MEA Aluminum Extrusion Market Size, Share & Trends Report

MEA Aluminum Extrusion Market Size, Share & Trends Analysis Report By Product (Shapes, Pipes & Tubes), By Application (Building & Construction, Automotive & Transportation), And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-898-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 84

Report Overview

The MEA aluminum extrusion market size was valued at USD 2.05 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.1% from 2020 to 2027. The growth is attributed to increasing construction activities coupled with a rise in automotive manufacturing in the region. Construction activities in the region are augmented by an increasing number of residential projects, manufacturing facilities, and other commercial buildings. For instance, as of December 2018, more than 5,000 construction projects were in Saudi Arabia’s pipeline that held a share of 35% of the Gulf Cooperation Council’s total active project volume. The growth of the market is majorly attributed to the building and construction sector. The construction industries of Saudi Arabia and the UAE carry vital importance in the region.

Saudi Arabia aluminum extrusion market size

According to the statistics released by the Middle East Economic Digest (MEED) in 2019, the total value of capital projects in Saudi Arabia and UAE were about USD 1.2 trillion and nearly USD 713 billion, respectively. The growth is anticipated to be further augmented by ambitious projects like the development of a USD 500 billion mega-city called NEOM. Such projects are expected to boost aluminum extrusion demand in the Middle East over the forecast period.

Growth of the automotive industry coupled with increasing usage of aluminum in vehicle production is another key growth driver for the market. Vehicle production is witnessing an increase in African countries as more manufacturers are getting attracted owing to low labor costs and tax holidays. The global automotive production declined by 5.2% in 2019, whereas, South Africa witnessed an increase of 3.5%. Moreover, with the ongoing developments in the region, it can be predicted that by the next decade over half a billion people in Africa will come under the middle class, thus, more demand for vehicles.

Demand for aluminum extrusion is increasing in the region with the development of end-use industries, which gives a rising opportunity for capacity expansion and new extruders to enter region. Less number of extruders make the market import reliant and increases the cost of the final product. However, the capital intensive nature of aluminum extrusion manufacturing creates barriers for new entrants, which makes the high cost of manufacturing a restraint for market growth.

The COVID-19 pandemic is another restraining factor for market growth especially in 2020. The lockdown across the world has impacted manufacturing, transportation, and caused thousands of deaths. As of May 22, 2020, the number of deaths in the African continent reached 3,095. Hulamin, one of the key supplier of aluminum semi-fabrication products reported a strong balance sheet at the end of 2019, however, due to lock down the company’s operations are significantly disrupted with drop-in products demand especially from engineering and automotive sectors. The company’s EBITDA is negatively affected in the first half of 2020.

Product Insights

The shapes was the largest segment and accounted for more than 80.0% revenue share of the Middle East and Africa aluminum extrusion market in 2019. Shapes are the extruded profiles that are used in manufacturing various parts and components for appliances, construction, computer, automotive and transportation, and architectural industries. The most commonly used shapes are angles, channels, and tubing. The dimensions of these shapes vary from component to component depending upon the application.

The segment is anticipated to witness the fastest growth rate over the forecast period owing to its advantages such as ease of fabrication and durability of aluminum. These are extensively used in the building and construction industry in window and door frames, architectural framing, and cladding system applications. In the automotive and transportation industry, aluminum extruded shapes are used in bumper systems and frame members of vehicles.

Pipes and tubes another key product segment of the market is expected to witness growth increasing infrastructural developments. Pipes and tubes are used in manufacturing handrails and support columns and are available in different shapes such as rectangle, square, and round. Aluminum extruded tubes are hollowed type of rods and bars. These hollow tubes are used in food processing equipment, water treatment plants, and industrial applications.

Application Insights

Building and construction held the largest revenue share of more than 72.0% of the market in 2019. The share is owing to several applications of aluminum extrusion in the industry, such as primary and secondary doors and windows, curtain walls, storefronts, awnings and canopies, housing units, bridges, and even streets and highways. Rising infrastructural developments in the region demand customized shapes, profiles, structural columns, and other extruded products.

MEA aluminum extrusion market share

Automotive and transportation is amongst the major application areas of aluminum extrusion. In the automotive industry, trailers and semitrailers are major consumers of aluminum extrusion, followed by passenger cars and light commercial vehicles. The establishment of new automotive manufacturing plants in the region is expected to fuel the demand for aluminum extruded products in the coming years. For instance, Jordan Automotive Group signed a memorandum of understanding with the Aqaba Special Economic Zone Authority (ASEZA) to build an automotive production facility in 2018. The proposed facility is likely to manufacture nearly 50,000 automotive vehicle units annually.

The electrical and energy segment is anticipated to witness the fastest growth rate during the forecast period, on account of the rapid development in the renewable energy sector. Solar, wind, and other forms of energy constitute the major share of the aluminum extrusion market for electrical and energy applications, followed by power transmission & distribution and electronics & communications. In the electrical industry, aluminum extrusions have applications in electronic chassis, racks, housings, power units, bus bars & connectors for industrial power distribution, reflectors, and mountings, among others.

Regional Insights

UAE held the largest share and accounted for over 40.0% of the market revenue in 2019. The share can be attributed to the presence of various automotive plants and phenomenal growth in the building and construction industry (in both residential and commercial sectors). Moreover, the UAE is home to several key extruders of the market along with the presence of raw material producers, which is likely to boost the market growth in the country.

The aluminum sector is one of the significant sectors in the UAE as it contributes largely to the GDP and gives employment to many in the country. For instance, as of 2017, the aluminum sector contributed USD 5.47 billion to the UAE economy, where every dollar generated by the sector supported an additional generation of USD 1.26 elsewhere in the economy.

Saudi Arabia is amongst the significant producers and consumers of aluminum extrusion in the Middle East and Africa region. The production is attributed to rising aluminum manufacturing in the country, which has attracted various extruders. The consumption is driven by the development of new automotive plants, upcoming renewable energy farms, and growth in the industrial sector with a rise in the number of factories. For example, in 2019, Royal Commission for Jubail allocated land for a vehicle assembly plant, which is worth SAR 700 million (~USD 186.3 million) with a production capacity of 10 to 30 thousand cars per annum.

Qatar is one of the fastest-growing markets in the region owing to upcoming key infrastructural projects such as FIFA 2022 and development in the country’s transportation sector. The country is engaged in development of advanced multimodal transport networks and significant investments are expected in the transport infrastructure of Qatar over the coming years as per the National Vision 2030.

Key Players and Market Share Insights

The market is fragmented in nature with the presence of established and small-scale players. The key players give tough competition to small manufacturers by adopting strategies such as joint ventures, capacity expansion, and new product innovation. For example, in April 2018, Emirates Extrusion Factory LLC installed a new powder coating line at its manufacturing plant in Technopark in Dubai, UAE. The expansion was intended to meet the growing demand for painted aluminum extruded profiles in the Gulf Cooperation Council (GCC). Some of the prominent players in the MEA aluminum extrusion market include:

  • Alupco

  • Gulf Extrusions Co. LLC

  • Taweelah Aluminum Extrusion Co. (TALEX) LLC

  • National Aluminum Products Company SAOG (NAPCO)

  • Balexco BAHRAIN ALUMINIUM EXTRUSION COMPANY

  • Emirates Extrusion Factory LLC

MEA Aluminum Extrusion Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 2.10 billion

Revenue forecast in 2027

USD 2.60 billion

Growth rate

CAGR of 3.1% from 2020 to 2027

Base year for estimation

2019

Actual estimates/Historic data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million & CAGR from 2020 to 2027

Report coverage

Revenue forecast, volume forecast, competitive landscape, company ranking, growth factors, and trends

Segments covered

Product, application, region

Regional scope

Middle East & Africa

Country scope

Saudi Arabia; UAE; Oman; Qatar; Bahrain; Kuwait

Key companies profiles

Alupco; Gulf Extrusions Co. LLC; TALEX LLC; NAPCO; Emirates Extrusion Factory LLC

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Segments Covered in the Report

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

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

    • Building & Construction

    • Automotive & Transportation

    • Consumer Goods

    • Electrical & Energy

    • Others

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

    • Shapes

    • Rods & Bars

    • Pipes & Tubes

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

    • Saudi Arabia

    • UAE

    • Oman

    • Qatar

    • Bahrain

    • Kuwait

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