July 18, 2024
Aluminum Extrusion Market

Aluminum Extrusion Market To Be Augmented By Growing Construction Industry

Aluminum extrusion is an industrial process by which aluminum ingots are pushed or pulled through a die to form continuous aluminum profiles of various cross-sections. The main applications of aluminum extrusions include doors, windows, curtain walls, building facades, automotive parts and heat sinks. Rising investments in infrastructure and commercial construction has augmented the demand for windows, doors and frames, thereby driving the sales of aluminum extrusion. The global aluminum extrusion market is estimated to be valued at US$ 110 billion in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The construction industry has been a pivotal end use sector driving the global aluminum extrusions market. According to the Organisation for Economic Co-operation and Development (OECD), global investment in construction is projected to grow by 85% to reach USD 15.5 trillion by 2030. This projected increase in construction spending will generate significant demand for aluminum extrusions that are used in building facades, door and window frames and roofing. Another key factor augmenting the sales of aluminum extrusions is the worldwide efforts towards green construction. Aluminum is lightweight and highly energy efficient, making it an eco-friendly alternative to other construction materials. Various initiatives by governments and international agencies to promote green buildings will further stimulate the demand for aluminum extrusions. While significant opportunities lay ahead for aluminum extrusion market players, adoption of advanced technologies by recyclers may pose challenge.

Segment Analysis

The global aluminum extrusion market is dominated by the construction segment which accounts for over 45% of the overall market share. Aluminum extrusions are increasingly being used in construction activities due to their high strength-to-weight ratio, corrosion resistance and durability. Within the construction segment, aluminum extrusions find wide application in doors, windows, curtains walls and structural framing. The transportation segment is another major consumer of aluminum extrusions due to growing demand for lightweight materials in automotive and aircraft manufacturing industries. Extruded aluminum profiles help reduce the overall weight of vehicles and aircrafts, thereby improving their fuel efficiency.

PEST Analysis

Political: Growing investments in infrastructure development across major economies will boost demand for aluminum extrusions from the construction industry. However, fluctuations in raw material prices due to trade conflicts can impact market growth.
Economic: A rebounding global economy is supporting growth in end-use industries like construction and automotive, benefiting aluminum extrusion consumption. However, inflationary pressures and rising interest rates remain key economic challenges.

Social: Increasing spending capacity of the growing middle class is driving demand for consumer durable and automotive goods. This will drive demand for aluminum extrusions from their manufacturing sectors. However, concerns around sustainability may promote use of other green materials.
Technological: Advances in extrusion die design and production processes have enhanced output efficiency. CAD/CAM systems aid complex shape production. Adoption of 3D printing also presents an opportunity for aluminum extrusion producers to develop new applications.

Key Takeaways

The global Aluminum Extrusion Market Growth is expected to witness high growth supported by increasing construction spending and recovering automotive sales globally.

Regional Analysis: The Asia Pacific region currently dominates the market owing to strong presence of construction as well as automotive end-use industries in major countries like China and India. China accounts for over 30% of the global aluminum extrusion consumption primarily driven by its giant infrastructure development projects and large automotive manufacturing base.

Key players operating in the aluminum extrusion market are PPD Inc., Icon Plc, Syneos Health, Laboratory Corporation of America Holdings, and Charles River Laboratories International Inc., among others. These players are focusing on new product launches, acquisitions and expanding manufacturing capacities in fast growing markets.

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