Aluminum Alloys Market Is Estimated To Witness High Growth
Aluminum alloys are extensively used in various end-use industries such as transportation, construction, packaging, machinery, and electrical due to properties such as corrosion resistance, ductility, and high strength-to-weight ratio. Aluminum alloys find major application in transportation industry for manufacturing aircraft, automotive, and other vehicles where less weight and durability are the major criteria.
The global aluminum alloys market is estimated to be valued at US$ 148.65 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing construction industry globally acts as a key opportunity for the aluminum alloys market. Aluminum alloys are highly preferred in the construction of buildings, bridges, roofing, and other infrastructure due to properties such as high strength, corrosion resistance, and lightweight. The increasing investment in infrastructure development and residential construction projects worldwide is expected to drive the demand for aluminum alloys during the forecast period. Furthermore, rapid urbanization resulting in smart city development programs will augment the consumption of aluminum alloys in construction applications and substantially contribute to the market growth.
Porter's Analysis
Threat of new entrants: The aluminum alloys market requires high R&D and capital investments which act as a deterrent for new players.
Bargaining power of buyers: The presence of numerous players results in buyers having high bargaining power due to increased choice.
Bargaining power of suppliers: Major raw material suppliers have consolidated presence providing them higher power.
Threat of new substitutes: Substitutes like steel and plastics pose threat, though aluminum continues to find new applications.
Competitive rivalry: Intense competition exists between major players to cater growing demand.
SWOT Analysis
Strengths: High strength-to-weight ratio and corrosion resistance of aluminum alloys. Weaknesses: Price volatility of raw aluminum and energy costs.
Opportunities: Increasing application in transportation, packaging, and construction industries.
Threats: Fluctuating raw material prices and stringent environmental regulations.
Key Takeaways
The Global Aluminum Alloys Market Growth is expected to witness high over the forecast period of 2023 to 2030. The global aluminum alloys market is estimated to be valued at US$ 148.65 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.
Regionally, Asia Pacific dominates the market currently due to presence of major aluminum producers such as China. The region is expected to continue its dominance in the coming years as well on account rapid industrialization and growing construction activities in China and India.
Key players operating in the aluminum alloys market include United Company RUSAL Plc, Alcoa Inc., Aluminum Corp. of China Ltd., Kaiser Aluminum Corporation, Norsk Hydro ASA, Dubai Aluminum Co., Constellium, Kobe Steel, Ltd., and Aluminum Bahrain B.S.C. Major players are focusing on capacity expansions and new product launches to meet the growing demand for aluminum alloys from end use industries.
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