Aluminum Extrusion Market to Cross $122.45 billion Revenue by 2030

Aluminum Extrusion Market Overview

“The Aluminum Extrusion Market Predictable at $69.945 billion in 2022, is estimated to increase at a CAGR of 7.95% from $76.58 billion in 2023 to $122.45 billion by 2030.”

Aluminum extrusion is a process where aluminum is shaped using a die with a shaped opening. A ram drives the aluminum product through the die, resulting in the same shape as the die. After cooling, the extruded items are straightened using a stretcher. Available in hollow, semi-hollow, and solid varieties, aluminum extrusions are widely used in various industries.

The aluminum extrusion market is expected to grow due to increased demand for lightweight, robust products in various sectors. Aluminum's lightweight nature and high strength-to-weight ratio make it ideal for large projects and buildings. Its high tensile strength and stiffness make it resistant to deformation. Additionally, its strong corrosion resistance is expected to drive demand in the electrical, electronics, and medical industries. Production is ongoing due to the thick layer of aluminum oxide after anodizing or powder coating.

The demand for flexible design in the aluminum extrusion market is expected to create profitable opportunities for industry participants, as it allows for the production of diverse goods using the same equipment.

The global aluminum extrusion market is categorized into product and end user segments, with three product categories: mill-finished, anodized, and powder coated. It is primarily used in building, construction, electrical, electronics, automotive, transportation, and industrial sectors, and is based in four regions.

The rising demand for aluminum extrusion in the automotive and transportation sectors, particularly in electric vehicles, is expected to boost sales, while manufacturers face increasing environmental pressure.

The COVID-19 pandemic negatively impacted growth prospects, with lockdowns impacting industrial output and ending aluminum extrusion and mining activities in 2020. However, prospects recovered, with the lifting of sanctions starting in 2021 as the primary growth accelerator due to declining infection rates and widespread vaccination.

Aluminum extrusion manufacturers are adhering to government emission limits and positively influencing the demand for lightweight aluminum extrusion by end user sectors.

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Market Dynamics

Growth Factors

The demand for lightweight and strong extruded items in various industries is expected to drive market growth. Aluminum's light weight and strength-to-weight ratio make it ideal for large constructions and buildings. Its high tensile strength and stiffness make it resistant to deformation. Additionally, its corrosion resistance and ease of maintenance are expected to drive the market forward.

The growing demand for flexible design is expected to create profitable opportunities for aluminum manufacturers, as they can produce a diverse range of extruded goods using the same equipment, contributing to the growth of the aluminum extrusion market.

The construction sector's global growth and the increasing global demand for automobiles are driving market expansion.

Aluminum extrudes are popular due to their cost-effectiveness, lightweightness, corrosion resistance, low maintenance, and paramagnetic properties, making them a valuable asset in the aerospace and defense industries, contributing to market growth.

Growth Drivers

Are Emission Regulations Increasing End-User Demand for Aluminum Extrusion?

The NHTSA has tightened emission regulations, tightening carbon dioxide requirements and fuel economy by 1.5% between 2021 and 2026, due to concerns about carbon emissions from mining and extraction activities. This is expected to increase demand for aluminum automotive components in the future.

Aluminum extrusion sales are increasing in the aerospace, defense, automotive, and construction industries due to increased material input and low cost. The low weight and weight of extrusion products contribute to increased demand in various industrial applications, especially in automotive, aerospace, and military sectors.

Trends and Opportunities

The aluminum extrusion market is expected to grow significantly due to its lightweight, durable, and corrosion-resistant properties, and its increasing demand for environmentally friendly and sustainable building materials.

The aluminum extrusion market in the automotive sector is expected to grow significantly due to the growing demand for lightweight, fuel-efficient car components, particularly in electric and hybrid vehicles.

The packaging industry is increasingly utilizing aluminum extrusions due to their lightweight, corrosion-resistant, and barrier properties, and the market for sustainable and eco-friendly packaging materials is expected to grow.

The aluminum extrusion industry is expanding due to technological advancements, including the use of new alloys, improved extrusion methods, and advanced finishing procedures, which can enhance efficiency, product quality, and reduce manufacturing costs.

Rising Construction Industry Demand

The construction of green buildings is driving market expansion due to their environmental benefits, energy efficiency, and reduced carbon emissions. Extruded aluminum is in high demand in the construction industry for green building windows and doors.

Aluminum extrusion is a process where aluminum is shaped into desired sections through high pressure in a die or mold, resulting in directional deformation from an extrusion device.

Competitive Landscape of the Aluminum Extrusion Market

The global Aluminum Extrusion Market is distinguished by the presence of both small and large companies. Among the major market participants are Hindalco Industries Limited, Aluminium Products Company (ALUPCO), Arconic Corporation, Bahrain Aluminium Extrusion Co. (BALEXCO), China Zhongwang, Constellium N. V., and Gulf Extrusion Co. LLC.

Competitors are leveraging modern technologies to enhance aluminum extrusion quality and increase their market share through strategic mergers, product development, and acquisitions.

Recent Developments in Aluminum Extrusion Market

In December 2021, Hindalco Industries Ltd acquired Hydro’s aluminum extrusions business in India. Through this acquisition, the company is focusing on expanding its presence in the upper end of the value added market.

In February 2022, Novelis launched a net zero lab by collaborating with HES-SO Valais-Wallis to develop carbon neutral solutions for aluminum manufacturing.  Through this, the company will invest in researching on decarbonizing and is aiming at becoming carbon neutral by 2050.

Regional Insights

The Asia Pacific aluminum extrusion market, which accounted for over 75% of total revenue in 2020, is expected to grow significantly due to rapid development in developing countries like India, China, Vietnam, Japan, and South Korea. China's rapid growth in the building sector and the Chinese government's investment in transportation and energy infrastructure are expected to further boost market growth.

For instance, On 16th April 2021, The Utkal-E coal block has been granted to National Aluminium Company Limited (NALCO) as a mining lease. This mining lease for the Utkal-E coal block spans 523.73 hectares in the villages of Nandichhod, Gopinathpur Jungle, KundajhariJungle, Kosala, and Korada in Angul District's ChendipadaTahasil. The Utkal-E coal block has an initial capacity of 2 million tonnes per year and a total mineable resource of 70 million tonnes.

North America is predicted to experience significant growth due to increased industrial operations and government economic development programs. Canada's CAD 7.5 billion infrastructure plan, which supports renewable energy initiatives and job creation, is expected to drive the Aluminum Extrusion Market forward in the projection period.

Segments Covered in Aluminum Extrusion Market

Aluminum Extrusion Market By Product

• Shapes
• Rods & Bars
• Pipes & Tubes

Aluminum Extrusion Market By Application

• Automotive & Transportation
• Building & Construction
• Consumer Goods
• Electrical & Energy
• Others

Aluminum Extrusion Market By Region

• North America
• Europe
• Asia Pacific
• LAMEA

Frequently Asked Questions:

What is the current size of aluminum extrusion market?

The Aluminum Extrusion Market Predictable at $69.945 billion in 2022, is estimated to increase at a CAGR of 7.95% from $76.58 billion in 2023 to $122.45 billion by 2030.

What is the CAGR of aluminum extrusion market?

The global aluminum extrusion market is expected to drive growth at a CAGR of 7.95% during the forecast period 2021 to 2030.

Which are the driving factors of the aluminum extrusion market?

Rise in demand for lightweight and durable extruded products across diverse industry verticals and demand for flexible designs are expected to driving aluminum extrusion market.

Who are the major players in the aluminum extrusion market?

The major market player includes Hindalco Industries Limited, Aluminium Products Company (ALUPCO), Arconic Corporation, Bahrain Aluminium Extrusion Co. (BALEXCO), China Zhongwang, Constellium N. V., and Gulf Extrusion Co. LLC.