The global aluminum extrusion market size was valued at USD 86,537 million in 2021 and is expected to reach a valuation of USD 1,46,202 million by 2030. The market is expected to grow at a CAGR of 6% during the forecast period (2022–2030). Aluminum extrusion is a process of shaping the aluminum with the help of an opening shaped in the die or mold as per the required end-product. The said extrusion process applies a strong pressure on the aluminum to obtain the required sections through the directional deformation from an extrusion device. Once the extrusion process is completed, the extruded product is kept to cool down and processed forward to make it fully straight. Various kinds of products can be produced with the help of this extrusion technique, irrespective of the shape and size.
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With the increase in demand for lightweight and durable extruded products in various industries, the aluminum extrusion market is growing at a steady growth rate. The high demand specifically for the aluminum extruded products is the high strength to weight ratio, making it ideal for large constructions and buildings to provide added strength at less weight. Along with the lightweight structure of aluminum, the corrosion resistance offered is the second most important property of the extruded aluminum products.
The high corrosion resistance it provides makes the aluminum extruded products to be used in any weather conditions at any location, proving to be a market driving factor for extruded aluminum products. Along with this, such products or material extruded from aluminum which shows high corrosion resistance indirectly reduces the overall maintenance cost for various industrial products.
The high initial costs incurred with the aluminum extrusion for setting up the overall manufacturing unit and the low production efficiency can adversely hamper the market growth. The cost of setting up the machinery and the large infrastructure needed for the extrusion press needs a lot of investment to be done. Also, the extrusion process is slow by default, which is why the aluminum extrusion cannot achieve continuous production. With these two factors, the aluminum extrusion market is suffering highs and lows, which is affecting the overall growth of the market.
The increase in the demand for customized and flexible designs for extruded aluminum products, the market is opening new doors for manufacturers and start-up owners to start their production and attract major clients. With the aluminum extrusion process, manufacturers can produce various products irrespective of size and shape on the same equipment. A single piece of equipment can help you produce a number of products without any extra costs incurred by the machinery.
This says a lot about the high-cost restraint discussed above, but here, one single investment for the extrusion equipment will make the manufacturers earn more revenue with time. As the demand for customized extruded products is increasing, it is expected to create further opportunities for market growth.
There is nothing new to discuss the impact of the Covid-19 pandemic, as nearly everyone in the world has been adversely affected by the pandemic. The aluminum extrusion market has witnessed a slight decline with the decline in the demand for automotive and construction needs, as the entire industry was stationed at a point. According to a report, the global construction market saw a sharp decline in the said period, which directly affected the progress of the aluminum extrusion market.
Along with this, the extended lockdown across the globe disrupted the global supply chain, which is the reason for the delays in imports and exports, causing huge production and demand & supply gap. Not only this, but the increased use of automation, artificial intelligence, and robotics are proving to be the major factor restricting the labor force and, in turn, making such extrusion processes take a break.
The aluminum extrusion market share is segmented by product and end-use. Segmentation by product includes Mill-Finished, Anodized and Powder Coated. The mill-finished products have the major market share with revenue generation of USD 50,600 million in 2021 and reach USD 82628 million by 2030 at a CAGR of 6%.
The mill-finished aluminum products are the products that are extruded without any further surface treatments and are natural aluminum products in silver color. The mill-finished aluminum has a thin layer of oxidized film that can be removed easily. However, the quick oxidation process of the mill-finished surfaces forms white residue and pits on the surface.
The anodized products segment accounted for a market value of USD 25,365 million in 2021 and reached a valuation of USD 47,822 million in 2030 at a CAGR of 7%. Anodizing is an electro-chemical process that includes immersing the extruded product in an acid electrolyte bath with an electric current allowed to pass through it. Anodizing enhances the natural oxide surface layer that increases the durability of the extruded product, and the layer formed by anodizing is hard and corrosion-resistant.
The powder-coated segment has a substantial market value which stood at USD 10, 572 million in 2021 and is expected to reach USD 16,260 million by 2030 at a CAGR of 5%. While powder coating the extruded product, the aluminum surface is pre-treated, then the specialized powder is applied over it to heat it further, and at last, the product is left to cool down. This process allows a greater strength to the extruded aluminum product and increases its durability with minimal chances of defects.
By end-user, the global aluminum extrusion market is classified into building and constructions, automotive & transportation, and electrical and electronics. The building and construction segment is the dominant segment, with USD 52,155 million in 2021 and estimated to reach USD 85,167 million in 2030 at a CAGR of 6%. Aluminum extrusion is widely used in building and construction sectors due to its low weight and high strength-to-weight ratio. Aluminum weighs about one-third of the total weight of copper or steel. Due to the high strength and weight ratio, aluminum extruded products are widely used in building structure foundations.
The automotive and transportation segment is the second most dominant segment in the said category that accounting for USD 10,818 million in 2021 and is expected to reach USD 20056 million by 2030 at a CAGR of 7%. The aluminum extruded products find their application in automotive and transportation needs as the demand for lightweight automotive components increases. With this, the transportation structures also have a huge demand for lightweight structures for bridges, highways, rails, etc.
The third category of the said segment, which is electrical and electronics, has a substantial market value recorded at USD 9,167 million in 2021 and is growing to USD 16,572 million in 2030 at a CAGR of 7%. Electrical and electronics manufacturing units use small parts used in any electronic devices, which are extruded from aluminum. That is why the said market also has a footprint in the electrical and electronics industry.
When segmented according to the regions, the global aluminum extrusion market share is primarily divided into four major regions, namely – North America, Europe, Asia-Pacific, and Middle-East & Africa. The Asia-Pacific region is the most dominant region of all, with an estimated market value of USD 41,466 million in 2030 at a CAGR of 7%, from the early figures of 2021 that stood at USD 22,555 million.
The Asia-Pacific region is the most dominant, with the presence of major emerging economies and the overall growth ratio of the region. The rapid industrial revolution in the said region has led to an increase in demand for aluminum extrusion products, one of the most utilized products in the industry nowadays.
Europe is the second dominant region in the market of aluminum extrusion, accounting for USD 4,687 million in 2021 and expected to reach USD 8,402 million by 2030 at a CAGR of 6.7%. Europe being the key industrial region globally has varieties of industries operating in the region, with which the automotive is the major industry. So, it is pretty clear why the aluminum extrusion market growth has a significant market value in the European region.
The North American region is listed third with respect to the market value. North America accounted for a market share of USD 4,476 million in 2021 and is expected to grow to USD 6,944 million in 2030 at a CAGR of 5%. Middle-East & Africa and Latin America had a market value of USD 3375 million in 2021, and are expected to grow at 5372 million in 2030 at a CAGR of 5.3%.
Looking at the overall regional segmentation of the aluminum extrusion market, it is clear that the Asia-Pacific region is dominating the world with major industries operating from the region, which is quite a good sign for the entire industry and aluminum extrusion market as well.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Product (Mill-Finished, Anodized, Powder Coated), End-User (Building & Construction, Electrical & Electronics)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Aluminum Products Company, Arconic Corporation, Bahrain Aluminum Extrusion Co. (Balexco), Century Extrusions limited, China Zhongwang, Hindalco,|
|Key Market Opportunities||High Demand In Advanced Materials Sector Is Pushing Aluminum Extrusion Market|