Aluminium Extrusion Market Analysis Report By Product, By Application And Segment Forecasts From 2020 To 2027

Industry Insights

The global aluminium extrusion market size was accounted for USD 67.77 billion, in 2019 and is anticipated to grow at a CAGR of 3.8% over the forecast period, 2020 to 2027. The major factor driving the market growth is increasing demand for aluminium extrusion from the building & construction industry. Several benefits such as lightweight, low price, and recyclability factors of the material are fueling the demand for the product in the construction of buildings. In addition, rapid industrialization and urbanization in emerging regions, especially in Asia Pacific are expected to surge the market growth during the forecast period.

In China, the consumption of aluminium extrusion in the automotive & transportation industry has declined in 2020 due to the outbreak of COVID-19. However, stringent government regulations for lightweight vehicles are expected to drive the market growth across the globe over the forecast period.

The halted construction activities are projected to boost the demand for the product in China. The government of China is supporting construction activities, which is also expected to propel the product demand in the residential sector. It is likely to protect the aluminium market in China from COVID-19 pandemic.

Product Insights

By product, the aluminium extrusion market is fragmented into shapes, rods & bars, and pipes & tubes. In 2019, shapes segment held the largest market share of 80.2% in terms of revenue. Rising demand from automotive, construction, and consumer goods sectors is a key factor driving the segment growth. The common shapes used are channels, angles, and tubing in building construction for sliding doors, windows, and railings. In the automobile sector, these shapes are used for exterior applications.

Rods and bars are extensively used in electrical transmission lines. Further, aluminium has 30% of the copper weight and 61% of the conductivity of copper while having 61% of the conductivity of copper along with low cost. Growing electricity demand from emerging economies is expected to boost the segment growth further over the next few years.

Pipes and tubes are projected to emerge as the fastest-growing segment, registering CAGR of more than 5.0% in terms of revenue during the forecast period. Further, growth of the construction industry is expected to boost the demand for tubes, as they support handrails and columns in buildings.

Application Insights

In 2019, the building & construction segment accounted for the largest market share of over 60.0% in terms of revenue. Post COVID-19 pandemic the construction industry in North America and Europe is expected to resume existing infrastructure and building projects. On the other hand, new construction projects are being takeup in Asia Pacific and Middle East and Africa are expected to drive the market growth.

The automotive and transportation segment is likely to hit due to the COVID-19 pandemic. The automotive production is expected to decline by 20% across the globe due to decreasing demand and supply chain disruptions. However, growing demand for electric and lightweight vehicles is expected to drive the market growth.

The electrical & energy application segment is projected to grow with the CAGR of over 4.5% in terms of revenue during the forecast period. Extruded aluminium is widely used in the wind & solar industry due to its better characteristics such as strength, lightweight, and corrosion resistance. Increasing demand for renewable energy sources, like solar & wind energy, is a key factor driving the segment growth.

Regional Insights

In 2019, Asia Pacific held the largest market share with more than 74.0%. This high revenue market share is attributed to rapid growth of automotive and construction industries in China. In this region, China accounted for 63.2% market share in terms of revenue. Governments of emerging countries such as China and India invested in smart cities, solar energy, railways, e-vehicle, defense, and metros projects. This factor is expected to boost regional market growth in the next few years.

Europe market has negatively impacted due to slow economic growth caused by the outbreak of COVID-19 virus. However, the market is expected to surge due to increase in the number of construction projects in this region, as the construction sector is a significant contributor to Europe economic growth.

North America is projected to grow at a CAGR of 2.2% from 2020 to 2027, in terms of revenue. In this region, the aluminium industry is hardly hit by the COVID-19 pandemic due to the decreasing demand from construction & building industry.

Though the COVID-19 pandemic has adversely affected the construction sector as well as overall economic growth of Middle East and Africa, the construction industry is expected to remain positive about its long-term prospects. Rapid growth of housing projects in Saudi Arabia, UAE, and Bahrain is anticipated to drive the market growth in Middle East & Africa.

COVID-19 Impact Analysis

The outbreak of the COVID-19 virus has negatively impacted the aluminum extrusion market. The impact of the COVID-19 pandemic on the sales of extruded aluminium in China is anticipated to be adverse. However, this impact is expected to be for short term followed by strong recovery in 2021. Further, the slow growth of constriction industry due to the pandemic is likely to hamper the market growth across the globe. A strong rebound in the economic activity by government of several countries following the relaxation of economic and social controls to recover from the impact of the pandemic.

Aluminium Extrusion Market Share Insights

The market is highly competitive in nature. The key strategy implemented by industry players is capacity expansion. For example, in March 2019, Norsk Hydro ASA acquired two extrusion plants in Brazil. This strategy is implemented to boost the company revenue and hold the leading position in competitive market. The key market players included in this market are Century Aluminum, Navitas Organics. Norsk Hydro ASA, Jindalaluminum Limited, Arconic, GlobalaluminUum Pvt. Ltd., TALCO, QALEX, Constellium, Guang Ya Aluminium, Novelis and China Zhomgwang Holdings Limited. 

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global aluminum extrusion market report based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2016 - 2027)
    • Shapes
    • Rods & Bars
    • Pipes & Tubes

• Application Outlook (Volume, Kilotons; Revenue, USD Billion, 2016 - 2027)
    • Building & Construction
    • Automotive & Transportation
    • Consumer Goods
    • Electrical & Energy
    • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2016 - 2027)
    • North America
        • The U.S.
    • Europe
        • Germany
        • The U.K.
        • France
    • Asia Pacific
        • China
        • India
        • Japan
    • Central & South America
        • Brazil
    • The Middle East & Africa