Aluminum Extrusion Market Size, Share & Trends Analysis Report By Product (Tubes & Pipes, Rods & Bars Shapes), By Application (Building & Construction, Electrical & Energy), By Region, And Segment Forecasts, 2024 - 2030

Aluminum Extrusion Market Size & Trends

The global aluminum extrusion market size was valued at USD 83.90 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2030. The automotive and transportation industry is experiencing a rise in utilization of aluminum in both traditional internal combustion vehicles and electric vehicles (EVs), contributing to potential market expansion.

Auto manufacturers face growing challenges to comply with regulatory mandates concerning the environmental footprint of their vehicles. Agencies such as National Highway Traffic Safety Administration (NHTSA), California Air Resource Board (CARB), and the U.S. Environmental Protection Agency (EPA) enact rules and regulations regarding Greenhouse Gas emissions. Compliance with emissions-related regulations is vital in the U.S. For instance, as per emission regulations issued by the NHTSA, stringency pertaining to fuel economy and CO₂ emissions increased by 1.5% from 2021 to 2026. As a result, aluminum usage is anticipated to further rise in vehicles as it helps boost vehicle efficiency and offers performance benefits.

The U.S. is a significant aluminum extrusion producer and consumer. Aerospace & defense, automotive, and construction sectors in the U.S. have faced significant repercussions from economic fluctuations, leading to a decreased demand for extruded products. Negative sentiments surrounding new construction projects directly contributed to a decline in volume of aluminum extrusion in the U.S. throughout the fiscal year 2022. However, demand for construction activities recovered gradually over a period of one year in 2023.

In this period, construction activities increased owing to announcements of mega projects such as the Gordie Howe International Bridge, Hudson Tunnel Project, and JFK Airport Expansion, among others. These projects have led to the opening of material inflow for construction purposes. The low costs and weight of extrusion products contribute to their rising demand in various industrial applications, mainly in automotive and aerospace & defense sectors.

Market Concentration & Characteristics

Market growth stage is moderate, and pace of the market growth is accelerating. The market is characterized by rising demand for extruded products and their growing adoption in producing lightweight parts in industries such as aerospace, automotive, and construction. The market is also characterized by a high level of merger and acquisition activities by leading manufacturers. Emerging players resort to long-term agreements and collaborations in a competitive environment. This is due to several factors, including desire to gain market share and need to consolidate in a growing market.

The market is also influenced by stringent regulations. Governments around the world are developing regulations on end-use industries that are impacting product demand. Regulations pertaining to mining of bauxite and production of aluminum could have a significant impact on the market, affecting development and adoption of extruded products.

There are a limited number of direct substitutes for aluminum extruded products owing to their unique characteristics such as lightweight, high strength, and corrosion resistance, among others. However, there are a number of technologies that can be used to achieve similar production outcomes, such as automation, hot extrusion, and direct extrusion. These production technologies can be used as methods for extruding to achieve certain characteristics and improve the performance of aluminum-extruded products.

Product Insights

Shapes accounted for a dominant revenue share of more than 79.0% in 2023 in the aluminum extrusion market. Aluminum’s remarkable malleability facilitates seamless production of various shapes through the extrusion process. In this method, aluminum billets undergo heating and are subjected to high pressure using a ram or hydraulic press against steel dies. Subsequently, aluminum shapes are created, precisely mirroring contours of the dies.

Within the automotive and transportation industry, aluminum shapes find applications in various components such as transmission housings, chassis, panels, engine blocks, and roof rails for a wide range of vehicles, including cars, trucks, railways, and boats. Rising demand for structural elements in vehicles is driven by the objective of achieving lighter weight. A notable instance is the construction of the Ford F-150 truck model, which incorporates substantial aluminum components and this vehicle's weight is significantly influenced by utilization of aluminum in body panels and extruded shapes.

In extrusion process, aluminum billets undergo heating and are subsequently passed through a sequence of rolls. The material is then coiled and drawn into rods, bars, and tubes through finely crafted dies. Rods and bars find extensive application in construction, particularly in the creation of scaffolding systems. These lightweight scaffolding systems present several advantages over conventional alternatives, including enhanced stability, reduced weight, and increased flexibility.

Application Insights

In terms of application, building & construction accounted for the largest revenue share of over 60.0% in 2023. Use of extruded products in construction activities has been greatly influenced by growing investments in the housing sector. China currently holds a leading position in the construction sector, boasting the highest nominal value. Ongoing efforts of various countries to invest in new housing development are poised to contribute to this segment’s growth over the coming years.

Automotive & transportation is anticipated to advance at a lucrative CAGR throughout the forecast period. Aluminum extrusions play a crucial role in vehicles, with wide-ranging applications including engine mounts, anti-intrusion beams, radiator beams, fuel distribution pipes, longitudinal beams, seat tracks, cross rails, roof rails, tailgate frames, and underbody space frame rockers, among other components.

Surge in consumer goods manufacturing is poised to drive the need for aluminum extrusions, particularly in the production of furniture, sporting equipment, toys, refrigerators, freezers, and other significant appliances through 2030. Extruded components, including sheets, tailored shapes, and bars, are extensively employed in the consumer goods industry. Customized extruded shapes find broad applications in computer devices, audio-video systems, and various appliances. Escalating production of these devices and appliances is expected to contribute to a heightened demand for these products in coming years.

Regional Insights

Asia Pacific dominated the global market in 2023 with a revenue share of more than 70.0%. This region is expected to retain its dominant position throughout the forecast years due to the presence of well-established manufacturing sectors in countries such as China, India, Vietnam, Japan, and South Korea. China is anticipated to be a pivotal driver of industry expansion among these countries, chiefly propelled by its expansive construction sector. The Chinese government's strategic investments in transportation and energy infrastructure are expected to have a positive impact on market growth in the foreseeable future.

In terms of revenue, North America is forecasted to experience substantial growth between 2024 and 2030. Resumption of commercial operations post the COVID-19 pandemic and recessionary pressures are anticipated to boost market growth. Government efforts aimed at economic development are anticipated to contribute to the recovery of regional markets. For instance, in November 2021, the U.S. government approved a Bipartisan plan allocating USD 1 trillion to enhance the country's infrastructure, encompassing upgrades to water systems, airports, railways, power infrastructure, roadways, and bridges. The expected completion of this initiative by 2025 is poised to drive demand for aluminum extrusion.

The diminishing production levels in the European automotive sector are impacting the need for aluminum and its products. In an effort to recuperate from this setback, manufacturers in this region have collaborated to foster development of the automotive industry. They are endorsing specific initiatives, such as vehicle-renewal programs, which concentrate on promoting sales of environmentally friendly vehicles, including clean ICEs and EVs.

Key Aluminum Extrusion Company Insights

Some key players operating in this market include Arconic Corp., Hindalco Industries Ltd., and Norsk Hydro ASA.

• Hindalco Industries Ltd. provides a wide range of extruded products and has increased the number of production plants across various regions through investments, collaborations, and strategic partnerships to expand its business. Furthermore, it has gained economies with scale at mass levels of production of aluminum extruded products.

• Norsk Hydro ASA is amongst the market leaders in the aluminum extrusion industry. It has resorted to multiple acquisitions across various regions to expand its business footprint and sustain its share in such a competitive market.

Bahrain Aluminum Extrusion Company and QALEX are some notable emerging market participants in the market for aluminum extrusion.

• QALEX is an aluminum extrusion company offering high-quality extruded products in the Middle East. It acquired Abdul Noor Ahmed Extrusion Factory in the country in order to expand its reach and product portfolio. The company has a production capacity of 10 kilotons per annum.

Recent Developments

• In September 2023, Hindalco Industries Ltd. and Metra SpA entered into a partnership agreement to build aluminum rail coaches in India. The Italian company would assist the Indian manufacturer with latest aluminum extrusion technologies for building railway coaches 

• In December 2022, Norsk Hydro ASA announced an agreement to acquire Hueck’s Aluminum in Germany. The Norway-based market leader has acquired the German aluminum extrusion and window, façade, and door system manufacturer to expand its business portfolio across Europe. This acquisition will enhance Norsk’s stake in the German market and enable both businesses to grow simultaneously

Aluminum Extrusion Market Report Scope

Global Aluminum Extrusion Market Report Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global aluminum extrusion market report based on product, application, and region:

• Product Outlook (Revenue, USD Million; Volume, Kilotons, 2018 - 2030)

  • Shapes

  • Rods & Bars

  • Pipes & Tubes

• Application Outlook (Revenue, USD Million; Volume, Kilotons, 2018 - 2030)

  • Building & Construction

  • Automotive & Transportation

  • Consumer Goods

  • Electrical & Energy

  • Others

• Regional Outlook (Revenue, USD Million; Volume, Kilotons, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East and Africa

    • Saudi Arabia