Aluminum Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The aluminum market is evaluated at USD 108. 14 billion in 2020 and is projected to register a CAGR of over 5% during the forecast period (2021-2026). Aluminum is used in a huge variety of products, including cans, high-rise buildings, foils, kitchen utensils, window frames, beer kegs, automotive, and airplane parts.

New York, Sept. 06, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Aluminum Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06134965/?utm_source=GNW
The building and construction industry was badly affected due to COVID-19, as due to lack of funds, labor shortage, and lockdown regulations, many projects were halted in 2020. Due to a ban on inter-state travel, an exodus of migrant workers wreaked havoc on the supply chain. This caused less consumption of construction materials and decreased the demand for and supply of construction materials. The automotive industry also faced a decline in production, and according to OICA (Organisation Internationale des Constructeurs d’Automobiles), in 2020, 55.8 million passenger cars and 21.78 million commercial vehicles were produced across the world. A total of 77.62 million vehicles were produced in 2020, which was lower by 16% over 2019.


Over the medium term, the major factor expected to drive the market studied is increasing construction activities in the Asia-Pacific region.
On the flip side, the slowdown in the global automotive industry and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
The Asia-Pacific region represents the largest market, and it is also expected to be the fastest-growing market over the forecast period due to the increasing consumption from countries such as China, India, and Japan.


Key Market Trends

Increasing Demand from the Building and Construction Industry


Aluminum is a light silver-gray metal with properties such as strength, low density, resistance to corrosion, good conduction of heat and electricity, and ductility.
In the building and construction industry, aluminum is the second most widely used metal. It is extensively used in windows, curtain walls, roofing and cladding, solar shading, solar panels, railings, shelves, and other temporary structures.
Increasing construction activity across the world is one of the key factors driving the market studied in recent times. §The Asia-Pacific construction sector is the largest in the world, and it is increasing at a healthy rate, owing to the growing population, increase in middle-class incomes, and urbanization. This has accelerated the demand for hotels, shopping malls, high-rise buildings, arenas, and stadiums (both outdoor and indoor), in turn, boosting the construction industry, driving the demand for aluminum in the region. In addition to this, Asia-Pacific has the largest low-cost housing construction segment, led by China, India, and various Southeast Asian countries. However, in various countries being affected by COVID-19 on a large scale, with still continuously increasing cases of the virus, the growth is expected to remain notably slow in the short run.
In North America, the United States is the largest market for residential construction and is one of the major growth markets in the world. The residential construction in the country is projected to grow as there is an increase in the single-family housing and multiple-family housing in the country. Almost 80% of the individuals prefer single-family housing as an end goal, and almost 70% of people are executing this goal, thus, resulting in an increase in the number of houses being constructed every year. According to US Census Bureau, construction spending in the United States in private and public construction in 2020 was around USD 1400 billion.
The Middle East is known for its high-rise buildings and architecture. The regional market has bolstered construction activities for hotel buildings and infrastructural activities, majorly for tourism. With the increase in construction of hotels and restaurants, and maintenance of architectural and decorative infrastructure (to attract the tourists), the market studied is expected to grow.
Overall, the recovering construction activities across the world are expected to drive the demand for aluminum from the building and construction industry during the forecast period.


Asia-Pacific Region is Expected to Dominate the Market


The Asia-Pacific region is expected to be the largest market for aluminum during the forecast period. Industries such as electronics, building and construction, aerospace, etc., are growing in countries such as China, India, and Japan, among others.
The electronics manufacturing market in Asia-Pacific is expected to grow rapidly during the upcoming years due to the presence of many OEMs in the region. Low cost and the availability of raw materials, coupled with cheap labor, are driving the sector’s growth. The companies in the region provide manufacturing and assembling services to companies in Germany, France, and the United States.
China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, and earphones, recorded the highest growth in the electronics segment. The country serves not only the domestic demand for electronics but also exports electronic output to other countries. In China, the disposable production of electronics is projected to grow. According to the National Bureau of Statistics of China, in December 2020, retail sales of household appliances and consumer electronics in China had amounted to about CNY 100 billion.
The Chinese aerospace policy represents one of the most comprehensive attempts to enter the top levels of aerospace development and production. China is expected to be the world’s largest single?country market for civil aircraft sales over the next 20 years.
Under the plan, ‘Made in China 2025’, it is expected that China will supply over 10% of homemade commercial aircraft to the domestic market by 2025. This is expected to propel the demand for aluminum during the forecast period.
Boeing Company has predicted that China would purchase USD 1.1 trillion worth of new aircraft by 2036, after the company announced that it made a sale of USD 37 billion in the country.
The Chinese automotive manufacturing industry is the largest in the world. The industry witnessed a huge slowdown in 2019, wherein the production and sales declined. A similar trend continued in 2020, with the production witnessing a 2% decrease from 2019 with a production of 25.2 million total vehicles.
However, the electric vehicles segment in China is growing, thus driving the market. The electrical vehicle giant BYD announced that it sold 28,841 electric vehicles and plug-in hybrids in December 2020, which corresponds to an increase of 120% compared to December 2019 and an increase of 8% compared to the previous month.
Asia-Pacific has the largest market for aluminum, owing to the massive growth in construction in India, China, and various Southeast Asian countries. Various incentives by the governments of the respective countries to promote the infrastructure sector, coupled with the booming residential sector (owing to the burgeoning middle-class population), have largely facilitated the growth of the construction sector in Asia-Pacific over the recent years.
Hence, with the rapidly growing end-user industries in countries of the Asia-Pacific region, the demand for aluminum is also expected to increase significantly over the forecast period.


Competitive Landscape

The aluminum market is partially fragmented in nature. The major companies are Rio Tinto, Xinfa Group Co. Ltd, China Hongqiao Group Limited, RusALand Aluminum Corporation of China Limited (Chinalco), among others.

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