Thailand Aluminium Market is expected to reach USD 12.19 billion by 2030

The growing electronic industry along with the rising adoption of aluminium in the automotive industry are significantly boosting the growth of the Thailand aluminium market.

According to a new research report by Next Move Strategy Consulting, the Thailand Aluminium Market was valued at USD 5.80 billion in 2023 and is predicted to reach USD 12.19 billion by 2030, with a CAGR of 10.3% from 2024 to 2030.

The expansion of Thailand's electronics industry significantly drives the country's aluminum market, with proactive government policies fostering an environment conducive to this industry's development. Thailand's electronics sector has advanced primarily through foreign direct investment (FDI) and trade, with the Board of Investment (BOI) offering incentives and support systems for foreign investors. This proactive stance, coupled with liberal economic policies and a skilled yet affordable labor force, has made Thailand a key hub for export-oriented production by transnational corporations (TNCs).

The electrical and electronics industry, in particular, has garnered substantial interest from American firms. Notably, recent announcements of significant U.S. investments exceeding USD 1 billion in critical sectors such as solar energy, electric vehicles, and digitization underscore the strong partnership between Thailand and the United States. This influx of investment capital further strengthens Thailand's position as a preferred destination for electronics manufacturing and innovation, boosting demand for aluminum as an essential material in various electronic components and manufacturing processes.

Moreover, the automotive industry is a crucial driver of the growing demand for aluminum in Thailand, fueled by an increased focus on light weighting strategies aimed at enhancing fuel efficiency and reducing emissions. Consequently, automotive manufacturers in Thailand are incorporating more aluminum components into their vehicles to meet these goals.

According to data from The Federation of Thai Industries, Thailand's car production has seen a significant rise in recent years. In 2022, the total car production reached 1.88 billion units, with 0.84 billion cars assembled for the domestic market and 1 billion for export. This figure increased to 1.95 billion units in 2023, marking a 3.5% growth from the previous year. Thailand's status as a leading automobile manufacturing hub in Southeast Asia highlights the automotive industry's pivotal role in driving aluminum demand in the country. 

For instance, in July 2023, Rio Tinto partnered with Giampaolo Group to establish a joint venture focused on aluminium recycling. The collaboration aims to create a more sustainable approach to aluminium production by leveraging Matalco Inc., a renowned aluminium recycling specialist. This strategic partnership is set to boost aluminium recycling capabilities, fostering innovation and contributing to a greener future for the aluminium industry.

Also, in May 2023, Alcoa and Emirates Global Aluminium (EGA) signed a long-term agreement for the supply of alumina. This strategic collaboration supports the growth and stability of the aluminium market, ensuring a reliable source of alumina for EGA's aluminium smelters and reinforcing Alcoa's position as a leading global supplier in the industry. 

However, stringent environmental regulations and community opposition further complicate the raw material supply chain in the country, restraining the market growth. Overcoming these challenges requires strategic investments in domestic mining, sustainable practices, and diversified sourcing to ensure production continuity.

On the contrary, employing artificial intelligence (AI) for sorting mixed aluminum alloy scrap presents a significant opportunity for Thailand aluminium market. By swiftly and accurately identifying various aluminum alloys, AI systems streamline sorting, reducing labor costs and enhancing overall efficiency in recycling operations. This advancement ensures that only high-quality scrap is used, meeting industry standards while promoting sustainability by maximizing resource efficiency and minimizing waste, thus contributing to Thailand's circular economy and environmental conservation efforts.

Request a sample here: https://www.nextmsc.com/thailand-aluminium-market/request-sample

According to the report, leading players operating in the Thailand aluminium industry include Aluminium Corporation of China Limited (CHALCO), Hindalco Industries Ltd., China Hongqiao Group Limited, United Company RUSAL PLC., Rio Tinto, East Hope Group Company Limited, Xinfa Group Co., Ltd., Alcoa Corporation, Arconic Inc., Norsk Hydro ASA, and others.

Key Insights from the Thailand Aluminium Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the Thailand 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 Thailand aluminium market along with their competitive analysis are provided in the report.

Share this post?