There are many things that determine the dynamics and growth of the Aluminum Market in Asia-Pacific. A leading factor among these is the ever-increasing rate of industrialization and urbanization in many countries within this region. Infrastructure construction projects and development have caused a tremendous demand for aluminum with use ranging from building and construction, transportation to packaging among others. For instance, the lightweight nature coupled with anti-corrosion property has made aluminum to be a favorite material in such sectors driving its overall demand in the whole region.
Regulations by governments also shape the Asia Pacific Aluminum Market very much because environmental regulations influence aluminum industry production processes as well as emission standards. Given most countries sustainability drives and need to preserve its environment, there is growing emphasis on use of cleaner technologies that are energy efficient when it comes to manufacturing aluminum products. The increased desire for green policies has also led to advancement in technology usage as well seeking more alternative ways of power generation during production process` of aluminum.
Asia Pacific Aluminium market is impacted by worldwide trading and economic conditions as well. This area is a key player in international trade thus factors like tariffs, trade agreements, geopolitical tensions can all influence raw material costs, affect market competition or even impact on overall aluminium product supply chain. Economic stability plus currency exchange rate fluctuation also adds further volatility in these markets thereby influencing decisions regarding investment as well as pricing strategies applied by aluminium manufacturers or producers who are based within Asia.
Consumer preferences and trends are changing affecting how much people buy aluminium products across Asian pacific area, especially those sold into automobile industry so that they can help make cars lighter hence improve fuel efficiency while cutting down pollution levels at same time through reduced emissions. Additionally, due to their weight-to-strength ratio being favourable light vehicles have turned out be very popular amongst them which increases aluminum manufacture. Moreover, due to its recyclability aluminium materials seem to be increasingly demanded by those consumers who are keen on using sustainable ones.
The Asia Pacific Aluminium Market is significantly influenced by technological advances and research in the aluminum industry. The use of advanced manufacturing techniques has resulted in better production processes, new alloy formulations and end-products made from aluminum. As technology continues to advance there are new emerging applications for aluminum which increase both its quality and performance as a metal. Such technologies are vital for maintaining competitiveness within the market as the needs of different industries also change.
Raw materials availability, energy costs and transportation logistics are all supply chain issues that shape the Asia Pacific Aluminum Market. Bauxite extraction which is the main raw material for making aluminium has to consider environmental as well as social impacts associated with it. Furthermore, electricity cost has a significant impact on overall cost structure for aluminium manufacturers because it represents such a large portion of total expenditures during production process. In Asia-Pacific, a reliable supply chain is crucial to guaranteeing an affordable market price thus sustainability of aluminum.”
Asia Pacific Aluminum Market Size was valued at USD 70.5 Billion in 2022. The aluminum industry is projected to grow from USD 76.1 Billion in 2023 to USD 138.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.80% during the forecast period (2023 - 2032). Some of the key market drivers driving the market include the increased emphasis on environmental responsibility and sustainability, the general public's growing knowledge of eco-friendly products, and the ongoing developments in extrusion, rolling, and casting technologies.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India and the ASEAN region's construction industries are among the fastest-growing, and it is projected that they will hold a sizable portion of the global construction market. Building activity has grown significantly in the Asia-Pacific region, which includes Indonesia, Singapore, Thailand, Vietnam, the Philippines, and India. By 2030, the real estate sector in India is expected to grow to a GDP of USD 1 trillion, or roughly 13% of the total. Additionally, between April 2000 and June 2020, the construction development and infrastructure activities sectors received foreign direct investment (FDI) of USD 25.69 billion and USD 16.97 billion, respectively, according to the Department for Promotion of Industry and Internal Trade (DPIIT). In the initial phase of its 300,000-unit housing project, which was finished by 2018, the South Korean government had stated plans to build 35,000 housing units. The region's demand for aluminum from the construction industry is expected to rise over the course of the projection period due to the previously mentioned factors.
Moreover, since aluminum is non-toxic, it preserves food for extended periods of time and prevents the spread of microbes. These factors are the main drivers of the aluminum market's growth, particularly from the food and packaging and pharmaceutical industries. In the manufacturing industry, packaging is one of the most crucial considerations for ensuring that their products are aesthetically pleasing to customers. Manufacturing, food processing, and industrial production facilities are growing quickly, which is driving up the worldwide packaging market. In addition, the e-retail sector and the food and beverage industry's demand have resulted in a large rise in packaging requirements. The need for aluminum is also being fueled by the expansion of retail pharmacies in emerging nations and the pharmaceutical industry's rising emphasis on product differentiation and brand promotion. Furthermore, the demand for medicines is rising as a result of different governments' emphasis on bolstering healthcare infrastructure and insurance coverage, which is itself driving market expansion. Thus, driving the aluminum market revenue.
The Asia Pacific Aluminum market segmentation, based on type includes Secondary/Recycled Aluminum and Primary Aluminum. The secondary/recycled aluminum category led the market in 2022. It is a real closed-loop process that turns scrap aluminum into new aluminum. There have been favorable environmental and economic effects on consumers as well as various businesses from the increased use of recycled aluminum in production and manufacturing. Additionally, the fabrication of secondary aluminum uses only 5% of the energy needed to produce primary aluminum, reducing greenhouse gas emissions and landfill trash.
Figure 1: Asia Pacific Aluminum Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia Pacific Aluminum market segmentation, based on product includes Flat Rolled, Pigment & Powder, Forgings, Extrusions, Castings, Rod & Bar and Others. The extrusions category led the market in 2022. There are countless uses for extrusion in the fields of architecture, automotive, electronics, aerospace, and energy. The major market for extruded aluminum is building and construction. It is present in aluminum panels, stairways, railings, and framing elements. They are gradually taking the place of conventional iron, concrete, and wood building materials.
The Asia Pacific Aluminum market segmentation, based on resin application, includes Building & Construction, Consumer Goods, Electrical, Foil & Packaging, Hardware & Accessories, Machinery & Equipment, Solar Industry, Transportation, Utensils and Others. The building & construction category generated the most income. The building and construction industries are expanding favorably as a result of rapid urbanization and the expansion of the service sector. Aluminum production costs were lowered by over 80% through the use of the electrolysis method, which boosted the use of aluminum in the building sector. Because aluminum can withstand temperatures between –80 °C and +300 °C, its minimum design service life is typically around 80 years. As a result, aluminum is predicted to become more popular in the building industry.
During the projection period, the Asia-Pacific region is anticipated to hold the greatest market share for aluminum. The building and construction, electronics, aerospace, and other industries are expanding in nations like China, India, and Japan. The world's largest car manufacturing sector is found in China. The China Association of Automobile Manufacturers reports that the nation manufactured 27.02 million automobiles in 2022, up almost 3.4% from 26.08 million in 2021.
Figure 2: ASIA PACIFIC ALUMINUM MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the aluminum market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, aluminum industry must offer cost-effective items.
Major players in the aluminum market are attempting to increase market demand by investing in research and development operations includes Alcoa Corporation (U.S.), Aluminum Bahrain (Bahrain), Century Aluminum Company (U.S.), Aluminum Corporation of China (China), Norsk Hydro ASA (Norway), Rio Tinto Alcan Inc. (Canada), China Hongqiao Group (China), Emirates Asia Pacific Aluminum PJSC (UAE), Hindalco Industries Limited (India), Rio Tinto Australia (Australia), BHP Billiton Aluminum Australia Pty Ltd. (Australia), RUSAL (Russia), and Vedanta Ltd. (India).
July 2023: Three of the immune-boosting lemonades from GUNNA Drinks, a soda brand that advocates against plastic use, come in a range of aluminum bottles. This action aims to address the rising demand for functional food and drink items while reducing the amount of plastic waste generated.
December 2021: An agreement was signed by Hindalco Industries Limited to purchase the Indian operations of Norsk Hydro ASA's Al extrusions division. Hindalco will benefit from this acquisition by gaining an integrated plant in Andhra Pradesh, a skilled workforce, and knowledge of value-added, bespoke products. Additionally, this action will increase the company's presence in South India.
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