Aluminum alloys find extensive applications in various end-use industries such as automotive, aerospace, packaging and construction due to their high strength-to-weight ratio, corrosion resistance, and manufacturability. Aluminum alloy products such as sheets, plates and foils are used in vehicle bodies, aircraft frames and packaging containers to reduce weight and increase fuel efficiency. The global aluminum industry has witnessed substantial growth over the past decade led by rising consumption in automotive, aerospace, electronics and other fast-growing industries. Aluminum alloys provide distinctive properties that make them suitable for customized solutions in these industries. The growing infrastructure development and green construction practices are further augmenting the utilization of aluminum alloys globally.
The global Aluminum Alloys Market is estimated to be valued at US$ 148.65 Bn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the aluminum alloys market is the increasing adoption of recycling practices. Aluminum is 100% recyclable and recycling aluminum requires only 5% of the energy required to produce primary aluminum from bauxite ore. Robust recycling rates lower production costs and energy usage in the aluminum industry. Several initiatives by governments and industry associations to promote aluminum recycling are aiding the recycling trend. For instance, the European Aluminium association has set a target of achieving 50% aluminum recycling rates by 2020. Recycling is emerging as an attractive proposition for aluminum producers to reduce costs and environmental footprint.
Porter’s Analysis
Threat of new entrants: Low cost barriers of entry due to availability of raw materials and low capital requirements make the threat of new entrants moderate.
Bargaining power of buyers: Large buyers have significant bargaining power due to their bulk purchasing power which can impact profit margins of players.
Bargaining power of suppliers: Major suppliers include aluminum producers and alloying materials producers. Substitute availability affecting supplier power makes it moderate.
Threat of new substitutes: Substitutes like plastics, magnesium, and composite materials pose moderate threat based on specific end-use applications.
Competitive rivalry: Intense competition among established players results in price wars and innovation.
Key Takeaways
The Global Aluminum Alloys Market Size is expected to witness high growth. The global Aluminum Alloys Market is estimated to be valued at US$ 148.65 Bn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024-2030.
Regional analysis: Asia Pacific dominates aluminum alloys market with China being the largest producer and consumer globally. Growth is driven by rising construction activities and automotive production in China and India. North America and Europe are other major markets driven by aerospace & defense applications.
Key players operating in the aluminum alloys market are Haitian International Holdings Limited (China), Chen Hsong Holdings Ltd. (China), Engel Austria GmbH (Austria), Sumitomo Heavy Industries Limited (Japan), Hillenbrand, Inc. (U.S.). The market is witnessing several merger and acquisition activities by big players to expand their product portfolio and geographic reach. Haitian International focuses on Asia while Hillenbrand and Engel cater to aerospace industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it