Aluminum Alloys Market Analysis

Aluminum Alloys Market Analysis

On the basis of product, it is segmented into wrought alloy and cast alloy. Wrought alloy has higher tensile strength in cast alloys and has more aluminum content, making it a popularly used product category. It is lighter in weight and is normally free from common casting defects such as porosity and shrink. With increasing demand for lighter and stronger metal for fabrication of different mechanical parts, global aluminum alloys market segment will witness substantial gain in coming years.

Cast alloys are manufactured with other elements including silicon, copper, magnesium, zinc, and tin, in order to provide the required characteristics for specific applications. For instance, aluminum-tin alloy exhibits low strength but extremely high wear resistance, while aluminum-copper alloys have high strength and low corrosion resistance. Specialty engineering for development of specifically required mechanical parts will have a positive influence on the global cast aluminum alloys market.

Transportation industry is the most significant end-user industry and will hold sway the aluminum alloys market, both in term of volume and revenue throughout the forecast span. Increasing demand for light weight automobiles and aircrafts to enhance the fuel efficiency will drive the product application in this industry in coming years. Transportation industry accounted for more than 45% share of the global market in 2016 and will exhibit growth at more than 5.5% CAGR through 2024.

Construction sector registered more than USD 20 billion in 2016. Increasing urbanization all over the globe and requirement of shelters for the continuously increasing population will augment the aluminum alloys market growth in the coming years. Light weight and strength gives them superiority over iron and steel products used in the construction sector.

Asia Pacific accounted for more than 60% of the global share in 2016 and will witness growth by a CAGR more than 5.5% in the forecast years. Aggressive developments in the construction, automotive, and marine industry in China will signify the regional industry growth in the next few years. Growing industrialization in India and Southeast Asian countries will further augment the aluminum alloys market sales.

Presence of several high-end automotive and aeronautical companies in Europe, especially in Germany, UK, France, and Italy, will positively influence the regional market in coming years. Technologically advanced manufacturing units are primarily driven by increasing the product efficiencies. Aluminum alloys market demand in these countries will grow on the account of increasing demand for performance products in the end-user industries.