The global aluminum alloys market has been growing tremendously over the past decade due to increasing usage of aluminum alloys in various end-use industries such as transportation, machinery, construction, and consumer durables. Aluminum alloys are lightweight materials that provide good mechanical strength and durability along with excellent corrosion resistance. Some key attributes of aluminum alloys include high strength-to-weight ratio, outstanding electrical & thermal conductivity, recyclability, and aesthetic appearance. These properties have boosted their adoption in automotive, aerospace, infrastructure development, marine transportation, and other core manufacturing sectors. According to industry estimates, the global aluminum alloys consumed by the transportation sector accounts for over 36% of the total production.
The Global aluminum alloys market is estimated to be valued at US$ 171.25 Mn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 to 2030.
Key Takeaways
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.). These players are focusing on new product launches, strategic collaborations, and mergers to gain a competitive advantage in the market.
The growing demand from the automotive industry is a major factor driving the growth of the aluminum alloys market. Various automobile manufacturers are increasingly using aluminum alloys for manufacturing engine blocks, pistons, suspension systems, wheels, and other components to reduce vehicle weight and improve fuel efficiency.
Stringent regulations for vehicular emissions and fuel economy have prompted OEMs to shift from steel to aluminum for producing lightweight vehicles. This is expected to boost the global consumption of aluminum alloys during the forecast period.
Market drivers
The rising production of vehicles across the globe is one of the key drivers propelling the aluminum alloys market. According to industry estimates, over 95 million vehicles were manufactured worldwide in 2018. Automakers are extensively using aluminum alloys in drivetrain, chassis, safety components and outer body panels to meet the target of reducing average vehicular weight by 150-250 kg set by authorities. This is augmenting the demand for different aluminum alloys in the automotive industry.
Impact of geopolitical situation on the growth of Aluminum Alloys Market
The global Aluminum Alloys Market Size is witnessing challenges in its growth trajectory due to the ongoing geopolitical tensions and conflicts across various regions. The rising trade conflicts and sanctions between major economies like US, China and European nations has disrupted global supply chains and hampered cross-border trade activities. This has negatively impacted the procurement of important raw materials and components by aluminum alloy manufacturers worldwide. Moreover, the ongoing Russia-Ukraine war has elevated the prices of key raw materials like aluminum and nickel due to supply constraints. This is leading to inflationary pressures and increased production costs for companies. To sustain profitable operations under such challenging conditions, aluminum alloy producers need to focus on local sourcing, develop alternative supplier networks and explore new import-export policies. In the long run, improved trade relations and diplomatic measures to resolve geopolitical issues will be crucial for restoring stable growth of the aluminum alloy market across regions.
Regions contributing maximum value to the Aluminum Alloys Market
North America accounts for the largest share of the global Aluminum Alloys market in terms of value sales. This is due to strong presence of end-use industries like automotive, infrastructure and aerospace & defense in countries like United States and Canada. Moreover, presence of leading aluminum alloy manufacturing companies is also driving the market growth here. Another major region is Asia Pacific, led by China, Japan and India. Rapid industrialization, growing automotive sector and infrastructure development activities are fueling the demand for aluminum alloys across the region. Aluminum alloy consumption is increasing in construction applications as well as transportation industry.
Fastest growing regional market for Aluminum Alloys
The Middle East and Africa region is projected to witness fastest growth in the Aluminum Alloys market during the forecast period. This is attributed to large scale investments and government initiatives for infrastructure enhancement across Middle Eastern oil exporting countries like Saudi Arabia, UAE etc. Mega projects in road & rail construction, airports and real estate require huge amounts of aluminum products and alloys. Furthermore, new smelting facilities are being set up in Middle East to cater to rising regional demand as well as for exports. Various free trade agreements have also boosted intra-regional commerce of aluminum goods. These factors are propelling MEA's position as a high growth territory within global Aluminum Alloys industry.
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