February 29, 2024
Aluminum Extrusion Market

The Growing Automobile Industry is Driving the Aluminum Extrusion Market

Aluminum extrusions are widely used in various applications ranging from automotive parts to construction sector owing to their light weight, durability, and high strength. In the automotive industry, aluminum extrusions are used in the manufacturing of the body panels, suspension components, brake lines & fluid conduits, and structural supports. Aluminum extrusions help reduce the overall vehicle weight contributing significantly to improved fuel efficiency.

The global aluminum extrusion market is estimated to be valued at US$ 110 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Growth of Electric Vehicles

The increasing demand for electric vehicles around the world is one of the major trends influencing the aluminum extrusion market. Electric vehicles use more aluminum compared to conventional vehicles as aluminum helps in reducing the overall vehicle weight and extends the driving range. The automotive OEMs are increasingly focusing on lightweighting to improve the efficiency and performance of electric vehicles. This in turn is expected to drive the demand for aluminum extrusions from the electric vehicle market during the forecast period.

Porter’s Analysis

Threat of new entrants: New players will face high set up and capital costs to enter the aluminum extrusion market. They will also have to compete with existing well established market players.

Bargaining power of buyers: Buyers have moderate bargaining power as aluminum extrusion has applications across various end user industries. However, differentiated products and services give advantage to suppliers.

Bargaining power of suppliers: A few large suppliers exist for aluminum ingots and raw materials. This gives them some bargaining power over aluminum extrusion manufacturers.

Threat of new substitutes: Other lightweight metals like plastics, composites, and magnesium provide competition but aluminum extrusion still has advantage due to properties, recyclability and price.

Competitive rivalry: The market is fragmented with presence of large multinational and domestic players. Competition is high based on product quality, price and innovative product offerings.

Key Takeaways

The Global Aluminum Extrusion Market Size is expected to witness high growth. The global aluminum extrusion market is estimated to be valued at US$ 110 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030.

North America currently dominates the market owing to high demand from construction industry in the region. Growth in the US construction sector continues to drive the regional market. The Asia Pacific region is anticipated to be the fastest growing market for aluminum extrusion during the forecast period. Rising construction activities and growth of the automobile industry in China and India is expected to boost the regional demand.

Key players operating in the aluminum extrusion market are Arconic, Constellium, Hulamin Extrusions, Hindalco-Novelis, Gulf Extrusions, Talco Aluminum, Zahit Aluminum and Balexco.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it