The global aluminum market is choc-o-bloc with companies of varying sizes, says Transparency Market Research (TMR) in one of its recent market study. Well-entrenched players in the market are adopting multi-pronged strategies to stay ahead in competition. Of them, formation of strategic alliances is a vital strategy that key players in this highly competitive market are expected to benefit from.
Prominent participants in the global aluminum market to name a few are Alcoa Corporation, Norsk Hydro ASA, Emirates Global Aluminum PJSC, Aluminum Corporation of China Limited, RUSAL, and RioTinto.
According to a report by TMR, the global aluminum market is expected to clock 6.4% CAGR for the forecast period between 2017 and 2025. Rising at this pace, the market will reach a valuation of US$249.29 bn by 2025-end from US$143.87 bn in 2016.
The global aluminum market has been segmented based on type, product, end-user, and region. Aluminum alloys held the leading share of the market in 2016 based on revenue. The segment of ingots amongst key product segments held the leading share of the market in 2016. Asia Pacific dominated in 2016 holding more than 60% of the overall market. Going forward, the region is expected to stay dominant over the forecast period.
Booming Construction Sector post 2008 Economic Slump Surges Growth
Rapid industrialization and urbanization in several parts of the world has been a prominent factor driving the global aluminum industry. The revival of the construction sector post the economic slump of 2008 is tremendously benefitting the aluminum industry. In particular, developing countries such as India, China, Malaysia, Vietnam, and Korea are experiencing high growth in the construction industry that account for high demand for aluminum and aluminum alloys. Aluminum and aluminum alloys are widely used in the construction sector due to their properties of high corrosion resistance and reduced self-weight. This includes residential and commercial buildings as well as infrastructural developments such as bridges and flyovers.
Need to Reduce Vehicle Weight for Fuel Economy Benefits Market
Another factor stoking growth of the aluminum industry is the rising demand for automobiles in the developing economies of Asia Pacific. Growth in the demand for automobiles has led to a significant increase in demand for crude oil. This is turn has led to increased fuel prices in these regions which is driving the need for light weight vehicles. This is because decrease in weight of vehicles is beneficial to save fuel consumption, which in turn curbs greenhouse gas emissions.
To address this, automobile manufacturers are focused on utilizing substitute materials that can help reduce the overall weight of vehicles. Aluminum alloys are considered to be the best substitute for the steel frame of vehicles that reduces vehicle weight substantially without compromising on the strength and weight carrying capacity of the vehicle. Further, aluminum alloys assure better fuel economy, increased efficiency, and less pollution. These factors are anticipated to increase the demand for aluminum over the forecast period.
The vast application of aluminum across several industry sectors such as packaging, transportation, household goods, and electronics contributes immensely to the global aluminum market. This is due to the versatile physical properties of aluminum combined with its widespread availability in the earth’s crust.
However, factors such as moderate tensile strength and moderate machinability of aluminum are limiting its direct use across various end-use industries.
The information presented here is based on the findings of a report by Transparency Market Research, titled “Aluminum Market (Type - Pure Aluminum and Aluminum Alloy; Product - Plates, Ingots, Sheets & Foils, and Cables & Wires; End-user - Transportation, Construction, Electrical, and Foils and Packaging) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025.”
The global aluminum market is segmented as follows:
Aluminum Market: By Type
- Pure Aluminum
- Aluminum Alloy
Aluminum Market: By Product
- Sheets & Foils
- Cables & Wires
Aluminum Market: By End-User Industry
- Foils & Packaging
Aluminum Market: By Region/Country/Sub-region
- Rest of Europe
- Rest of Asia Pacific
Middle East & Africa
- South Africa
- Rest of South Africa
- Rest of Latin America