Global aluminium extrusion demand to grow at over 5% CAGR till 2025
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Global demand for aluminum extrusions is projected to grow at a rate of 5.4% annually until 2025, surpassing 40 million tonnes (mnt). China is the main driver of this demand, accounting for 66% of global consumption volume in 2020, according to an Alcircle report.
By 2025, China's usage is expected to reach 27.98 mnt, representing over 60% of global usage. The rest of Asia Pacific, North America, and the European Union (28 countries) are estimated to consume 3.94 mnt, 2.74 mnt, and 2.85 mnt, respectively.
Growing need for lighter vehicles has resulted in a substantial increase in the utilisation of aluminum extrusions. In the transportation industry, aluminum extrusions find diverse applications, serving as integral components in lightweight vehicles such as panels, engine blocks, roof rails and car chassis.
Furthermore, due to their excellent strength-to-weight ratio, aluminum extrusions are frequently employed in lightweight vehicles.
Industry-wise consumption outlook
The building and construction sector is projected to see a compound annual growth rate of 5.9% in aluminum extrusion consumption from 2018 to 2025, reaching 24.11 mnt. Transportation, the second-largest consumer, is expected to see demand growth of 5.7% to 6.48 mnt by 2025.
China
In China, the building and construction sectors account for over 60% of aluminum extrusion usage, followed by transportation at 14% and industrial usage at 10%. China's projected extrusion usage in the building and construction sector is estimated to grow at a CAGR of 6.9%, reaching 17.35 mnt by 2025.
The transportation sector is anticipated to grow at a CAGR of 7.4%, reaching 4.04 mnt. This increase is driven by the Chinese government's support for electric vehicle adoption and the expected production of approximately 2 mn electric cars in China by 2025, aiming to reduce air pollution.
North America
In North America, the building and construction sectors is projected to consume 965,000 t of aluminum extrusions in 2025, with a growth rate of 1.9% (2018-2025). The transportation sector will use 741,000 t, growing at 2.5%, while the industrial sector will consume 372,000 t, growing at 1.5%. Structural applications will drive the usage of aluminum extrusions in North America until 2025.
In North American vehicles, the per-vehicle usage of aluminum extrusions is expected to increase from 14 kg/car in 2015 to 53 kg/car by 2025, while extrusion use in electrical and electronics sectors is set to increase by 1.4%/annum to reach 290,000 t by 2025, according to the Aluminium Association, US.
European Union
In the European Union (EU), the building and construction sector is estimated to consume 1.48 mnt of aluminum extrusions by 2025, accounting for 52% of total consumption. The transportation sector will use 622,000 t, followed by 288,000 t needed for the electrical and electronics sectors.
Aluminum extrusion usage in electric vehicles is expected to rise compound in the EU, with extrusions being used for components, batteries, and motor cases.
In the rest of Europe, aluminum extrusion usage is estimated to reach 1.24 mnt in 2025, growing at a CAGR of 3.1%. The building and construction sectors will account for 698,000 t, followed by transportation at 250,000 t.
Asia Pacific demand
In the rest of the Asia Pacific region, the building and construction sectors is projected to use 2.39 mnt of aluminum extrusions by 2025, while transportation will consume 606,000 t.
Note: This article has been published in accordance with an article exchange agreement between Alcircle and SteelMint.
