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The aluminum market size is forecast to increase by USD 31.43 billion, at a CAGR of 3.33% between 2023 and 2028. The market's dynamics are influenced by several critical factors. Firstly, there is an increasing demand for aluminum in electric vehicles (EVs), driven by efforts to reduce vehicle weight and improve energy efficiency. This trend underscores the automotive industry's shift towards sustainable materials. Secondly, the beverage industry is witnessing a rising demand for aluminum cans due to their recyclability and environmental benefits, responding to consumer preferences for eco-friendly packaging solutions. Thirdly, stringent regulations for environmental protection are shaping market practices, prompting industries to adopt sustainable manufacturing processes and materials like aluminum. These regulations drive innovation and compliance across sectors, fostering a market environment where sustainability and regulatory adherence play pivotal roles in shaping industry growth and consumer choices. As industries adapt to these trends, they are poised to capitalize on opportunities that align with evolving environmental standards and consumer expectations.
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The market is experiencing transformative growth driven by diverse industries and innovative applications. In aerospace and electrical applications, aluminum's lightweight and durable properties make it indispensable. Its role in solar energy reflects its efficiency in renewable technologies. Advances in 3D printing leverage aluminum's versatility. The development of aluminum-ion batteries and recycled aluminum addresses sustainability concerns. Key players like Alcoa Corporation lead in the extrusions segment, catering to building and construction needs. Residential real estate growth influences aluminum demand through home registrations and loan disbursements. Strict regulations and environmental concerns drive sustainable practices in the aluminum sector, influencing processing methods from bauxite to secondary product. As the electric vehicles market expands, aluminum's role in lightweighting and efficiency becomes more critical, positioning the market at the forefront of industrial innovation and environmental responsibility.
Increasing demand for aluminum in EVs is a key factor boosting the market growth. Aluminum's role in EVs, facilitating weight reduction and energy efficiency, is paramount. Notably, Norsk Hydro's German facility manufactures lightweight aluminum car body sheets. Aluminum's exceptional thermal conductivity is invaluable for regulating battery temperatures in various vehicle components.
As EVs solidify their role in the automotive industry's future, the global EV market's expansion drives aluminum demand. Aluminum plays a vital role in various EV components, including battery packs, frames, busbars, cables, heat sinks, motor housings, cabin heaters, and structural parts. Advances in battery technology, such as high-energy aluminum-air flow batteries, further boost the significance of aluminum in EV production. Consequently, the market is on an upward trajectory.
Transporation is the fastest-growing segment propelling the market growth.
The transportation sector, valued at USD 47.45 billion in 2018, saw continuous growth until 2021. For example, modern aircraft utilize aluminum extensively, accounting for approximately 76%-79% of the body structure. In aviation, aluminum finds use in fuselages, doors, floors, passenger seats, engine turbines, and cockpit instrumentation. Additionally, the imperative to reduce carbon emissions has compelled automakers to prioritize fuel efficiency and design, making aluminum a pivotal element in vehicles, promoting weight reduction and strength. Consequently, these factors are anticipated to boost aluminum demand, propelling the market's growth in the forecast period.
Market - Revenue Share by Transportation Segment, 2018-2028
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APAC is Dominating the Market
APAC is estimated to contribute 33% to the growth of the global market during the forecast period. The major factor driving the growth of the packaging market in APAC is the rapid expansion of the retail sector, which is being supported by strong economic growth and a growing middle-class population. The region retail sector is expected to grow at a rate of more than 7.9% during the forecast period, with major contributions coming from China and India. The retail food sector in APAC is expected to grow at more than 12.8% during the forecast period. Thus, with demand surging from these industries, the need for aluminum is expected to see a significant increase going forward.
Market Size, By Region, Global, 2018-2028
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The market is fragmented in nature. Some significant players include Alcoa Corp., Century Aluminum Co., Hindalco Industries Ltd., China Zhongwang Holdings Ltd., Emirates Global Aluminium PJSC.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 14 market companies, including:
Aluminum Corp. of China Ltd., China Hongqiao Group Ltd., Gulf Extrusions Co. LLC, HP Inc., Jindal Aluminium Ltd., Kaiser Aluminum Corp., Manaksia Ltd., Norsk Hydro ASA, Rio Tinto Ltd., Saudi Arabian Mining Co., State Power Investment Corp., United Company RUSAL, Vedanta Ltd., Vulcan Steel Ltd., and Xinfa
The market research and growth research report provide comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is diverse and dynamic, driven by various sectors and applications. Aluminium-ion battery research aims to revolutionize energy storage, while secondary products and scrap metal contribute to sustainable practices. Bauxite ore mining provides the raw material for aluminum production, yielding cast products, sheets, plates, extrusions, and wrought alloy and cast alloy. Various processing method enhance its versatility across industries like the electrical industry and electronics market. Flexible packaging benefits from aluminum's recyclable properties, supporting environmental goals. Economic indicators such as home loan disbursements and FDI inflow impact market trends, alongside regulatory bodies like the International Monetary Fund (IMF) and the International Organization of Motor Vehicle Manufacturers (OICA). Alternative investment fund like PIAI drive innovation and growth in the aluminum sector, reflecting its pivotal role in global industrial and sustainable development efforts.
Additionally, the market thrives on a diverse array of products and applications. Sheet and plate aluminum serve as foundational materials in construction and manufacturing, while extrusion offer versatility in design and functionality. Wrought and cast alloys cater to specific industrial needs, supported by advanced processing methods that enhance efficiency and product quality. Secondary products from recycled aluminum bolster sustainability efforts, appealing to environmentally conscious markets like the flexible packaging sector. Foreign direct investment (FDI) inflows and alternative investment funds drive innovation and expansion in the aluminum industry, fostering economic growth and technological advancements. The intrinsic recyclable properties of aluminum further underscore its role as a sustainable material choice across various sectors, ensuring long-term viability and environmental stewardship in global markets.
Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.33% |
Market growth 2024-2028 |
USD 31.43 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.67 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
China, US, India, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alcoa Corp., Aluminum Corp. of China Ltd., Century Aluminum Co., China Hongqiao Group Ltd., China Zhongwang Holdings Ltd., Emirates Global Aluminium PJSC, Gulf Extrusions Co. LLC, Hindalco Industries Ltd., HP Inc., Jindal Aluminium Ltd., Kaiser Aluminum Corp., Manaksia Ltd., Norsk Hydro ASA, Rio Tinto Ltd., Saudi Arabian Mining Co., State Power Investment Corp., United Company RUSAL, Vedanta Ltd., Vulcan Steel Ltd., and Xinfa |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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