Aluminium Extrusion Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Aluminium Extrusion Market is segmented By Product Type (Pipes & Tubes, Bars & Rods, Shapes), By Alloy (1000 Series Aluminum Alloy, 2000 Series Aluminum Alloy, 6000 Series Aluminum Alloy, Others) By Application (Building & Construction, Automotive & Transportation, Consumer Goods, Electrical & Energy, Others), By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Aluminum Extrusion Market Overview

Global Aluminum Extrusion Market reached US$ 78.7 billion in 2022 and is expected to reach US$ 117.8 billion by 2030, growing with a CAGR of 5.7% during the forecast period 2023-2030.

Automobile manufacturers should adhere laws that govern the environmental impact of their goods. Many new ways to use extruded aluminum parts, such as the ability to reduce the overall weight of a vehicle with aluminum parts, are expected to attract more automakers. Companies with EPA, California Air Quality Committee and National Highway Traffic Safety Administration along with enacting regulations to reduce greenhouse gas emissions. 

The players are focussing on making new contracts from a variety of end-use industries. China Zhongwang Holdings Ltd., delivered aluminum body parts to urban railway projects in Shanghai, Guangzhou, Xiamen, Hangzhou, Hefei & Jinhua and the Beijing-Zhangjiakou Smart High-speed Rail. In addition, through its collaboration with CRRC, the company secured contracts to supply aluminum extruded train body parts to projects in Thailand and Nigeria.

North America is expected to have the second-highest CAGR during the forecast period with a market share of about 1/4th of the global aluminum extrusion market. The growth is attributed to U.S. having the majority of the market share in the region and the implementation of Corporate Average Fuel Economy (CAFE) standards and limits on vehicular & greenhouse gas emissions. 

Aluminum Extrusion Market Scope

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Aluminum Extrusion Market Dynamics

Rising Demand from Automotive and Transportation

The market is driven by the demand for lighter and more efficient materials as environmental concerns drive the automotive industry towards more sustainable production methods The demand for aluminum extrusion in the transport sector is considerable, as the public transport system including high-speed rail and metro. The sector has global investment opportunities.

By using aluminum components, manufacturers can reduce the weight of their vehicles, increase fuel efficiency and reduce greenhouse gas emissions. Aluminum is ideal for exterior automotive parts exposed to weather conditions due to its strong corrosion resistance. It is used in the production of numerous parts, including heat sinks, roof racks, door hinge support, bumpers, front frame rail driveshaft and electronics housings. 

Rising Adoption in Construction Industry 

As aluminum is durable and eco-friendly, there is a growing demand for it in sustainable and green construction. It is a widely used material in modern engineering due to its exceptional strength and weight, exceptional corrosion resistance and attractiveness. Aluminum is recyclable and utilising it in construction help to get LEED ratings. There is a rise in use of aluminum in commercial and residential buildings.

As per, UK Ministry for Housing, Communities and Local Government, there were 49,470 housing units completed nationwide in the first quarter of 2021, an increase of 4% compared to the previous quarter of 2020 and it’s the highest number in more than 20 years. Moreover, advances in extrusion technology enable new and beautiful shapes and thus the use of aluminum in construction.

Volatility in Raw Material Price

Since raw material costs are so volatile, risk management has become a critical component of aluminum extrusion companies' strategic planning. Producers that extrude aluminum have uncertainty over their production costs due to price fluctuation. A sharp rise in aluminum prices without a corresponding rise in finished product costs is impacting manufacturers’ profit margins

Producers struggle to meet their price commitments if contracts are not signed considering price fluctuations. Unexpected increases in raw material costs impact profit margins and make budgeting & planning more difficult for companies. Fluctuating raw material prices have an impact on long-term contracts between aluminum extrusion suppliers and manufacturers.

Aluminum Extrusion Market Segment Analysis

The global aluminum extrusion market is segmented based type, alloy, application and region.

Demand for Lightweight Materials in Automotive & Transportation

Automotive & Transportation Application is expected to drive the market by holding a share of about 1/3rd of the global market in 2022. Lightweight material innovations, like as aluminum, are increasing in the category, allowing the body to make lighter automobiles. Integrated vehicle system design, innovative manufacturing methods, secondary mass effects and other factors have contributed to weight reductions of about 30% in high strength steel intensive bodies and nearly 40% in aluminum-intensive vehicle bodies, such as the Jaguar XJ, Audi A8 and others. 

Aluminum has been in use for a long time and improvements to improve its strength and ductility drive market demand. For example, Tesla CEO Elon Musk revealed in September 2020 that for the new Model Y, 70 components welded and riveted into the car's rear underbody would be replaced with a single module created using an aluminum casting machine. 

Geographical Penetration

Huge Demand of Aluminum in Automotive Industry in Asia-Pacific

During the forecast period, Asia-Pacific is the dominant region in the global aluminum extrusion market covering more than 1/3rd of the market. The rising demand for electric vehicles in Asia-Pacific as a result of stringent emission standards is expected to push the region's aluminum extrusion market. Aluminum and aluminum extrusions are used in EVs to increase fuel economy (in PHEVs) and range (in BEVs), safety and overall driving experience.

Extrusions can be found in a variety of components such as space frames, doors, hoods, hang-on parts, trunk lids, bumpers, crash boxes, white bodies and automobile bodies. As the world's largest automaker, China, for example, has a significant need for aluminum extrusion in passenger and light vehicles. Furthermore, the Hunan Provincial Government Office dome spans and the exposition centres in Changsha were constructed of aluminum extrusion alloys. It is likely to lead the market because to the rapidly developing end-use industries in Asia-Pacific. 

Competitive Landscape

The major global players in the market include Aluminum Products Company (ALUPCO), Arconic Corporation, Bahrain Aluminum Extrusion Co. (BALEXCO), Century Extrusions Ltd., Constellium, GALCO Group, Hindalco Industries Limited, Kaiser Aluminum, Jindal Aluminum Limited and China Zhongwang.

COVID-19 Impact Analysis

Lockouts and economic uncertainty caused project delays, reduced construction activity and a drop-in car manufacture. However, industrial activity and the demand for commodities containing aluminum grew as economies started to recover from the pandemic and reopen. The epidemic caused price instability on the Aluminum market. 

Supply chain disruptions, production cuts and fluctuations in demand all led to aluminum pricing uncertainty, hurting the overall economics of the aluminum extrusions market. Aluminum extrusion producers encountered operational hurdles, such as workforce issues caused by lockdowns, the implementation of safety measures and the adaptation to new working circumstances. The difficulties have an impact on manufacturing capacity and efficiency.

AI Impact

AI can be used to optimize manufacturing processes such as aluminum extrusion. Machine learning algorithms can analyze data from different sensors and control systems to detect trends and optimize settings for improved efficiency and quality. The increasing use of artificial intelligence, in particular, has significant advantages in terms of making daily life more convenient. 

AMP robots, a firm that is already using AI and robots to recover recyclables, claims that its equipment can pick up 80 pieces each minute. AI robots, like humans, can be taught to recognize and identify practically anything. By analyzing data from equipment sensors, AI systems can predict when machinery is likely to break, allowing for preventative maintenance to save downtime and boost overall production.

Russia-Ukraine War Impact 

Although the price of aluminum was already increasing globally at the beginning of the year, the war certainly made matters worse in February 2022. Russian military operations in Ukraine impacted several industries, notably the aluminum industry. The war has affected the aluminum industry and a variety of aluminum-containing items, ranging from food and beverage cans to aerospace applications. 

The battle drove up the price of aluminum to previously unheard-of levels. Early in March 2022, the three-month contract price for aluminum on the London Metals Exchange reached a record US$ 4,000 per tons, up from US$ 3,224 monthly average in February 2022. The market prices fell as price increase reduced the demand. 

Key Developments

• In August 2022, Norsk Hydro ASA, a Norwegian aluminum and renewable energy corporation, has announced a NOK 300 million investment in a new automobile extrusion press at its Tonder, Denmark, operation. It will service the European automotive market, increasing production capacity and larger cross-section extrusions.
• In May 2022, Novelis Inc., an American industrial aluminum firm, announced intentions to invest more than US$ 2.5 billion in Baldwin County, Alabama, to build a new low-carbon recycling and rolling plant, near Bay Minette.
• In March 2022, Etem Gestamp, a joint venture between the consolidated Etem and Gestamp to be a solution in aluminum extrusion, announced plans to invest EUR 60 million to expand its business in Bulgaria for EV components. 

Why Purchase the Report?

• To visualize the global aluminum extrusion market segmentation based on type, alloy, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of aluminum extrusion market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global aluminum extrusion market report would provide approximately 61 tables, 56 figures and 182 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies