Aluminum Extrusion Market Size, Share & Trends Analysis Report By Product (Shapes, Rods & Bars, Pipes & Tubes), By Application (Building & Construction, Electrical & Energy), And Segment Forecasts, 2020 - 2027

Report Overview

The global aluminum extrusion market size was valued at USD 67.77 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% from 2020 to 2027. The market is expected to recover from the COVID-19 outbreak in a staggered manner with strong demand from the building and construction industry post COVID crisis. The benefits of extruded aluminum products, such as low price, lightweight, and recyclability, make them suitable for use in the construction of infrastructure and buildings. Therefore, rapid urbanization, especially in the emerging economies of Asia Pacific, is anticipated to be a crucial factor in supporting industry growth. The impact of the COVID-19 outbreak on the demand for extruded aluminum in China is expected to be severe in the short term, followed by a strong recovery in 2021. A strong rebound in the economic activity of China, following the relaxation of economic and social controls since April 2020, is likely to soften the impact of the pandemic for the remainder of 2020.

The product consumption in the automotive and transportation industry of China is likely to face a severe decline in 2020 as a result of the industry’s cyclical weakness and aggravated effect of COVID-19. However, favorable policies for new-energy vehicles, such as battery electric vehicles, are expected to aid the product demand to some extent.

The gradual resumption of China’s construction activities is expected to benefit the product demand in China. Strong efforts undertaken by the government of China to accelerate construction activities, which are further aided by stimulus packages to boost construction demand from the residential sector, are likely to protect China’s aluminum market from the substantial damage caused by the pandemic as witnessed in North America and Europe.

Product Insights

Aluminum extruded shapes dominated the market and accounted for a revenue share of 80.2% in 2019. Increasing demand for extruded shapes from the building and construction, automotive, and consumer goods sectors is a significant factor fueling the segment growth. The commonly used shapes are angles, channels, and tubing. Common applications of these products in buildings include windows, sliding doors, and railings. In automobiles, they are commonly found in exterior applications.

Aluminum extruded rods and bars are extensively used in electrical transmission lines. Aluminum has 61% of the conductivity of copper while having only 30% of the copper weight, making it a cost-effective solution. According to the International Energy Agency (IEA), the global electricity demand registered a CAGR of 3% from 2000 to 2018. Rising electricity demand, especially from emerging economies, is likely to stimulate the demand for extruded rods and bars over the coming years.

Aluminum extruded pipes and tubes are expected to expand at the fastest CAGR of 5.5%, from 2020 to 2027, in terms of revenue. The rising demand for aluminum pipes from heat exchangers due to their high thermal conductivity is estimated to be a key factor for their growth. Furthermore, growth in the construction industry is likely to drive the demand for tubes. Tubes are used in support of columns and handrails in buildings.

Application insights

The building and construction application segment dominated the market and accounted for a revenue share of 60.7% in 2019. Post the COVID-19 crisis, the construction industry in Europe and North America is likely to be driven by the restoration of existing building and infrastructure projects, while the construction industry in the Asia Pacific, and the Middle East and Africa is expected to be driven by new construction projects owing to the burgeoning population and rising urbanization This is expected to benefit the segment growth.

The automotive and transportation application segment is likely to take a major hit owing to the COVID-19 pandemic. Global automotive production is likely to decline by at least 20% in 2020 owing to supply chain disruptions and reduced demand. However, acceleration in the production and usage of electric and lightweight vehicles are likely to drive the product demand over the coming years.

The electrical and energy application segment is expected to register the fastest CAGR of 4.8% in terms of revenue from 2020 to 2027. Extruded aluminum structures are widely used in the wind and solar industry as they offer great potential owing to their lightweight, strength, and corrosion resistance. Growing demand for renewable energy sources, such as solar and wind energy, is expected to be a key factor augmenting the segment growth.

Regional Insights

Asia Pacific dominated the market and accounted for a revenue share of 74.4% in 2019. This is attributed to the presence of large construction and automotive industries in China. China accounted for a revenue share of 63.2% in the Asia Pacific market in 2019. Key countries of the region including China, India, and Japan have implemented plans to unleash massive amounts of fiscal stimulus to push economic activities. This is likely to fuel market growth in the region.

Europe has been one of the hardest-hit markets by the acute economic slowdown caused by the COVID-19 pandemic. The Eurozone GDP is expected to contract by 7.3%. The European economy is expected to be uplifted by the upcoming construction projects in the region as the construction sector is a significant GDP contributor and it also accounts for the largest share in Europe’s aluminum extrusion market.

North America is expected to register a CAGR of 2.2%, in terms of revenue, from 2020 to 2027. The aluminum industry in the region too has been hard hit by the pandemic and as a result, demand from the building and construction industry has been severely affected. Economic packages announced by the U.S. government, such as the USD 1 trillion dollar package, are expected to uplift the aluminum demand to some extent.

Although the COVID-19 pandemic has drastically affected the construction output and overall economic growth in the Middle East and Africa, the construction industry remains positive about its long-term prospects with long-term infrastructure spending commitments and event-driven investments. The housing sector has particularly benefited from increased project awards in Bahrain, UAE, and Saudi Arabia. These factors collectively are projected to assist the growth of the market in the region.

Key Companies & Market Share Insights

The market for aluminum extrusion has been characterized by high competition. Capacity expansion is a key strategy adopted by the players to strengthen their position in the market. For instance, in March 2019, two extrusion plants in Brazil were acquired by Norsk Hydro ASA. This strategy was implemented to create a solid growth platform and bolster its market leadership. Some of the prominent players in the aluminum extrusion market include:

• Jindal Aluminium Limited

• Norsk Hydro ASA

• Century Aluminum

• Arconic

• Global Aluminium Pvt. Ltd.

• TALCO

• QALEX

• Novelis

• Constellium

• China Zhomgwang Holdings Limited

• Guang Ya Aluminium

Aluminum Extrusion Market Report Scope

Segments Covered in the Report

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

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Shapes

  • Rods & Bars

  • Pipes & Tubes

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Building & Construction

  • Automotive & Transportation

  • Consumer Goods

  • Electrical & Energy

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 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