Aluminum Market - Forecast(2023 - 2028)

Aluminum Market Overview:

The trade value of aluminum and its products stood at $194.32 billion in 2018, after growing at 11% from 2017, according to the International Trade Centre (ITC). This increase in trade is due to application of aluminum in various end-user industries including packaging, construction, automotive, and others. In 2018, the aluminum market size was gauged to be 79 million tons in terms of quantity, and the application of aluminum is estimated to increase at a CAGR of 4.2% during the forecast period 2019-2025.

APAC had the greatest aluminum market share of 66%, in 2018. This can be attributed to India being identified as a key country that imported $5.48 billion worth of aluminum in 2018 with a significant growth rate of 32% year on year. Furthermore, the Japan and Korea aluminum markets observed growth rate of 13% and 8% respectively, in 2018, according to ITC.

China has been the leading aluminum marketplace for several years now. According to latest findings by the International Aluminum Institute (IAI), China is a mega-producer of aluminum with 2,940 thousand metric tons of aluminum production. Some of the production is exported while the rest of it is consumed by China’s electronics and construction industries which are major marketplaces for aluminum. Apart from major contributions by China, India, and Japan to the APAC aluminum market revenues, Indonesia witnessed a growth in the construction and packaging industry that supported the aluminum market in the country in 2018.

Aluminum Market Outlook:

Aluminum is a metal which is obtained by Bayer’s process, in which aluminum oxide undergoes smelting to release pure aluminum. Aluminum sulfate, aluminum chloride, and aluminum phosphate are some of the useful aluminum compounds. The metal is prevalently used in industries such as packaging and construction. Moreover, it finds application in machinery & equipment and electrical and consumer durables industries.

The key application of aluminum is found in the automotive industry, and this segment is estimated to grow at a CAGR of 4.3% through to 2025. Since aluminum is a lightweight and fuel-efficient metal, it is used in the body of cars. Furthermore, aluminum used in automobile vehicles can be easily recycled. More than half a million tons of automotive aluminum is recycled, and this recycling saves 21 barrels of oil energy that would have been consumed in producing fresh aluminum, according to findings by The Aluminum Association. Fuel-economy regulations worldwide will also enhance application of aluminum in the automotive industry. Additionally, expected increase in the production of electric vehicles, semi-autonomous and autonomous vehicles, and self-driving cars and trucks will further boost the automotive aluminum market. 

Aluminum Market Growth Drivers:

· The Consumer Electronics Sector Supporting the Aluminum Market –

Aluminum usage has now become commonplace in smartphones, tablets, laptops, flat-screen TVs, monitors, and other consumer electronic products. The number of mobile users across the globe is projected to increase from 5.1 billion in 2018 to 5.8 billion in 2025, according to the Global System of Mobile Communications (GSMA). This indicates that the mobile industry will be a lucrative aluminum marketplace over the forecast period. Apart from smartphones, the smart TV market will be witnessing growth at a CAGR of 8% to 10% during the forecast period 2019-2025, which will create a demand influx in the aluminum market.

· The Anticipated Growth of the Construction Industry –

In 2016, GDP of the construction industry was 25.396%, according to the World Bank. Construction industry happens to be a lucrative avenue for the aluminum market since aluminum is the second most used metal in the industry. The future foresees rapid infrastructure development in order to fulfill the sustainable development goals (SDGs) of the United Nations (UN). Increasing construction activities worldwide will offer increasing opportunities to vendors in the aluminum market.

Aluminum Market Trends –

· Environmental Regulations Pertaining to Use of Plastics to Drive the Application of Aluminum for Packaging –

Even though the plastics market is booming, the flexible plastic sector is facing challenges in countries such as the U.S., Indonesia, and a few countries of Europe. Owing to this, the metal packaging market is making strides, and aluminum foil is a major segment of metal packaging products. The regulations pertaining to plastics in the packaging industry will boost the application of aluminum in the industry.

Aluminum Market Key Players Perspective –

The major players with major aluminum market share are Alcoa Corporation, Rio Tinto, CHALCO (Aluminum Corporation of China Limited), United Company RUSAL, Alcan, China Hongqiao Group Limited, Shandong Xinfa Aluminum Group Co. Ltd., East Hope Group Company Limited, Norsk Hydro ASA, and BHP.

Aluminum Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the aluminum market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The aluminum market research report also analyses the application of aluminum in various sectors such as packaging, building & construction, automotive, and others.

Aluminum Market Report: Industry Coverage

The aluminum market report identified the current trends, opportunities, and challenges in the industry along with a detailed depiction of strategies by the existing market players.

The report also provides facts, figures, and statistics about different types of aluminum and their use in various industries.

The report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:

• North America: The U.S., Canada, Mexico
• South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
• Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
• APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
• Middle East and Africa: Israel, South Africa, Saudi Arabia