The "Global Aluminium Extrusion Market" is expected to grow at a high CAGR of 8.3% during the forecasting period (2022-2029).
Aluminum extrusion is the process of changing the aluminum alloy into objects with a definitive cross-sectional profile for the production of aluminium’s unique combination of physical characteristics. Aluminum is extruded into intricate and complex shapes with limitless design possibilities.
The market growth is driven by the rising consumption and usage of aluminum as steel replacement in various sectors such as automobile, electrical energy etc.
Aluminum has become one of the most preferred metals due to increased regulations and strong consumer demand. Rising urbanization and industrialization are further stimulating market growth. According to the United Nations, there is a gradual change in the human population's residence from rural to urban areas. It is expected that 68% of the population, i.e., 2.5 billion people, would be added to the urban areas by 2050. Growing per capita GDP and changing lifestyles have created the demand for world-class infrastructure in the country.
There is an increase in demand for aluminum extrusion for producing automobiles with light vehicle weight, additional safety, convenience and entertainment content. According to the Aluminum Extruders Council, the average aluminium extrusion in a North American passenger vehicle is expected to reach around 50 pounds per vehicle by 2025.
However, the market is hindered by the availability of cheaper substitutes, huge capital investment for setting up a new aluminum extrusion manufacturing plant, high plant and machinery costs, fluctuating prices of aluminum extrudes.
COVID-19 Impact Analysis
The COVID-19 pandemic has disrupted the global economy and halted the key processes of almost all companies. Therefore, even the global aluminium extrusion market suffered due to it. The disturbances in supply chain management and transportation of goods and services had a negative impact on the growth of the market. Many manufacturing and production units were disrupted due to the government enforced lockdowns and curfews across the world which led to losses and wastage of many products. There were very few construction projects taken during the pandemic which negatively affected the market. The automobile industry, in which aluminium extrusion is used, also faced losses during the pandemic. Halted production of raw materials affected the production of passenger and commercial vehicles and automatic and high-end vehicles. The pandemic also significantly changed the consumer demand and behaviour. Consumers refrained from purchasing non-essential products amid the pandemic thereby impacting the sales of aluminium extruded products. The uncertain and unexpected situation caused by the pandemic significantly impacted the market hence, slowing its growth. However, the post-pandemic scene has improved and the global aluminium extrusion market has recovered. The market is set to grow at a high rate.
The market is classified based on application as building & construction, automotive & transportation, consumer goods, electrical & energy, etc.
Building & construction contributes to the highest market share among these segments due to rapid urbanization and industrialization. Several characteristics such as low price, structural designs, and recyclability make it suitable for building & construction. Several companies opt for Greenfield and Brownfield projects in the extrusion sector for business growth and expansion in this field.
Aluminum extrusion is widely used in the automobile industry because of its lightness and low fuel consumption. Moreover, this process is 100% recyclable and emits no significant hazardous gases during their processing. The Electrical & energy segment is witnessing positive market growth. Aluminum extrusion helps convert the sunlight to green power with strong and lightweight state-of-the-art frames and solar energy structures. It helps in creating a comprehensive framework for solar panels, including frames, supports and connectors. Several aircraft companies use aluminum extrusion due to its properties such as recyclability, lightweight, and good conductivity properties.
The global aluminum extrusion market is segmented based on type as pipes & tubes, bars & rods and shapes
Aluminium Extruded shapes segment accounts for the highest market share than the pipes & tubes, bars & rods due to the increased demand of shapes such as channels, angles, and tubing in automobiles and buildings consumer goods sectors.
Advancement in the construction industry has led to an increase in aluminum extruded pipes & tubes. Pipes & tubes are available in various shapes such as rectangle, square, and rounds. There is a rising demand for pipes & tubes in heat exchangers, handrails and buildings. Aluminum extruded rods & bars are used for electrical transmission lines for providing electrical power.
The global aluminum extrusion market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East and Africa based on the region
Asia-Pacific dominated the global Aluminium Extrusion market among all regions due to the increasing construction activities and automotive production. Moreover, the shift towards adopting green buildings in developing countries, such as Japan, China, and India, is further stimulating market growth. China is witnessing the high growth of the manufacturing and construction industries. Increased motor vehicle production with the increasing usage of aluminum extrusions per vehicle created several opportunities for the Asia Pacific region players.
European countries are also witnessing the increased industrial consumption of extruded aluminum. According to the European Automobile Manufacturers Association, Automobile manufacturers operate around 309 vehicle assembly and production plants in 27 countries across Europe. Approximately 19.2 million cars, vans, trucks and buses are manufactured every year. Aluminum is widely used to construct energy-efficient buildings due to its internal maintaining temperature and less- energy requirement in heat-exchangers for maintaining the temperature.
North America is expected to have positive market growth driven by the propelling construction and energy industries. According to the America of Associated General Contractors (AGC), construction is a leading contributor to the United States economy, creating approximately USD 1.3 trillion worth of structures each year. pre-Engineered buildings have witnessed the high demand in the residential sector, which has increased aluminum extrusion usage. The increased usage of aluminum extrusions for constructing energy-efficient buildings due to their properties maintains the internal temperature and reduces the energy requirement.
Several local and international players are present in the market. Some of the key players in the global aluminium extrusion market are Arconic Inc., China Zhongwang Holdings Ltd., Constellium SE, Guangdong Fenglu Aluminium Co. Ltd., Norsk Hydro ASA, Galco Group, Banco Aluminium Ltd., Century Aluminum Company, Jindal Aluminium Limited and Gulf Extrusions Co. LLC.
Companies focus on developing and upgrading existing machinery to increase annual productivity and optimize processing operational flow. For instance, in September 2019, Norsk Hydro ASA had agreed on the sale of Hydro Extrusion, an extrusion plant located in Romania, to optimize and streamline the portfolio.
The companies enter into collaborations, mergers, strategic partnerships, and acquisitions to increase Aluminum Extrusion's demand and expansion across the globe. The companies are also investing to increase their production capabilities around the globe. For instance, in November 2019, McKechnie Aluminium Solutions Limited had completed USD 18 million in the new machinery plant in Taranaki. This investment played a vital role in increasing the plant’s capacity between 30 and 40 percent and producing larger products not previously made by an aluminum extruder.
Overview: Arconic Corporation is an American company operating in lightweight metals engineering and manufacturing, especially in sectors like aerospace & defense, automotive & commercial transportation, building and construction, industrial solutions and spectrochemical reference materials.
Product Portfolio: Arconic Company’s products include rolled products, building & construction systems and aluminium extrusions.
Key Developments: On February 8, 2019, Arconic Inc. announced that it would split into two separate companies, Howmet Aerospace Inc. and Arconic Corporation. The separation was effective from April 1, 2020.
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**The global Aluminium Extrusion report will provide access to approximately 53 market data tables, 44 figures, and 178 pages
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