Industry: Materials and Chemical | Publish Date: 27-May-2025 | No of Pages: 335 | No. of Tables: 222 | No. of Figures: 167 | Format: PDF | Report Code : MC1372
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The global Primary Aluminum Market size was valued at USD 105.17 billion in 2023 and is predicted to reach USD 141.50 billion by 2030 with a CAGR of 3.6% from 2024-2030. Primary aluminum refers to aluminum that is produced directly from bauxite ore through the electrolytic processes. The primary aluminum production process involves smelting alumina in large industrial electrolytic cells, where aluminum is extracted from molten aluminum oxide.
This aluminum plays a vital role in various sectors, including transportation, construction, packaging, and electronics, due to aluminum's lightweight, corrosion-resistant, and versatile properties. This metal is then cast into various forms such as ingots, billets, and slabs for further processing or direct use in manufacturing.
The inherent corrosion resistance of aluminum enhances its suitability for harsh environments, ensuring longevity in products used in marine and construction sectors. The primary aluminum industry is characterized by large-scale smelting operations, extensive energy consumption, and environmental considerations due to greenhouse gas emissions and waste generation.
In response to sustainability challenges, the sector is placing a growing emphasis on enhancing energy efficiency, implementing recycling programs, and embracing technological advancements to minimize its impact on the environment.
The increasing adoption of aluminum in automotive sector to reduce vehicle weight and increase fuel efficiency drives the demand for primary aluminum industry. As there is a rising demand for electric vehicles (EVs) that emphasize the need for lightweight materials to offset heavy battery system which contribute to the overall weight reduction in EVs.
According to the International Energy Agency (IEA), the sales of EVs are growing rapidly with 2022 exceeding 10 million and comprising 14% of all new car sales, a substantial increase from 9% in 2021 and less than 5% in 2020.
Also, the rapid rise of aluminum metal for packaging industries is further driving the demand for primary aluminum industry. As aluminum's versatility allows for innovative packaging solutions, including easy-open lids, resealable closures, and customizable shapes.
According to the International Aluminium Institute (IAI), the global aluminum consumption from the packaging industries is expected to reach 10.5 metric tons in 2030, as compared to 2020 with 7.3 metric tons of aluminum.
Moreover, the transition towards renewable energy sources such as wind and solar power requires significant investments in infrastructure, including aluminum components for solar panels, wind turbines, and transmission lines. As the renewable energy sector continues to grow it fuels the demand for primary aluminum.
However, the high costs associated with the production of primary aluminum metal is affected with the changing price of bauxite and alumina materials which is further restraining the market expansion. On the contrary, the ongoing research and development which aims to optimize inert anode materials and increase energy efficiency in aluminum smelting is creating ample opportunity growth for the market.
In 2021, Elysis collaborated with Rio Tinto to initiate the construction of commercial-scale inert anode cells making a significant advancement in the aluminum industry. This technology eliminates direct greenhouse gases from the smelting process and produces oxygen instead. Moreover, this technological innovation has the potential to significantly reduce GHG emissions in Canada and improve the overall sustainability of aluminum production.
The primary aluminum market report is divided on the basis of product type, end user, and region. On the basis of product type, the market is divided into sheets & plates, extrusions, castings, foils, powder & paste, and wires & cables. On the basis of end user, the market is segmented into transport, consumer goods, machinery & equipment, construction, foil and packaging, electrical engineering, and other end user. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.
Asia-Pacific holds the dominating share of primary aluminum market at present and is expected to continue its dominance throughout the forecast period. This is attributed to factors such as the growing bauxite reserves which provides a strategic advantage by ensuring a stable and secure supply of raw materials for the primary aluminum industry. According to the International Energy Agency (IEA), China is one of the largest producers for alumina and primary aluminum accounting 60% of the global metal production.
Also, the expansion of the automotive industry in in this region is a significant driving factor for the primary aluminum market. This material is extensively used in the manufacturing of lightweight components for vehicles, contributing to fuel efficiency and compliance with emissions standards. According to the International Trade Administration (ITA), China is the largest automotive vehicle producers with a domestic production expected to reach 35 million vehicles by the year 2025.
On the other hand, North America is considered fastest growing region in the primary aluminum industry owing to the increasing production of aluminum metal and materials for use in various industrial purposes including industrial manufacturing and construction. According to the Congressional Research Service (CRS), the U.S. accounted 2% of the global production of primary aluminum and ranked as the ninth largest producer of primary aluminum metal in 2021.
Moreover, the presence of regional companies that are engaged in various business strategies including business expansion to boost the growth of the primary aluminum market. For instance, in October 2023, Rio Tinto expanded its AP60 aluminum smelter in Quebec, Canada with an investment of USD 1.1 billion. This expansion aims to meet the increasing demand for low-carbon, high-quality aluminum used in various industries such as transportation, construction, electrical and consumer goods.
Various players in the primary aluminum market includes China Hongqiao Group Limited, Aluminium Corporation of China Limited (Chinalco), Xinfa Group, EGA, SPIC, Vedanta Resource Limited, Rio Tinto, East Hope, Norsk Hydro ASA, RusAL, Alcoa Corporation, Hindalco Industries Ltd., Nippon Light Metal Company, Ltd., China Minmetals Corporation, Arconic Corporation, and others. These market players are opting various strategies such as collaboration and product launches to maintain their dominance in the global primary aluminum market.
For instance, in February 2024, Alcoa collaborated with Nexans to supply low-carbon aluminum containing metal from the ELYSIS technology, which is a groundbreaking approach to produce aluminum without releasing greenhouse gases during the manufacturing process. This partnership expands Alcoa's existing offering of EcoLum, a primary aluminum product with a carbon footprint nearly three times lower than the industry average.
Additionally, in February 2024, Vedanta Aluminium launched its e-commerce platform for facilitating the sale of primary aluminum products. This platform further provides the consumers with just-in-time delivery, real-time AI-driven price discovery, and comprehensive visibility throughout the entire purchase process.
Also, in November 2023, China Hongqiao Group Limited collaborated with Zouping Hongfa Aluminum Technology Co., Ltd. and Shanghai Baosteel Packaging Co., Ltd to launch the 100% green low-carbon aluminum cans. This makes a significant milestone in sustainable production by utilizing 50% UBC and 35% hydropower-produced HQALight green aluminum ingots from Baosteel can-making factory to create environmentally friendly aluminum can materials.
Moreover, in March 2023, Norsk Hydro ASA launched HalZero technology aimed at revolutionizing the aluminum industry by producing primary aluminum without greenhouse gas emissions. This innovative process emits only oxygen instead of carbon dioxide, making it a significant step towards decarbonizing industrial sectors.
The report provides quantitative analysis and estimations of the primary aluminum market from 2024 to 2030, which assists in identifying the prevailing market opportunities.
The study comprises a deep-dive analysis of the current and future primary aluminum market trends to depict prevalent investment pockets in the market.
Information related to key drivers, restraints, and opportunities and their impact on the primary aluminum market is provided in the report.
Competitive analysis of the players, along with their market share is provided in the report.
SWOT analysis and Porters Five Forces model is elaborated in the study.
Value chain analysis in the market study provides a clear picture of roles of stakeholders.
Sheets & Plates
Extrusions
Castings
Foils
Powder & Paste
Wires & Cables
Transport
Consumer Goods
Machinery & Equipment
Construction
Foil and Packaging
Electrical Engineering
Other End User
By Region
North America
The U.S.
Canada
Mexico
Europe
The UK
Germany
France
Italy
Spain
Denmark
Netherlands
Finland
Sweden
Norway
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Indonesia
Singapore
Taiwan
Thailand
Rest of Asia Pacific
RoW
Latin America
Middle East
Africa
China Hongqiao Group Limited
Aluminium Corporation of China Limited (Chinalco)
Xinfa Group
EGA
SPIC
Vedanta Resources Limited
Rio Tinto
East Hope
Norsk Hydro ASA
RusAL
Alcoa Corporation
Hindalco Industries Ltd.
Nippon Light Metal Company Ltd.
China Minmetals Corporation
Arconic Corporation
REPORT SCOPE AND SEGMENTATION:
Parameters |
Details |
Market Size in 2023 |
USD 105.17 Billion |
Revenue Forecast in 2030 |
USD 141.50 Billion |
Growth Rate |
CAGR of 3.6% from 2024 to 2030 |
Analysis Period |
2023–2030 |
Base Year Considered |
2023 |
Forecast Period |
2024–2030 |
Market Size Estimation |
Billion (USD) |
Growth Factors |
|
Countries Covered |
28 |
Companies Profiled |
15 |
Market Share |
Available for 10 companies |
Customization Scope |
Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |