Primary Aluminium Market by Product Types (Sheets & Plates, Extrusions, Castings, Foils, Powder & Paste, and Wires & Cables), and End User (Transport, Consumer Goods, Machinery & Equipment, Construction, Foil and Packaging, Electrical Engineering, and Other End User) – Global Opportunity Analysis and Industry Forecast 2024-2030

Market Overview

The global Primary Aluminium 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 aluminium refers to aluminium that is produced directly from bauxite ore through the electrolytic processes. The primary aluminium production process involves smelting alumina in large industrial electrolytic cells, where aluminium is extracted from molten aluminium oxide. 

This aluminium plays a vital role in various sectors, including transportation, construction, packaging, and electronics, due to aluminium'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 aluminium enhances its suitability for harsh environments, ensuring longevity in products used in marine and construction sectors. The primary aluminium 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.

Market Dynamics and Trends

The increasing adoption of aluminium in automotive sector to reduce vehicle weight and increase fuel efficiency drives the demand for primary aluminium 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 aluminium metal for packaging industries is further driving the demand for primary aluminium industry. As aluminium'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 aluminium 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 aluminium.

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 aluminium 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 aluminium 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 aluminium 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 aluminium production.

Market Segmentation and Scope of Study

The primary aluminium market 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.

Geographical Analysis

Asia-Pacific holds the dominating share of primary aluminium 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 aluminium industry. According to the International Energy Agency (IEA), China is one of the largest producers for alumina and primary aluminium 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 aluminium 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 aluminium industry owing to the increasing production of aluminium 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 aluminium and ranked as the ninth largest producer of primary aluminium 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 aluminium market. For instance, in October 2023, Rio Tinto expanded its AP60 aluminium 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 aluminium used in various industries such as transportation, construction, electrical and consumer goods.

Competitive Landscape

Various players in the primary aluminium 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 aluminium market.

For instance, in February 2024, Alcoa collaborated with Nexans to supply low-carbon aluminium containing metal from the ELYSIS technology, which is a groundbreaking approach to produce aluminium without releasing greenhouse gases during the manufacturing process. This partnership expands Alcoa's existing offering of EcoLum, a primary aluminium 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 aluminium 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 aluminium cans. This makes a significant milestone in sustainable production by utilizing 50% UBC and 35% hydropower-produced HQALight green aluminium 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 aluminium industry by producing primary aluminium without greenhouse gas emissions. This innovative process emits only oxygen instead of carbon dioxide, making it a significant step towards decarbonizing industrial sectors.

Key Benefits

• The report provides quantitative analysis and estimations of the primary aluminium market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the primary aluminium market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the primary aluminium 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.

Key Market Segments

By Product Type

• Sheets & Plates

• Extrusions

• Castings

• Foils

• Powder & Paste

• Wires & Cables

By End User

• 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

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