In terms of revenue, the global aluminum market was valued at $133.722 billion in 2021 and is expected to reach $208.902 billion by 2030, developing at a CAGR of 4.97% during the forecast period 2022 to 2030.

Aluminum is one of the lightest engineering metals, with a strength-to-weight ratio that is superior to steel. Extracted from the principal ore, bauxite, the material is a conductor of both heat and electricity and is also a good reflector of heat and light. Moreover, aluminum is corrosion-resistant, as well. The varied properties of aluminum make it useful across different industries, including architecture, energy generation, transport, packaging, and electrical transmission applications.

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Key growth enablers of the global aluminum market:

• Growing demand from end-users
• Rising substitution of stainless steel with aluminum by automotive manufacturers
• Increase in electric vehicle production
  • Due to its ability to reduce weight and accommodate heavy components such as batteries, in addition to extending vehicle range, the demand for aluminum for manufacturing electric vehicles is rapidly increasing.
  • Moreover, the braking distance of electric cars is reduced when made lighter. This, in turn, increases the safety of passengers and enhances the ease of handling.
  • As per International Energy Agency (IEA), the global sales of electric cars increased in 2022, with nearly 2 million sold in the first quarter, up 75% from the same period in 2021. Hence, increasing awareness regarding lowering emissions is expected to drive the growth of the market during the forecast period.

Key growth restraining factors:

• Stringent environmental regulations
  • The process of transforming raw bauxite into aluminum is highly energy intensive. Moreover, greenhouse gases and particulates released during smelting and processing, negatively impact the environment. Therefore, strict environmental regulations are being imposed by government authorities, which may hinder the growth of the market.
  • Furthermore, smelting facilities must meet the emission standards, which further leads to increased cost of products. For instance, the National Emission Standards for Hazardous Air Pollutants for Secondary Aluminum Production was amended by the Environmental Protection Agency (EPA), wherein the requirements for initial performance tests, compliance testing, submission of malfunction reports, and others were clarified.
• Rising prices of aluminum

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• The widening applications of aluminum in the sustainable energy industry are expected to drive market growth. Aluminum is used in various clean energy technologies, especially solar, where it accounts for the majority of the photovoltaic (PV) components in the form of frames and mounting structures that hold PV panels together.
• Several other technological developments in the use of aluminum and its alloys are expected to propel the growth of the market over the forecast period. For instance, 3D printing technology is gaining significant popularity in the market. Moreover, aluminum powder is often used to print fully functional parts as well as separate parts that are strong, precise, and can handle details as small as 0.25 mm.
• Recycled or secondary aluminum holds a significant market share in terms of global consumption. Aligning with this, the scrap obtained from equipment, machinery, automotive, and beverage cans is reprocessed and used due to its cost efficiency. This reprocessing of secondary metal consumes only a fraction of the energy required for the production of new metal from the ore, thereby causing less harm to the environment.
• As aluminum is lightweight and cost-effective, it finds multiple applications in the manufacturing of consumer electronics. Therefore, the growing demand for mobiles, televisions, laptops, and tablets, among others, is expected to drive market growth over the upcoming years.
• Aluminum foams are also used for the manufacturing of ships, in structures, such as exchangers and heat sinks, filters and mist eliminators, chemical beds and scrubbers, and battery plates. Hence, the use of aluminum foam is gaining significant popularity.

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Market Segmentation – Product Type and End-User –

Market by Product Type:

• Primary aluminum
• Alumina
• Bauxite
  • Bauxite is set to be the fastest-growing product type during the forecast period.
  • As the major raw material for the primary aluminum market, bauxite also finds applications in different non-metallurgical sectors such as refractory, abrasive, steel making, cement and chemicals. Moreover, it is one of the most common elements on earth.
  • The demand for bauxite is expected to boost during the forecast period owing to the rising production of primary aluminum. Accordingly, the abundance of bauxite used in large-scale aluminum production and its multiple applications are expected to drive the segment’s growth.
• Other Products (Flat Rolled and Extrusions)

Market by End-User:

• Building and Construction
  • The building and construction segment under the end-user category is expected to grow with the highest CAGR over the projected years.
  • Different characteristics of aluminum, including high strength, durability, lightweight, corrosion resistance, non-toxic nature, and others, have made it a material of choice in the buildings and construction industry. The metal has also become extremely popular for finishing domes and roofs, in addition to their use in drains and wall panels, together with decorative purposes.
  • Aluminum can be used in any climatic conditions and does not lose its properties in a wide temperature range. Since the metal becomes stronger at low temperatures, heat-insulated aluminum siding with reflective foil covering protects a facility from cold temperatures. As a result, aluminum is widely used for construction in cold areas.
• Automotive & Transportation
• Electronics
• Foil & Packaging
• Other End-Users

Geographical Study Based on Four Major Regions:

• North America: The United States and Canada
• Europe: The United Kingdom, Germany, France, Italy, Spain, the Netherlands, Poland, Norway, and Rest of Europe
• Asia-Pacific: China, Japan, India, South Korea, Taiwan, Thailand, Vietnam, Australia & New Zealand, and Rest of Asia-Pacific
  • The Asia-Pacific is anticipated to be the fastest-growing region during the forecast period, progressing with a CAGR of 5.12% by 2030.
  • The rising preference for hybrid-electric and battery-electric vehicles is expected to drive the market growth in the Asia-Pacific. As per industry sources, China’s shipments of cars rebounded in May 2022, with the export of electric vehicles more than doubling as COVID-19 pandemic lockdowns ceased.
  • Moreover, the rising awareness about reducing greenhouse gas emissions has further shifted the focus towards electric vehicles, thus fueling the demand for aluminum owing to its lightweight.
  • Growing investments in construction activities and developing infrastructure is also expected to propel the market growth in the Asia-Pacific. For instance, as per India Brand Equity Foundation (IBEF), in Union Budget 2022-23, the government allocated $130.57 billion to enhance the infrastructure sector in the country, thereby boosting the market growth.
• Rest of World: Latin America, the Middle East & Africa

Major players in the global aluminum market:

• Hindalco Industries Ltd
• Rio Tinto
• Aluminum Corporation of China Ltd (CHALCO)
• Alcoa Corporation
• Novelis Inc

Key strategies adopted by some of these companies:

• In April 2021, Rusal announced the launch of a new brand for its aluminum-scandium products, ScАlution.
• In April 2021, Kaiser Aluminum Corporation completed the acquisition of Alcoa Warrick LLC from Alcoa Corporation for $670 million. The acquisition provided Kaiser with a strategic re-entry into the aluminum packaging industry with opportunities for growth.
• In June 2022, Rio Tinto, in collaboration with Corona Canada, announced the launch of low carbon beverage can produced by Ball Corporation.

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