Building & Construction will pave the path for aluminium extrusion growth at a CAGR of 5.9% till 2025

The increasing demand for lightweight vehicles has led to a significant growth of aluminium extrusions usage. The applications of aluminium extrusions know no bound in the transportation sector. From panels to engine blocks, roof rails to chassis of cars, aluminium extrusions are a part of the structural elements of lightweight vehicles. Also, owing to a high strength-to-weight ratio, aluminium extrusions are commonly used in lightweight vehicles. 

In addition, other key industries ramping up the consumption of aluminium extrusions include architecture & construction, electrical systems, and industrial. It is to be noted here that the building and construction sector is the major end-user of aluminium extrusions, followed by the transportation and industrial sector.

World extrusion usage - 2025

According to an AL Circle report – 'The World of Aluminium Extrusions – an industry analysis with forecasts to 2025', worldwide demand for aluminium extrusions is foreseen to grow 5.4% per annum till 2025 to exceed 40 million tonnes. China primarily drives the demand, contributing significantly to the global aluminium extrusions market. In 2020, the country accounted for 66 per cent of the global consumption volume. 

In 2025, China's aluminium extrusion usage is expected to reach 27.98 million tonnes, accounting for over 60 per cent of the global usage. The Rest of Asia Pacific is estimated to lead next, consuming 3.94 million tonnes in 2025. North America will consume 2.74 million tonnes, and the Europe Union (28 countries) 2.85 million tonnes, according to the AL Circle report. 

Industry-wise aluminium extrusion usage - 2025

The industry-wise analysis in the report shows aluminium extrusion consumption in the building and construction sector is estimated to grow at a CAGR of 5.9% between 2018-2015, reaching 24.11 million tonnes. Transportation, the second-highest consumer of aluminium extrusion globally, is expected to record a 5.7% increase to 6.48 million tonnes by 2025. 

The building & construction sector is China's primary end-user of aluminium extrusions, accounting for more than 60% of the total extrusions usage, followed by transportation at 14% and industrial at 10%.

China is estimated to use 17.35 million tonnes of extruded aluminium products for its building & construction sector and 4.04 million tonnes for the transportation sector in 2025. According to the data revealed in the AL Circle extrusion report, China's aluminium extrusion usage in the building & construction sector is calculated to grow at a CAGR of 6.9% and that in transportation at 7.4%. The increase in aluminium extrusion usage in the transportation sector is attributed to the Chinese government's support for EV adoption to reduce air pollution. The production of electric cars in China is set to increase to about 2 million units by 2025.

In North America, the building & construction sector is estimated to use 965,000 tonnes of extruded aluminium products in 2025, registering a CAGR 1.9% growth during 2018-2025. The transportation sector will consume 741,000 tonnes, at a CAGR growth of 2.5% and the industrial will use 372,000 tonnes, at a CAGR 1.5%. Structural applications are expected to drive the usage of aluminium extrusions in North America till 2025. 

According to the Aluminium Association, US, the per-vehicle usage of aluminium extrusions in North American vehicles is expected to increase from an average of 14 kg per car in 2015 to 53 kg per car by 2025.

Aluminium extrusion use in electrical & electronics sector in North America is set to increase at 1.4% per annum to reach 290,000 tonnes by 2025, primarily driven by solar photovoltaic, the fastest-growing application sector for aluminium extrusion in the region. 

In the European Union, aluminium extrusion usage in the building & construction sector is estimated to record 1.48 million tonnes by 2025, accounting for 52% of the total consumption in the region. The usage in the transportation sector is likely to stand at 622,000 tonnes, followed by 288,000 tonnes of consumption in the electrical & electronics sector.

The usage of aluminium extrusions in EU electric vehicles is expected to surge in the coming years. Apart from standard components, aluminium extrusions can also be used for making batteries and motor cases for electric vehicles.

In the Rest of Europe, aluminium extrusion usage is estimated to stand at 1.24 million tonnes in 2025, growing at a CAGR of 3.1%. The use in the building & construction sector in the same region is projected to stand at 698,000 tonnes, followed by transportation at 250,000 tonnes. 

In the Rest of the Asia Pacific region, aluminium extrusion usage in the building & construction sector is expected to total 2.39 million tonnes by 2025, while that in transportation will stand at 606,000 tonnes.