Aluminium Market is expected to reach USD 302.04 billion by 2030
The growing adoption of aluminium in the automotive and electronics industries contributes significantly to the growth of the global aluminium market.
According to a new research report by Next Move Strategy Consulting, the global Aluminium Market was valued at USD 179.22 billion in 2022, and is expected to reach USD 302.04 billion by 2030, with a CAGR of 5.9% during the forecast period, 2023–2030.
As automakers focus on improving the fuel efficiency and reducing vehicle weight, they are increasingly adopting aluminium as a lightweight alternative to traditional materials. This factor significantly boosts market growth. According to the U.S. Aluminum Association, the amount of aluminium used per vehicle is steadily increasing, and it is expected to see a net gain of 56 pounds per vehicle between 2020 and 2025. Aluminium use is growing by almost 100 net Purchase Price Variance (PPV) between 2020 and 2030, reaching 550 PPV by 2030. Automakers can significantly reduce weight by utilizing aluminium and improve fuel economy while reducing emissions.
Moreover, the increasing global population and rapid urbanization have spurred the need for infrastructure development, including residential and commercial buildings, transportation systems, and public facilities. Aluminium has emerged as a preferred material in construction due to its lightweight nature, durability, and corrosion resistance. It has extensive use in building facades, windows, doors, roofing systems, and structural components. It leads to efficient and aesthetically pleasing modern designs. With excellent strength-to-weight ratio and thermal conductivity properties, aluminium reduces structural weight, enhances energy efficiency, and ensures infrastructure longevity.
The demand of aluminium in building infrastructure along with the industry's focus on sustainability and recycling fuel the aluminium market growth. By incorporating aluminium, the construction sector reduces environmental impact and aligns with circular economy principles. The circular economy principles emphasize on minimizing waste, maximizing resource efficiency, and promoting materials reuse, recycling, and repurposing.
Moreover, leading market players are taking several initiatives to improve their aluminium products. For instance, in June 2023, Hydro signed a contract to purchase land in Spain to build an aluminium recycling plant. This investment reflects Hydro's dedication to sustainability and the circular economy within the aluminium sector. The establishment of the recycling facility will enhance Hydro's ability to recycle and repurpose aluminium. This will reduce the environmental impact and contribute to the growth of the aluminium recycling market.
Also, in May 2023, Alcoa, a leading global aluminium producer, signed a long-term alumina supply agreement with Emirates Global Aluminium (EGA). The agreement strengthens the partnership between the two companies and ensures a stable supply of alumina, a key raw material for aluminium production. This collaboration in the alumina supply chain supports the growth and sustainability of the aluminium industry.
Moreover, in January 2023, Emirates Global Aluminium (EGA) launched the Aluminium Recycling Coalition, a new initiative to promote and advance aluminium recycling practices. The coalition brings together industry stakeholders to collaborate on innovative solutions and raise awareness about the importance of aluminium recycling. This initiative reflects EGA's commitment to sustainability and the circular economy, reducing the environmental impact and contributing to the growth of the aluminium market.
However, the aluminium industry is affected by environmental regulations and sustainability requirements, such as emissions control, waste management, and energy efficiency targets. Such factors can increase operational costs and pose challenges for some producers. This, in turn, restrains the market growth. On the contrary, the increasing emphasis on sustainable packaging is expected to create ample growth opportunities for the market in the future.
Aluminium is well-suited for packaging applications in cans, bottles, and foils. It enables recyclability and provides the ability to maintain product quality and freshness. Eco-conscious consumers and brands seeking to minimize their environmental impact prefer aluminium for packaging. By opting for aluminium packaging, they reduce waste and promote sustainability, aligning with the commitment to a greener future. This growing demand for sustainable packaging solutions drives the growth of the aluminium market.
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According to the report, leading players operating in the aluminium market include Rio Tinto, China Hongqiao Group Limited, Aluminum Corporation of China Limited (CHALCO), United Company RUSAL PLC, Norsk Hydro ASA, Emirates Global Aluminium PJSC, Alcoa Corporation, East Hope Group Company Limited, Vedanta Aluminium & Power, Xinfa Group Co., Ltd., Hindalco Industries Ltd., South32, Century Aluminum Company, Saudi Arabian Mining Company, and Arconic, Inc.
Key Insights from the Aluminium Market Report:
The information related to key drivers, restraints, and opportunities and their impact on the aluminium market is provided in the report.
The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.
The market share of the players in the global aluminium market along with their competitive analysis are provided in the report.