Aluminum Market to Thrive Amidst Greater Emphasis on Sustainability, Climbing EV Sales to Bode Well

July 2022

The global aluminum market is driven by rapid industrialisation as aluminum has far-reaching industrial applications including construction materials, transportation, and packaging foils and cans. Moreover, the growing technological advancements in the production of aluminum have resulted in increased efficiency and cost-effectiveness of production processes. This in turn has also created lucrative opportunities for the aluminum industry. Apart from this, the rising environmental concerns have put emphasis on sustainability and the need to reduce carbon footprint. As a result of this, new and more sustainable production processes have emerged, boosting the demand for recycled aluminum. Such advancements are expected to strengthen the supply chain infrastructure for aluminum, strengthening revenue generation for aluminum market.

A Fairfield Market Research report anticipates two-fold growth for the global aluminum market between 2022-2030. Registering a valuation of US$245.7 Bn in 2021, the market is set to reach US$498.5 Bn by the end of 2030, experiencing 5.8% growth between 2022 and 2030.

Key Trends Across Global Aluminum Market

  • Based on the end-user, the flat category is expected to sustain dominance, reaching beyond US$862 Bn by 2030

  • Sophisticated zero-carbon aluminum products to gain significant traction due to the growing need to eliminate GHG emissions from traditional smelting processes

  • Asia Pacific to maintain market lead in the global aluminum market, thriving to raise its worth to US$170 Bn by 2030 end

Rising Adoption of Electric Vehicles Augurs Well for Aluminum Market

The burgeoning sales of electric vehicles are expected to create favourable business outcomes for the aluminum market. Aluminum is used in the manufacturing of various body parts of EVs such as hoods, doors, and fenders owing to its lighter weight, and durability. The use of electric vehicles enhances performance, improves safety, and increases durability. Apart from the body structures, aluminum is also utilized in the construction of energy vehicle infrastructure components such as EV charging stations. Moreover, aluminum is a cost-effective element and widely available as compared to its alternatives such as carbon composites, and titanium. Furthermore, the use of aluminum aligns with the shift towards green construction.

Asia Pacific to Reign Supreme in Global Aluminum Market, Europe Emerges as Promising Regional Player

In 2021, Asia Pacific accounted for a whopping 65% of the global aluminum market. Going forward, the region is expected to maintain its global dominance. The flourishing manufacturing sector in the region is enabling it to gain a competitive edge. Additionally, promising advancements in China’s automotive and aerospace industries are playing a vital role in market expansion. Whereas, Europe is also expected to emerge as a key market player. In efforts to achieve the EU’s climate-neutral and circular economy goal, the use of aluminum has significantly increased across the continent. Several industries such as automotive, aerospace, electronics, and packaging, are experiencing paced demand for aluminum, facilitating market expansion.

Prominent Market Players

Some of the leading players in the aluminum market include South32 Limited, China Hongqiao Group Co. Ltd., Aluminum Corporation of China Limited (Chalco), Shandong Xinfa Aluminium Group, United Company Rusal IPJSC, Emirates Global Aluminium, Rio Tinto Group, Hindalco Industries Limited, State Power Investment Corporation Limited (SPIC), Alcoa Corporation, Norsk Hydro ASA, and Vedanta Limited.