Market Overview:
Aluminum extrusion is a process used to change the shape of raw aluminum metal into any customized design. In this process, heated aluminum billets are pushed through a die to create specific cross-sectional profiles for a wide range of structural and engineering applications. Aluminum extrusions offers advantages such as light weight, durability, malleability, corrosion resistance and strength. These extruded aluminum products find applications in various end-use industries like construction, transportation, machinery & equipment, electrical, and consumer durables. Extruded aluminum profiles are widely used in doors, windows, curtain walls and framing systems in the construction sector. In transportation, they are commonly used in auto bodies, aerospace components and marine crafts hulls & superstructures owing to its high strength-to-weight ratio.
Market key trends:
One of the key trends in the aluminum extrusion market is increasing usage of recycled aluminum. With growing environmental concerns, there is a rise in recycling of aluminum scrap which has led to higher production of secondary aluminum. Recycled aluminum requires only 5% of the energy required to produce primary aluminum from bauxite ore. It is estimated that currently over 70% of all aluminum produced globally is still in use via recycling. Another major trend is the growing construction activities especially in the Asia Pacific region. Extensive infrastructure development projects related to roads, railways, buildings, bridges etc. in China, India and other developing Asian countries is propelling the demand for aluminum extrusion products in these markets. Ongoing technological advancements to improve production efficiency through automated extrusion lines and industry 4.0 solutions is also supporting the market growth over the forecast period.
The global Aluminum Extrusion Market Demand is estimated to be valued at US$ 110 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: Entry into aluminum extrusion market requires high capital investment for setting up manufacturing plants, technology and R&D activities. This prohibits major threat from new players.
Bargaining power of buyers: The buyers have moderate bargaining power due to presence of numerous established players providing aluminum extrusion products. Switching cost for buyers is low.
Bargaining power of suppliers: Major raw material for aluminum extrusion is aluminum ingots. Bargaining power of suppliers is moderate due to availability of substitutes and differentiated product offerings by suppliers.
Threat of new substitutes: Plastic and steel are major substitutes. However, growing performance and efficiency advantages of aluminum extrusion products pose low threat from substitutes.
Competitive rivalry: Market is fragmented with top players accounting for around one-third share. Intense competition exists on the basis of product quality, consistency, pricing and delivery.
Key Takeaways
The global aluminum extrusion market is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing demand from construction and automotive industries.
Regional analysis: Asia Pacific dominates the market with over 45% share due to huge automotive production base and rapid infrastructure growth in China and India. North America stands as the second largest market for aluminum extrusion due to rebound in automotive and aerospace industries.
Key players operating in the aluminum extrusion market are UAJC Corporation, Constellium, Norsk Hydro ASA, China Zhongwang Holding Limited, Kaiser Aluminum, Extrudex Aluminum, Gulf Extrusions Co., Novelis, AMG Advanced Metallurgical Group, and Hindalco Industries Ltd. These players are focusing on new product launches, expansions and partnerships to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
