San Francisco, 16 April 2024: The Report Aluminum Extrusion Market Size, Share & Trends Analysis Report By Product (Tubes & Pipes, Rods & Bars Shapes), By Application (Building & Construction, Electrical & Energy), By Region, And Segment Forecasts, 2024 - 2030

The global aluminum extrusion market size is anticipated to reach USD 146.82 billion by 2030, expanding at a CAGR of 8.2% from 2024 to 2030, according to a new report by Grand View Research, Inc.Growing infrastructure and residential construction activities, particularly in the booming Asia Pacific, Latin America, and MENA regions, are poised to be major growth drivers in the coming years. Rapid urbanization, rising disposable incomes, and population surge are fueling massive investments in infrastructure and construction sectors.

In the budget for 2023 - 2024, the Indian government allocated INR 16,000 crores (~USD 1931.5 million) to develop “sustainable cities of tomorrow”. Such initiatives are anticipated to transform multiple cities in India by improving their infrastructure and mobility and creating urban sustainability. There exists a substantial deficit in infrastructure investment on a global scale, prompting governments worldwide to actively address and reduce this gap. This concerted effort is anticipated to have a positive impact on this market through 2030.

The construction sector’s boom is not the only driver for market expansion. Aluminum's flexibility, strength, and rust resistance make it popular application in automotive industry, especially with the changing dynamics of automotive vehicles. The booming automotive & transportation application segment is expected to drive the demand for aluminum extrusion over the coming years.

Stringent environmental regulations, particularly around carbon emissions, are driving automakers to embrace aluminum over steel. Car manufacturers face a mounting pressure to comply with laws like those from the EPA, CARB, and NHTSA, pushing them to adopt lighter and more fuel-efficient materials. Aluminum extruded parts offer an enticing solution here by significantly reducing vehicle weight, thereby lowering emissions and meeting regulatory requirements. This, in turn, is expected to reduce weight and drive significant demand for aluminum extruded parts.

The automotive and transportation industry is experiencing a rise in utilization of aluminum in both traditional internal combustion vehicles and electric vehicles (EVs), contributing to potential market expansion.

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Auto manufacturers face growing challenges to comply with regulatory mandates concerning the environmental footprint of their vehicles. Agencies such as National Highway Traffic Safety Administration (NHTSA), California Air Resource Board (CARB), and the U.S. Environmental Protection Agency (EPA) enact rules and regulations regarding Greenhouse Gas emissions. Compliance with emissions-related regulations is vital in the U.S. For instance, as per emission regulations issued by the NHTSA, stringency pertaining to fuel economy and CO2 emissions increased by 1.5% from 2021 to 2026. As a result, aluminum usage is anticipated to further rise in vehicles as it helps boost vehicle efficiency and offers performance benefits.

Aluminum Extrusion Market Report Highlights

• Shapes dominated the product segment with more than 79.0% revenue share in 2023, owing to excellent malleability properties and rising demand for aluminum shapes in prominent end-use industries
• In terms of product, the rods & bars segment is expected to register a significant CAGR over the forecast period
• Buildings & construction application held the largest revenue share of over 60.0% in 2023. Aluminum extrusion products find a wide range of applications in the construction sector and are anticipated to witness significant demand growth over the forecast period, owing to infrastructural developments
• Increased spending on R&D activities in the automotive industry by leading players has led to a substantial spike in demand for lightweight aluminum parts in electric vehicle segment
• Asia Pacific dominated the market for aluminum extrusion in 2023, owing to factors such as growing construction & automotive industry in this region due to the presence of rapidly developing economies such as China, India, and other Southeast Asian countries
• In November 2023, Norsk Hydro ASA announced an agreement with Watt Electric Vehicles (WEVC), an automotive start-up in the UK, to deliver low-carbon and recycled aluminum extrusion chassis for the latter’s upcoming commercial electric vehicle to be produced from the beginning of 2030

The U.S. is a significant aluminum extrusion producer and consumer. Aerospace & defense, automotive, and construction sectors in the U.S. have faced significant repercussions from economic fluctuations, leading to a decreased demand for extruded products. Negative sentiments surrounding new construction projects directly contributed to a decline in volume of aluminum extrusion in the U.S. throughout the fiscal year 2022. However, demand for construction activities recovered gradually over a period of one year in 2023.

In this period, construction activities increased owing to announcements of mega projects such as the Gordie Howe International Bridge, Hudson Tunnel Project, and JFK Airport Expansion, among others. These projects have led to the opening of material inflow for construction purposes. The low costs and weight of extrusion products contribute to their rising demand in various industrial applications, mainly in automotive and aerospace & defense sectors.

Aluminum Extrusion Market Report Scope

Market growth stage is moderate, and pace of the market growth is accelerating. The market is characterized by rising demand for extruded products and their growing adoption in producing lightweight parts in industries such as aerospace, automotive, and construction. The market is also characterized by a high level of merger and acquisition activities by leading manufacturers. Emerging players resort to long-term agreements and collaborations in a competitive environment. This is due to several factors, including desire to gain market share and need to consolidate in a growing market.

List of Key Players in the Aluminum Extrusion Market

• Alupco
• Arconic Corp.
• Bahrain Aluminum Extrusion Company
• Constellium N.V.
• Gulf Extrusions Co. LLC
• Hindalco Industries Ltd.
• Kaiser Aluminum
• Norsk Hydro ASA
• QALEX