Aluminum Market Set for Remarkable Growth, Valued at $245.7 Billion in 2021 and Projected to Reach $498.5 Billion by 2030
The global aluminum market is on the cusp of a significant transformation, according to a recent report by Fairfield Market Research. In 2021, the aluminum market was valued at an impressive US$ 245.7 billion, and it is projected to soar to an estimated US$ 498.5 billion by the end of 2030, marking a remarkable compound annual growth rate (CAGR) of 5.8% between 2022 and 2030. This anticipated growth signifies a doubling of the market’s size by the end of the decade.
Aluminum, often regarded as one of the most ubiquitous commodity metals in modern society, is increasingly becoming a pivotal ‘strategic resource.’ It plays a pivotal role in diverse sectors, including the national economy, transportation, energy, and defense. This versatile metal is fast gaining traction as a preferred alternative to various materials such as zinc, copper, and steel across a wide range of industries. Its distinct properties, including lightweight, exceptional strength-to-weight ratio, corrosion resistance, high reflectivity, and excellent heat and electricity conductivity, make it an ideal choice for various applications. Additionally, aluminum offers design freedom and flexibility, enabling the creation of an array of innovative shapes and structures. This extensive application base is expected to be a key driver of the global aluminum market’s growth.
The sustainability factor further fuels the demand for aluminum, as approximately three-quarters of all aluminum ever produced remain in use today. Its infinite recyclability and durability make it an environmentally friendly choice. In 2021, secondary aluminum accounted for 29% of the global aluminum market by volume. Secondary aluminum boasts advantages such as lower production costs, reduced energy consumption, and enhanced sustainability. It finds applications in construction materials, transportation, transmission lines, packaging foils and cans, kitchen utensils, containers, and paints.
The demand for rolled, extruded, and casted aluminum products is also witnessing a substantial upswing. Rolled and extruded aluminum products constituted over 60% of the total aluminum market in 2021. These products play pivotal roles in the aerospace, automotive, electrical, consumer goods, and packaging industries. In particular, rolled products are addressing critical challenges in the automotive sector, contributing to lightweighting, reduced CO2 emissions, and enhanced fuel efficiency. Extruded aluminum products, on the other hand, have experienced growing demand in construction, electrical, automotive, transport, and consumer goods industries due to their outstanding strength, durability, and flexibility. Extruded aluminum is poised to be the fastest-growing product segment in the global aluminum market, with a projected CAGR of 4.7% between 2022 and 2028, driven by strong growth in construction, automotive, and transportation sectors.
The rise of electric vehicles (EVs) is expected to have a profound impact on the aluminum market. With the global production of EVs projected to exceed 30 million units by the end of 2030, aluminum is set to play a crucial role in their development. Aluminum’s use in EVs enhances performance, safety, durability, and environmental benefits. It is not only cost-competitive but also readily available compared to alternatives such as carbon composites and titanium. This surge in EVs is anticipated to significantly boost the demand for extruded and rolled aluminum products.
Construction, automotive, and packaging industries are major contributors to the growing demand for aluminum in the Asia Pacific region, which accounted for over 65% of the global aluminum market in value terms in 2021. China, as the world’s largest producer and consumer of primary aluminum, continues to drive demand, especially in the automotive and aerospace sectors. India is also set to experience exceptional market growth, with a projected 2.2x volume growth by 2030, driven by strong demand in the construction and transportation sectors, supported by government initiatives.
In Europe, aluminum is being embraced as a key element in achieving the EU’s climate-neutral and circular economy goals. The demand for recycled aluminum is rising across various industries, further promoting cost-competitive and energy-efficient practices. New legislation, such as the Carbon Border Adjustment Mechanism (CBAM), is expected to reshape the European aluminum market by imposing carbon taxes on products with high emissions. Additionally, the ongoing Russia-Ukraine crisis has led to skyrocketing energy prices in the region, pushing aluminum prices to decade-high levels.
Competition in the global aluminum market is characterized by inorganic growth and strategic investments. Manufacturers are prioritizing the development of low-carbon and zero-carbon aluminum products to reduce greenhouse gas emissions and enhance sustainability. Key players such as Rusal, Norsk Hydro, Alcoa, Aluminum Corporation of China Limited (CHALCO), China Hongqiao Group Ltd., and Rio Tinto Plc are integrating their aluminum businesses and venturing into the secondary aluminum market. Notably, Novelis, a subsidiary of Hindalco Industries, strengthened its competitive position by acquiring Aleris Corporation in 2020, allowing it to cater to high-end demand in the aluminum market.
As the global aluminum market continues to expand and evolve, industry leaders are focusing on innovation, sustainability, and strategic partnerships to meet the demands of a rapidly changing world.
Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030 – By Source Coverage: (Primary, Secondary); By Product Coverage: (Flat, Extruded, Forged, Cast); By End-user Coverage: (Automotive, Transportation, Packaging, Construction, Consumer Durables, Machinery & Equipment) https://www.fairfieldmarketresearch.com/report/aluminium-market
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