Global aluminum market demand was valued at USD 1,55,352.44 million in 2022. The market is expected to reach USD 1,62,187.9 million in 2023 and is forecast to record a CAGR of 6.3% to be valued at USD 2,98,779.7 million by 2033.
Growth is attributed to the increasing use of aluminum in end-user industries. From 2018 to 2022, a CAGR of 4.2% was registered for the aluminum market.
| Data Points | Key Statistics |
|---|---|
| Growth Rate (2018 to 2022) | 4.2% CAGR |
| Projected Growth Rate (2023 to 2033) | 6.3% CAGR |
| Expected Market Value (2023) | USD 1,62,187.9 million |
| Anticipated Forecast Value (2033) | USD 2,98,779.7 million |
Aluminum is one of the most abundant metals found in the Earth's crust. In terms of weight, it accounts for nearly 8% of the earth's crust. The wide availability and numerous properties of aluminum make it a widely used metal across the world. Aluminum is used in various applications such as packaging, household products, electronics, and transportation.
It possesses several properties such as high conductivity, ease of recycling, and corrosion resistance; however, aluminum carries drawbacks such as moderate tensile strength and moderate machinability. This limits its direct usage in various end-user industries.
Aluminum is an ideal substitute for materials such as steel and iron, primarily due to its lower self-weight and high-strength properties. Prices of aluminum fluctuate primarily due to its application in several end-user industries.
Over the past few years, the metal has been used in combination with diverse alloying elements, including silicon, copper, magnesium, and zinc. This combination helps in advancing the properties of aluminum, including high tensile strength, high fatigue strength, and high-temperature sustainability.
North America is considered a highly lucrative market for the aluminum industry, driven primarily by the presence of many manufacturers in the region.
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Increasing urbanization and industrialization across the globe are the key factors boosting the demand for aluminum. The global construction industry is gaining momentum after a moderate contraction in developed regions. Aluminum and aluminum alloys are key materials used in the building & construction industry.
Substantial growth in the construction industry is anticipated to augment the need for better materials with high durability & strength and low-self weight. This, in turn, is estimated to fuel the demand for aluminum in the construction industry.
The increasing use of aluminum in the automotive industry in the manufacturing of automotive parts propels the growth of the market in the forecasting period. Manufacturers like BMW use aluminum in place of steel due to its lightweight and superior physical properties. Increasing the adoption of metal in transportation boosts the growth of the aluminum industry.
The increasing demand for enhanced utility and durability amid the surging adoption of smart devices creates a demand for lightweight aluminum components. Research & development of efficient and scalable casting methods is projected to provide manufacturers with a competitive edge. All these factors provide opportunities for the growth of the market.
Although the aluminum industry has numerous end-uses, numerous obstacles pose a challenge to market growth. Factors affecting end-user industries indirectly hamper the demand for aluminum, leading to fluctuations in its prices.
Stricter environmental regulations are being implemented, which is projected to stifle growth. Environmental laws imposed by governments and groups are anticipated to have a detrimental impact on the market. Rising environmental concerns, as well as residents' increased expectations for improved pollution levels, have compelled numerous governments to take action.
Principal Consultant
| Country | The United States |
|---|---|
| Market Share % (2023) | 21.8% |
North America is a fast-growing market for the aluminum industry, and the trend is expected to continue into the forecast period owing to the development of the transport industry and technological advancements in product manufacturing technologies and processing equipment.
North America is expected to account for a significant market share of the global market revenue in 2023. The demand for aluminum in North America is projected to rise during the forecast period, particularly in industries such as automotive and, aerospace & defense.
Also, an increase in applications across various end-user industries due to its specific properties over other metals and increasing use of substitutes provides a lucrative opportunity for the growth of the market. Domination of the region can be attributed to the presence of leading players in the region, like Alcoa, Norsk Hydro, Rio Tinto Alcan, Arconic, Century Aluminum, and Novelis.
For instance, in June 2022, Alcoa Corporation announced a USD 51 million project to increase the production capacity at its Mosjøen smelter in Norway by 14,000 metric tons per year (mtpy).
Alcoa’s Mosjøen location currently has a nameplate capacity of 200,000 mtpy, and the investment is expected to increase that capacity to 214,000 mtpy by the end of 2026.
Russia and Canada are also among the leading aluminum-producing countries in the world. In June 2020, the Trump Administration announced that it may reimpose tariffs on the imports of raw Canadian aluminum into the United States.
| Country | Forecast CAGR % |
|---|---|
| Germany’s Market Share % (2023) | 11.5% |
| The United Kingdom’s Forecast CAGR % (2023 to 2033) | 4% |
As per the analysis, the European aluminum industry is projected to witness significant growth opportunities in the forecast period. As of 2023, the region is expected to procure about 18% of the global market share.
The United Kingdom is predicted to make the most significant contribution to developing the regional market. This can be attributed to the presence of established end-use industries such as transportation and building & construction.
Moreover, the United Kingdom is expected to remain dominant during the forecast period. This is due to growth in investment by key players in the aluminum production expansion to cater to the rise in demand. The rapidly growing urbanization, growing investment and construction of buildings and infrastructure, and expansion in the automotive industry in the region boost the growth of the market.
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| Countries | Forecast CAGR % (2023 to 2033) |
|---|---|
| China | 5.2% |
| India | 5.7% |
In terms of year-on-year growth, the said market share in the Asia Pacific region is the best-performing portion, as per the new market research report on the global aluminum market.
Increasing industrialization and urbanization increased investment and activity in the construction of buildings and infrastructure, and expansion in the automotive industry in the region boosted the growth of the aluminum industry. The automotive industry is likely to offer higher growth potential for the aluminum industry in the Asia Pacific.
Expansion of the regional market can be attributed to the consumption of aluminum being concentrated predominantly in electronics production hubs such as China, Japan, South Korea, and Taiwan and in the construction industry in developing economies in the region.
The Asia Pacific is a leading market for aluminum, owing to the massive growth in construction in India, China, and various Southeast Asian countries.
For instance, in January 2021, Alcoa and China Power Investment Corporation (CPI) signed a memorandum of understanding (MOU) to collaborate on projects worth more than USD 7.5 billion for aluminum and energy projects over the years.
The electronics manufacturing market in the Asia Pacific is expected to grow rapidly during the forecasting period due to the presence of many OEMs in the region. With the rapidly growing end-user industries in countries of the Asia Pacific region, the region is expected to dominate the global market during the forecast period.
Gloria Aluminium India, Bonnell Aluminum, Skyline Metals, Oregometal, and Sierra Aluminum are some start-up companies operating in the aluminum market.
Some key participants present in the global aluminum market are Aluminum Corp. of China Ltd., BHP Billiton Ltd., Vedanta Resources plc, Norsk Hydro ASA, United Co., RUSAL, and Dubai Aluminum Co. Ltd., among others.
Attributed to the presence of several leading participants, the market is highly competitive. While global players such as Aluminum Corp. of China Ltd. and BHP Billiton Ltd account for a considerable market size, several regional-level players are also operating across key growth regions, particularly in the Asia Pacific.
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.3% from 2023 to 2033 |
| Expected Market Value (2023) | USD 1,62,187.9 million |
| Anticipated Forecast Value (2033) | USD 2,98,779.7 million |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million, and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
Series, Processing, Region |
| Regions Covered |
North America; Latin America; Europe; Asia Pacific; The Middle East and Africa |
| Key Countries Profiled | The United States, Canada, Mexico, Brazil, Germany, Italy, The United Kingdom, Spain, France, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled |
Aluminum Corp. of China Ltd.; BHP Billiton Ltd.; Vedanta Resources plc; Norsk Hydro ASA; United Co.; RUSAL; Dubai Aluminum Co. Ltd.; Hindalco Industries; Xinfa Group Co. Ltd.; Emirates Global Aluminum PJSC; Rio Tinto Alcan Inc. |
| Customization | Available Upon Request |
The projected revenue of the market by 2033 is US$ 2,98,779.7 million.
The market CAGR for 2033 is projected to be 6.3%.
China Zhongwang, Alcoa, and Rio Tinto are the key market players.
The market is estimated to secure a valuation of US$ 1,62,187.9 million in 2023.
North America is growing fast due to the increasing demand for aluminum in the automotive sector.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Series 5.1. Series 1 Aluminum 5.2. Series 2 Aluminum 5.3. Series 3 Aluminum 5.4. Series 4 Aluminum 5.5. Series 5 Aluminum 5.6. Series 6 Aluminum 5.7. Series 7 Aluminum 5.8. Series 8 Aluminum 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Processing 6.1. Castings 6.2. Flat Rolled Aluminum 6.3. Rods & Bars 6.4. Extrusions 6.5. Pigments & Powder 6.6. Forgings 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Corp. of China Ltd. 17.2. BHP Billiton Ltd. 17.3. Vedanta Resources plc 17.4. Norsk Hydro ASA 17.5. Value (US$ Million) & Volume (Tons)ed Co. 17.6. RUSAL 17.7. Dubai Co. Ltd. 17.8. Hindalco Industries 17.9. Xinfa Group Co. Ltd. 17.10. Emirates Global PJSC 17.11. Rio Tinto Alcan Inc. 18. Assumptions & Acronyms Used 19. Research Methodology
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Aluminum Market
