The global aluminum market is choc-o-bloc with
companies of varying sizes, says Transparency Market Research (TMR)
in one of its recent market study. Well-entrenched players in the
market are adopting multi-pronged strategies to stay ahead in
competition. Of them, formation of strategic alliances is a vital
strategy that key players in this highly competitive market are
expected to benefit from.
Prominent participants in the global aluminum
market to name a few are Alcoa Corporation, Norsk Hydro ASA, Emirates
Global Aluminum PJSC, Aluminum Corporation of China Limited, RUSAL,
and RioTinto.
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According to a report by TMR, the global aluminum
market is expected to clock 6.4% CAGR for the forecast period between
2017 and 2025. Rising at this pace, the market will reach a valuation
of US$249.29 bn by 2025-end from US$143.87 bn in 2016.
The global aluminum market has been segmented
based on type, product, end-user, and region. Aluminum alloys held
the leading share of the market in 2016 based on revenue. The segment
of ingots amongst key product segments held the leading share of the
market in 2016. Asia Pacific dominated in 2016 holding more than 60%
of the overall market. Going forward, the region is expected to stay
dominant over the forecast period.
Booming Construction Sector post 2008 Economic
Slump Surges Growth
Rapid industrialization and urbanization in
several parts of the world has been a prominent factor driving the
global aluminum industry. The revival of the construction sector post
the economic slump of 2008 is tremendously benefitting the aluminum
industry. In particular, developing countries such as India, China,
Malaysia, Vietnam, and Korea are experiencing high growth in the
construction industry that account for high demand for aluminum and
aluminum alloys. Aluminum and aluminum alloys are widely used in the
construction sector due to their properties of high corrosion
resistance and reduced self-weight. This includes residential and
commercial buildings as well as infrastructural developments such as
bridges and flyovers.
Need to Reduce Vehicle Weight for Fuel Economy
Benefits Market
Another factor stoking growth of the aluminum
industry is the rising demand for automobiles in the developing
economies of Asia Pacific. Growth in the demand for automobiles has
led to a significant increase in demand for crude oil. This is turn
has led to increased fuel prices in these regions which is driving
the need for light weight vehicles. This is because decrease in
weight of vehicles is beneficial to save fuel consumption, which in
turn curbs greenhouse gas emissions.
To address this, automobile manufacturers are
focused on utilizing substitute materials that can help reduce the
overall weight of vehicles. Aluminum alloys are considered to be the
best substitute for the steel frame of vehicles that reduces vehicle
weight substantially without compromising on the strength and weight
carrying capacity of the vehicle. Further, aluminum alloys assure
better fuel economy, increased efficiency, and less pollution. These
factors are anticipated to increase the demand for aluminum over the
forecast period.
The vast application of aluminum across several
industry sectors such as packaging, transportation, household goods,
and electronics contributes immensely to the global aluminum market.
This is due to the versatile physical properties of aluminum combined
with its widespread availability in the earth’s crust.
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However, factors such as moderate tensile strength
and moderate machinability of aluminum are limiting its direct use
across various end-use industries.
The information presented here is based on the
findings of a report by Transparency Market Research, titled
“Aluminum Market (Type - Pure Aluminum and Aluminum Alloy; Product
- Plates, Ingots, Sheets & Foils, and Cables & Wires;
End-user - Transportation, Construction, Electrical, and Foils and
Packaging) - Global Industry Analysis, Size, Share, Growth, Trends,
and Forecast 2017 - 2025.”
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