Aluminium Market Size, Share & COVID-19 Impact Analysis, By Product (Sheet, Plate, Cast Products, Extrusion, and Others), By Alloy Type (Cast Alloy and Wrought Alloy), By End-use (Construction, Transportation, Packaging, Electrical, Consumer Durables, Machinery & Equipment, and Others), and Regional Forecast, 2022-2029

The global aluminium market size was valued at USD 159.32 billion in 2021. The market is projected to grow from USD 168.84 billion in 2022 to USD 255.91 billion by 2029, exhibiting a CAGR of 6.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with aluminium experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 8.1% in 2020 as compared to 2019.

Aluminium (Al) is the 13th element in the periodic table and is a silvery-white, non-magnetic, and ductile metal. It is the most abundant metal on Earth, accounting for more than 8% of the mass of the Earth's core. This metal is represented by the symbol Al and is majorly employed in construction, automotive, electronics, packaging, and consumer durables. The rising demand for packaged foods and the increasing replacement of stainless steel by Al in aerospace and automotive industries are expected to drive the market. The rising demand from electric vehicles and OEM manufacturers is supporting the market growth.

COVID-19 IMPACT

Slowdown in Manufacturing Sector due to COVID-19 Pandemic to Decline Market Growth

During COVID-19 pandemic, extended lockdowns in key manufacturing industries such as construction, automotive, electronics, industrial machinery, and consumer appliances across all regions led to short-term production halts. Thus, demand for Al from the industrial sector suddenly went down. Due to supply chain disruptions across key consuming countries across all regions, in 2020, the year-on-year growth rate of the global market considerably dropped as compared to 2019. Moreover, the demand for bauxite ore across all regions was significantly impacted due to shortage of raw material & inventory, short-term production halt, economic slowdown, trade restrictions, and changing consumer behavior with response to the COVID-19 outbreak and other reasons.

LATEST TRENDS

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Rising Product Incorporation in the Automotive & Transportation Industry to be the Current Trend

Although Al has been used in automobiles for many years, its proportion of new vehicles is rising. This metal is highly preferred by automotive engineers and designers for reducing emissions and increasing fuel economy. Electric vehicle manufacturers are using this metal for reducing the weight of the vehicle and achieving a better driving range. Automotive manufacturers such as Mercedes and BMW are increasingly substituting stainless steel with aluminium as it exhibits similar physical properties and lightweight nature. The above-mentioned factors are estimated to drive market growth.

DRIVING FACTORS

Increasing Popularity of Secondary Aluminium to Aid Market Growth

Al can be recycled into various different products such as car bodies and tractor-trailers. However, aluminium cans generally develop into new cans of the same metal. Additionally, recycling secondary Al does not reduce the metal quality, and thus it can be recycled indefinitely. The continuous demand for such cans results in the increasing metal demand. Recycling cans saves natural resources and energy and reduces the pressure on landfill sites. Making new cans from recycled metal saves almost 95% of the energy used to make cans from the bauxite ore. The production of recycled metal requires only about 5% of the energy required to produce new Al metal. In addition, any scraps left during the production process can be melted down and reused over and over again. As a result, approximately 75% of all Al metal produced is still in use today.

Moreover, the rising emphasis on consuming sustainably sourced products is expected to further drive metal recycling operations and is likely to boost the market growth during the aluminium market forecast period.

RESTRAINING FACTORS

Implementation of Stricter Environmental Regulations to Hamper Market Growth

Many countries across the globe have had to adopt new regulations as a result of expanding environmental-related problems and increasing public expectations for government action to reduce the level of pollution. The implementation of such stringent environmental regulations by governments and associations is expected to limit market growth.

Moreover, rising environmental issues and increasing expectations from the citizens toward improving the rising pollution levels have forced several countries to incorporate a new set of rules. The cost of goods has increased due to smelting operations required to meet higher emission requirements. Additionally, in the past decade, consumers have become increasingly aware and concerned about environmental health.

SEGMENTATION

By Product Analysis 

Cast Products Segment Accounted for Largest Share in 2021 due to Easy Molding Processing

Based on product, the market is segmented into sheet, plate, cast products, extrusion, and others. Cast products segment accounted for the largest share of the market in 2021 and is estimated to maintain the leading position throughout the forecast period. The products manufactured using cast aluminium are highly versatile and range from simple personal hand held devices to complex parts in automobiles. The affordability offered by cast alloy makes it an irreplaceable material.

Sheet segment is estimated to grow at the fastest CAGR during the forecast period. Metal sheet is widely used in manufacturing packaging cans, auto parts, cookware, and building products. Increasing trade activities and expansion of construction industry amongst developing countries are fueling the segment growth.

Extrusion products are used in the construction industry and can be considered as its impeccable part. The ever-growing construction industry and the rising trend of modular interiors are anticipated to augment the segment growth.

By Alloy Type Analysis 

Wrought Alloy to Hold a Dominant Share due to High Strength and Ductility

On the basis of alloy type, the market is bifurcated into cast alloy and wrought alloy. Wrought alloy segment accounted for the largest share of the global market in 2021. In wrought alloy production, the metal is subjected to mechanical processes such as forging, rolling, and extrusion. This makes wrought alloy mechanically stronger and ductile compared to cast alloys. This increasing usage of wrought alloy in various applications requires high material strength including welding rods, aircraft frames, motorcycle frames, and pressure vessels. Hence, this alloy segment is anticipated to grow substantially during the forecast period. 

The high casting flexibility offered by cast alloys increases its use to form a wide range of shapes. This alloy is preferred in applications such as machine tools, window fittings, cast wheels, axle housings, gearbox housings, engine cylinder heads, garden tools, and farm equipment. In addition, cast alloys have a lower price relative to wrought alloys. The specific functionality and cost offered by cast alloys make them irreplaceable in many applications, thus resulting in high segment growth.

By End-use Analysis 

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Transportation Segment to Remain Largest owing to the Rising Preference for Lightweight Metal

Based on end-use, the market is segmented into construction, transportation, packaging, electrical, consumer durables, machinery & equipment, and others. The transportation segment held the largest market share in 2021. Growing metal adoption in the automotive industry due to its lightweight feature is expected to drive segment growth. The construction segment is expected to grow with the highest CAGR by the end of the forecast period. The rising number of construction and infrastructure development activities and increasing product adoption in interior countertops and cladding are the key factors behind the segment growth.

The growing demand for sustainable aluminium packaging from the food & beverage industry and strict government regulations to curb the use of plastic packaging are expected to have a positive impact on the packaging segment growth. The increasing demand for Al metal from machinery manufacturers and the industrial sector is boosting the growth of the machinery & equipment segment.

REGIONAL INSIGHTS

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The market size in Asia Pacific stood at USD 100.96 billion in 2021. It is the major contributor to the growth of the market owing to the presence of significant consuming countries including China, Japan, and India. Increasing technological advancements and rapid infrastructure development are projected to propel the market growth. Additionally, growing metal recycling and the expansion of the packaging industry in developing countries are few of the factors supporting the market growth.

In Europe, increasing product demand is linked to the rapid growth of the automotive industry due to the implementation of regulations to minimize emissions from vehicles by making them lightweight. In addition to complex structural designs, several automotive companies and OEMs are employing newer process and innovative technologies to incorporate lightweight metal in vehicles. Furthermore, the high demand for applications including packaging and solar panels is leading to the growth of the market in Europe.

The market in North America is characterized by high demand from the automotive & transportation industry. The adoption of this metal by EV manufacturers to reduce the weight of vehicles is a prominent factor that is driving the market growth in this region.

In Latin America, increasing metal consumption for construction and infrastructure development activities in the country is the key driving factor.

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The market in the Middle East & Africa is expected to witness moderate growth during the forecast period due to the rising construction and packaging industry in the region.

KEY INDUSTRY PLAYERS

Key Players Focus on Serving Various Industries to Increase their Presence in the Market

The global market is fairly fragmented. UC RUSAL, CHALCO, Alcoa Corporation, China Hongqiao Group, and Rio Tinto are the major players operating in the market. These players are capitalizing on research and development activities to serve multiple end-use industries. They are employing various growth strategies, including expansion of product portfolios, strengthening of distribution networks, capacity expansions, and acquisitions to maintain their competitive edge in the market.

LIST OF KEY COMPANIES PROFILED:

• RusAL (Russia)


• Aluminium Corporation of China Limited (CHALCO) (China)


• Rio Tinto (U.K.)


• Alcoa Corporation (U.S.)


• Emirates Global Aluminium (UAE)


• Norsk Hydro ASA (Norway)


• Hindalco Industries Ltd. (India)


• Vedanta Aluminium & Power (India)


• China Hongqiao Group Limited (China)

KEY INDUSTRY DEVELOPMENTS:

• August 2022 - Rio Tinto revealed its plans to invest USD 29 million in building a new Al recycling facility at its Arvida Plant in Quebec, Canada. The move is aimed toward the company’s goal to expand its offering of low-carbon aluminium solutions for customers in the packaging, automotive, and construction industries.


• July 2022 - Rio Tinto announced its plans to invest USD 188 million to increase the production capacity for high value Al billets at its Alma smelter in Quebec, Canada. The investment will be used to expand the existing casting center at Rio Tinto's Alma plant. This includes the addition of new equipment such as a casting pit and furnaces, enabling a larger portion of the Al produced to be converted to higher value billets.


• February 2022 - RUSAL announced to have developed an optimized 5xxx series Al alloy with anodizing ability. The company has started production of this new alloy at its Bratsk Aluminium Smelter. Due to the anodization of alloys, the final product is covered with a protective oxide film. This also improves the corrosion resistance of products, increasing their service life and enhancing their aesthetic appearance.


• December 2021 - Hindalco Industries Limited signed an agreement to acquire Norsk Hydro ASA’s Al extrusions business in India. Through this acquisition, Hindalco will gain an integrated facility located in Andhra Pradesh, an experienced team of employees and expertise in value-added, customized products. This move will also strengthen the company’s foothold in South India.


• March 2021 - Rio Tinto announced that it had inked an agreement to provide a commercial batch of high-performance aluminium-scandium specialized alloy from its North American operations to Amaero. Amaero will further process the billets into powder for 3D printing and other high temperature applications.

REPORT COVERAGE

An Infographic Representation of Aluminium Market

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The research report provides a detailed aluminium market analysis and focuses on key aspects such as leading companies, competitive landscape, product types, and leading end-use of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation