The global aluminum market size was estimated at USD 169.8 billion in 2021 and is expected to hit around USD 277.5 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.61% from 2022 to 2030.
The element aluminum has a silver-white sheen and is flexible and non-magnetic by nature. The letter Al stands for aluminum, which is the most prevalent metal in the crust of the world. Metal is seeing strong demand among end customers in the packing, electrical, and aerospace industries. The market is being driven by the increased market for packaged goods and the expanding use of aluminum instead of stainless steel by automakers. The market is expanding as a result of the increasing demand for electric cars and OEM producers. However, it is anticipated that interruptions in the distribution chain caused by periodic mine closures may hurt market expansion.
The market is always experiencing substantial uncertainty as a result of the COVID-19 outbreak. The downturn in manufacturing and decline in global GDP has further lowered aluminum production activity. Bauxite ore mining operations have been suspended. Due to a lack of personnel in the manufacturing sector and a decrease in demand from the automotive and aerospace industries, consumers' desire for semi-finished goods is falling.
However, because more people are consuming packaged foods, foil and can companies be growing favorably. Despite being used in autos for a long time, many new cars are now made of aluminum. For its ability to lower emissions and improve fuel efficiency, this material is highly favored by designers and engineers in the automotive industry. Manufacturers of electric vehicles use this metal to lighten their vehicles and increase their operating range. Due to its lightweight composition and similar physical characteristics to stainless steel, automakers like BMW and Mercedes are replacing it more frequently. According to estimates, the aforementioned elements will fuel market expansion.
Report Scope of the Aluminum Market
|Market Size in 2022||
USD 179.32 Billion
|Market Size by 2030||
USD 277.5 Billion
|Growth Rate from 2022 to 2030||CAGR of 5.61%|
|Forecast Period||2022 to 2030|
|Segments Covered||Series, Type, Processing Method, End-Use Industry, and Geography|
|Companies Mentioned||Alcoa Corporation (U.S.), Aluminum Corporation of China Limited (CHALCO) (China), Century Aluminum Company (U.S.), China Hongqiao Group Limited, China power investment corp. (cpi), China zhongwang holdings limited (china), Dubai Aluminum Company Limited (U.A.E), East Hope Group (China), Emirates Global Aluminium (UAE), H.P. (Australia), Hindalco Industries Ltd. (India), Kaiser Aluminium, Norsk Hydro A.S.A. (Norway), Novelis (U.S.), Rio Tinto Ltd., United Company RUSAL Plc, (Russia), Vedanta Aluminium Limited (India), Xinfa group co. Ltd.|
The second highest malleable and sixth most highly flexible material on the planet is aluminum. With a density of just 2.7g/cm, it is incredibly light, dust-resistant, and highly conductive, and when alloyed, it demonstrates great strength. Because it is harmless by nature, maintains food for a long period, and prevents the growth of microbes, it is widely employed in the food and packaging industries as well as the pharmaceutical industry. The worldwide aluminum industry has been growing due to China's quickly increasing need for this plentiful base material. In China, the bulk of industries is owned by the government. Consequently, it increases the need for aluminum.
Aluminum is widely used in China's construction, transportation, packaging, and electrical sectors, to name a few. These four businesses collectively use the majority of the aluminum that the Chinese industry uses annually. Government officials are working very hard to improve industrialists' accessibility to aluminum. Its outcomes are anticipated to have a substantial impact on the growth of the global aluminum industry. Nevertheless, there are a few issues that are keeping the global aluminum industry from growing. One of them is the reality that producing aluminum from bauxite through processing and mining is not at all environmentally friendly. In response to this reality, several aluminum refineries produce and market secondary aluminum. Long- and short-term market growth for aluminum are both predicted to be hampered by this.
One of the more prevalent non-ferrous transition metals in the crust of the Earth is aluminum. It is strong, malleable, flexible, lightweight, and resistant to oxidation and corrosion. Because it easily forms combinations with the other chemical components, it is widely used in a wide range of application. For instance, wheels, motors, chassis, and other components of contemporary automobiles are made of aluminum combined with silicon and magnesium. Around the world, it is also utilized to make refrigerators, desktop computers, tablets, cellphones, and other electrical devices.
Key Market Drivers:
Secondary aluminium's rising popularity will promote growth
Numerous uses across several industries, and expanding building industries
Key Market Challenges:
Decarbonization is a challenge for the worldwide aluminum industry
Implementing tougher environmental rules to restrain the growth
Key Market Opportunities:
Aluminum is good electricity and heat conductivity and is reasonably priced
In 2021, the series 1 category dominated the worldwide aluminum market, and it is anticipated that it will continue to grow at the quickest rate throughout the forecast period. The production of items like foil, drawn tubes, sheets, chemical apparatus, dishes, and metal glassware uses this kind of Series 1 aluminum (sugar bowls, coffee pots, creamers, and others).
Processing Method Insights
With a share of the market of approximately 31.5% in 2021, the extrusion sector is anticipated to increase at a significant rate throughout the projected period. Radiators and air conditioning units for automobiles, condensing pipes, nuclear-powered apparatuses, sound equipment, and communications, among other things, are using extruded aluminum products more and more.
End-Use Industry Insights
In terms of the end-user, the transport sector held the biggest market share. This market's expansion is being driven by the growing use of metal in automobiles due to its lighter lightweight and improved physical characteristics. Many emerging countries are making significant investments to build out their infrastructure. These countries are likewise progressing quickly. As more people throughout the world own cars, the global aluminum sector is anticipated to grow with the automotive industry worldwide.
Because more people throughout the world drive cars, the transportation sector dominated the global aluminum market in 2021. As a result, expansion in the global transportation sector is anticipated to fuel expansion in the global aluminum market. During the projection period, the packing sector is anticipated to increase at a significant CAGR. This industry is expected to increase as a result of the growing demand for aluminum from producers of packaged foods because of its non-permeable properties.
Due to reasons like rapid and widespread industrialization, quick and widespread urbanization, increasing investment and activities in infrastructure and infrastructure, and development in the automobile industry, Asia-Pacific is predicted to have the fastest expanding market. Because big consumers like Japan, China, and India are present, it is the main factor driving the market's expansion. The region's desire for metal is being driven by the expanding construction and automobile industries. The market is expanding in Europe as a result of factors like the introduction of legislation to reduce automobile pollution and the strong demand from end-use sectors like solar cells and packing.
The automotive and transportation industries' high demand dominates the North American market. One significant reason fueling the market expansion in this region is the use of this material by EV producers to lighten their vehicles. The causes responsible for the rise in Latin America and the Middle East and Africa are the increased demand among end-users for equipment, consumer durables, and construction materials. The market is also expanding as a result of the expanding construction and infrastructure investment projects in these areas' growing nations.
Segments Covered in the Report:
(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)
By Processing Method:
By End Use Industry:
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