The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Aluminum Extrusion Market Growth & Trends
The global aluminum extrusion market size is expected to reach USD 91.67 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.8% over the forecast period. The market is expected to be driven by rising demand from the electrical and energy sectors. The COVID-19 pandemic is likely to dampen the product demand in 2020 with moderate to high recovery expected from 2021.
Extruded aluminum is used to build high voltage transmission towers in the electrical industry owing to its properties, such as lightweight, weldability, and high corrosion resistance. These characteristics of the product make the tower more durable and easier to install, thus leading to low maintenance and operation costs. According to the International Energy Agency (IEA), global electricity production is bound to increase, mainly in the emerging economies of Asia Pacific, and the Middle East and Africa.
According to the IEA, Asia Pacific is poised to witness a severe surge in terms of electricity demand over the coming years. China is predicted to contribute roughly 20% increase in the global electricity demand by 2040. This is projected to fuel the product demand in China over the coming years.
In the energy industry, extruded aluminum products are used in producing supports and frames of solar panels. The growing production of solar panels is expected to substantially benefit the industry growth over the coming years. As per the World Economic Forum, China is anticipated to account for roughly 40% of the world’s solar panels by 2022. Aluminum extrusions are also extensively used in day-to-day consumer goods applications, such as furniture, consumer electronics, railings, kitchen, and ladders, owing to their ease of fabrication, lightweight properties, and cost-efficiency.
Industry players are adopting strategies, such as capacity expansions and mergers & acquisitions, to strengthen their presence and increase their sales. In 2020, Constellium installed an extrusion press at its Singen plant located in Germany to meet the demand from the automotive sector.
Aluminum Extrusion Market Report Highlights
- By product, rods and bars are projected to expand at a CAGR of 4.5%, in terms of revenue, from 2020 to 2027 owing to extensive demand from the electrical industry
- The building and construction application segment held the largest share of 60.7%, in terms of revenue, from 2020 to 2027 owing to rapid urbanization and industrialization, especially in the emerging economies of Asia Pacific, and the Middle East and Africa
- The electrical and energy application segment is poised to expand at the fastest CAGR of 4.8% from 2020 to 2027, in terms of revenue, owing to rising demand for electricity
- Asia Pacific dominated the market in 2019, accounting for 74.4% share of the global revenue. This is attributed to China’s dominance in the market
- Capacity expansion and new plant set up, especially in the Asia Pacific, are the key strategies adopted by the market players.