Machinery & Equipment,Foil & Packaging, Solar Industry, Utensils, Hardware & Accessories, Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.

Global Aluminum Market Overview

Aluminum Market Size was valued at USD 179.9 billion in 2022. The Aluminum market industry is projected to grow from USD 189.25 Billion in 2023 to USD 256.53 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2023 - 2030). The current trend is for secondary Aluminum to become more widely used to support market expansion and for more products to be included in the automotive and transportation sectors are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Aluminum Market Trends

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  The current trend in the market growth for the automotive and transportation industry is increasing product incorporation

  
  

Despite being utilized in autos for a long time, Aluminum is now seen in more modern cars. Engineers and designers in the automotive sector highly value this Metal for its capacity to reduce pollutants and increase fuel economy. Manufacturers of electric cars utilise this metal to reduce the weight of the vehicle and extend its operational range.. Due to its lightweight nature and similar physical characteristics to stainless steel, automakers like Mercedes and BMW are replacing it more frequently. According to estimates, the elements above will fuel aluminum market revenue.

Al may be recycled into many other items, including tractor-trailers and automotive bodywork. Aluminum cans, however, typically turn into new cans of the same Metal. Additionally, recycling secondary Aluminum doesn't degrade the Metal's purity, allowing for endless recycling. The ongoing demand for these cans contributes to the rising metal consumption. Recycling cans relieves strain on landfills and conserves energy and natural resources. Nearly 95% less energy is required to produce new cans from recycled Metal than is required to produce cans from bauxite ore. Only 5% of the energy needed to make new Aluminum is needed to generate recycled Aluminum.

Additionally, any leftover leftovers from the production process may be melted down and used again. Because of this, over 75% of the Aluminum created is still in use today. Additionally, throughout the forecast period for the Aluminum market, the growing emphasis on purchasing goods made from sustainably derived materials is anticipated to push metal recycling activities further and support market CAGR.

Figure 1: Electric Cars Boost demand for Metal

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

China's rapidly rising demand for this abundant base metal has led to an increase in the aluminium industry. The majority of industries in China are controlled by the government. Many of these companies are rapidly growing and evolving. Consequently, it increases the need for Aluminum. Aluminum is widely used in China's construction, packaging, transportation, and electrical sectors, to name a few. These four industries jointly use most of the Aluminum that the Chinese industry uses annually. The government is working very hard to make Aluminum more available to industrialists. Its outcomes are anticipated to impact the Aluminum industry's growth substantially.

However, a few challenges are preventing the aluminium sector from expanding. One of them is that extracting and processing bauxite to get aluminium from it could be more ecologically beneficial. Numerous aluminium refineries generate and sell secondary aluminium in response to this reality. This is anticipated to be hampered by long- and short-term market growth for Aluminum.

Aluminum Market Segment Insights

Aluminum Type Insights

The Aluminum market segmentation, based on type, includes primary, and secondary. The secondary type share is expected to expand the aluminum market revenue fastest in 2022. Scrap from machines, cars, equipment, and beverage cans is recycled and reused because it is economical. Reprocessing recycled Metal or scrap minimizes environmental damage since it utilizes a small fraction of the energy required to create new Metal from mining.

Aluminum Product Insights

Based on product, the Aluminum market segmentation includes flat-rolled, castings, extrusions, forgings, pigments & powder, rod & bar. The category of cast products held the largest share in the market growth in 2022 and is anticipated to hold the top spot throughout the projected period. Cast Aluminum makes a wide variety of items, from straightforward personal handheld gadgets to intricate vehicle parts. Cast alloy is a unique material because of the affordability it offers. During the projection period, the sheet sector is anticipated to increase at the quickest CAGR. Metal sheets are frequently used in producing cookware, vehicle parts, can packaging, and construction materials. Growing trade activities and developing the construction sector among developing nations are driving the segment's expansion.

Figure 2: Aluminum Market by Product, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Aluminum Application Insights

Based on application, the aluminum market data includes building & construction, transportation, foil & packaging, electrical, machinery & equipment, solar industry, utensils, hardware & accessories, and others. In 2022, the transportation sector accounted for the biggest market share. Growth in the metal category is anticipated to be fueled by an increase in the use of Metal in the automotive sector. By the conclusion of the projection period, the construction segment is anticipated to see the largest CAGR growth. The primary drivers of the segment growth are the expansion of the building and infrastructure sectors and the growing use of interior countertops and cladding products. Strict government restrictions to reduce the usage of plastic packaging and rising demand for environmentally friendly Aluminum packaging from the food and beverage sector are anticipated to boost the expansion of the packaging segment.

Aluminum Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Aluminum market accounted for USD 82.39 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period.The automotive and transportation industries' significant demand distinguishes North America's market. One significant reason fueling the market expansion in this area is E.V. manufacturers' use of this Metal to lighten their cars.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: ALUMINUM MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Asia-Pacific Aluminum Market is expected to grow at the fastest CAGR from 2023 to 2030. Because big consumers like China, Japan, and India are present, it is the main factor driving the market's expansion. The market is expected to rise due to quickening infrastructural construction and rising technology developments. A couple of other variables boosting the market growth include the expansion of the packaging sector in emerging nations and rising metal recycling. Further, the China Aluminum market held the largest market share, and the India Aluminum market was the fastest-growing market in the Region.

The Europe aluminum market held the significant share in the market growth. The introduction of legislation to reduce automobile emissions by making them lightweight has resulted in a rapid expansion of the automotive sector in Europe, correlated with rising product demand. In addition to using intricate structural designs, several automakers and O.E.M.s are incorporating lightweight Metal into their vehicles using modern processes and cutting-edge technology. Additionally, the European market is expanding due to the increased demand for applications, including solar panels and packaging. Further, the Germany Aluminum market held the largest market share, and the U.K. Aluminum market was the fastest-growing market in the European Region.

Aluminum Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the Aluminum industry. With significant industry changes, including new product releases, market development, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a market that is becoming increasingly competitive, Aluminum sector competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics used by the Aluminum industry to serve customers and increase the market sector. The Aluminum industry has recently given medicine some of the most important advantages. The Aluminum market major player such as Rio Tinto (Australia), RUSAL (Russia), Norsk Hydro A.S.A. (Norway), Alcoa Corporation (U.S.), Dubai Aluminum Company Limited (U.A.E.), Aluminum Bahrain B.S.C. (Bahrain), Century Aluminum Company (U.S.), Vedanta Ltd. (India), and others are working on expanding the market demand by investing in research and development activities.

The world's second-largest metals and mining firm is an Anglo-Australian multinational enterprise called Rio Tinto Group (behind B.H.P.). Rio Tinto said in August 2022 that it would spend USD 29 million on constructing a new Aluminum recycling plant at its Arvida Plant in Quebec, Canada. The action is intended to further the business's objective of increasing the selection of low-carbon Aluminum solutions it provides to clients in the packaging, automotive, and construction industries.

According to the main production output, United Firm RUSAL is the second-largest Aluminum company in the world (as of 2016). It was the biggest until China Hongqiao Group surpassed it in 2015. Nearly 9% of the primary Aluminum produced worldwide, and 9% of the alumina produced worldwide are produced by UC RUSAL. RUSAL stated in February 2022 that it had created an improved 5xxx series Al alloy with anodizing capabilities. The company's Bratsk Aluminum Smelter has begun producing this new alloy. Alloys are anodized, resulting in a protective oxide layer applied to the finished item. Additionally, by doing this, items' corrosion resistance is improved, extending their useful lives and boosting their aesthetic appeal.

Key Companies in the Aluminum market include

• Alcoa Corporation (U.S.)

• Rio Tinto (Australia)

• RUSAL (Russia)

• Norsk Hydro A.S.A. (Norway)

• Dubai Aluminum Company Limited (U.A.E.)

• Aluminum Bahrain B.S.C. (Bahrain)

• Century Aluminum Company (U.S.)

• Vedanta Ltd. (India)

Aluminum Industry Developments

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  March 2021: Rio Tinto said it had reached a deal with Amaero to deliver a commercial batch of a high-performance, specialty alloy made of Aluminum and scandium from its North American operations. To create powder for 3D printing and other high-temperature applications, Amaero will further treat the billets.
  
  December 2021: A contract was made by Hindalco Industries Limited to purchase the Al extrusions division of Norsk Hydro A.S.A. in India. With this transaction, Hindalco will receive an integrated factory in Andhra Pradesh, a skilled staff, and experience in value-added, bespoke goods. Additionally, this action will boost the business's position in South India
  
  

  
  


• Dec,2022: Norsk Hydro to supply Mercedes-Benz with low-carbon aluminium,Norsk Hydro will supply Mercedes-Benz with low-carbon aluminium for a range of models from 2023, including its electric EQ models, as the luxury carmaker plans to decarbonise its supply chain

• Feb,2023: Rio Tinto enters agreement with BMW to provide hydro-produced aluminum, Rio Tinto on Tuesday said it would supply BMW with aluminum it produces in Canada using hydroelectric power, lowering the auto manufacturer's carbon footprint with respect to its procurement of the automotive metal.
  
  The UK-based mining company and the German automaker announced in separate statements that they had signed a memorandum of understanding (MOU) for Rio Tinto's hydro-powered operations in Canada to provide a BMW production plant in Spartanburg, South Carolina, with an unspecified amount of aluminum starting in 2024 -- a move that "could generate a reduction of up to 70 percent in CO2 emissions compared to the BMW Group's benchmark for aluminum," according to Rio Tinto.

Aluminum Market Segmentation

Aluminum Type Outlook

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  Primary

  
  


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  Secondary

  
  

Aluminum Product Outlook

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  Flat-Rolled

  
  


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  Castings

  
  


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  Extrusions

  
  


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  Forgings

  
  


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  Pigments & Powder

  
  


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  Rod & Bar

  
  

Aluminum Application Outlook

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  Building & Construction

  
  


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  Transportation

  
  


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  Foil & Packaging

  
  


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  Electrical

  
  


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  Machinery & Equipment

  
  


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  Solar Industry

  
  


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  Utensils

  
  


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  Hardware & Accessories

  
  

Aluminum Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America