Global Aluminum Alloys Market: Snapshot
Rising applications across diverse sectors boost the global aluminum alloys market. For instance, the demand for materials capable of reducing overall weight of vehicles is considerably high in the automotive industry. Light-weight vehicles offer greater fuel efficiency, which is also a key reason behind their surging popularity. Aluminum alloys offer strengths required for building a tough vehicle without compromising on its lightweight-feature. Besides this, the use of aluminum alloy is expected to increase in the aerospace industry. Both automotive and aerospace sectors are expanding rapidly, which is expected to boost the aluminum alloys market. Furthermore, the market is likely to gain from the increasing demand for lightweight vehicles around the world.
On the downside, various types of substitutes are available in the global market, which may curtail its growth rate to an extent. Also the high cost of production of aluminum alloys may create hindrances for the market players. Nonetheless, increasing demand and production of electric vehicles is likely to bolster growth opportunities for the market in the coming years.
Transparency Market Research (TMR) forecasts the global aluminum alloys market to rise at a CAGR of 4.8% between 2014 and 2020. At this pace the market is likely to reach US$126.5 bn in 2020 as against US$91.2 bn in 2013.
Transportations Constituted Leading Segment Based on End Use
The global aluminum alloys market can be segmented based on various parameters. For instance, the market can be segmented into packaging, sporting goods, machinery, transportation, construction, and others in terms of end use. Of these, the transportation sector emerged dominant in 2013 with a share of over 40% in the overall market. The segment is predicted to retain its dominance through the forecast period chief on account of the increasing use of aluminum alloys, aerospace, marine, arms, and automotive sectors. Aluminum alloys are increasingly used to manufacture lightweight vehicle parts, which is likely to give significant impetus to the global market.
Asia Pacific to Remain Dominant through Forecast Period
Regionally, the global aluminum alloys market can be segmented into Asia Pacific, North America, Europe, and Rest of the World. Among these regions, Asia Pacific exhibited clear dominance in 2013, with a share of 60% in the global market. Furthermore, it is expected to continue its bullish run through the course of the forecast period. The rising demand from the expanding construction and transportation sectors will aid the market’s growth in the region. Besides this, India and China are forecast to showcase lucrative growth opportunities to the market. Furthermore, the market is predicted to witness positive growth in North America and Europe through the forecast period.
The global aluminum alloys market is moderately fragmented and is projected to witness increasing competition in the coming years. An increasing number of market players are focusing on bauxite sources for their continuous supply of raw materials. This is expected to encourage growth in the aluminum alloys market in the coming years. Also in order to sustain their stronghold, the market players are likely to invest in research and development activities. Additionally, it is expected to witness several acquisitions and collaborations as players aim at gaining competitive advantage.
Some of the leading companies operating in the global aluminum alloys market are Norsk Hydro ASA, United Company RUSAL Plc, Aluminum Corp. of China Ltd., Dubai Aluminum Co. Ltd., and Alcoa Inc.
- Others (including sporting goods, etc.)
- North America
- Asia Pacific
- RoW (South America, Africa and the Middle East)