Aluminum alloys are engineered materials made by combining aluminum with other chemical elements to give the material new properties it does not have in pure form. Major aluminum alloys primarily include aluminum-copper, aluminum-magnesium, and aluminum-zinc. These alloys provide high strength-to-weight ratio with adequate corrosion resistance, easy machining, high thermal and electrical conductivity. Major applications of aluminum alloys include transportation, marine, aerospace, building & construction, packaging, power transmission, consumer durables, machinery equipment, and others. Within the transportation industry, aluminum alloys are increasingly used in automotive bodies, cargo vans, commercial trucks, automotive wheels, and other applications owing to stringent emission norms compelling automakers to reduce vehicle weight.
The global aluminum alloys market is estimated to be valued at US$ 148.65 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The increasing demand from the automotive industry is one of the major drivers propelling the growth of the global aluminum alloys market. Major automakers are focusing on lightweight materials like aluminum alloys for automotive bodies and components to improve the fuel efficiency of vehicles and reduce carbon emissions from vehicles. Additionally, government regulations in various countries mandating the adoption of light-weighting solutions in vehicles for achieving better mileage are also driving the replacement of steel and other metals with aluminum alloys in the automotive industry. Moreover, the superior properties of aluminum alloys such as high strength-to-weight ratio, corrosion resistance, durability, ease of forming and joining are augmenting their adoption in numerous industries including transportation, building & construction, packaging, and others.
The aluminum alloys market is segmented into aluminum cast alloys and wrought alloys. Wrought alloys dominates the market presently with over 60% share owing to its better properties and its extensive use across automotive and aircraft industries. It has higher ductility, formability and is easier to machine than cast alloys making it the preferred choice where complex shapes are required.
Political: Governments across regions emphasize on infrastructure development and focus on reducing vehicular emissions which spurs the aluminum alloys demand. However, fluctuating currency rates and trade policies impact raw material prices.
Economic: Strong GDP growth globally, rising disposable incomes fuel aluminum consumption in transportation, construction and packaging industries. The lightweight property of aluminum helps reduce cost of transportation and energy costs.
Social: Increasing health awareness and emphasis on sustainability drives the use of aluminum in beverage cans and containers. Aluminum is 100% recyclable without loss of properties. Population growth and urbanization increase infrastructure spending.
Technological: Advancements in aluminum alloy production technologies boost output. Automakers focus on lightweight materials to improve fuel efficiency in accordance with emission norms. Wide applications of aluminum alloys in electronics and aerospace aid their demand.
The Global Aluminum Alloys Market Growth is expected to witness high at a CAGR of 6.1% during the forecast period of 2023 to 2030.
Asia Pacific dominates with over 45% share led by China, followed by Europe and North America. Japan and South Korea are other major markets.
Key players operating in the aluminum alloys market are United Company RUSAL Plc, Alcoa Inc., Aluminum Corp. of China Ltd., Kaiser Aluminum Corporation, Norsk Hydro ASA, Dubai Aluminum Co., Constellium, Kobe Steel, Ltd., and Aluminum Bahrain B.S.C. Focus is on new and recycled alloys with improved properties to expand end-use applications.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it