The aluminum extrusion market size was projected at USD 82.91 billion in 2023 and is forecasted to reach USD 122.01 billion by 2029. It is anticipated to register at a CAGR of 6.80% in the projection period 2024-2029.
Market Drivers:
The increased use in ICE engines and EVs in the automotive and transportation sectors is growingthe aluminum extrusion market growth.
The demand for aluminum extrusions increased due to growing manufacturing of consumer products. Andit is even more utilized in furniture, toys, sports goods, freezers and refrigerators. Moreover, in consumer products, extruded componentssuch as sheets, bars and customised shapesare widely used. Also, many appliances, audio-video systems and computer gadgets all use customised extruded forms. Hence,the risingproduction of these appliances and gadgets will drive the aluminum extrusion market.
Additionally, regulations on greenhouse gas emissions are introduced by most of the major authorities likethe Environmental Protection Agency (EPA), the California Air Resource Board (CARB) and the National Highway Traffic Safety Administration (NHTSA). Moreover, in the United States, compliance by companies with emissionsrules is mandatory. For example, under NHTSA emission requirements, the level of fuel efficiency and CO2 emissions was increased by 1.5 percent between 2021 and 2026. Furthermore, it helps increase vehicle economy and provides performance benefits.Thus,the aluminum extrusion market in automobiles will continue to grow.
Market Restraints:
The aluminium extrusion market is restricted by high capital costs. Also, the market expansion is hampered by the large upfront expenditureforbuilding the manufacturing facility and low production efficiency.So, significant investment is required forthe huge infrastructure and gear needed for the extrusion press. Moreover, aluminum extrusion cannot provide continuous production because the process is intrinsically slow. Hence, these factors are decreasing in the market growth rate.
Market Opportunities:
Higher flexibility and additional opportunities for producing more intricate shapes and forms are provided by advanced techniques including hydrostatic, direct, and indirect extrusion. Furthermore, Industry 4.0 projects combined with data analytics, predictive maintenance and live monitoring into smart manufacturing techniques provide optimal production levels and quality control. Moreover, these developments lowered the operating costs and raised output capacities. It enables producers to supply various products at competitive rates. Therefore, the demand in the aluminum extrusion market increased because businesses thathad previously disregarded it due to its expense or complexity shifted to a feasible choice.
Market Challenges:
The price volatility hinders the expansion of the aluminum extrusion market. This is because fluctuations in raw materials priceaffectthe manufacturer’s profit margins.Also, the cost at which end users or consumers purchase finished goods.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 – 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 - 2029 |
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CAGR |
6.80% |
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Segments Covered |
By Type, Product, Process, Alloy Type, Application, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Alupco, Arconic Corp., Bahrain Aluminum Extrusion Company, Constellium N.V, Gulf Extrusions Co. LLC, Hindalco Industries Ltd., Kaiser Aluminum, Norsk Hydro ASA, QALEX, and Others. |
Market Segment Analysis:
Mill finished segment is leading the aluminum extrusion market. Its flexibility and adaptability are a major growth factor. In addition, thistype is recommended for cases where low repair and weather resistance are essential.Such as building and architectural projects. Moreover, it can be easilycustomisedforseveral applications. This includes electrical engineering, automotive and construction. Furthermore, reducing production time and costs by eliminating extra treatment steps makes these goods more accessible. Additionally, many applications benefit from MFaluminum's excellent strengthtoweight ratio and corrosion resistance. This eliminates the need for further surface treatments.
The shape segment dominated the aluminum extrusion market with more than three-fourth industry share. The growth is due to its exceptional malleability.So, it can be easily formed into different forms. Moreover, this process involves heating aluminium billets and applying high pressure to them using a hydraulic press or ram against steel dies. Then, aluminium forms are made that exactly replicate the die’s shape. Moreover, these are used in multiple automotive and transportation components. It comprises engine blocks, gearbox housings, chassis, panels and roof rails for various automobiles, lorries, trains and boats. The goal of reduced weights is driving up demand for structural parts in cars.
The direct extrusion segment is growing at a faster rate. Forward extrusion is also known as direct extrusion. The increased production rates have raised its application in the automotive and construction industries. Moreover, the extruded aluminum comes out of the die when the force is applied in the same direction as the billet's intended motion.
The 6000 series aluminum alloysegment holds a major shareof the aluminum extrusion market. Most of the aluminum used for making long, shaped pieces come from this series. It is super strong and light making it perfect for things like cars and buildings. Also, it helps carmakers build strong but light parts. This means less gas and fewer fumes.The 6000 series is also found in windows, doors and even the roofs over your head. This is because of its exceptional formability.
The building and construction segmentaccounted for more than 60 percentrevenue share in this category. The growing investments in the housing sector have increased the use of extruded goods in building activities. In addition, China has the largest nominal value in the building industry. The segment will propel further by the construction of new homes by several nations. This will support the expansion of this market in the coming years.
Whereas, the automotive and transportation segment is expectedto grow at a faster pace. Aluminum extrusion is extensively used for producing engine mounts, anti-intrusion beams, radiator beams, fuel distribution pipes, longitudinal beams, seat tracks, cross rails, roof rails, tailboard frames and underbody space frame rockers.
Market Regional Analysis:
Asia Pacific with a revenue share of over 70 percent led the global aluminum extrusion market. Because of the existence of well-established manufacturing sectors in nations like China, India, Vietnam, Japan, and South Korea, this area is likely to maintain its leading position during the predicted years. Among these nations, China is expected to be a key engine of industrial growth, driven mostly by its large construction sector. In the future, market growth is anticipated to benefit from the Chinese government's strategic investments in energy and transportation infrastructure.
North America is anticipated to increase significantly in the forecast period. The United States is a major producer and user in the aluminum extrusion market. Also, economic changes had a considerable impact on the aerospace and defence, automotive and construction industries in the country.This resulted in reduced demand for extruded goods. Also, 2022saw a decrease in the amount of aluminum extruded in the US due to unfavourable perceptions about new building projects. However, in 2023, the demand for building activities progressively rebounded.
Europe
Aluminium extrusion is widely used in the industrial, construction, and transportation sectors of the European Union (EU). The environmental rules promote aluminium extrusions since they are recyclable and help save energy, especially in the automotive and construction sectors. The European Union's initiatives are promoting investments and innovations in the industry.
Middle East and Africa
The aluminium extrusion industry is growing in the Middle East and Africa (MEA) areas due to the expansion of their industrial portfolio and the emergence of infrastructure. The Middle East is especially interested in implementing extruded aluminium products because to their practical and aesthetic advantages, given their substantial investments in building and architecture. Similar to this, there is a lot of space for market expansion in Africa due to the continent's expanding population and urbanisation.
Latin Americais expected to grow at a moderate pace in the aluminum extrusion market.Aluminum isn’t growing as fast as other places like Asia or the Middle East. While countries like Europe and North America are using more aluminum at home and making it from recycled materials, South America has seen less aluminum made and used in recent years.
The virus hit the aluminum business hard. Building, cars, and trucks all stopped selling as much because people couldn't go out or buy new ones. On top of that, getting stuff around got tricky because of travel bans, making it hard to build things and sell them.This affected the delivery and manufacturing process. But the pandemic also increased demand for aluminium extrusion in the packaging, home renovation and medical industries.
Market Key Players:
Market Key Developments:
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