Increased EV Demand to Drive Global Aluminum Market during 2023-2030

Triton Market Research presents the ‘Global Aluminum Market’ report sectioned by Product (Alumina, Primary Aluminum, Bauxite, Other Products), by Industry Vertical (Foil & Packaging, Automotive & Transportation, Electronics, Building & Construction, Other Industry Verticals), and by Regional Outlook (Europe, Latin America, Middle East and Africa, Asia-Pacific, North America).

The report further discusses the Market Summary, Industry Outlook (COVID-19 Impact, Market Maturity Analysis, Porter’s Five Forces Analysis, Industry Components, Key Market Strategies, Key Buying Impact Analysis, Drivers, Challenges, Opportunities, Analyst Perspective), Competitive Landscape, Research Methodology & Scope, Global Market Size, Forecasts & Analysis (2023-2030).

Triton Market Research’s report states that the global aluminum market will develop with a CAGR of 5.24% in the forecast years from 2023 to 2030.

As the automobile industry shifts towards battery-operated electric vehicles and electrified powertrains, aluminum has become the go-to material for automakers. Its lightweight nature allows for the integration of heavy parts, such as batteries, which, in turn, leads to an increased range of electric cars. As a result, the demand for aluminum in the production of electric vehicles has significantly risen.

Aside from reducing weight, using aluminum in electric vehicles also improves braking distance, resulting in a safer ride for passengers and better handling. Additionally, aluminum has double the impact absorption capacity of steel during a collision, making it an essential component in ensuring the safety of electric vehicles. Therefore, aluminum is replacing other metals in the production of electric vehicles. The above-mentioned factors are driving the market growth.

Bauxite, a mineral, is the primary source of aluminum, and requires purification through the Bayer process before it undergoes smelting to extract alumina. However, the process of converting raw bauxite into aluminum is extremely energy-intensive, and the smelting process produces perfluorocarbons that are more harmful to the environment than carbon dioxide emissions.

This production process also results in the release of greenhouse gasses and particulate matter, further exacerbating environmental degradation. To combat these negative environmental impacts, government authorities have imposed strict environmental regulations on the aluminum production industry. By adhering to these regulations, the aluminum industry can limit its negative impact on the environment, leading to a cleaner and healthier planet. Therefore, these regulations can significantly impact the market growth.

The Asia-Pacific is the leading region in the global aluminum market, accounting for the largest revenue in 2022. This is due to several factors, including a rise in demand for aluminum in various industries, such as construction, automotive, and packaging. Additionally, the region’s abundant reserves of bauxite, the primary raw material used in aluminum production, have contributed to its rise in the global market.

Furthermore, the low production costs have attracted significant investment in the aluminum industry in the Asia-Pacific region. As a result, the region is expected to continue to grow in the global aluminum market, with China and India leading the way as major producers and consumers of aluminum.

Norsk Hydro ASA, Aluminum Corporation of China Limited (Chalco), Century Aluminum Company, Novelis Inc, Rio Tinto, Emirates Global Aluminum PJSC, RUSAL, Alcoa Corporation, China Hongqiao Group Co Ltd, and Aluminum Bahrain BSC (Alba) are some of the leading players operating in this market.

The aluminum industry presents various challenges to new players, including high capital costs, lengthy setup times, government regulations, and significant economies of scale. These challenges make it difficult for new entrants to compete with established market players, resulting in a low threat of new entrants in the aluminum industry.