Aluminium extrusion market growing at 7% CAGR to 2019

A recently published report on global aluminium extrusion market says increased usage in green initiatives is driving great growth as aluminium extrusions are 100% recyclable and emit no significant hazardous gasses during processing.

The growth of the automobile industry is anticipated to drive the growth of this market during the forecast period. Aluminium extrusion is replacing steel in automobiles and transport. It is preferred over other metals due to its light weight leading to reduced fuel consumption and reduced greenhouse gas emission. Moreover, aluminium is easily recyclable and resistant to corrosion, thus ensuring sustainability and durability of the vehicle.

Aluminium extrusion market is segmented based on Mill finished, Anodized and Powder coated varities. The mill finished segment accounted for 58% of the market share during 2014 and is expected to reach around 13 million metric tons by the end of 2019. Mill finished products are mainly used in applications that do not demand additional corrosive resistivity. By end user, the market is segmented into Building and construction, Transportation, Machinery and equipment, Consumer durables and Electrical. Building and construction segment is the largest market for aluminium extrusion. The growth of this segment is anticipated to be at a rate of 7% during the forecast period. Around 65% of the aluminium content in construction is estimated to be recycled annually. Its usage in building and construction is expected to increase during the forecast period, especially in doors, windows, panels, windows frames, ladders, and bridges.

As per data published in the report, China accounted for around 62% of the global market share during 2014 and is expected to grow at a rate of 7% during the forecast period. The increase in industrial consumption of extruded aluminum is driving the market in China.

The aluminum extrusion market is highly fragmented due to the presence of many suppliers. The market was dominated by the leading six vendors including ALCOA, Constellium, Gulf Extrusion, Hindalco-Novelis, Hydro Aluminum and Sapa. However, with the increasing number of new suppliers the market share for these top vendors is dropping and is being shared by new players. The market is anticipated to witness an increased number of consolidations during the forecast period. Other prominent vendors in the market include EGA, TALCO, Zahit, and Balexco.