Aluminum Extrusion Market is Estimated to Witness High Growth
Author : Sneha Biswal | Published On : 18 Jan 2024
Aluminum extrusion is a process used to transform aluminum alloy into objects of a definite cross-sectional profile. Products produced through aluminum extrusion process include window profiles, door frames, curtain walls, flooring, architectural aluminum panels, structural aluminum beams & columns, vehicle parts, and heat sinks. The major advantage of aluminum extrusion compared to other metals is its light weight, strength, corrosion resistance, durability, and cost-effectiveness. Aluminum extrusion based products are extensively used in building and construction, automotive, defense, consumer durables, and electrical industries due to their superior strength to weight ratio property.
Market Opportunity:
The aluminum extrusion market is expected to witness significant growth during the forecast period owing to rising demand from the building and construction industry. Factors such as rapid urbanization, rising population, growing spending power of middle-class households, and expanding construction activities across developing nations are fueling the demand for aluminum extrusion based window profiles, doors, curtain walls, paneling, and structural frames. According to the World Bank, the building and construction industry accounted for 13% of the global GDP in 2021 with a market size of over US$ 7 trillion. Asia Pacific alone contributes over 50% to the global construction industry revenues. The demand for lightweight yet durable architectural aluminum extrusion from the residential, commercial, and infrastructure development projects in emerging regions like Asia Pacific and Middle East & Africa provide enormous untapped opportunities for aluminum extrusion market players during the forecast years.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate. Aluminum extrusion requires specialized machinery and equipment which require significant capital investments. However, the market growth is expected to attract new players.
Bargaining power of buyers: The bargaining power of buyers is high. The aluminum extrusion market has numerous national and international buyers. Buyers can negotiate lower prices by playing competitors against each other.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While aluminum is the key raw material and supplier consolidation has increased over time, suppliers cannot influence prices significantly due to availability of substitutes.
Threat of new substitutes: The threat of new substitutes is low. Aluminum extrusions offer properties like strength, corrosion resistance and machinability that cannot be matched by any substitutes.
Competitive rivalry: The competitive rivalry is high due to presence of numerous players. Players compete based on product quality, pricing and delivery time.
SWOT Analysis
Strength: Aluminum extrusions offer high strength to weight ratio, corrosion resistance and machinability. They find extensive applications in transportation, building & construction and machinery industries.
Weakness: Significant capital investments are required to set up extrusion presses and ancillary equipment. Extrusion process also leads to metal waste.
Opportunity: Growth in end-use industries like electric vehicles, renewable energy and infrastructure will boost demand for extruded aluminum profiles and shapes. Developing regions also offer scope for market expansion.
Threats: Volatility in aluminum prices impacts profit margins. Also, stringent environmental regulations for emissions during extrusion process need to be addressed.
Key Takeaways
The Global Aluminum Extrusion Market Growth is expected to witness high during the forecast period of 2023 to 2030. The global aluminum extrusion market is estimated to be valued at US$ 110 billion in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023-2030.
Rapid urbanization and infrastructure growth in Asia Pacific are driving demand for aluminum extrusions from the building & construction sector. The Asia Pacific region dominates the global market with over 50% share owing to presence of major extrusion machinery manufacturers as well as end-use industries in China and India. North America is the second largest aluminum extrusion market aided by recovery in aerospace and automotive manufacturing industries in the US and Canada. Growth in the European region is supported by green building initiatives and shifting focus towards energy efficient designs.
Key players: Key players operating in the aluminum extrusion market are Arconic, Constellium, Hindalco-Novelis, Gulf Extrusions, Sapa, Zahit Aluminum and Balexco. These companies have extensive global presence with many value-added production and extrusion die facilities across major markets.
Explore more information on this topic, Please visit -
https://www.ukwebwire.com/aluminum-extrusion-market-size-and-trends-analysis/
Explore more trending article related this topic -
https://www.ukwebwire.com/geotextile-market-size-and-trends-analysis/
