GVR Report cover MEA Aluminum Extrusion Market Size, Share & Trends Report

MEA Aluminum Extrusion Market Size, Share & Trends Analysis Report By Application (Building & Construction, Electrical & Energy), By Product (Shapes, Rods & Bars), By Region (UAE, Oman), And Segment Forecasts, 2021 - 2028

  • Report ID: GVR-4-68038-898-5
  • Number of Pages: 78
  • Format: Electronic (PDF)

Report Overview

The MEA aluminum extrusion market size was valued at USD 1.6 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2021 to 2028. The increasing use of aluminum products in vehicles is projected to drive market growth over the forecast period. Aluminum extrusions are used in the automobile industry for various applications, such as rear subframes, door instruction beams, seat cross members, stiffeners, front bumper beams, brake, suspension, and steering components. These different applications of aluminum can significantly reduce the weight of vehicles. Hence, the share of automotive applications in the aluminum extrusion market is likely to witness strong growth over the forecast period. Saudi Arabia was the second-largest market in 2020, in terms of volume and revenue, and is likely to register the fastest CAGR over the forecast period.

Saudi Arabia aluminum extrusion market size, by product, 2018 - 2028 (USD Million)

The growth can be attributed to factors, such as increasing raw material production, potential renewable energy projects, expansion of new automotive plants, and rising industrial production with an increase in the number of plants. All of these factors are expected to propel the demand for aluminum extrusion in the country.

In 2019, aluminum was one of the top five export commodities of Saudi Arabia, generating approximately USD 1.27 million per annum. The aluminum production in the country has been witnessing positive year-on-year growth for many years, and this trend is anticipated to continue over the coming years owing to the increasing demand for aluminum in various applications including aluminum extrusion.

The automotive industry, an important end-user of the market, is expected to witness moderate growth over the coming years. Of the various factors, the addition of 3 million women drivers by 2020 in the country, would benefit the investors and industry participants in the supply chain of the automotive industry of Saudi Arabia. The growing number of consumers is compelling the automotive manufacturers to construct new plants in Saudi Arabia.

Product Insights

The shapes product segment accounted for the largest volume share of over 79% in 2020. The segment is also expected to register the fastest CAGR over the forecast period owing to advantages, such as ease of fabrication and durability, of aluminum. The shapes are classified into solid, semi-hollow, and hollow. Shapes are the extruded parts that are used in producing various components for construction, automotive & transportation, computer, appliances, and architectural sectors.

The most regularly used shapes are channels, sections, tubing, and angles. The dimensions and sizes of these shapes vary based on end use. The building & construction industry is the major end user of aluminum extruded shapes, where they are largely used in cladding systems, architectural framing, and window & door frames applications. Significant growth in infrastructural developments in the Middle East & Africa region is likely to augment the demand for aluminum extruded shapes over the forecast period.

Aluminum extruded rods & bars are widely used in electrical transmission lines as aluminum transmits double the electric current per pound than copper, making it a cost-effective solution. Aluminum extruded bars are available in a wide variety including round bars, rectangle bars, manifold bars, and hex bars. Aluminum bars are suitable in electrical goods, automotive, aerospace, construction, and marine applications owing to their resistance to corrosion, weldability, and high strength.

Application Insights

Building & construction was the largest application segment in 2020 with a revenue share of over 72%. This trend is expected to continue during the forecast period, considering the ongoing infrastructural developments in the construction industry in MEA. Doors & windows, curtain walls, storefronts, and entrance doors are among the major construction-related application areas for aluminum extrusions. These products also have applications in bridges, housing units, awnings & canopies, and streets & highways.

MEA aluminum extrusion market share, by application, 2020 (%)

The Government of Saudi Arabia is continuously focusing on transforming its oil-based economy into a service- & tourism-based economy. In line with this, it has kickstarted several ambitious projects, including the development of smart cities (Neom and the Red Sea). For instance, the development of Neom city is likely to generate a cost of about USD 500 billion over its course of construction. Thus, the growing interest of the government in developing new cities is expected to fuel the product demand in the coming years.

The automotive & transportation application segment is expected to grow at a significant CAGR during the forecast period. Aluminum extrusions have wide applications in cross rails, seat tracks, longitudinal beams, engine mounts, radiator beams, fuel distribution pipes, anti-intrusion beams, tailgate frames, and roof rails among others.

Another prominent factor that is likely to fuel the growth of the regional market is the construction of new metro lines in Kuwait and Bahrain. Aluminum extruded products, including customized shapes & sheets, are widely used in the interior and exterior development of locomotive buggies and interface systems. Thus, the development of new transportation systems in Kuwait and Bahrain is likely to boost the product demand.

Regional Insights

The UAE held the largest revenue share of more than 40% in 2020. It is anticipated to expand at a steady CAGR over the forecast period due to the presence of auto plants and the growth of the commercial and residential construction sector. Moreover, there are several extrusion companies in the UAE along with raw material suppliers, which is likely to boost the market growth in the country.

With the ongoing development in infrastructure, the demand for aluminum extrusion is anticipated to augment over the forecast period. For instance, Bahrain Metro, a proposed public transport project, was initiated in 2019 and is estimated to be completed by 2025. Railway components manufactured from aluminum extruded products are lightweight and offer enhanced safety and comfort; therefore, the Bahrain Metro project is expected to boost the product demand.

Qatar is yet another developing country in the region with potential growth for the market. The manufacturers in the country are increasing their customer base by adopting strategic initiatives, such as mergers & acquisitions. For example, in November 2020, Qatar Aluminum Extrusion acquired Abdul Noor Aluminum Extrusion factory. The acquisition increased Qatar Aluminum Extrusions’ production capacity to 30 kilotons per annum.

Key Companies & Market Share Insights

The market is fragmented due to the presence of small- and medium-sized players. Organic and inorganic growth strategies including new product innovation, capacity expansion, and joint ventures provide a competitive edge to these players. Some of the players are focusing on achieving economies of scale through optimization of operations and processes at manufacturing plants.

In the UAE, a large amount of manufactured aluminum extrusion is domestically consumed while Gulf Extrusions LLC, the largest player in the region, exports 30% of its total products internationally. Its plant in Jebel Ali has an annual production capacity of 60,000 tons. Some of the prominent players operating in the MEA aluminum extrusion market are:

  • 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 2021

USD 1,867.2 million

Revenue forecast in 2028

USD 2,230.2 million

Growth rate

CAGR of 4.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Product, application, region

Country scope

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

Key companies profiled

Alupco; Gulf Extrusions Co. LLC; TALEX LLC; NAPCO; Emirates Extrusion Factory LLC; Balexco Bahrain Aluminium Extrusion Company; Elite Extrusion LLC

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the MEA aluminum extrusion market report based on product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Shapes

    • Rods & Bars

    • Pipes & Tubes

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Building & construction

    • Automotive & transportation

    • Consumer goods

    • Electrical & energy

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Saudi Arabia

    • UAE

    • Oman

    • Qatar

    • Bahrain

    • Kuwait

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