The aluminum extrusion market has witnessed significant growth over the past few years owing to increasing demand for lightweight yet durable materials in various end-use industries such as automotive, machinery, construction, and others. Aluminum extrusions are semi-finished metallic products which are produced by pushing heated aluminum billets into a shaped die cavity.
They offer excellent corrosion resistance, longevity, workability and recyclability. Some key advantages of aluminum extrusions include high strength-to-weight ratio, corrosion resistance, workability, conductivity, durability and longevity. In the automotive industry, aluminum extrusions are increasingly being used in various applications such as chassis, wheels, engine components, transmission shafts and others to reduce vehicle weight and improve fuel efficiency.
The global aluminum extrusion market is estimated to be valued at US$ 126.72 million in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period of 2024 to 2030.
Market Trends
Introduction of recycled aluminum extrusions: With growing environmental awareness, aluminum extrusion manufacturers are focusing on utilizing recycled aluminum to reduce carbon footprint. Recycled aluminum extrusions require 60% less energy as compared to primary aluminum.
Increased adoption of Industry 4.0 technologies: Adoption of advanced technologies such as IoT, 3D printing, AI etc. in the extrusion process is helping manufacturers gain real-time process data insights, automate operations and customize aluminum extrusions as per customer requirements.
Market Opportunities
Emerging applications in electric vehicles: Growth of electric vehicles provides new opportunities for aluminum extruders to supply lightweight extrusions for battery packs, motors, and chassis.
Increasing demand from renewable energy sector: Rising installations of solar panels and wind turbines globally is expected to boost demand for aluminum extrusions for various structural applications in renewable energy generation projects.
Impact of COVID-19 on Aluminum Extrusion Market Growth
The COVID-19 pandemic had a significant impact on the aluminum extrusion market. During the initial lockdown phases, multiple end-use industries such as automotive, construction and transportation saw a major decline in demand and operations. This led to a steep fall in orders for aluminum extrusion products. Production facilities were shut down temporarily to contain the spread of the virus. Supply chains were disrupted globally due to restrictions on transportation and trade. Raw material prices witnessed high volatility making business planning challenging for manufacturers.
However, with relaxation in lockdowns and resumption of economic activities from mid-2020, the aluminum extrusion market has started recovering gradually. The construction sector has picked up momentum, driving demand for extruded aluminum profiles in applications such as window frames, doors and roofing. With recovery in vehicle sales, especially in commercial vehicles, the automotive industry is witnessing an upsurge in orders for extrusions used in chassis, wheels and other components. The transportation industry is also benefiting extrusion consumption for railways, aircraft and shipbuilding. Going forward, initiatives favoring sustainability and green infrastructure are expected to support extrusion demand. Increased infrastructure spending envisaged by governments worldwide is anticipated to aid market expansion post-COVID. Nonetheless, the threat of subsequent pandemic waves lingers and may cause intermittent disruptions.
North America Aluminum Extrusion Market Concentration
North America represents the largest market for aluminum extrusions in terms of value, attributable to high consumption levels in the US and Canada. Presence of a robust automotive industry, developed construction sector and demand from transportation are major drivers for extrusion uptake in the region. With recovery in economic activities in 2021 from COVID lows, extrusion demand bounced back strongly driven by industrial production rebound and infrastructure stimulus measures. The US accounts for majority of the regional market share led by vehicle manufacturing growth and residential & commercial construction revival post pandemic. Recovery in aerospace industry orders coupled with spending on transportation projects also augments extrusion consumption.
Asia Pacific Fastest Growing Region for Aluminum Extrusion Market
Recovery in the Asia Pacific region from the impacts of the COVID-19 pandemic has been the fastest globally. Consequently, the Aluminum Extrusion Market Demand in Asia Pacific witnessed rapid growth to emerge as the fastest expanding regional market during the forecast period. Factors such as resurgence in automotive, electronics and construction industries with growing infrastructure development in major country economies including China, India and ASEAN countries aided market expansion. Government initiatives and policy reforms towards regional economic integration stimulated demand for aluminum extrusions from various end-use sectors. Ongoing urbanization and industrialization trend coupled with rising standards of living continued to drive extrusion consumption in building and construction products. Moreover, supportive regulations promoting green technology adoption and sustainability also positively influenced the regional market for aluminum extrusions in Asia Pacific.
Key Takeaways
Key players operating in the aluminum extrusion market are Corbion, Minerals Technologies Inc., Compass Minerals International Inc., Albion Laboratories, Inc., Paul Lohmann GmbH KG, K+S Aktiengesellschaft, Gadot Biochemical Industries Ltd., Arla Foods amba, DuPont, Jungbunzlauer Suisse AG, SEPPIC, and Koninklijke DSM N.V. Increasing demand for lightweight materials in the automotive industry is a major growth driver for the aluminum extrusion market. Technological advancements in extrusion processes such as hollow aluminum extrusion profiling and multi-step extrusion are allowing manufacturers to produce complex aluminum extrusions efficiently.
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