July 14, 2024
Aluminum Extrusion Market

Market for Aluminum Extrusion to Witness High Growth Owing to Rising Construction Spending and Increasing Vehicle Production

Market Overview:

Aluminum extrusion is a process used to change the shape of raw aluminum material into a finished product or semi-fabricated part. Aluminum extrusions are used in a variety of applications including structural framing, architectural, automotive, and machine components owing to their strength, durability, corrosion resistance, and light weight properties. Common products made from aluminum extrusion include window and door frames, vehicle parts, bicycle frames, heat sinks and heat exchangers.

Market Dynamics:

The aluminum extrusion market is driven by rising construction spending, especially in emerging economies of Asia Pacific and Middle East regions. Rebounding vehicle production across major automotive manufacturing hubs post pandemic is also fueling demand for aluminum extrusion in the automotive industry. Aluminum extrusions are increasingly being used in electric vehicles to reduce weight and increase energy efficiency. Furthermore, growing prominence of green buildings and rising need for energy efficient building designs is propelling usage of aluminum extrusion in architecture and construction. However, fluctuating raw material prices remain a key challenge for market players. Rising export of aluminum extrusion products from China is also intensifying competition in the global market.

Segment Analysis

The global Aluminum Extrusion Market Demand is dominated by the construction segment. Around 40% of the total aluminum extrusion is consumed in the construction industry for various applications such as doors, windows, curtain walls, etc. This is because aluminum extrusions offer properties like corrosion resistance, light weight, durability, etc. which make it a suitable material for construction applications.

PEST Analysis

Political: The market is positively influenced by favorable government policies and regulations supporting infrastructure development and construction activities.
Economic: Growth in automotive, construction and consumer durables industries is driving the demand. However, volatility in raw material prices poses a challenge.
Social: Increasing consumer preference for lightweight and durable materials for home, office and automobile sectors is favoring market growth.
Technological: Continuous product and process innovations in extrusion technology help reduce cost and improve functionalities.

Key Takeaways

The global aluminum extrusion market size was valued at USD 90 billion in 2023 and is expected to witness high growth, exhibiting a CAGR of 8% over the forecast period due to increasing infrastructure spending and construction activities across the globe.

Regionally, Asia Pacific dominated the market and accounted for around 40% of the global demand in 2023. China accounted for majority of the regional share due to presence of thriving end-use industries. North America is projected to witness fastest growth due to ongoing infrastructure development projects in the region.

Key players operating in the aluminum extrusion market include 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 enhancing their production capabilities and operational efficiency through technological advancements and global expansion.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it