Aluminum extrusion is an industrial process used to produce objects of a fixed cross-sectional profile. It involves forcing heated aluminum alloy billets into a shaped die under high pressure. This results in the extruded metal taking on the shape of the profile of the die opening. Extruded aluminum products find applications in transportation, building and construction, industrial fabrication, consumer durables, and others owing to their light weight, corrosion resistance, and recyclability. The construction industry utilizes extruded aluminum sections for window and door frames, curtain walling, cladding panels, balcony railings etc. This is because aluminum extrusions provide rigidity, support, durability and corrosion resistance while also reducing the overall weight of a structure. The global demand for homes and commercial infrastructure is growing vigorously, especially in emerging economies of Asia Pacific and Latin America, thus driving the aluminum extrusion market. The global Aluminum Extrusion Market is estimated to be valued at US$ 110 Bn 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 key trends:

One of the major trends witnessed in the aluminum extrusion market is the increasing preference for recycled aluminum. This is mainly attributed to rising environmental concerns pertaining to resource depletion and degradation. Unlike primary aluminum production which is an energy-intensive process, recycling aluminum requires 95% less energy. Recycled aluminum is used extensively to manufacture aluminum extrusions with properties comparable to those produced from primary aluminum. Leading aluminum extrusion companies are focusing on increasing the recycled aluminum content in their portfolio which helps lower carbon footprint as well as production costs. For instance, in 2019, major aluminum producers worldwide pledged to increase the average recycled content across their product range to 50% by 2030 through organized collection and effective closed-loop recycling programs.

Porter’s Analysis

Threat of new entrants: Low capital requirements and some existing vendors operating at a large scale make the threat low for new players to enter.
Bargaining power of buyers: Many buyers in sectors like construction and automotive can negotiate lower prices. Bargaining power of buyers is high.
Bargaining power of suppliers: Key raw materials include aluminum alloy and machinery. Few suppliers, differentiated products give suppliers moderate bargaining power.
Threat of new substitutes: Other materials like plastics and polymers pose a threat, though currently aluminum enjoys an advantage due to properties like corrosion resistance and recyclability.
Competitive rivalry: Large scale of operations, high overhead costs and differentiated technologies result in high competitive rivalry among existing vendors.

Key Takeaways

The global Aluminum Extrusion Market Growth is expected to witness high growth.

Regional analysis: North America dominates the market currently owing to large automotive and construction industries in the US and Canada. Asia Pacific is expected to witness fastest growth due to rapidly growing manufacturing sectors and infrastructural development in China and India.

Key players:

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. Extruded aluminum products find major applications in the building and construction, automotive, and machinery and equipment industries. The COVID-19 pandemic negatively impacted demand from the end user industries in 2020. However, resumed construction activities and investments in infrastructure are expected to support market recovery.

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