Bauxite Market Size, Share & Trends Analysis Report By Product (Metallurgical, Refractory), By Application (Alumina Production, Refractory), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global bauxite market size was valued at USD 15.59 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 1.7% from 2022 to 2030. The favorable government policies for electric vehicles (EV) and rising investment in the production of lightweight vehicles are anticipated to propel the demand for aluminum. This trend is likely to prove fruitful for the growth of the bauxite industry in the forecast period. For instance, in February 2022, Volvo Cars decided to invest in aluminum mega casting in its Torslanda manufacturing plant, Sweden. The investment is worth USD 1.1 billion and the mega casting makes the production process less complex and it reduces the overall environmental footprint.

The U.S. holds the largest share of the North American bauxite market. The growth in aluminum and cement production is expected to benefit market growth. According to the Aluminum Association, in the U.S., the amount of aluminum is expected to grow to 514 pounds (lbs) per vehicle by 2026 as it is the most used material by automakers.

Rising demand for aluminum flat-rolled products in automotive industries is making its manufacturers increase their production capacity, thereby fueling the demand for bauxite. For instance, in October 2021, Novelis Inc., a leading aluminum flat-rolled products manufacturer announced its plan to invest USD 30 million in its plant in Oswego.

According to the U.S. Geological Survey (USGS), the production of cement increased to 92 million tons in 2021 from 89 million tons in 2020. Thus, rising demand for aluminum in various industries and increasing production of cement are projected to boost the bauxite market growth across the forecast period.

Magnesium alloy and carbon fiber are the primary substitutes for aluminum in the automotive sector. Magnesium alloys offer better machinability along with dent resistance, which favors their demand. Furthermore, they also shield from damped vibrations and electromagnetic radiations. These advantages are anticipated to negatively impact market growth over the forecast period.

Product Insights

Metallurgical grade held the largest revenue share of more than 86.0% in 2021 of the global market. It contains alumina in the range of 50- 55%. The increasing demand for alumina from various industries such as automotive & transportation, packaging, building & construction is expected to propel the demand for the product across the forecast period.

The refractory grade is expected to witness a growth rate of 2.0% across the forecast period in terms of revenue. This grade contains high alumina content (59%- 61%). The product can resist cracking, physical & chemical reactions, and spalling. It is suitable for manufacturing combustion lining for boilers, furnace parts, and regenerator walls and checkers.

Rising investments in refractory manufacturing facilities are anticipated to raise the demand for refractory grades across the forecast period. For instance, in January 2022, Harbison Walker International (HWI), a leading supplier of refractory products, decided to invest USD 25 million in setting up a facility for the manufacturing and distribution of refractory products.

Application Insights

Alumina production held a revenue share of over 85.0% in 2021 of the global market. Alumina is derived from bauxite and is widely used in various industries owing to its properties such as high chemical stability in different environments, high melting point, hardness strength, and electrical resistance.

The refractory is one of the important application segments of the market. It is a material installed inside a furnace to protect the structures from the corrosive environment and high temperatures. Refractories are used in various industries including steel, glass, ceramics, cement, and petrochemicals.

Cement is another application segment of the market, and the segment is expected to register rapid growth across the forecast period. The bauxite residue has been used as an additive for the production of Portland cement clinkers. The major countries that currently utilize bauxite residue in their respective cement sectors include Greece, India, Ukraine, China, Moldova, Georgia, and Russia.

The manufacturers are collaborating with the cement industry for the production of cement from bauxite residues. For instance, in February 2022, Vedanta Aluminium, India, decided to collaborate with the cement industry for utilizing their bauxite residue for manufacturing cement.

Regional Insights

The Asia Pacific held a revenue share of more than 82.0% in 2021, of the global market. The increasing requirement for aluminum in EVs, packaging, and construction industries is anticipated to propel the demand for bauxite in the forecast period. For instance, in December 2021, Bajaj Auto announced an investment of USD 40 billion to build a new EV plant in India. The plant is expected to produce 500,000 EVs per year.

Europe accounted for the second-largest share, in terms of revenue, of the global market in 2021.  The region is investing in decarbonizing by increasing the usage of aluminum in lightweight mobility, construction of energy-efficient buildings, and making packaging more efficient. This trend has increased the consumption of bauxite in the region.

North America is expected to register the fastest growth across the forecast period. The widespread presence of numerous end-users in the region along with large-scale automobile plants, a robust construction industry, and infrastructural developments are propelling the demand for alumina, which is further anticipated to benefit the demand for bauxite in the forecast period.

Key Companies & Market Share Insights

Key market players compete largely based on quality, price, and proximity to customers, as well as strategically located long-term bauxite resources in Guinea, Australia, and Brazil which are the world’s largest reserves of the product. Furthermore, they engage in capacity expansions, mergers & acquisitions, and aggressive R&D activities to stay ahead of their competitors.

For instance, in March 2022, South32 acquired an additional stake in Mineracao Rio do Norte (MRN), a firm that operates the largest bauxite mine in Brazil. The company already owned 14.8% of MRN and has now bought 18.2% from Grupo Alcoa.

Some of the prominent players in the bauxite market include:

• Alcoa Corporation

• Rio Tinto

• Aluminum Corporation of China Limited (CHALCO)

• Norsk Hydro ASA

• South32

• Rusal

• NALCO India

• Hindalco Industries Ltd.

• Emirates Global Aluminium PJSC

Bauxite Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global bauxite market report based on product, application, and region:

• Product Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • Bauxite Metallurgical Grade

  • Bauxite Refractory Grade

  • Others

• Application Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • Alumina Production

  • Refractory

  • Cement

  • Others

• Regional Outlook (Revenue, USD Million; Volume, Kilotons, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • Russia

    • Norway

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia