The global aluminum market is expected to witness prominent growth on account of extensive application across numerous industry verticals. Aluminum is one of the most preferred materials in the defense and aerospace sector as it is capable of withstanding high vibration load, radiation, and temperature. The material is extensively used to manufacture aircraft structural components and parts, tanks, parts of missiles batteries, ammunition components and satellites.
The global aluminum market is poised for the robust growth on account of its extensive applications across numerous industry verticals. Aluminum is one of the most preferred materials in the consumer durables industry owing to its numerous properties such as light weight, high strength, and corrosion resistance. The material is extensively used to manufacture several household appliances such as refrigerators, dryers, washing machines, and many others.
Apart from its use in the consumer durables sector, aluminum products also find extensive applications in the food industry for packaging food products. Aluminum foils are extensively used in food packaging to avert the loss of valuable aromas. Its superior absolute barrier properties for oxygen, moisture, and other gases make it a vital component in several packaging and container products.
Considering the product’s extensive applications, Global Market Insights, Inc., predicts that the aluminum market is expected to record robust growth over 2020-2026.
Listed below are some of the ongoing trends in the global aluminum market
Burgeoning demand for forged Aluminum products from the aviation sector
Forged aluminum products are gaining prominence in the aerospace & defense sectors on account of the material’s ability to withstand extreme physical conditions. The material is extensively used to manufacture parts where safety and performance are crucial but light weight is needed for energy and speed efficiency.
Moreover, the product entails durability, fatigue resistance, corrosion & stress resistance, and cryogenic properties. These features make forged aluminum a vital component in the aviation sector. To that end, it is expected that the aluminum market will record significant revenues from the forged aluminum product segment.
Meanwhile, the others segment, inclusive of powder and pigments, recorded 3% of the total revenue share in 2018. This growth can be attributed to the extensive use of aluminum in powder coatings, plastics, and printing inks industries. The aluminum pigments have also gained significant prominence in the cosmetic industry as they enables several color effects and emphasizes the pursuit of luxury and attractiveness.
Accentuating demand in Latin America
Latin America aluminum market is expected to record lucrative growth opportunities owing to the expanding construction sector and urbanization in the region. The nations in the region are spending heavily to develop new construction projects, which in turn will improve the aluminum business outlook.
Citing an instance to highlight the same, Brazil, which is one of the largest economies in Latin America, launched an infrastructure concessions program which aims to invest 45 billion reais (USD14.43 billion) in the development of buildings, operating roads, railways, port terminals, power transmission lines, and railways.
Moreover, programs like Minha Casa Minha Vida, Plano Decenal de Expansao de Energia 2026 will further accelerate regional construction industry growth, thereby accelerating the Latin America aluminum business outlook. On this note, studies estimate that the Latin America aluminum market is expected to record 6.5% CAGR over the forecast period.
Meanwhile, Europe region accounted for over 14.5% of total revenue share and is expected to record substantial profits over the forecast period.
Surging partnerships among industry participants
Companies working in the aluminum market are undertaking several organic and inorganic strategies like acquisitions, mergers, partnerships, and R&D initiatives to expand tap major market share. Citing an instance, in 2018, Arconic announced a partnership with Lockheed Martin for 3d printing of cutting-edge aerospace materials.
As aluminum is extensively used to manufacture several parts in the aerospace sector, this collaboration helped in developing lightweight solutions, cutting-edge manufacturing processes, and innovative metal 3D printed parts. Partnerships like these among leading companies are likely to accelerate new growth prospects in the global aluminum market. Notably, Aleris Rolled Products, Logan Aluminum, JW Aluminum, Century Aluminium Company, Novelis, Hindalco are some of the leading firms operating in the Aluminum market.
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Demand for passenger safety systems to foster automotive plastics applications
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