High Strength Aluminum Alloys Market Robustly Flourishing: Expected to Reach USD 43.1 Billion in 2027
Published | March 2021
A study, recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global high-strength aluminum alloys market reached USD 31.3billion in 2020 and is further projected to reach USD 43.1 billion by 2027, growing at a CAGR of 5.3% during 2021-2027 (forecast period). To cater to the demand for infrastructure development and the manufacturing of machines and tools used in developmental projects, the high-strength aluminum alloy would play a major role in the coming years. Moreover, the growing demand for high-strength aluminum alloys for usage in luxurious cars and buses as a substitute for steel is another factor expected to propel the market over the forecast period.
Stringent Regulations for Fuel Efficiency and Emission Reduction Drives the Market Growth
Stronger regulations on fuel efficiency and emissions by original equipment manufacturers, combined with the recyclability factor, are driving the growth of the high-strength aluminum alloys industry. High-strength aluminum alloys provide strength and increase the longevity of the product without harming the environment. These alloys can be easily recycled and reused with the same tensile strength in any manufacturing industry. For instance, for the first time in Japan, the Mazda RX-7 used aluminum alloy sheets for its body panel (hood) in 1985. Since then, aluminum panels have mostly been used in sport and luxury vehicles. Soon Honda Motor Co., Ltd. launched the all-aluminum body NSX for the first time in the world.
As per reports, 102 kg of high-strength aluminum alloys were used in vehicle parts in Western Europe in 2000, with 59 kg in engine parts, 11 kg in structural parts, 5 kg in body-in-white, 6 kg in chassis applications, and 21 kg in other applications.The range of high-strength aluminum alloys used for new small and medium-sized vehicles has grown due to advantages such as abundant availability, better recyclability, and mass manufacturing capabilities at a fair price. Due Thus, the stringent regulations for fuel efficiency and emission reduction will propel the growth of the high-strength aluminum alloys market.
Increase in Demand for Lightweight & Corrosion Resistance Automotive Parts
The rise in consumption of high-strength aluminum alloys can be attributed to the increase in demand for lightweight & corrosion resistance automotive parts. Wrought alloy is a product type of high-strength aluminum alloys. It has the highest tensile strength and more aluminum content which makes it light in weight and free from common casting defects such as porosity and shrink.
For example, one of the key objectives in body panel manufacturing for automobile parts is to achieve a good combination of formability and high strength properties after paint-baking, as well as high surface quality after stamping and paint finishing. To achieve this target, the application of extra high strength aluminum alloys of 7xxx series such as 7021 and 7075 alloys are used in automotive parts. They also help meet environmental safety requirements by lowering vehicle weight and increasing fuel economy. Thus, the use of high-strength aluminum alloy in automotive parts is driving its market.
High Strength Aluminum Segment by Strength Cater the Largest Growth
Based on strength, the high-strength aluminum alloys market is bifurcated into high-strength, and ultra-high-strength. During the forecast period, the high-strength aluminum segment is projected to rise at a faster pace than it is now, owing to the automotive and transportation industries. High-strength aluminum alloys have an ultimate tensile strength greater than 300 MPa, whereas ultra-high-strength aluminum alloys have an ultimate tensile strength greater than 400 MPa. The aforementioned factors are driving the growth of high-strength aluminum in this segment.
High Strength Aluminum: Regional Insights
The high-strength aluminum alloys market is segmented into five regions, i.e. the Asia-Pacific, North America, Europe, Latin America, and Middle East & Africa. In 2020, Asia-Pacific had the highest market share, accounting for 41.4 percent. This may be due to the growing demand in the area for goods with corrosion resistance, high tensile strength, recyclability, low maintenance, and extended shelf life in a variety of end-use industries. Additionally, North America, over the forecast period, is likely to grow at the highest rate of 6.1%, hitting USD 10,452 million by 2027, with the United States accounting for 73.7% of the industry.
Impact of COVID-19
Cases of the new strain of COVID-19 has been recorded all over the globe. With this in mind, some of the countries are reluctant to open their borders for business and other purposes which adversely influencing the global demand for high-strength aluminum. However, bauxite miners have largely been unaffected with the major bauxite-producing countries such as Australia, Brazil, and Guinea yet to declare mine closures. With the ban on interstate traveling, many bauxite miners in Australia made sure to provide all the facilities to their miners staying at the mines during the lockdown. India, another major bauxite producer in the world, also exempted its bauxite mines during the 21-day nation-wide lockdown. China also resumed operation after the initial pre-COVID lockdown. With non-stop bauxite mining and slow demand for the products, the high-strength aluminum alloy market is witnessing a surplus supply of the product in the market.
Advances in mining and refining processes have helped manufacturers in producing high-strength aluminum at relatively low prices. The prominent market players operating in the high-strength aluminum alloys market are Aluminum Corporation of China Ltd (CHALCO), China Hongqiao Group Limited, Rio Tinto Ltd., United Company (U.C.) RUSAL, Alcoa Corporation, Constellium SE, Aluminum Bahrain B.S.C., Norsk Hydro A.S.A, Hindalco Industries Limited, and other prominent players.
Aluminum Corporation of China Ltd. is the world leader in high-strength aluminum alloys. It explores and mines bauxite and coal, thereby actively participating in the whole value chain of high-strength aluminum alloy production. The company is one of the largest aluminum producers in the entire world. Aluminum Corporation of China Ltd has played an important role in the defense industry, aeronautics and space industry, rail transport, and the production of high-end alloys for civil purposes.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global-high strength aluminum alloys market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the high-strength aluminum alloys market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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