Aluminum Market Ascends at a CAGR of 6.1% by 2030

Introduction

Aluminum has a silvery-white sheen and is non-magnetic and ductile by nature. It is the most prevalent metal in the earth's crust, and its symbol is Al. The metal is in high demand in the aerospace, electrical, and packaging industries. The increased demand for packaged foods, combined with the increasing substitution of stainless steel for aluminum by vehicle manufacturers, is driving the industry. Rising demand for electric vehicles and OEM manufacturers are also urging aluminium market expansion.

Market Dynamics

Flourishing Construction Activities in Asia-Pacific Propel the Demand for Aluminum

The construction sector in ASEAN and India is one of the fastest-growing markets and is expected to account for a significant share of the global construction market. In Asia-Pacific, countries such as Indonesia, Singapore, Thailand, Vietnam, the Philippines, and India have seen rapid expansion in construction activity. Furthermore, by 2030, the Indian real estate business is expected to be worth USD 1 trillion, contributing nearly 13% of the GDP.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and June 2020, the construction development and infrastructure activities sectors attracted FDI inflows totaling USD 25.69 billion and USD 16.97 billion, respectively. In South Korea, the government announced plans to construct 35,000 housing units in the first phase of its 300,000-unit housing project, which was completed by 2018. Consequently, the region's demand for aluminum from the construction sector is expected to rise during the forecast period.

Recyclable Properties of Aluminum Create New Opportunities for the Global Aluminum Market

Aluminum is completely recyclable and retains all of its qualities. Due to the virtue of recyclability, the world's rising stock of aluminum will operate as a resource bank, delivering more practical use and value from the energy embodied in the metal at its production. Furthermore, recycling the currently stored metal would equal up to 24 years of current annual primary aluminum output. This quality of aluminum distinguishes it from other non-recyclable replacements and gives chances to expand the market under consideration.

Regional Insights

Asia-Pacific accounts for the largest market share and is estimated to grow at a CAGR of 3.7% during the forecast period. According to the Civil Aviation Administration of China (CAAC), China is one of the largest aircraft producers and domestic air passenger market. For the past five years, the country's civil aircraft fleet has likely increased market demand for aluminum. Aluminum foils are also used in packaging tablets, capsules, creams, lotions, liquid, and powder pharmaceuticals. China's packaging sector is predicted to expand dramatically. This strong momentum in the packaging business is projected to fuel the country's aluminum market demand.

Europe is the second-largest region. It is estimated to reach an expected value of USD 25 billion by 2030, growing at a CAGR of 5.7%. Construction is a high-priority business for the United Kingdom's government. The government had promised to construct approximately 1,000,000 dwellings by 2020. Furthermore, building investments total USD 383 billion between 2017 and 2021. Again, new building orders increased by 12.2 percent, to roughly GBP 1,227 million in the first quarter of 2021, compared to the previous year's fourth quarter. These growth indicators in the construction sector are projected to enhance market demand for aluminum in the construction sector.

North America is the third-largest region. The US electronics market is the world's largest and will likely remain so throughout the forecast period, owing to advanced technology, increased R&D centers, and rising consumer demand. Furthermore, with corporations continually investing in the country's electronics industry, the market will continue to grow, increasing aluminum demand in the US. Packaging demand will likely rise significantly during the forecast period with the improved government emphasis and investments in many sectors. With growing demand from various end-user industries, the aluminum market is predicted to expand at the quickest rate in the country throughout the forecast period.

Key Highlights

• The global aluminum market size was USD 150 billion in 2021. It is projected to reach USD 255 billion by 2030, growing at a CAGR of 6.1% during the forecast period (2022–2030).
• By processing type, the global aluminum market is segmented into Castings, Extrusion, Forgings, Pigments & Powders, Rod & Bar, and Sheet & Plate. The Extrusion segment dominated the global aluminum market and is expected to grow at a CAGR of 6.9% during the forecast period. 
• By end-user, the global aluminum market is segmented into Automotive, Aerospace & Defense, Building & Construction, Electrical & Electronics, Packaging, Industrial, and Others. The Building & Construction segment dominates the global aluminum market and is expected to grow at a CAGR of 7% during the forecast period. 

• By region, the global aluminum market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominates the rest of the world.

Competitive Players

1. Alcoa Corporation
2. Aluminium Bahrain B.S.C. (Alba)
3. Aluminum Corporation of China Limited (CHINALCO)
4. China Hongqiao Group Limited
5. East Hope Group
6. Emirates Global Aluminum PJSC
7. Novelis Inc.
8. Norsk Hydro A.S.A.
9. Rio Tinto
10. Rusal
11. State Power Investment Corporation (SPIC)
12. Xinfa Group Co. Ltd

Recent Developments

• January 2023- The Wesselman Woods boardwalk extension and the preservation of a rare environment are supported by an Alcoa Foundation grant.
• January 2023-  One Phipps Plaza is now home to Novelis' North American and global corporate headquarters.
• January 2023- China's Taicang Hydro plant received A.S.I. accreditation.
• January 2023- The Brazilian Development Bank approved a dollar-indexed loan for the Boa Sorte solar project from Hydro Rein and Atlas Renewable Energy.
• November 2022- RUSAL will develop a brand-new aluminum alloy for use in space.

Segmentation

1. By Processing Type
   1. Castings
   2. Extrusions
   3. Forgings
   4. Pigments & Powders
   5. Rod & Bar
   6. Sheet & Plate
2. By End-User
   1. Automotive
   2. Aerospace & Defense
   3. Building & Construction
   4. Electrical & Electronics
   5. Packaging
   6. Industrial
   7. Others