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 Overview:
Aluminum alloys are materials made by combining aluminum with other elements such as zinc, magnesium, copper, manganese, silicon, and magnesium to improve the physical properties of pure aluminum. Aluminum alloys have high strength-to-weight ratio which makes them highly suitable for transportation and construction applications where lightweight yet high strength materials are required. They also have excellent corrosion resistance which extends their lifespan considerably. Owing to their excellent properties, aluminum alloys find wide usage in various industries including automotive, aerospace, machinery equipment and more.
Market Key Trends:
One of the key trends in the aluminum alloys market is the rising demand from the automotive industry for producing lightweight vehicles. Vehicle manufacturers are focusing on developing lightweight vehicles as it enhances fuel efficiency and reduces overall emission. Aluminum alloys help automakers reduce vehicles weight by 15-35% without compromising on strength. This is driving the adoption of aluminum alloys in manufacturing various auto components like engine blocks, wheels, and vehicle bodies. Additionally, stringent emission regulations across regions are further propelling the need for lightweight materials like aluminum alloys in the automotive industry.
Porter’s Analysis
Threat of new entrants: The aluminum alloy market has high capital requirements for setting up new production facilities and manufacturing plants which poses as a barrier for new companies.
Bargaining power of buyers: Large automotive and aerospace companies have significant bargaining power over aluminum alloy producers as buyers can play suppliers against each other.
Bargaining power of suppliers: Major aluminum producers such as Alcoa and UC Rusal control the supply of raw aluminum thereby possessing high bargaining power over manufacturers.
Threat of new substitutes: Alternative lightweight metals like magnesium and composites pose threat to the aluminum alloy marketbut their high costs limits their usage in mass applications currently.
Competitive rivalry: The global aluminum alloy industry is consolidated with top players accounting for more than half of total supply. Intense competition exists among leading firms to cater growing demand.
Key Takeaways
The Global Aluminum Alloys Market Demand is expected to witness high growth, exhibiting CAGR of 6.1% over the forecast period, due to increasing consumption in automotive and aerospace industries. Growth of these end-use industries especially in emerging economies is driving the market.
Regionally, Asia Pacific dominates the global aluminum alloys market and is expected to continue its lead over the forecast period. China accounts for over half of global aluminum production and consumption. Rapid industrialization along with initiatives to reduce dependence on imports in China, India, and other Asian countries is fueling regional market growth.
Key players operating in the aluminum alloys market are 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. Leading firms are investing in expansions and new production plants to cater growing aluminum alloy demand for various applications.
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