Primary Aluminum Market

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Primary Aluminum 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

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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Industry Overview

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.

Market Dynamics and Trends

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.

 

Market Segmentation and Scope of Study

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.

 

Geographical Analysis

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.

 

Competitive Landscape

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.

Key Benefits

  • 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.

Primary Aluminum Market Key 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

Key Players

  • 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

  • Increasing adoption of aluminum in automotive sector.

  • The rising need of aluminum metal for packaging industries.

  • Growing use of aluminum components for solar panels, wind turbines, and transmission lines.

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.

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Frequently Asked Questions

According to the report published by Next Move Strategy Consulting (NMSC), the size of the primary aluminum market is recorded at USD 105.17 billion in 2023.

The key raw materials include bauxite (for alumina production) and alumina (refined from bauxite) for the smelting process to produce aluminum metal.

According to the report by NMSC, the primary aluminum market is predicted to reach USD 141.50 billion by 2030.

Primary aluminum is essential in renewable energy applications, contributing to the production of components for solar panels, wind turbines, and electric vehicles.

Key companies operating in primary aluminum market include Chinalco, Hongqiao Group, Rusal, Xinfa Group, and Rio Tinto.
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