Aluminum extrusion is a process that uses aluminum alloy to produce items of a fixed cross-sectional profile for use in a wide range of applications. Aluminum extrusions are used in doors, windows, curtain walls, vehicle parts, heat sinks for electronic devices, and cable trays, among others due to its advantageous properties such as lightweight, strength, corrosion resistance, and workability.
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 from 2024 to 2030.
Market drivers
The major market driver for aluminum extrusion is the increasing construction activities around the globe. Aluminum extrusion finds widespread application in construction of building envelopes, window frames, door panels, curtain walls, and other architectural applications due to properties like corrosion resistance, lightweight, durability, and workability. According to statistics, the global construction industry is expected to grow at 4-5% annually until 2030. Growing construction and infrastructural development is expected to propel the demand for aluminum extrusion over the forecast period.
Current challenges in the aluminum extrusion market
The aluminum extrusion market is facing challenges such as volatile prices of raw materials and supply and demand fluctuations. Aluminum is the primary raw material used for extrusion and its prices have witnessed volatility over the past few years due to changing global economic conditions and supply disruptions. Any increase in aluminum prices ultimately increases the production cost for extrusion manufacturers. Further, the outbreak of Covid-19 pandemic had a severe impact on the overall demand from end-use industries such as construction and automotive. This led to excess inventory and created new challenges for market players.
SWOT Analysis
Strength: Lightweight and corrosion resistant properties of aluminum extrusions make it suitable for various applications. This is a key strength.
Weakness: Dependency on aluminum prices for raw material. Volatility in prices impact profits.
Opportunity: Growing demand from construction and automotive industries due to increased focus on fuel efficient and lightweight vehicles and infrastructure.
Threats: Availability of substitute materials such as plastics and threat from inexpensive Chinese extrusions imports.
Geographically, North America is currently the largest Aluminum Extrusion Market Demand extrusions in terms of value, owing to extensive usage in building & construction, and transportation industries in the US and Canada. Asia Pacific region is expected to witness the fastest CAGR over the forecast period with major markets being China, India, Japan and other developing Southeast Asian countries. This growth can be attributed to rising infrastructure development and increasing automotive production in the region.
Europe is another major regional market for aluminum extrusions led by Germany, UK, Italy and France. The aluminum extrusion market in Latin America is dominated by Brazil and Mexico and witnessing steady growth due to increasing construction activities in the residential and commercial sectors. Middle East & Africa region offers untapped growth opportunities for market players and growth will be led by GCC countries and South Africa.
Key Takeaways
Key players operating in the aluminum extrusion market 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 automation of production processes along with use of advanced aluminum alloy enables aluminum extruders to produce complex and customized products cost-effectively. The high growth of end-use industries such as construction, automotive, and electrical has significantly driven the demand for aluminum extrusion products. Ongoing R&D for developing new alloys and automation in extrusion processes is expected to offer growth opportunities during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
