Fairfield Market Research, a leading market research firm, has released a comprehensive report on the global aluminum market, projecting a healthy compound annual growth rate (CAGR) of 5.8% between 2022 and 2030. The market, valued at US$ 245.7 billion in 2021, is anticipated to witness significant expansion, reaching US$ 498.5 billion by the end of 2030. This projection indicates a remarkable 2x growth by 2030, highlighting the growing demand for aluminum across various industries.
Aluminum, one of the most ubiquitous commodity metals in modern society, is widely recognized as a strategic resource due to its impact on the national economy, transport, energy, and defense needs. With its exceptional properties such as light weight, excellent strength-to-weight ratio, corrosion resistance, and high conductivity of heat and electricity, aluminum has emerged as a popular alternative to other metals like zinc, copper, and steel.
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The extensive application base of aluminum is expected to drive market growth. Secondary aluminum, which accounted for 29% of the global aluminum market in volume terms in 2021, offers several advantages over primary aluminum, including lower production costs, lower energy consumption, and greater sustainability. Its versatility allows it to be used in various sectors, including construction materials, transportation, packaging foils and cans, kitchen utensils and containers, and paints.
Rolled products find applications in industries such as aerospace, automotive, electrical, consumer goods, and packaging, where they play a vital role in addressing major challenges such as lightweighting, CO2 emissions reduction, and improved fuel efficiency. On the other hand, the demand for extruded aluminum products has been rapidly growing, driven by their excellent strength, durability, and flexibility, which make them suitable for construction, electrical, automotive, transportation, and consumer goods sectors.
The rising sales of electric vehicles (EVs) are expected to propel the demand for aluminum in the coming years. With electric vehicles projected to reach over 30 million units by the end of 2030 worldwide, aluminum's use in EV body structures and infrastructure components like charging stations enhances performance, safety, durability, and environmental benefits. Additionally, the construction and packaging industries are also significant contributors to the aluminum market's growth, driven by the shift towards green construction practices and the increasing demand for sustainable packaging solutions.
Europe also presents significant opportunities for the aluminum market, driven by a focus on achieving climate-neutral and circular economy goals. The region's demand for recycled aluminum is high across industries such as automotive, aerospace, electronics, and packaging. Furthermore, new legislation, such as the Carbon Border Adjustment Mechanism (CBAM), is expected to reshape the aluminum market in Europe by imposing a carbon tax on marginal aluminum importers with a high carbon footprint.
The global aluminum market is characterized by inorganic growth and strategic investments, with companies prioritizing new product launches to reduce greenhouse gas emissions and promote circular products. Major players in the market include Aluminum Corporation of China Limited (CHALCO), China Hongqiao Group Ltd., United Company Rusal IPJSC, Norsk Hydro ASA, Alcoa Corporation, and Rio Tinto Plc. Companies like Novelis, a subsidiary of Hindalco Industries, have strengthened their competitive position through strategic acquisitions, allowing them to cater to the high-end demand in the aluminum market.
For more information and detailed insights into the global aluminum market, refer to the full report by Fairfield Market Research.
About Fairfield Market Research: Fairfield Market Research is a prominent market research firm offering custom and syndicated market research reports to global clients across various industries. Fairfield Market Research assists organizations in making informed business decisions. Their team of experienced analysts and researchers strive to deliver accurate and reliable market intelligence.
