Aluminum Extrusion Market Size 2024-2028

The aluminum extrusion market size is estimated to grow by USD 13.63 billion at a compound annual growth rate (CAGR) of 3.75% between 2023 and 2028. The market is experiencing robust growth driven by diverse factors. With the automotive industry increasingly adopting aluminum extrusions for lightweighting initiatives, the demand for these materials is on the rise. Furthermore, the expansion of the real estate and construction sector is fueling the need for aluminum extrusions in architectural applications such as window frames and curtain walls. Additionally, the industry is witnessing heightened demand for high-performance materials, further boosting the market's growth trajectory. As the trend towards lightweight and durable materials continues, the aluminum extrusion market is poised for sustained expansion. This market research and growth report also includes key information on drivers, trends, and challenges during the forecasted period. 

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

In the end-user segment of the market, industries such as aerospace and construction are prominent users of extruded aluminum products. The aerospace sector benefits from aluminum's lightweight properties, reducing fuel consumption and CO2 emissions in aircraft manufacturing. Similarly, the construction sector utilizes aluminum extrusions for lightweight parts and structures, contributing to energy-efficient and sustainable building solutions. Despite economic fluctuations, the demand for extruded aluminum remains steady, driven by its versatility and low costs compared to direct substitutes. Industrial applications across various sectors rely on aluminum extrusions for their unique characteristics and suitability for automation processes. Collaborations between governments and industry players support the adoption of aluminum extrusions, while stringent regulations promote sustainable practices and reduce environmental impact. Production technologies such as hot extrusion and direct extrusion enable efficient manufacturing processes, ensuring a steady volume of aluminum extrusion to meet market demands.

By End-User

The market share growth by the automotive and transportation segment will be significant during the forecast period. Aluminum is one of the most sustainable, energy-efficient, and recyclable construction materials. It is favored in the building and construction industry owing to its high recyclability.

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The  automotive and transportation segment segment was valued at USD 11.49 billion in 2018 and continued to grow by 2022. Aluminum-extruded products are increasingly being used in building and construction applications, such as doors, windows, panels, windows frames, ladders, and bridges. Aluminum-extruded products are widely used in the building and construction segment due to various advantages such as strong structural strength, recyclable properties, durability, and low maintenance. Such factors will increase the market at a rapid pace during the forecast period. 

Regional Insights

APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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APAC benefits from a large consumer base, abundant raw materials, and cost-effective labor. Key drivers in the APAC market include its use in the automotive, transportation, and construction industries. Prominent automotive manufacturers in countries like China, India, Japan, and South Korea are boosting demand for various vehicle components. These components play vital roles in automotive structures, powertrains, and interiors, driven by increased automobile production.

China, a major player in aluminum production and consumption, leads the APAC market, supported by growth in the construction and automotive sectors. Government incentives favoring electric vehicles and robust construction activities contribute to adoption. Aluminum-extruded products, known for durability and resilience, are well-suited for construction projects like buildings and bridges. India's ambitious plan to develop numerous airports with significant investments over the next 15-20 years will stimulate construction and demand, driving market growth in the region. Hence, such factors are driving the market in APAC during the forecast period.

Market Dynamics and Customer Landscape

The market is influenced by factors such as CO2 emissions concerns, particularly in the aerospace and defense and construction sectors. Economic fluctuations impact the volume of aluminum extrusion, driven by material inflow and low costs. Industries benefit from lightweight parts for various industrial applications, especially in aerospace and construction. Collaborations address stringent regulations imposed by governments, fostering the development of direct substitutes with unique characteristics. Automation drives efficiency, with hot and direct extrusion being prominent production technologies. Diverse shapes cater to different industries, utilizing aluminum billets heated under high pressure within hydraulic presses with steel dies, resulting in versatile aluminum shapes widely used across sectors.

Key Market Driver

The market is rapidly expanding, primarily driven by surging demand from the automotive sector. Over the past five years, there's been a substantial increase in the use of aluminum-extruded products, mainly due to the need for lighter vehicles. Originally reserved for basic applications like engine mounts and brake components, these products are now integral to manufacturing high-end equipment, such as safety components and crash management systems.

Economic growth and increased foreign investments in emerging markets, including India, Brazil, and Argentina, have boosted consumer incomes, enabling more car purchases. This, combined with inadequate public transportation in crowded urban areas, is expected to boost vehicle ownership, fueling the market growth and trends. Hence, such factors are driving the market during the forecast period.

Significant Market Trends

Increasing demand for solar energy is a key trend influencing the growth of the market. The increasing emphasis on energy security is set to drive the demand for renewable energy sources, reducing reliance on finite fossil fuel reserves. Solar energy, in particular, offers a sustainable alternative, especially for countries with limited or no petroleum resources. Unlike traditional fuels, solar energy is emissions-free. Aluminum-extruded products play a significant role in constructing photovoltaic panel frames, supporting the solar energy industry's growth.

Government incentives and subsidies for solar power installation further bolster the market. According to the IEA, solar photovoltaic capacity additions are expected to double from 39 GW (2010-2016) to 74 GW (2017-2040), driven by installations in China, the US, India, Japan, the UK, and Germany. This transition reduces developing nations' reliance on costly fossil fuels, making products essential for the solar energy sector's expansion. Hence, such factors are driving the market during the forecast period.

Major Market Challenge

The increasing demand for lightweight vehicles has driven the expanded utilization of carbon fiber composites, with the automotive sector being a primary consumer. These composites can slash car weight by 40%-50% and enhance fuel efficiency by 30%-35%. Consequently, the automotive industry, particularly in the premium car segment, exhibits a growing demand for carbon fiber composites.

Another significant challenge for the market is the rising adoption of glass fiber-reinforced plastic in the automotive and construction sectors. These products, characterized by corrosion resistance and high-strength glass fibers bonded with epoxy resin, offer superior properties. They find applications in diverse industries such as building and construction, aerospace, automotive, and transportation, posing as readily available alternatives. This availability of substitutes acts as a limiting factor for the market throughout the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Aditya Birla Management Corp.- The company offers automotive aftermarket such as 3M scratch removal system.

The market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

 Al Ghurair First LLC, Arconic Corp., Bahrain Aluminum-Extrusion Co., Century Aluminum Co., China Zhongwang Holdings Ltd., Constellium SE, Global-Aluminium Pvt. Ltd., Guang Ya-Aluminium, Guangdong Xingfa-Aluminium Co. Ltd., Jindal Aluminium Ltd., Kaiser-Aluminum Corp., National Material L.P., Norsk Hydro ASA, Qatar Aluminum Extrusion Co., Sankyo Tateyama Inc., Tajik-Aluminium Co., Tredegar Corp., UACJ Corp., and Vimetco NV

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

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Market Analyst Overview

The market experiences fluctuations driven by economic shifts and CO2 emissions regulations. In sectors like aerospace & defense, demand for extruded products with unique characteristics and low weight remains high. The market thrives on efficient production technologies like hot extrusion and direct extrusion, catering to diverse industrial applications. With a focus on malleability and lightweight parts, manufacturers collaborate to enhance material inflow and reduce costs. Governments impose stringent regulations to curb emissions, prompting the adoption of automation in production processes. The market's revenue share reflects the growing volume of aluminum extrusion, driven by direct substitutes and advancements in shapes and extrusion processes.

Economic fluctuations significantly impact the market, influencing factors such as production volumes and pricing dynamics. Manufacturers focus on achieving low costs while maintaining the desired weight of extrusion products through efficient processes. Collaborations among industry players drive innovation in the extrusion process, enhancing productivity and product quality. The process involves heating aluminum billets and subjecting them to high pressure using a ram in a hydraulic press. Steel dies are employed to shape the aluminum into various forms, catering to diverse applications. This market thrives on the demand for versatile aluminum shapes across sectors like construction, automotive, and aerospace.

The market experiences steady growth, driven by factors like fuel economy requirements and the expansion of the building & construction sector. Engineered extruded shapes, including rods, bars, and tubes, find diverse applications, such as in roof rails, scaffolding systems, and anti-intrusion beams. These extrusions are integral components in various industries, from automotive (such as engine blocks and radiator beams) to consumer goods manufacturing (including furniture and sporting equipment). They also play essential roles in fuel distribution pipes, seat tracks, and underbody space frame rockers. With increasing demand across sectors, the market for aluminum extrusions continues to expand, offering solutions for a wide array of needs.

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What are the Key Data Covered in this Market Growth Analysis Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming marketing forecasting in consumer behavior
• Market analysis and report across APAC, Europe, North America, South America, and Middle East and Africa
• Our market research and growth report also includes a thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting analysis of factors that will challenge the growth of market companies

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