ID: MRFR/CnM/1499-CR | February 2021 | Region: Global | 299 pages
Aluminum Market Overview
The aluminum market demand forecast is anticipated to show a 6.5% CAGR growth throughout the forecast period and touch a revenue estimate of USD 235.8 Billion by 2025.
Companies in many industries use aluminum in a wide range of manufacturing processes. Some of these industries include automotive, electrical and electronics, building and construction, and aerospace. Aluminum is a strong and durable metal with a high tensile point. It’s also flexible and lightweight. Unlike as is the case with other metals aluminum won’t rust or corrode easily.
COVID-19 is to the 21st century what the Bubonic Plague was to the 5th century and the Black Death was to the 14th century - a real game and destiny changer. COVID-19 is as dangerous as the bacteria that caused the Bubonic Plague and Black Death.
Governments around the world realized that COVID-19 was dangerous early on. The stats and evidence spoke the truth. Some people who got this virus had to be hospitalized because of breathing problems. A small minority of these people even died.
Governments around the world decided to contain the spread of the virus by imposing quarantines and lockdowns. Many companies and industries were adversely affected though since they were forced to either shut operations down temporarily or dramatically scale production back.
Fortunately, the global aluminum industry has not had to deal with this. The industry has been expanding rapidly, largely because aluminum is used to make breathing apparatuses in ventilators. There has been a dramatic rise in the number of ventilators that are being used because of COVID-19.
The global aluminum industry is very competitive. It’s also highly fragmented. The large concentration of companies of all sizes is attributing to this. Companies are finding that they can stay competitive if they invest heavily in research and development. This will allow them to develop and market newer and better aluminum products. Incidentally, they can justify charging more for these products if they market them well.
Companies are also finding that merging with and acquiring other successful companies is highly beneficial because it allows the resulting companies to tap into resources that they never had before. The same applies to knowledge. The resulting companies find that they have no trouble entering new markets. They are also able to do a much better job of solidifying their positions in existing markets.
The same that applies for mergers and acquisitions also applies when companies enter into strategic partnerships with other successful companies. Companies can justify charging more for new products that are better and were developed through more intensive investments in research and development after they merge with/acquire, and/or partner with other companies.
Alcoa Corporation is a major American player in the global aluminum industry. It has managed to cement its position by investing heavily in research and development. This allowed it to create the sustainable competitive advantage that it needed to become one of the top industry leaders.
What’s been driving growth in the global aluminum industry has been the rapid increase in demand for this abundant base metal in China. Most industries in China belong to the government. Many of these industries are developing and growing rapidly. Hence, the need for more aluminum. Some of the sectors that use aluminum intensively in China include construction, packaging, transportation, and electrical. These four sectors combined consume about 60% of the total aluminum that the Chinese industry uses every year.
The government is working hard to make aluminum more accessible to Chinese industrialists. Its outcome will play a huge role in driving growth in the global aluminum industry.
Aluminum is strong, doesn’t melt or warp easily when subjected to hot temperatures, and is flexible. It’s also lightweight, doesn’t rust or corrode easily, and is an excellent conductor of heat and electricity.
Aluminum is relatively inexpensive and that’s why the global automotive industry is increasingly choosing to use it. Aluminum processors around the world realize this. That’s why they’re investing heavily in research and development to try to create newer generations of aluminum products that are superior in all of the above-mentioned qualities and have a much lower price point.
There are a few factors that are holding back growth in the global aluminum industry. One of these is the fact that mining and processing bauxite into aluminum is not environmentally friendly at all. Many processors of aluminum are addressing this fact by making and selling secondary aluminum. The trouble is that this could hold back growth in the aluminum market in both the short and long-term.
One of the biggest challenges that the global aluminum industry faces is decarbonization. Most companies in the aluminum industry are under immense pressure to make their processes greener. They can do this only if they use low-carbon steel which happens to be of inferior quality.
The CAGR for the global aluminum industry is 6.5%, The aluminum market value is projected to be USD 235.8 billion by 2025.
Alcoa Corporation is a major player in the global aluminum industry. It solidified this position and became one of the industry leaders by investing heavily in research and development. This allowed it to develop a new generation of aluminum products that were superior and had a lower price point. Alcoa was also able to create a sustainable competitive advantage by doing this.
The global aluminum industry can be grouped into the following sub-segments by type:
It’s the primary sub-segment that has most of the aluminum market share for this sector at 61.8% according to 2018 numbers. That said, the secondary aluminum sub-segment is expected to have a higher CAGR.
The global aluminum industry can be grouped into the following sub-segments based on product:
The extrusion sub-segment had the highest market share in 2018 while the flat-rolled sub-segment is projected to have the highest CAGR.
The building and construction industry had 30% of the overall aluminum market share in 2018. This industry is expected to have the highest CAGR for the time period that this report covers. The projected CAGR is 6.7%.
It’s a large growth in the building and construction industry in the European Union (in general), China, India, The Philippines, and Indonesia that’s driving demand and growth for the global aluminum industry.
Many developing nations are also investing heavily in terms of developing their infrastructure. Some of these countries include South Africa, India, China, the Philippines, and Indonesia. These nations are also developing at a rapid pace. More people around the world are driving motor vehicles so the growth in the global automotive industry is also expected to drive growth in the global aluminum industry.
The global aluminum industry can be divided into the following regions:
The Asia-Pacific region had the largest regional market share in 2018. It’s expected to have this edge for the entire time period that this report covers. China alone consumed 57% of the aluminum that the entire Asia-Pacific region used in 2018. The nation is expected to record an impressive CAGR of 7% in terms of aluminum consumption.
There are many factors that are accounting for this. They are rapid and vast industrialization, rapid and vast urbanization, increased investment and activity in the construction of buildings and infrastructure, and expansion in the automotive industry.
India itself is seeing respectable growth in terms of year-on-year aluminum consumption. What is accounting for this is an increase in automobile production and construction.
The demand for cars is going up dramatically in the European Union. In fact, it collectively has the second-highest aluminum market share. Many European nations are recovering economically. Their citizens are wanting to buy more automobiles as this happens.
The Middle East and North Africa are expected to register a CAGR of 6.5% until 2025. What’s driving this growth is rapid industrialization and increased investment in construction projects. Many Middle Eastern nations still have vast oil and gas reserves. This is expected to increase demand for aluminum dramatically.
Mexico and Brazil are investing heavily in their aerospace and automotive industries. It’s this activity that’s expected to drive demand and hence a relatively high CAGR for the entire region until 2025.Recent Developments
November 2021: Saturnose unveiled plans to commercialize a solid-state, rechargeable aluminum battery after releasing the results of independent testing of its Enhanced Altered Aluminum Ion (Ea2I) battery chemistry. When it launches next year, it is expected to be the world's first commercial-grade aluminum-ion solid-state battery, paving the way for a lengthy, sluggish transition away from the riskier lithium-ion battery chemistry.
November 2021: Rio Tinto invested USD 87 million in its AP60 smelter in the Saguenay-Lac-Saint-Jean area of Québec to expand its low-carbon aluminum production in Canada with 16 new smelting cells. The investment will boost smelter production by about 45 percent, or 26,500 metric tons of primary aluminum per year, to 86,500 metric tons. According to Rio Tinto, the global aluminum market will increase at a compound annual growth rate of 3.3 percent over the next decade, driven by robust demand from the energy transition and decarbonization.
Dec 2020 The current advances on the exterior inactivity of COVID, the Centre for Biomedical Technologies at Queensland University of Technology (CBT-QUT) has positively wet-etched a nanostructure with a breadth of 21-25 nm onto an aluminum 6063 alloy plane. This verified the idleness of COVID-19 in six hours on tough antiviral nanostructured surfaces. Cicada's Antimicrobial Nanotechnology Solution for COVID-Free Surfaces has given outstanding promise in sustaining public places safe from COVID-19 and is an excellent foundation for research should another pandemic happen in the future.
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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),China Aluminum Corporation (China),China Hongqiao (China),H.P. (Australia),East Hope Group (China),Emirates Global Aluminum (U.A.E.)|
|Key Market Opportunities||Use Of Aluminum Die Cast Products In The Automotive Industry|
|Key Market Drivers||Increasing Demand For Aluminum In China|
Frequently Asked Questions (FAQ) :
The aluminum market is predicted to grow at a 6.5% CAGR between 2017-2025.
The global aluminum market is predicted to touch USD 235.8 billion by 2025.
Emirates Global Aluminum (UAE), East Hope Group (China), BHP (Australia), China Hongqiao (China), China Aluminum Corporation (China), Vedanta Ltd. (India), Century Aluminum Company (US), Aluminum Bahrain B.S.C. (Bahrain), Dubai Aluminum Company Limited (U.A.E), Norsk Hydro ASA (Norway), RUSAL (Russia), Rio Tinto (Australia), and Alcoa Corporation (US).
The availability of high-quality substitutes with a lower price point and the fact that commodities prices are always changing dramatically.