Rockville, Aug. 10, 2023 (GLOBE NEWSWIRE) -- As per Fact.MR, a market research and competitive intelligence provider, the Aluminum Extrusion Market is projected to achieve a market value of US $89 billion in 2022 in terms of its global sales. By the end of 2021, the global market for aluminium extrusion had sales that exceeded US$ 85 billion. Research estimates that throughout the aforementioned historical period, the industry expanded at a CAGR of 6.2% by 2032.
Sales of aluminium extrusion are anticipated to increase as demand for EVs and the automotive & transportation sectors both rise. Additionally, there is growing pressure on automakers to comply with laws and regulations governing how cars affect the environment.
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Key Driving Forces Accelerating the Market Growth
- The construction industry's steady growth in North America has led to rising demand for aluminum extrusions in various building applications, including window frames, doors, curtain walls, and structural components.
- The automotive industry's focus on lightweight vehicles to improve fuel efficiency and reduce emissions has driven the adoption of aluminum extrusions in car frames, chassis, and other components.
- Aluminum is a highly recyclable material, making it an eco-friendly choice for various industries seeking sustainable solutions and environmentally friendly practices.
Moreover, the increasing use of aluminum extrusions in consumer electronics, such as smartphones, tablets, laptops, and LED displays, has contributed to market growth.
- Aluminum extrusions are widely used in various industrial applications, such as machinery, equipment, and material handling systems, further fueling market expansion. Moreover, the emphasis on energy efficiency and green initiatives has prompted industries to opt for aluminum extrusions for products like solar panels and energy-efficient lighting fixtures.
- Technological advancements in the aluminum extrusion manufacturing process have brought about significant improvements in production efficiency and cost reduction. One such advancement is precision extrusion, which involves using advanced techniques and equipment to ensure precise shaping and dimensions of the extruded aluminum profiles.
Vital Indicators Shaping the Future of the Industry
- The overall economic growth of North America plays a significant role in determining the demand for aluminum extrusion products. Economic expansion usually leads to increased construction, automotive, and industrial activities, which, in turn, drives the demand for aluminum extrusions.
- Government investments in infrastructure projects, such as roads, bridges, airports, and public transportation systems, create opportunities for aluminum extrusion applications in the construction and transportation industries.
- The increasing focus on sustainable practices and stricter environmental regulations may drive industries to adopt lightweight, recyclable aluminum extrusion solutions over other materials with higher carbon footprints.
- Advances in aluminum extrusion technologies and manufacturing processes could lead to improved efficiency, reduced costs, and expanded design possibilities, making aluminum extrusions more competitive in various industries.
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Challenges Hindering the Market Growth
Aluminum prices can be volatile due to factors like global supply-demand imbalances, trade tensions, and geopolitical issues, making it challenging for manufacturers to stabilize costs and maintain competitive pricing. Moreover, the market faces competition from other materials like steel, composites, and plastics, which may offer different characteristics and cost advantages, leading to market share challenges. Moreover, aluminum extrusion manufacturing requires a significant amount of energy, and fluctuations in energy prices can impact production costs, affecting the overall market competitiveness.
- The aluminum extrusion market in North America is relatively fragmented, with numerous small and medium-sized manufacturers. This fragmentation can lead to price competition and hinder the market's ability to influence overall pricing trends.
How Competition Influences the Market
Intense competition among aluminum extrusion manufacturers can lead to price wars, where companies lower their prices to gain a competitive edge. Price competition can be beneficial for consumers as it drives down product costs, but it can also put pressure on profit margins for manufacturers.
- In December 2021, Hindalco Industries Ltd. completed the acquisition of Hydro's aluminum extrusion business in India, demonstrating its strategic effort to enhance its position in the higher-value-added market segment.
- In February 2022, Novelis launched a net zero lab by collaborating with HES-SO Valais-Wallis to develop carbon neutral solutions for aluminum manufacturing. Through this, the company will invest in researching on decarbonizing and is aiming at becoming carbon neutral by 2050.
Key Companies Profiled
- Hindalco Industries Ltd.
- Novelis
- Norsk Hydro ASA
- Constellium N.V.
- Arconic Corp.
- Kaiser Aluminum
- QALEX
- Alupco
- Gulf Extrusions Co. LLC
- Balexco (Bahrain Aluminium Extrusion Company)
- China Zhonwang Holdings
Aluminum Shapes Gaining Momentum in Automotive and Transportation Sales
Aluminum's inherent malleability renders it highly conducive to shape production through the extrusion method. This involves the heating of aluminum billets, followed by their forceful compression using a ram or hydraulic press against sturdy steel dies. This process yields aluminum shapes that mirror the contours of the dies.
In the automotive and transportation sector, aluminum extrusions find extensive application in an array of components including chassis, roof rails, panels, transmission housings, and engine blocks for various vehicles such as trucks, cars, boats, and railways. The growing emphasis on reducing vehicle weight has surged the demand for lightweight structural elements. Consequently, shapes are poised to capture a substantial market share, accounting for approximately 80% of the total.
Key Segments Covered in the Aluminium Extrusion Market Report
- By Product
- Shapes
- Rods & Bars
- Pipes & Tubes
- By Application
- Building & Construction
- Consumer Goods
- Automotive & Transportation
- Electrical & Energy
- Others
Checkout More Related Studies Published by Fact.MR Research:
Aluminum Castings Market: The global aluminum castings market stands at a valuation of US$ 93.5 billion in 2023 and is forecasted to climb to US$ 171 billion by the end of 2033. This Fact.MR research report predicts global demand for aluminum castings to increase at a healthy CAGR of 6.2% over the next ten years.
Aluminum Sheet Market: The demand for aluminum sheet market has been growing steadily over the years due to distinct factors such as the growth of the automotive sector and propelled use for packaging.
Aluminum Powder Market: The global aluminum powder market is estimated to be valued at US$ 533.0 million in 2023 and it is anticipated to grow at a CAGR of 6.4% to reach a valuation of US$ 992.3 million by the end of 2033.
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