The Aluminum Market was valued at $133,564 million in 2015, and is expected to reach $167,277 million by 2022, registering a CAGR of 3.3% from 2016 to 2022. Aluminum is an electronegative metal, which possesses strong affinity for oxygen. It is the sixth most ductile and second most malleable metal present on earth. It is exceptionally light having 2.7g/ccm density, is impervious to dust, possesses high degree of conductivity, and exhibits significant strength when alloyed.
Portland, OR -- (SBWIRE) -- 03/02/2018 -- It is widely used in food & packaging and pharmaceutical industries, as it is nontoxic in nature, preserves food for prolonged times, inhibits growth of microorganisms. Aluminum is good electrical conductor and thus is used frequently in electrical transmission lines. In addition, it is used as primary propellant for solid rocket booster motor in space shuttle due to its high volumetric energy density. Corrosion resistance, reflectivity, and recyclability are other characteristics of Aluminum, which makes it a favorable choice for various industrial applications.
The growth of the global aluminum market is driven by development in the transport industry, technological advancements in aluminum manufacturing technologies and processing equipment, and increase in usage of aluminum in various industries such as building & construction and foil & packaging. Asia-Pacific is the leading region, in terms of growth, due to massive urbanization, growth in income of people living in urban areas, and rapid industrial development. In addition, continuous advancements in transport industry and ongoing R&D activities to develop innovative, more effective, and cheaper aluminum products fuel the growth of the market. However, increase in competition from substitutes and fluctuations in prices of raw materials such as alumina are some factors that limit the market growth. Growth in demand from emerging economies such as China & India and increase in use of recycled aluminum products globally provides lucrative opportunities for the market expansion. Lowering energy requirement is one of the major challenges faced by aluminum industry.
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Aluminum market is segmented based on end user, processing method, and geography. On the basis of end user, the market is categorized into transport, building & construction, electrical engineering, consumer goods, foil & packaging, machinery & equipment, and others (solar panel nanotechnology and aluminum air batteries). According to processing, the market is divided into flat rolled, castings, extrusions, forgings, pigments & powder, and rod & bar. Geographical breakdown and deep analysis of each of the aforesaid segments is included for North America, Europe, Asia-Pacific, and LAMEA.
Rise in global economic growth rate is expected to increase the construction spending of customers in advanced and emerging economies, which in turn assists in aluminum market expansion.
Market share analysis
Aluminum industry is a highly competitive sector. United Company RUSAL Plc., Aluminium Corporation of China Limited (CHALCO), Rio Tinto Alcan Inc. were the top three producers, in terms of market share, in 2014. High market share of leading companies is characterized by their vast product portfolio, wide distribution network, and R&D investments. United Company RUSAL Plc. dominated the market in 2014, in terms of market penetration, R&D activities, and capital investment.
Asia-Pacific: Regional Analysis
China accounted for the highest market share in the Asia-Pacific aluminum market in 2015 owing to massive urbanization and industrial development. The transport and building & construction industries jointly accounted for more than 50% of the overall aluminum usage in China. New product developments, capacity expansions, and acquisitions are the key strategies used by the Chinese manufacturers to increase their market share. China's national environmental program to reduce CO2 emissions and increase in industrial energy efficiency led to shutdown of multiple aluminum smelters, which declined the aluminum production in China. Under the new rules, energy consumption for upgraded and new aluminum smelters should be below 13,200 kwh for ingots and 12,750 kwh per ton for liquid form. Product innovation and capacity expansions are the key strategies used by Korean manufacturers to increase their market share.
Key leading players operating in this market include Alcoa Corporation, Aluminium Corporation of China Limited (CHALCO), China Hongqiao Group Ltd., China Power Investment Corp. (CPI), East Hope Group Company Limited, Emirates Global Aluminum PJSC, Norsk Hydro ASA, Rio Tinto Alcan Inc., United Company RUSAL Plc., and Xinfa Group Co., Ltd.
Other key market players in the value chain include Aluminium Bahrain B.S.C, Ball Corporation, BHP Billiton Limited, Century Aluminium Company, Crown Holdings Incorporated, Constellium N.V., Glencore International AG, Hindalco Industries Ltd., Jindal Iron & Steel Company Limited , JW Aluminum Company, Kaiser Aluminum Corporation, National Aluminum Company Limited, Orkla ASA, Rexam plc, Shandong Nanshan Aluminum Co., Ltd., South32 Limited, State Power Investment Corporation, Talco Aluminum Company, Vale SA, and Vedanta Resources Plc.