Views: 0 Author: Site Editor Publish Time: 2022-10-12 Origin: Site
In 2021, several reports pegged the aluminum extrusion market size at 87.8 billion dollars. Today, we expect this valuation to show a compound annual growth rate of 7.5% between 2022 and 2030. Electric vehicles are becoming the leading trend recently. Several automotive friends have started exploring the space. And aluminum is an integral part of the internal combustion of these vehicles. Because of this, we expect aluminum to gain even more prevalence in years to come.
Again, governments globally are mounting pressure on automobile companies, forcing them to go green to minimize their carbon footprint. Accordingly, we can expect the prevalence of electric vehicles in the coming years. As mentioned before, with aluminum as an integral component, we are about to witness the valuation of the aluminum extrusion market size reaching the moon.
According to a survey report, the aluminum extrusion market demand went just over 87 billion dollars at the end of 2021. Between the window of 2015 to 2021, the market enjoyed a compound annual growth rate of 6.2%. However, aluminum has been enjoying extensive and comprehensive mining these days. The end-uses are enormous. This has led to a geometric surge in the market demand for this product in recent years.
The growth of the aluminum extrusion market during this historical window took a tragic turn due to the impact of the 2020 pandemic. Especially with the lockdown which was a sad reality during this time, several industrial outputs were affected inimically. And of course, the aluminum extrusion industry was not excluded. The market saw a number of logistical restrictions. Because of this, there was a momentary stop in aluminum extrusion and mining activities.
Particularly, there was a major decline in the demand for extruded products across the defense, construction, automotive, and aerospace industries.
Fortunately, the aluminum extrusion market momentum came back with the lifting of the sanction in 2021. The government identified construction activities as essential businesses. This has been a key growth accelerator for the aluminum extrusion market. In addition, aluminum extrusion products, particularly, have low cost and weight. This has been a major contributor to their demand across various industrial applications. This demand is particularly pronounced in the aerospace defense and automotive sectors around this period.
What are the market projections for the aluminum intrusion market between 2022 to 2030?
With the rising demand for lightweight aluminum extrusion products, we expect the sales for the material to reach or potentially break the 175 billion dollars mark. During this window, we expect a cagr growth of 7.5%.
Aluminum shapes such as beams, angles, bars, channels, etc., take up the lion's share of the market revenue. It accounts for over 79.5% of the entire aluminum extrusion market in 2021. Aluminum has several excellent properties. But one of the most compelling ones is the malleability. This property makes it easy to create various shapes using the aluminum extrusion process.
These shapes are created by heating aluminum billet and forcing the heated materials using high-pressure hydraulic presses into the desired shape. The output of this heating and pressure application is aluminum shapes. This often features the shape of dies.
The shapes enjoy applications across different sectors and segments. In automotive, we'll use it for roof rails, panels, transmission housings, and several other components in boats, trucks, and even railways. Vehicle manufacturers want something lightweight and this is one of the factors leading them to aluminum.
The Ford F-150 is a brilliant example of this. The build of this automobile features pretty sizable aluminum materials. And most of the body weight solely features extruded shapes and aluminum body panels, making it lightweight yet durable for many.
Aluminum rods are available in circles. And we also have bars, which feature several flat sides. Bars and rods and perhaps the most commonly used aluminum shapes across different Industries. Especially when it comes to construction activities, these shapes are an integral part of forming scaffolding systems. With their lightweight, they offer several advantages over conventional ways of doing things. To mention a few, other advantages include weight stability and flexibility.
The application of aluminum extrusion is best felt in the construction and building sectors. In fact, this sector accounts for over 65% of the market revenue in 2021. With the increasing investment in the housing sector, there has been a surge in the prevalence of extruded products.
The largest of this market revenue is concentrated in china. In recent years the country has been intentional about investing in the housing sector. As the drive continues, we expect it to support the development of the aluminum extrusion market between 2022 to 2030.
Also, the global population is increasing, there is rapid urbanization. With rapid urbanization, there is an increase in demand for residential areas. As such, as investment in the housing sector keeps increasing, the use of extruded products increases as well.
Closely following the construction sector is the automobile sector. This accounts for the second-largest volume of the market. We also expect the share of the sector to grow exponentially within the forecast. In automobiles, aluminum extrusion is widely applied across distribution pipes, radiation beams, engine mounts, tailgate frames, frame rockets, roof rails, and several other use cases.
Besides, there is a rising concern about carbon emissions generated from mining and extracting specific products. For this reason, manufacturers are switching to alternative materials, especially aluminum. As many countries keep implementing stringent carbon emission policies, we expect more automobile manufacturers to be looking forward to aluminum. This is more likely to elevate the demand for aluminum parts in automotive in the coming years. The defense and Aerospace sectors are also major players in increasing the demand for aluminum extrusion products.
Furthermore, the consumer goods market is not backing down as well. This sector however has the lowest rank in the market's revenue for aluminum extrusion. But in the coming years, there will be an increase in the production of consumer goods. These groups include furniture, athletic goods, refrigerators, sporting, and several other applications. As the global economy increases the production of these items, expect the demand for aluminum extrusion to follow suit accordingly.
There is also an increasing demand for other extruded aluminum sections. These include customized shapes, bars, and sheets. Customized shapes find considerable application in video systems computer devices and several other appliances.
The biggest market for aluminum extrusion products is the Asia-pacific. This market account for roughly 70% of the entire aluminum extrusion market Revenue. Even better, there manufacturing plants and Industries popping out everywhere in China, Vietnam, South Korea, Japan, and several other countries in the Asia-pacific. As these companies keep coming out in numbers, the region is set to retain its dominant position across the year on the forecast.
Now, among these Asian Pacific countries, China is the key player and will potentially play a vital role in elevating the industrial growth of aluminum extrusion. This is due to its extensive relevance in the construction sector.
The Chinese government has laid out comprehensive plans to invest in the transport sector period. This plan also extends to the energy infrastructure. Combining these two areas, we expect a positive influence on the market growth of aluminum extrusion over the forecast period.
Closely following the Asian Pacific market is the North American market. This market is also projected to experience a considerable growth rate between the forecast period of 2022 to 2030 both in terms of Revenue and in terms of profits. Following the pandemic, the region has been witnessing significant growth in industrial applications. And this is set to offer this region a gentle nudge into growth.
The government also plays a vital role with innovative initiatives. With economic development policies and initiatives, we expect the North American government to help facilitate the market revenue of aluminum extrusion in this period.
Let's take for instance. Two years ago the Canadian government reviewed a new initiative in infrastructural development. This initiative is worth over 7.5 billion Canadian Dollars. This budget is primarily directed toward facilitating several renewable energy initiatives and ultimately job creation. As the North American market keeps witnessing more such initiatives, it will be better positioned to overtake China and other Asian Pacific countries in probably a decade to come.
The aluminum extrusion market already enjoys quite an enviable market size. However, between 2022 to 2030, what this market is set to experience is way better than what it has been experiencing.
So, you’ll agree there's no better time to buy into the trend of aluminum extrusion than now if you want to fully leverage the market.
Now, are you looking to take the first step? Then, you need a reliable supplier to help you swim through the complex pool of aluminum extrusion. Fortunately, we are the answer you need. So, be sure to reach out to us today at toby@gdcalm.com!