Aluminium Market Projected To Surge, Reaching USD 371.58 Billion By 2031; Demand From Electric Vehicles And Oems Fuels Growth

(MENAFN- Evertise Digital)

-< />
A new report from SNS Insider indicates a remarkable surge, with the market projected to reach USD 371.58 billion by 2031, demonstrating a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031. According to the report, the Aluminium Market was valued at USD 228.54 billion in 2023.

The escalating demand for aluminum from electric vehicles (EVs) and original equipment manufacturers (OEMs) is a pivotal factor propelling its market growth.

Aluminum's unique properties-lightness, strength, durability, corrosion resistance, and recyclability-make it an exceptional material for numerous industries. Its increasing use in the automotive sector, particularly within electric vehicles, is transforming the Aluminium Market. Automakers prioritize aluminum to reduce vehicle weight, enhance fuel efficiency, and lower emissions, thus aligning with sustainability goals.

The metal's adoption extends beyond automobiles. Technological advancements drive its demand across various end-use industries, including renewable energy applications like wind turbines and solar panels. Furthermore, 3D printing technologies leverage aluminum to produce complex components for diverse sectors like aerospace and healthcare.

The global emphasis on sustainability fuels the aluminum recycling market-a significant contributor to the industry's overall development. Recycled aluminum from sources like beverage cans and automotive scrap is cost-effective and environmentally sound; its production requires significantly less energy than mining and processing raw ore.

Get a Report Sample of Aluminium Market @

Some of the Key Players Included are:

RusAL, Vedanta Aluminium & Power, Alcoa Corporation, Emirates Global Aluminium (UAE), Norsk Hydro ASA, Aluminium Corporation of China Limited, Rio Tinto (U.K.), Hindalco Industries Ltd. (India), Jindal Aluminium, National Aluminium Company Limited (NALCO), and other key players are mentioned in the final report.

Segment Analysis

The Aluminium Market is segmented by Products, Alloy Type, and End-user.

By Products , cast products held the dominant share in 2023 due to their versatility, affordability, and wide range of applications, from simple handheld devices to complex automotive parts.

By Alloy Type , wrought alloys dominated the market in 2023 due to the superior mechanical strength and ductility achieved through mechanical processes like forging and rolling. This strength makes them ideal for demanding applications like welding rods, aircraft frames, and pressure vessels.

By End-user , the transportation segment currently leads due to the growing adoption of aluminium in the automotive industry to achieve fuel efficiency. However, the construction segment is expected to witness the highest CAGR by 2031 due to rising infrastructure development activities and increasing aluminium usage in interior design elements and cladding.

By Product

• Plate
• Sheet
• Cast products
• Extrusion

By Alloy Type

• Wrought Alloy
• Cast Alloy

By End-user

• Transportation
• Electric
• Consumer Durables
• Construction
• Packaging
• Machinery & Equipment
• Other

Make Enquiry About Aluminium Market Report@

Several key developments highlight the industry's focus on innovation and sustainability:

• In September 2023, Norsk Hydro ASA inaugurates its new HyForge foundry line in Germany, focusing on recycled aluminum to meet the growing automotive demand for sustainable materials.
• In June 2023, Rio Tinto committed USD 1.1 billion to expand its“low carbon” aluminum smelter in Canada, boosting production capacity.
• In April 2023, Emirates Global Aluminum collaborates with Veolia's RECAPP to foster aluminum recycling practices in educational institutions across the UAE.
• In August 2022, Rio Tinto announced a USD 29 million investment in an aluminum recycling plant in Canada to increase its low-carbon offerings.
• In February 2022, RusAL developed an optimized 5xxx series aluminum alloy with anodizing capabilities, offering enhanced corrosion resistance and durability.

Impact of the Russia-Ukraine War

The ongoing Russia-Ukraine conflict has significantly impacted the global Aluminium Market. Russia is a major producer and exporter of the metal. Sanctions levied against Russia have disrupted supply chains, escalated energy prices, and increased production costs. This has induced market volatility and elevated aluminum prices.

The Economic Slowdown Effect

The recent economic downturn poses a challenge for the Aluminium Market. Slower growth across various sectors can potentially decrease demand. Yet, the metal's inherent advantages, coupled with the focus on sustainability, could mitigate the adverse impact, supporting market resilience.

The Asia Pacific region is expected to remain the dominant market throughout the forecast period. This dominance is driven by:

• Countries like China and India are experiencing rapid urbanization, leading to a surge in infrastructure development projects. Aluminium's lightweight nature, strength, and durability make it a prime choice for structural components and building facades in these projects.
• Growing use of aluminium in construction for structural components and facades.
• A thriving automotive industry focused on fuel efficiency and emission reduction, leading to increased aluminium adoption in both conventional and electric vehicles.
• Expanding metal recycling and packaging industries in developing countries of this region.

Europe presents a promising market fueled by the automotive industry's shift towards electric vehicles.

Stringent regulations aimed at reducing carbon emissions are pushing European automakers to adopt lightweight materials like aluminium, not only for structural components but also for other vehicle parts through advanced integration techniques. Furthermore, high demand for aluminium in packaging and solar panels continues to bolster the European market.

Key Takeaways for the Aluminium Market Study

• The report highlights the significant growth potential of the aluminium market, fueled by the rising demand from electric vehicles and OEMs seeking lightweight materials to enhance fuel efficiency and driving range.
• The study delves into the diverse applications of aluminium across various end-use industries, including transportation, construction, energy storage, and 3D printing.
• The report emphasizes the role of technological advancements and industry innovations in shaping the future of the aluminium market. Examples include the development of new, sustainable recycling methods and the incorporation of recycled aluminium into vehicle manufacturing.
• While the report acknowledges the challenges posed by geopolitical tensions and economic slowdowns, it also emphasizes the immense opportunities within the aluminium market.

Table of Contents – Major Key Points

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.