Global Aluminum Market: Snapshot
Well-entrenched players in the highly competitive global aluminum market have adopted multi-pronged growth strategies to stay ahead in the competition. Of them, strategic alliances is a vital strategy that is expected to benefit key players for competitive gains.
The expansion of the construction sector post the global economic slump of 2008 is one of the key growth drivers of the global aluminum industry. In particular, rapid industrialization and urbanization in the emerging economies of Asia Pacific leading to the construction of commercial and residential buildings account for high demand for aluminum and aluminum alloys. This is because of their properties of high corrosion resistance and reduced self-weight.
The increasing use of aluminum in automobiles to reduce their weight for fuel economy is also immensely benefitting the aluminum industry.
As per a report by Transparency Market Research, the global aluminum market is predicted to display a CAGR of 6.4% between 2017 and 2025. Progressing at this rate, the market will be valued at US$249.29 bn by the end of 2025 from US$143.87 bn in 2016.
Transportation End-use Segment led Overall Market in 2016
The global aluminum market has been studied based on a few parameters in this report. In terms of type, the aluminum market has been bifurcated into pure aluminum and aluminum alloys. Vis-à-vis revenue, aluminum alloys held the leading share of the market in 2016, owing to their increasing demand over pure aluminum.
On the basis of product, the segments into which the global aluminum market has been divided depending upon product are plates, sheets & foils, ingots, cables &wires, and others. Of them, in 2016, the segment of ingots held the leading share of the market based on revenue.
The report divides the global aluminum market based on end-user into transportation, electrical, construction, foils & packaging, and others. Amongst all, the transportation sector dominated the overall market in terms of revenue in 2016.
Construction Boom Accounts for Dominance of Asia Pacific
Geography-wise, the global aluminum market has been classified into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Of them, in 2016, Asia Pacific led the market with more than 60% share. Going forward, the region is expected to hold dominance over the forecast period.
The growth of Asia Pacific aluminum market is attributed to few factors. The booming construction sector in countries such as India, China, Malaysia, and Vietnam as a result of rapid industrialization and urbanization is indirectly benefitting the aluminum industry. This is mainly because of high durability and strength and low self-weight of aluminum and aluminum alloys that make them suitable for residential and commercial buildings as well as infrastructure such as bridges and flyovers.
Another key factor driving growth of the Asia Pacific aluminum market is growth of the automobiles industry. Economic development and rising purchasing power in the emerging economies of the region is leading to a substantial demand for automobiles. Growth in the demand for automobiles has led to a substantial increase in fuel consumption, which in turn has led to surge in fuel prices in the region. To address this, automobile manufacturers are substituting steel frame with aluminum alloys that reduces the body weight of the vehicle substantially without compromising on the strength and weight carrying capacity of the vehicle. The light weight of the vehicle assures fuel economy, reduced emissions, and more efficiency. This is having a positive bearing on the Asia Pacific aluminum market.
Key players in the global aluminum market are Alcola Corporation, Norsk Hydro ASA, Emirates Global Aluminum PJSC, Aluminum Corporation of China Limited, RUSAL, and RioTinto among others.
Global Aluminum Market: Overview
This report analyzes and forecasts the market for aluminum at the global and regional level. The market has been forecast based on revenue (US$ Mn) and volume (Kilo Tons) from 2017 to 2025. The study includes drivers and restraints of the global aluminum market. It also covers the impact of these drivers and restraints on demand for aluminum during the forecast period. The report also highlights opportunities in the aluminum market at the global and regional level.
The report comprises a detailed value chain analysis, which provides a comprehensive view of the global aluminum market. Porter’s Five Forces model for the aluminum market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global aluminum market by segmenting it in terms of type, product, end-user industry, and region. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for aluminum in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand for individual end-user segments in all the regions.
Global Aluminum Market: Scope of Study
The report provides the estimated market size of aluminum for 2016 and forecast for the next nine years. The global market size of aluminum has been provided in terms of revenue and volume. Market numbers have been estimated based on key type, product, end-user industry, and regional segments of aluminum market. Market size and forecast for each major types and product have been provided in terms of global and regional/country markets.
Global Aluminum Market: Research Methodology
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, Aluminum Association standard, European Aluminium Association, The Aluminum Association, Factiva, etc.
Global Aluminum Market: Market Dynamics
The market for aluminum is primarily driven by stringent greenhouse gas (GHG) & carbon emission norms, growing focus on usage of hard but lightweight aluminum alloys for manufacturing vehicle durable components, emission reduction with the use of aluminum, low toxic emission and high operating speed of automobiles, etc.
Global Aluminum Market: Competitive Landscape
The study includes profiles of major companies operating in the global aluminum market. Key players in the aluminum market include Alcoa Corporation, Aluminum Corporation of China Limited (CHALCO), Norsk Hydro ASA, RUSAL, Emirates Global Aluminium PJSC, RioTinto, and others. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, recent developments, and SWOT analysis.
The aluminum market has been segmented as follows:
Global Aluminum Market: By Type
- Pure Aluminum
- Aluminum Alloy?
Global Aluminum Market: By Product
- Sheets & Foils
- Cables & Wires
Global Aluminum Market: By Region/Country/Sub-region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of South Africa
- Latin America
- Rest of Latin America