May 28, 2024
Aluminum Extrusion Market

The Growing Aluminum Extrusion Market Is Driven By Increasing Construction Activities

The aluminum extrusion market plays a vital role in manufacturing customized and complex aluminum profiles through the extrusion process. Aluminum extrusion is a highly versatile industrial process that allows low-cost manufacturing of a wide variety of aluminum shapes. This process starts by heating aluminum alloy billets and pushing them through a die opening to create a profile of the desired shape.

Aluminum extrusions have excellent corrosion resistance, ease of recycling, lightweight, and mechanical properties. Owing to their high strength-to-weight ratio, aluminum extrusions are widely utilized in home building, transport equipment, machinery, consumer durables, electrical, and construction industries.

The Global Aluminum Extrusion Market is estimated to be valued at US$ 126.72 Mn  in 2024 and is expected to exhibit a CAGR of 5.2%  over the forecast period 2024 to 2030.

Market key trends

Lightweighting is a major trend in the aluminum extrusion industry. Original equipment manufacturers in transportation, machinery, and construction sectors are increasingly adopting lightweight aluminum extrusions to improve fuel efficiency and reduce operating costs. Automotive OEMs are replacing steel components with aluminum extrusions wherever possible to comply with stringent emission norms. Even consumer goods manufacturers are incorporating aluminum profiles to reduce product weight without compromising sturdiness. This shift towards lightweight materials through metal substitution is expected to boost aluminum extrusion consumption over the next decade.

Porter’s Analysis

Threat of new entrants: New entrants face high costs for plant and equipment required for aluminum extrusion.

Bargaining power of buyers: Buyers have moderate bargaining power due to existence of many players offering similar products.

Bargaining power of suppliers: Suppliers have moderate bargaining power as there are many raw material suppliers for aluminum extrusion.

Threat of new substitutes: Threat is low as aluminum extrusions offer distinct advantages over other substitutes.

Competitive rivalry: Competition is high as players focus on innovation and investments to gain market share.

Geographical regions: North America holds the major share of around 35% in the global aluminum extrusion market in terms of value, owing to high demand from transportation, construction, and other sectors. The region witnesses high growth owing to investments in infrastructure development and expansion of transportation industry.

Fastest growing region: Asia Pacific is expected to be the fastest growing region at a CAGR of around 6% during the forecast period. Nations such as China, India, and Japan are major contributors to regional growth due to rapid industrialization, infrastructural development, and increasing aluminum extrusion usage in end-use industries.

Key Takeaways

Key players operating in the Aluminum Extrusion Market Demand are Corbion, Minerals Technologies Inc., Compass Minerals International Inc., Albion Laboratories, Inc., Paul Lohmann GmbH KG, K+S Aktiengesellschaft, Gadot Biochemical Industries Ltd., Arla Foods amba, DuPont, Jungbunzlauer Suisse AG, SEPPIC, and Koninklijke DSM N.V. The aluminum extrusion industry is witnessing growth owing to increasing construction activities around the world. Construction remains the largest end-use sector for aluminum extrusions and growing residential and commercial infrastructure is driving demand. Extruded aluminum profiles are widely used in windows, doors, curtain walls, roofing, and interior partitions in buildings.

Geographically, Asia Pacific dominates the global aluminum extrusion market and significant infrastructure development especially in China, India is fueling consumption. North America and Europe are also major markets for aluminum extrusions led by ongoing renovation of existing infrastructure and expansion of the transportation industry. International organizations are supporting economic growth in developing countries through investments in critical infrastructure, which bodes well for long-term aluminum extrusion usage.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it