Extruded Aluminum Profiles Market is estimated to witness high growth owing to increasing construction activities and the growing transportation industry
The extruded aluminum profiles market size is estimated to be valued at USD 90.19 Bn in 2024 and is projected to reach USD 149.63 Bn by 2031, registering a CAGR of 7.5% over the forecast period. The growing construction industry across the globe is one of the key drivers for market growth. Extruded aluminum profiles find wide application in window frames, doors, roofing, and curtain walls in the construction of commercial and residential buildings. Furthermore, rapid urbanization in developing countries is augmenting residential and commercial construction activities.
Two major drivers propelling the extruded aluminum profiles market growth are increasing construction activities and growing transportation industry. The rapid growth of the construction sector has substantially driven the demand for aluminum extrusion products due to their corrosion resistance, durability, and design flexibility. Additionally, the transportation industry relies heavily on aluminum extrusion as it helps reduce the weight of vehicles, lowering fuel consumption and emissions. Within the transportation sector, demand from the rail and automotive industries is expected to increase notably over the forecast period. The regulatory push for fuel-efficient and lightweight vehicles will further bolster the consumption of extruded aluminum profiles.
Growth in the Construction Industry is Driving Increased Demand for Extruded Aluminum Profiles
The construction industry has seen steady growth over the past few years and this growth is projected to continue in the coming years. As the construction of new residential and commercial buildings increases, the demand for building materials like extruded aluminum profiles is also increasing. Aluminum profiles find wide applications in window frames, doors, curtain walls, railings, etc. in buildings. Their high strength to weight ratio, corrosion resistance, and durability make them a preferable choice over other traditional building materials. The growth in the overall construction sector is leading to higher consumption of extruded aluminum profiles.
Increased Preference for Lightweight and Durable Materials is Fueling the Market Growth
Over the years, there has been a strong preference emerging globally for using lightweight and durable materials in various industries. Aluminum fits the criteria as an ideal lightweight metal with excellent corrosion resistance. This has driven increased adoption of aluminum and its alloys in applications that earlier used heavier metals. Extruded aluminum profiles offer stiffness and strength despite being very lightweight. Their non-corrosive nature ensures long product life even under harshest conditions. Growing awareness about benefits of lightweight and durable metals is augmenting the demand for extruded aluminum profiles from diverse end-use industries.
Fluctuations in Raw Material Prices Pose Challenges
Aluminum is one of the commodities that are affected by volatility in raw material prices. The price of primary aluminum ingots, which is the key raw material, depends on LME aluminum price trends in the international markets. Any increase in aluminum ingot prices leads to a rise in production cost for aluminum profile extruders. Sudden price shocks of raw materials squeeze profit margins of manufacturers. The fluctuating aluminum prices introduce an element of uncertainty and can negatively impact the growth and pricing strategies of players operating in this market.
Restrictive Trade Policies Hamper Global Supply Chain
The trade policies and import/export restrictions imposed by governments across countries pose a challenge for the smooth functioning of global supply chains. The extruded aluminum profiles market has an extensive global presence with major manufacturers located across Asia, Europe, and North America catering to worldwide demand. However, non-tariff barriers and quotas on aluminum imports/exports disrupt international trade and make supply chain management difficult for companies. Especially, the ongoing U.S.-China trade war has significantly impacted the cross-border aluminum trade between the two regions. Such restrictive trade policies restrain the growth potential of this market.
Growing Infrastructure Spending in Developing Regions Creates New Avenues
Many developing economies in Asia Pacific and Latin America regions are undertaking massive infrastructure development projects, aiming to modernize their facilities. Mega initiatives focusing on transportation, utility, and construction are in the pipeline. This rising infrastructure expenditure provides a huge untapped market for building construction materials like extruded aluminum profiles. Their corrosion resistance and strength make aluminum profiles suitable for applications in highways, bridges, power transmission towers etc. With the construction boom underway, developing regions will witness strong growth in consumption of extruded aluminum profiles.
Rise of Green Buildings Spurs Demand for Sustainable Building Materials
In the construction industry, there is a growing emphasis on sustainable green building materials and construction practices. Extruded aluminum profiles have advantages over other metals as they can be completely recycled without any loss in quality. Their high recyclability and low environmental impact are driving increased preference in green construction projects. The trend of green buildings is expected to pick up pace globally in line with sustainability goals. This growing focus on eco-friendly buildings will create new demand streams for extruded aluminum profiles. Manufacturers enhancing their green product portfolios will gain more opportunities in this evolving construction space.
Link: https://www.coherentmarketinsights.com/market-insight/extruded-aluminum-profiles-market-4500
Key Developments
- In 2021, Vedanta Aluminium introduced High-Speed Billets designed specifically for the extrusion industry.
- In 2022, Novelis, a prominent manufacturer of flat-rolled aluminum products, launched a net-zero laboratory and formed a partnership with HES-SO Valais-Wallis. This collaboration focuses on developing carbon-neutral solutions for aluminum manufacturing. Together, the companies aim to invest in research dedicated to decarbonization, with the goal of achieving carbon neutrality by 2050.
- In 2020, Hindalco Industries Limited, an Indian manufacturer of aluminum and copper, inaugurated a new extrusion plant in Silvassa. This facility is designed to produce a diverse range of extruded aluminum products tailored for the downstream market.
- In 2021, the Utkal-E coal block was awarded to National Aluminium Company Limited (NALCO) as a mining lease. This lease covers an area of 523.73 hectares across the villages of Nandichhod, Gopinathpur Jungle, Kundajhari Jungle, Kosala, and Korada in the Chendipada Tahasil of Angul District. The Utkal-E coal block has an initial production capacity of 2 million tonnes per year and a total mineable resource of 70 million tonnes.
Key Players
Norsk Hydro ASA, Extal Ltd., Bonnell Aluminum, China Zhongwang Holdings Ltd., China Hongqiao Group Limited, Centaury Aluminum Corporation, China HongquiaoGroup Limited, Schüco International KG, Hindalco Industries Ltd., Sainty Aluminium, Arconic Corporation, Constellium, GAL Aluminium, Padmawati extrusion, Aluka Extrusion, JM Aluminium, Indo Alusys Industries Limited, Shenzhen Oriental Turdo Ironwares Co., Ltd., Gloria Aluminium India Pvt Ltd, and Dhariwal Industries
