Global Bauxite Mining Industry Market - Forecast(2023 - 2028)

Global Bauxite Mining Industry Market Overview

The Global Bauxite Mining Industry market size is forecast to reach US$122.6 billion by 2026, after growing at a CAGR of 4.8% during 2021-2026. Bauxite is a reddish clay mineral kaolinite rock found primarily in tropical and subtropical areas. Aluminum oxide compounds (alumina), silica, iron oxides, and titanium dioxide make up the majority of bauxite. The growing demand for aluminum from various end-use sectors, such as construction, automotive, electrical and electronics, and aerospace is largely responsible for the market's growth. Metallurgical grade bauxite is principally used as a source for the production of alumina and aluminum sulfate, which is then used as a feedstock for the production of aluminum, so global aluminum production drives the market. Furthermore, bauxite production growth will also be driven by new projects coming online in key producer countries during the forecast period.

COVID-19 Impact

Global metallurgical grade bauxite mine production was unaffected by the COVID-19 pandemic. Even though mining companies in several countries temporarily halted operations as a precaution, production declines were only seen in small bauxite-producing countries, which were partially offset by stable production in the leading producers. Rather, it was expected that the production would exceed expectations. For example, Norsk Hydro ASA, one of the world's largest bauxite producers, announced that its bauxite volumes increased in April and May 2020 compared to the same period last year, following the lifting of the country's production embargo, increased production at the Paragominas bauxite mine and the Alunorte alumina refinery in Brazil. However, with declining demand in major markets, the scenario for bauxite consumption was hindered. Alumina, cement, refractories, and abrasives production were all shut down or halted as a result of government lockdown and safety measures. In addition, the COVID had a significant impact on the construction industry, resulting in lower cement and refractory usage. In the short term, all of these factors had an impact on bauxite demand in 2020.

Report Coverage

The report: “Global Bauxite Mining Industry Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Global Bauxite Mining Industry market.

By Mineralogy: Trihydrate or Gibbsitic Bauxite, Mixed Bauxite, and Monohydrate Bauxite.
By Geological Formation: Lateritic (Silicate Bauxite), and Karst (Carbonate Bauxite).
By Application: Alumina, Refractories, Abrasives, Chemicals, Castables, Steel, Petroleum, Catalyst Cement, Paints & varnishes, and Others.
By End-Use Industry: Chemical, Oil & Gas, Transportation [Automotive (Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)), Aerospace (Commercial Aircrafts, Military Aircrafts, and Others), and Others], Electrical & Electronics (Transformers, Capacitors, Motors & Generators, and Others), Building and Construction (Residential, Commercial, Industrial, and Infrastructural), Agriculture, Food & Beverages, Consumer Goods, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• Asia-Pacific dominates the global bauxite mining industry market owing to the increasing automobile industry in the region. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the production of light commercial vehicles increased from 2,002,284 in 2019 to 2,151,347 in 2020, an increase of 7.4% in China.
• The expanding construction industry coupled with advanced features of using aluminum such as higher strength, durability, high corrosion resistance, and high heat resistance are some of the factors that are boosting the market growth.
• In addition, aluminum is often used in the energy industry to manufacture components such as pressure vessels, valve bodies, turbine blades, rotors, and more, owing to which the demand for metallurgical grade bauxite is on an upsurge in the energy sector.
• Furthermore, increasing investments in the electric vehicles industry are expected to augment the product demand in near future.

Figure: Asia-Pacific Global Bauxite Mining Industry Market Revenue, 2020-2026 (US$ Billion)

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Global Bauxite Mining Industry Market Segment Analysis – By Application

The alumina segment held the largest share in the global bauxite mining industry market in 2020 and is estimated to grow at a CAGR of 5.1% during 2021-2026. In metallurgy, it is used as a raw material for making aluminum and aluminum sulfate because of its high alumina content. Increasing demand for aluminum finished products from the end-use industries, such as automotive and construction, owing to its various superior properties such as low density, non-toxic, has high thermal conductivity, excellent corrosion resistance, and can be easily cast, machined, and this is likely to fuel segment growth. Therefore, increasing demand for alumina and aluminum sulfate for metallurgical purposes is expected to boost demand for the market studied over the forecast period due to all of the aforementioned factors.

Global Bauxite Mining Industry Market Segment Analysis – By End-Use Industry

The building and construction segment held the largest share in the global bauxite mining industry market in 2020 and is growing at a CAGR of 8.3% during 2021-2026. In the building and construction industry, there is an increasing demand for aluminum in applications such as windows, curtain walls, roofing and cladding, solar shading, solar panels, railings, shelves, and more, which is consecutively driving the demand for metallurgical grade bauxite from this end-use industry. Thus, the increasing application of aluminum in the building and construction industry, owing to its extensive applications is the major factor driving the demand for bauxite in the building and construction industry during the forecast period. In addition, calcined bauxite is used by construction companies as an anti-skid road aggregate which is used in selected areas to prevent accidents and in cement, which is also aiding in driving the demand for bauxite in the building and construction industry. Furthermore, the increasing building and construction activity across the world is also contributing towards the global bauxite mining industry market growth.

Global Bauxite Mining Industry Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the Global Bauxite Mining Industry market in 2020 up to 43%, owing to the increasing demand for aluminum and aluminum sulfate from the building and construction industry in the region, which is driving the demand for bauxite in the industry. Due to the increasing population and increasing per capita income of individuals, the need for buildings and infrastructure is growing at a lucrative rate in Asia Pacific countries such as China, India, Singapore, and more. For instance, the Chinese construction industry is expected to expand at an annual average of 5% in real terms between 2019 and 2023, according to the International Trade Administration (ITA). Also, Over the forecast period, the Indian government has launched projects such as "100 smart cities" and "Housing for All by 2022," which are expected to drive the Indian residential construction market. Furthermore, due to various government measures, such as Foreign Direct Investments (FDI), building and construction activities are also growing. Such investments and initiatives by the government are flourishing the building and construction sector in the APAC region, which is further driving the bauxite market growth in the region as it is extensively employed in aluminum production. In addition, the presence of primary aluminum-producing countries such as China, Australia, and India in the Asia Pacific is also propelling the global bauxite mining industry market. According to the International Aluminum Institute (IAI), Asia Pacific produced 67.5 percent of global primary aluminum in 2019. These factors accumulatively are set to accelerate the global bauxite mining industry market in Asia-Pacific during the forecast period.

Global Bauxite Mining Industry Market Drivers

Increasing Automobile Production in Various Regions

Automobile manufacturers have been compelled to produce fuel-efficient lightweight vehicles as a result of stringent government regulations on carbon dioxide (CO2) emissions. Aluminum's superior properties, such as corrosion resistance, high density, high ductility, high strength, and lightweight, have led to an increase in its use in the automobile industry for lightweight vehicle parts. The production and adoption of electric vehicles are anticipated to increase globally. For instance, according to Invest India, between 2020 and 2027, the Indian EV market is expected to grow at a CAGR of 44 percent, with annual sales reaching 6.34 million units by 2027. By 2030, the electric vehicle industry will have created five crore direct and indirect jobs. California has mandated that all new passenger vehicles sold in the state should be 100% electric by 2035. The American Jobs Plan, which was recently unveiled, proposes US$174 billion in incentives, rebates, and investments to encourage the production and adoption of electric vehicles. GM has also proposed that by 2035, all diesel and gasoline-powered cars are phased out and the company's entire fleet be converted to electric vehicles. It is anticipated that a gradual shift towards electric vehicles will strengthen the demand for aluminum to manufacture lightweight electric vehicle components, which as a result will drive the global bauxite mining industry market. 

Flourishing Aerospace Sector

Aluminum is a lightweight and strong material that is ideal for aircraft construction. Aluminum is about a third the weight of steel, allowing an aircraft to carry more cargo or save fuel. Furthermore, aluminum's high corrosion resistance ensures the aircraft's and passengers' safety. Aluminum's strength allows it to replace heavier metals without sacrificing strength as other metals do, while also benefiting from its lighter weight. Aluminum's strength can also benefit load-bearing structures, making aircraft production more reliable and cost-effective. The demand for aircraft is on an upsurge in various regions. For instance, in November 2020, Boeing projected that China's airlines will buy US$1.4 trillion worth of 8,600 new aircraft and US$1.7 trillion worth of commercial aviation services over the next 20 years. According to Boeing's current business forecast, the Middle East would need 2,520 new aircraft by 2030. Also, according to Boeing India is expected to drive the demand for 2,300 aircrafts worth US$320 billion over the next 20 years. Considering the benefits associated with using aluminum in the aerospace industry, it is expected that the demand for metallurgical grade bauxite will eventually increase in the aerospace industry. Hence, the increasing aerospace industry will act as a driver for the global bauxite mining industry market. 

Global Bauxite Mining Industry Market Challenges

Drawbacks Associated with Bauxite Mining

The conversion of bauxite to aluminum consumes a lot of energy and has several negative environmental consequences. Mines, both open and underground, have long-term effects on the plant and animal life in the immediate vicinity and beyond. Clear-cutting trees and grasslands cause biodiversity loss, habitat destruction, carbon emissions, and erosion. For many people, especially low-income earners, bauxite mining has become a good source of income. Regulators, on the other hand, should implement a responsible action plan to strictly enforce safety and health regulations and ensure the safety of consumers. The bauxite mining industry has the potential to be a boon to everyone if and only if mining operators and transportation contractors manage mining and transportation operations responsibly and in accordance with established rules and regulations. Therefore, the global bauxite mining industry market growth is expected to be hampered due to the above-mentioned factors.

Global Bauxite Mining Industry Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the global bauxite mining industry market. Global bauxite mining industry market top companies are:

1. Alcoa Corporation
2. Rio Tinto Plc
3. The Aluminium Corporation of China
4. National Aluminium Company Limited
5. Norsk Hydro ASA
6. Australian Bauxite Ltd
7. Ashapura Group of Industries
8. Gujarat Mineral Development Corporation Ltd
9. Metro Mining Ltd.
10. United Company Rusal PLC.

Acquisitions/Technology/Product Launches

• In November 2020, the Bauxite Residue Roadmap was launched by the International Aluminium Institute (IAI) to maximize the use of bauxite residue in cement and concrete products. The roadmap addresses concerns, prejudices, technical, and legislative barriers to the use of bauxite residue.

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