Global Market Insights, Inc., forecasts that global aluminum alloys market size will exceed a valuation of $150 billion by 2024, with consistent demand for strong, durable, and lightweight materials in construction and transportation sectors.
One of the most versatile metals, aluminum and its alloys have gained prominence in countless applications. Aluminum alloys market are among the most widely used nonferrous metals in engineering applications on account of excellent physical properties. A rapidly growing urban population has increased the demand for advanced construction materials for the development of residential and commercial buildings as well as other infrastructure like bridges and flyovers.
Strong Need for Lightweight Construction Materials
Alloys of aluminum can be bifurcated into cast and wrought categories. Cast alloys are generally manufactured using elements like copper, magnesium, tin, zinc, or silicon to impart desired characteristics depending upon the application. For instance, aluminum-tin alloy possesses high resistance to wear and tear, but comparatively lower strength. Wrought alloys, on the other hand, contain greater proportion of aluminum, resulting in higher tensile strength. These alloys are defect-free from porosity and shrink.
Both types of alloys find wide use in numerous applications across construction, electrical, packaging, machinery, and transportation sectors on account of lightweight. The global construction sector, a major consumer of aluminum alloys market, has experienced robust growth trends across developed as well as developing economies. The construction end-user segment was estimated to be worth $20 billion in 2016. Numerous infrastructure development mega-projects around the world in the near future will positively impact aluminum alloys market industry outlook.
Upcoming Infrastructure Projects in APAC and BRICS Nations
The Asia Pacific region has recorded one of the fastest growth rates in terms of industrialization, urban population, and infrastructure development. Governments in China, India, and Southeast Asian countries have undertaken initiatives for housing and infrastructure development. Asia Pacific aluminum alloys market industry accounts for about 60% of revenue share and will grow at 5.5% through 2024.
In addition to India and China, other BRICS nations are also anticipated to invest substantially in major infrastructure projects over the course of the next few years. The construction sector in BRICS countries is slated to surpass $8 billion by 2024, up from $3 billion in 2016. These trends will undeniably offer promising opportunities to aluminum alloy manufacturers in both Asia Pacific and BRICS countries.
Constant Demand From Transportation Sector
The transportation industry has been a leading end-user of aluminum alloys market for decades. Recent trends in the tourism sector depict a notable uptick in short as well as long-distance travel. Although land transport has been the major source of transportation for a long time, most people now consider air travel a better option for short distances. Lower air fares and increased purchasing power of consumers are the major factors fueling air transport trends.
The transportation end-user segment is projected to witness a CAGR of 5.5% during the forecast period. Aluminum alloys market find wide use in both air and land transportation. Mounting environmental concerns have increased the demand for lightweight transportation. However, the ongoing coronavirus outbreak has majorly impacted transportation as well as travel and tourism industry.
Factors Restricting Market Growth
Magnesium, copper, tin, zinc, and manganese are among the common materials used to make aluminum alloys market. Volatility in the prices of these materials may reduce their availability and will restrict the adoption of aluminum alloys market in the future. However, the industry will continue to benefit from the increasing trend towards lightweight construction and transportation.
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