Global Aluminum Market

The aluminum market share is expected to increase by 13.66 million tons from 2019 to 2024, and the market’s growth momentum will accelerate at a CAGR of 3%.

This aluminum market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers aluminum market segmentation by end-user (transportation, construction, packaging, electrical engineering, and others), geography (APAC, Europe, North America, MEA, and South America), and market landscape (primary aluminum and secondary aluminum). The aluminum market report also offers information on several market vendors, including Alcoa Corp., Aluminum Corp. of China Ltd., China Hongqiao Group Ltd., Emirates Global Aluminium PJSC, Kaiser Aluminum Corp., National Aluminium Co. Ltd., Norsk Hydro ASA, Rio Tinto Ltd., United Company Rusal Plc, and Xinfa Group Co. Ltd. among others.

What will the Aluminum Market Size be During the Forecast Period?

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Aluminum Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The use of aluminum cans in beverage sector is notably driving the aluminum market growth, although factors such as may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the aluminum industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Aluminum Market Driver

One of the key factors driving growth in the aluminum market is the increasing demand for aluminum in electric vehicles. Aluminum is widely used in electric vehicles to reduce their weight and lower the energy required to operate them. Aluminum finds applications in various parts of a vehicle, including the chassis, body, and wheels. It is also used in compartments that hold electric batteries in electric vehicles. The thermal transferring capacity of aluminum helps in regulating the temperature around the battery modules in extreme conditions such as hot or cold weather.  Electric vehicles are gradually emerging as the future of the automotive industry. The growth of the global electric vehicle market is expected to boost the demand for aluminum during the forecast period

Key Aluminum Market Trend

The increasing use of lightweight materials in various end-user industries is another factor supporting the aluminum market share growth. Manufacturers seek materials that meet weight reduction goals without compromising on the required strength of automobiles, aircraft, and construction structures. Industries such as aerospace and automotive are adopting lightweight materials to reduce the overall weight of aircraft and vehicles to ensure fuel efficiency.  One of the major reasons for aluminum to gain importance in the automobile industry is its low specific gravity, which assists in reducing the average weight of vehicles. Aluminum in car parts helps in reducing weight by up to 24%. Although grey cast iron offers advantages like high wear resistance and vibration damping, it has a specific gravity of 7-8. Meanwhile, aluminum casting has a specific gravity of 2.7-3, which helps lower vehicular weight and offers a better strength-to-weight ratio to help improve performance.

Key Aluminum Market Challenge

The high volatility in London Metal Exchange (LME) prices of aluminum will be a major challenge for the aluminum market during the forecast period. LME prices, which are the starting point of the aluminum price, are highly volatile in nature. LME prices of aluminum are dependent on macroeconomic factors, the metal’s supply and demand, and the trading activities of financial investors. Any change in these factors can lead to a change in prices at the bourse. For instance, declining demand without a corresponding drop in supply would have a negative impact on aluminum pricing. Adding on high inventories with the LME or a huge release of aluminum metal into the market by the exchange could lead to a reduction in aluminum prices. Thus, volatility in LME pricing can adversely affect aluminum manufacturers’ operations and eat into their profit margins.

This aluminum market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Parent Market Analysis

Technvaio categorizes the global aluminum market as a part of the global metals and mining market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the aluminum market during the forecast period.

Who are the Major Aluminum Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Alcoa Corp.
• Aluminum Corp. of China Ltd.
• China Hongqiao Group Ltd.
• Emirates Global Aluminium PJSC
• Kaiser Aluminum Corp.
• National Aluminium Co. Ltd.
• Norsk Hydro ASA
• Rio Tinto Ltd.
• United Company Rusal Plc
• Xinfa Group Co. Ltd.

This statistical study of the aluminum market encompasses successful business strategies deployed by the key vendors. The aluminum market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• National Aluminium Co. Ltd. - The company produces primary aluminum and its value chain includes bauxite mining, alumina refining, aluminum smelting, power generation to downstream products.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The aluminum market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Aluminum Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the aluminum market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the metals and mining market includes the following core components:

• Inputs
• Operations
• Outbound logistics
• Mine development and extraction
• Marketing and sales
• End-user industries
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Aluminum Market?

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74% of the market’s growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for aluminum in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The strong consumption of aluminum in China and India will facilitate the aluminum market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 has impacted the growth of the aluminum market in the region. The major end-users, such as transportation and construction, are facing slow growth owing to the outbreak. Thus, the demand for aluminum has declined in these end-users sectors. The lockdowns imposed due to COVID-19 in the region have led to the closure of car dealerships and a halt in the manufacturing and sales of automobiles. Further, GDP growth has been impacted owing to lockdown in the region. For instance, in September 2020, GDP in the June quarter of 2020 declined by 23.9% compared with 2019 in India. The economic slowdown has impacted the construction industry in the region. Additionally, the COVID-19 lockdown has caused supply chain disruptions for aluminum, which has further impacted the growth of the market adversely.

What are the Revenue-generating End-user Segments in the Aluminum Market?

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The aluminum market share growth by the transportation segment will be significant during the forecast period. The transportation segment is expected to grow in the global aluminum market in 2019. The aerospace, automotive, rail transportation, and marine industries all use aluminum extensively. The aerospace industry in APAC and the Middle East is growing given the regions’ stable GDP, relatively low costs of crude oil, and strong passenger traffic growth. The growth in passenger numbers will drive the global commercial aerospace sector during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the aluminum market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Aluminum Market Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive aluminum market growth during the next five years
• Precise estimation of the aluminum market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the aluminum industry across APAC, Europe, North America, MEA, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of aluminum market vendors

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