Aluminum Market Size to grow by USD 31.43 billion between 2024-2028
According to a research report “ Aluminum Market” by End-user (Transportation, Construction, Packaging, Electrical engineering, Others) Type (Primary aluminum, Secondary aluminum) Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 31.43 billion, at a CAGR of 3.33% during the forecast period. The global aluminum market is poised for significant expansion, driven primarily by the surging demand for this lightweight metal in the automotive and electric vehicle (EV) sectors. Aluminum's inherent properties, such as its low weight and excellent thermal conductivity, make it an ideal choice for manufacturing lightweight, fuel-efficient vehicles and EV components. For instance, Norsk Hydro's production facility in Grevenbroich, Germany, specializes in producing advanced aluminum car body sheets. This metal's applications in the automotive industry span across various components, including the chassis, body panels, and wheels. Moreover, in EVs, aluminum is utilized extensively in battery compartments, helping to regulate temperature around battery modules in extreme weather conditions.
Browse market data tables, figures, and in-depth TOC on “Aluminum Market” by End-user (Transportation, Construction, Packaging, Electrical engineering, Others) Type (Primary aluminum, Secondary aluminum) Geography (APAC, Europe, North America, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By End-user, the Transportation segment is projected to dominate the market size in 2024
The primary aluminum sector held a significant market share of approximately 95% in the global aluminum industry in 2023, and is projected to maintain its leading position throughout the forecast period. This segment is derived from the mining and refining of bauxite ore, which undergoes the Bayer Process to produce alumina, containing 30-55% alumina content. Subsequently, aluminum is extracted from alumina through electrolytic reduction. The Bayer Process involves the drying, grinding, and mixing of bauxite with a preheated sodium hydroxide solution in pressurized digesters, operated at temperatures ranging from 221°F to 554°F.
By Type, Primary aluminum segment is expected to hold the largest market size for the year 2024
The global aluminum market's transportation sector is poised for continuous expansion, driven by the extensive utilization of aluminum in the aerospace, automotive, rail, and marine industries. In aerospace, aluminum is a preferred material due to its lightweight properties and fuel efficiency, accounting for approximately 76%-79% of the aircraft's body composition. Key components, such as the fuselage, doors, floors, passenger seats, engine turbines, and cockpit instrumentation, are all made from aluminum. The aerospace industry primarily uses aluminum alloy 7075 (AA7075), which is a high-performance alloy consisting of aluminum, zinc, magnesium, and copper, ensuring superior strength and durability.
APAC is forecasted to hold the largest market size by region in 2024
The aluminum market is experiencing significant growth, driven by increasing demand from various sectors, including automotive, construction, and packaging. Aluminum's lightweight, durable, and recyclable properties make it an attractive alternative to traditional materials. Global production is projected to reach new highs, with China remaining the largest producer. Companies are investing in advanced technologies to improve efficiency and reduce costs. The market is expected to continue its upward trajectory, offering lucrative opportunities for businesses involved in aluminum production, processing, and distribution.
The Aluminum Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Aluminum market is experiencing significant growth, driven by various sectors including electric vehicles, residential real estate, building and construction, and electrical applications. Companies like RusAL, Hindalco Industries, and Alcoa Corporation are major players in this sector. The electric vehicles market is a key driver, with aluminum's lightweight properties making it an ideal material for vehicle manufacturing. However, environmental concerns and strict regulations are pushing the industry towards more sustainable practices, such as the use of recycled aluminum. The extrusions segment is expected to dominate the market, with applications in residential real estate, building and construction, and electrical applications. The processing method used to produce aluminum, whether primary or secondary, also plays a role in its market value. Bauxite mining and refining are used to produce primary aluminum, while secondary aluminum is produced from recycled scrap. Battery technology, particularly aluminum-ion batteries, is another growing area for the aluminum sector. Aluminum's properties make it an excellent material for battery anodes, and its use in 3D printing and solar energy applications is also increasing. Strict regulations on the use of aluminum in various industries are expected to continue, with a focus on sustainable production methods and the reduction of carbon emissions. Overall, the aluminum sector is expected to continue its growth trajectory, driven by the electric vehicles market, building and construction, and electrical applications. The use of recycled aluminum and sustainable production methods will also play a key role in the industry's future.
Market Research Overview
The Aluminum market is experiencing significant growth due to its extensive applications in various sectors such as flexible packaging, electronics, and the electrical industry. The flexible packaging sector's demand for lightweight and durable aluminum foil is driving market growth. The electronics market's increasing reliance on aluminum for making components in consumer electronics and telecommunications equipment is another growth factor. The Organisation Internationale des Constructeurs d'Automobiles (OICA) and the International Monetary Fund (IMF) predict a surge in demand for aluminum in the electric vehicles market due to its lightweight properties. Recycled aluminum is gaining popularity due to environmental concerns and strict regulations. Foreign Direct Investment (FDI) inflow in the aluminum sector is increasing due to the availability of cheap labor and raw materials. Companies like RusAL, PIAI, and Hindalco Industries are major players in the market. The electrical industry's demand for aluminum wiring and cast alloys is also driving growth. The processing method for secondary aluminum, which involves melting scrap metal or recycled aluminum, is becoming increasingly popular due to its cost-effectiveness and environmental benefits. The construction and transportation sectors also use wrought alloys, extrusions, plates, sheets, cast products, and aluminum in bauxite ore mining and solar energy applications. The aluminum sector's future looks bright with the development of aluminum-ion batteries, 3D printing, and battery technology. The aerospace industry's demand for lightweight and strong aluminum alloys is also expected to drive growth. However, challenges such as bauxite ore mining's environmental impact and strict regulations on scrap metal recycling may affect market growth.
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