Market Overview:
Aluminum extrusion is a process used to change the shape of raw aluminum into desired cross-sectional profiles and shapes. Extruded aluminum provides several advantages such as corrosion resistance, longevity, flexibility in design, and is recyclable. These factors have increased the use of aluminum extrusion in various industries such as building and construction, automotive, consumer durables, and electric products. Growing construction activities along with increasing automotive production are the key factors driving the growth of the aluminum extrusion market.
Market key trends:
One of the key trends in the aluminum extrusion market is rising adoption in the construction sector. Aluminum extrusion is widely used in window frames, doors, railings, curtain walls, solar panels, and roofing among other construction components due to properties like high strength to weight ratio, corrosion resistance, and durability. Furthermore, rapid urbanization and increasing investments in infrastructure development projects especially in emerging economies are fueling the demand for aluminum extrusion in construction applications. Another major trend is the growing preference for aluminum extrusion in the automotive industry. Lightweight and high-strength aluminum alloys help improve fuel efficiency and reduce vehicular emissions. Many automakers are extensively using aluminum extruded parts for wheels, driveshafts, and other structural and non-structural components.
Porter’s Analysis
Threat of new entrants: Low level of threat as Aluminum Extrusion requires high capital investment to establish production facilities and distribution channels.
Bargaining power of buyers: Moderate as buyers have multiple options to choose from, however switching costs make it difficult to change suppliers.
Bargaining power of suppliers: Low as raw materials like aluminum are standardized and suppliers have limited control over prices.
Threat of new substitutes: Moderate threat from new substitute materials like plastics and composites that are increasingly being used in construction and automotive industries.
Competitive rivalry: High competition exists among existing players to gain market share and improve margins. Key players focus on expanding capabilities and value-added services.
Key Takeaways
The global Aluminum Extrusion Market Demand
is expected to witness high growth, exhibiting CAGR of 8% over the forecast period, due to increasing demand from the building and construction industry. Rapid urbanization and growth of infrastructure projects are driving the need for aluminum extrusions in windows, doors, and curtain walls.
Regionally, Asia Pacific dominated the global market in 2022 with a share of over 40%, led by China, India, and other Southeast Asian countries. Growth in the region remains driven by rising construction activity, real estate development, and increased spending on infrastructure projects. Europe and North America are other major markets, however their growth rates are projected to be moderate during the forecast period.
Key players operating in the aluminum extrusion market are Hindalco Industries, Jindal Aluminum Limited, China Zhongwang Holdings Limited, Constellium N.V., Hydro Extrusions, Arconic Inc., Gulf Extrusions Co. (LLC), TALCO Aluminium Company, Bahrain Aluminium Extrusion Co. (Balexco), Zahit Aluminium and Qatar Aluminium Extrusion Company, and others. Major players are focusing on expanding their production capacities and enhancing product portfolios through investments in R&D and new product launches.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
