The Global Aluminum Extrusion Market was valued at USD 59.44 Bn in 2020 and is expected to reach USD 107.34 Bn by 2027, with a growing CAGR of 8.2% during the forecast period.
Aluminum extrusion is a method that converts aluminum alloy into shapes with a defined cross-sectional profile. The extrusion method makes advantage of the many advantageous physical properties of aluminum. The use of aluminum for the production of simple to intricate aluminum shapes has become a versatile and stable. Aluminum extrusions have many uses in architectural and building applications, retail stores, restaurants, signs, vehicles, marine, OEM, electronics, automotive, and others.
The rising demand for aluminum extrusion from the automotive sector is anticipated to drive the aluminum extrusion market growth in the near future. The main frame or chassis of the automobiles are manufactured by using aluminum, which in turn is expected to drive the aluminum extrusion market demand during the forecast period. For instance, the growing trend for the adoption of electric vehicles is anticipated to increase the demand for aluminum extrusion products. According to inside EV’s the passenger plug-in electric car sales reached 3.0 million in 2021, while the market share increased to 6.5%
Additionally, the growing demand for aluminum extrusions from the consumer goods industry is anticipated to drive the aluminum extrusion market growth in the near future. For instance, Vitex an experienced manufacturer of custom aluminum products. They use aluminum extrusion for consumer goods such as furniture, ladders, playground equipment, patio furniture, railings, ski and bicycle racks, and shelving systems. Additionally, outdoor aluminum, and its corrosion resistant characteristics are expected to increase the demand for aluminum extrusions. Moreover, aluminum seems to be a good material for furniture, due to its flexibility in production and high strength to weight ratio. However, low production output and high capital investments may hinder the market growth during the forecast period.
By Extrusion Profile
By Product Type
The unique insights provided by this report also include the following:
Based on extrusion profile, shapes segment is expected to bolster the market demand during the forecast period due to availability of various intricate shape dies
Based on extrusion profile, the market has been segmented into pipes & tubes, rods & bar shapes, and others. The shapes segment in aluminum extrusion accounted for the largest market share in 2020. In the automotive sector aluminum extrusion is used in manufacturing of chassis, transmission boxes, engine hosing, and others. For instance, in 2020, Hydro delivered more than 350,000 tonnes of Aluminum products to the auto industry every year, with rough estimates showing around 15% of that going to electric vehicles. Additionally, the use of aluminum extruded seamless pipe in the oil & gas industry is anticipated to foster the market growth during the forecast period. For instance, In 2019, Aluminum pipe or tube fittings were one of the global most traded products, with a total trade of USD 973M.
Based on application, the automotive segment in the aluminum extrusion market is growing at the highest CAGR during the forecast period owing to increase in demand for passenger cars
Based on application, the market has been segmented into automotive, electrical & electronics, construction, others. For instance, in the US electric vehicle sales increased by 80% between 2017 and 2018. While the industry's growth slowed in 2019 due to the Trump administration's phase-out of the federal tax credit and easing of fuel-economy rules, investors remained optimistic. General Motors pledged a $2 billion investment in six domestic assembly plants dedicated to the production of EVs and has since unveiled the all-new electric Hummer. Thus, the use of aluminum extrusion in automobiles is expected to foster the market growth during the forecast period. Additionally, aluminum extrusions are utilized in a variety of electrical and electronic appliances. Custom aluminum extrusions are frequently utilized for motor housings, high dissipation heat sinks, and interior frames due to their unique electric and thermal conductivity abilities.
Based on region, Asia Pacific held the largest market share during the forecast period owing to China as a major aluminum products manufacturer
Based on region, the global aluminum extrusion market is bifurcated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific holds the largest market share in 2020. Additionally, China ranks first in the production of electric vehicles. Moreover, subsidies by government in EV production is expected to drive the market demand for aluminum extrusion. For instance, China committed huge subsidies toward a significant growth of its Aluminum industry, the global excess capacity crisis began. Due to the economics of highly capital-intensive industries that require large economies of scale in production. China's moves obliged other countries to follow suit, taking actions to support their own Aluminum production in order to offset the negative effects of China's expansion. China's Aluminum production development has been supported by huge subsidies supplied through concessional financing, tax and environmental regulatory forbearance, and access to essential inputs such as bauxite ore and energy at below-market costs.
Furthermore, Chinese trade policies that restrict the export of primary Aluminum and subsidize semi-finished processed Aluminum goods with world trade organization prohibited export tax rebates are allowing China to capture an increasing global market share in the aluminum extrusion industry.
The report also provides an in-depth analysis of aluminum extrusion market dynamics such as drivers, restraints, opportunities, and challenges
The COVID-19 pandemic has significantly impacted many lives and businesses across the globe which result in the slowdown of economies. The supply chain for the raw materials was severely affected during the lockdown situation. The demand for aluminum from the automotive sector dropped unexpectedly. The gradual lifting of lockdowns is expected to increase the demand for aluminum extrusions in the near future. However, in 2020 Minalex Corporation launched an RT-PCR testing product made from aluminum frame. This product played a key role in reducing the time needed to process RT-PCR testing for SARS-CoV-2 by supplying essential components for the automation of the workflow. The aluminum extrusion used in the machine was of higher-quality and extremely accurate, so that it can withstand a large amount of movement, chemicals and bodily fluids during operation.
Note: A detailed analysis is specific to the Aluminum Extrusion market will be provided in the report
The report also provides an in-depth analysis of key trends in the Aluminum Extrusion market
The report also provides an in-depth analysis of recent news developments and investments
The key players operating in the aluminum extrusion market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.