Sustainable Aluminum Market Trends and Top Companies In 2024 - 2033: Overview

 

Overview

Aluminum, a sustainable metal that can be recycled, is widely used in various industries such as power, transportation, construction, packaging, and more. The Global Aluminum Market is expected to grow from USD 229.75 Billion in 2023 to USD 415.85 Billion by 2033, at a CAGR of 6.11% during the forecast period 2023-2033. Rising demand for applications, rising focus on environmental issues & shift towards more recyclable materials are fueling expansion in the global aluminum market.

 

Competitive Landscape

Major players in the global market include UC RUSAL, CHALCO, Alcoa Corporation, China Hongqiao Group, and Rio Tinto, resulting in a fairly fragmented market. These athletes take advantage of research and development efforts to cater to various end-user sectors. They are utilizing different growth tactics such as expanding their product portfolio, strengthening their distribution network, expanding capacity, and making acquisitions to stay competitive in the market. For instance, in July 2022, Rio Tinto revealed a $188 million investment plan for aluminum in Canada. The company aims to increase aluminum billet production by 202,000 metric tonnes by the coming year. The company is going to increase the size of the current casting facility located at its Alma factory.

 

Rising Demand for Aluminum: How India's Growth and Global Trends Are Shaping the Future of the Market

The projected high GDP growth in India is expected to significantly increase the demand for aluminum in the country in the next few years. Various government initiatives in India such as Make in India, complete rural electrification, Housing for All, Smart Cities, the National infrastructure pipeline worth Rs 100 lakh Crore, renewable energy, and schemes like FAME for electric vehicles will increase the demand for metal in the country. Furthermore, China remained the top producer and user of aluminum globally, accounting for 36.7 million tonnes, approximately 56.7% of the total worldwide production. According to Harbor Intelligence, global primary aluminum demand has hit record levels in recent months and is expected to rise to 67.4 million tonnes by the end of 2021. The primary factors driving this rapid recovery include global monetary and fiscal support, a constrained scrap market, a metal-heavy economic rebound with increased spending on capital goods outweighing previous pandemic-related challenges, and the continuing shift towards sustainability favoring aluminum as the preferred material. The consumption levels are expected to increase in the future due to growing demands from Western and Asian markets.

 

The report provides a summary of the global top trends and future prospects for the global aluminum market based on historical data sets (current trends, industry statistics, and emerging trends shaping the aluminum industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global aluminum trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions. 

 

Growth Factors and Emerging Trends in the Aluminum Market

 

1. Rising Demand for Emerging Applications to Drive Market Growth.

Anticipated market potential is expected to be significantly impacted by technological advancements across various industries. Aluminum products are being used more in various fields like solar energy, battery technology, and 3D printing, and their applications are expanding rapidly. Aluminum's lightweight nature, coupled with its superior strength, unparalleled durability, and strong resistance to corrosion, is being widely sought after for constructing renewable energy structures like wind turbines and solar panels. The increasing need for mobile and electric devices along with the ever-growing renewable energy sector is requiring more effective and affordable energy storage solutions. Aluminum, found in abundance in the earth's crust, provides batteries with a higher volumetric capacity compared to lithium. The increasing need for aluminum-ion battery production is expected to see a significant rise in the coming years. The growing 3D printing sector is increasing the need for products to make various parts in various industries, which is boosting market expansion. For example, because of its superior strength-to-weight ratio, the metal is commonly utilized in the automotive, aerospace, and other industries to manufacture components like gearboxes, housings, brackets, heat exchangers, and engine parts.

 

1. Rising demand for secondary products to contribute to market expansion.

A major portion of global consumption comes from using recycled or secondary products. Waste from the automotive industry, beverage cans, equipment, and machinery are recycled and reused because it is cost-efficient. Recycling secondary or scrap metal minimizes environmental harm by using less energy compared to producing new metals from ore. Furthermore, recycling secondary products does not compromise the metal's quality, allowing for indefinite recycling. The need for aluminum cans is still driving up the demand for the product. Additionally, recycling cans of products helps conserve natural resources and energy while also easing the burden on landfills. Producing cans from recycled materials conserves approximately 95% of the energy required to make cans from bauxite. The increasing emphasis on using sustainably sourced products is projected to enhance product recycling and fuel the market's growth in the forecasted time frame.

 

Opportunities and Future Prospects in the Aluminum Market

 

Aluminum’s Ability to be Recycled.

Aluminum can be recycled completely without any loss of its characteristics. Recyclability allows the world's growing supply of Aluminum to serve as a valuable resource bank, providing more and more value over time by harnessing the energy stored in the metal during its production. Recycling the aluminum that is currently being stored would be equivalent to the annual production of primary aluminum for 24 years. Aluminum’s recyclability sets it apart from other alternatives and opens up avenues for market expansion.

 

List of Key Companies in the Aluminum Market

• RusAL
• Aluminum Corporation of China Limited (CHALCO)
• Rio Tinto
• Alcoa Corporation
• Emirates Global Aluminum
• Norsk Hydro ASA
• Hindalco Industries Ltd.
• Vedanta Aluminum & Power
• China Hongqiao Group Limited
• Others

 

Top 5 Key Players Profile in the Aluminum Market

 

1. ALCOA

 

Headquarters: Pittsburgh, PA

Alcoa (NYSE: AA) is a top player in the global bauxite, alumina, and aluminum industry with a goal to transform the aluminum sector towards a more sustainable future. Alcoa's goal is to transform untapped potential into tangible advancements through a values-driven strategy centering on integrity, excellence, compassion, and bold leadership. After creating the method that made aluminum affordable and essential in the world, Alcoa skilled Alcoans have created new ideas and top techniques that have resulted in improved productivity, security, eco-friendliness, and more resilient communities in all locations Alcoa is present.

 

2. NORSK HYDRO

 

Headquarters: Oslo

Hydro is a prominent industrial firm that creates enterprises and alliances to promote a greener tomorrow. Hydro creates sectors that are important to individuals and the community. Since 1905, Hydro has been converting natural resources into valuable products for individuals and businesses, establishing a safe and secure work environment for 31,000 employees across over 140 sites in 40 countries.

 

3. HINDALCO INDUSTRIES LIMITED

 

Headquarters: Mumbai, Maharashtra

Hindalco Industries Limited is the leading metals company of Aditya Birla Group. Hindalco, a metal giant worth $26 billion, is the top Aluminum company globally in terms of revenue, as well as a significant player in the copper industry. It is also one of the biggest primary aluminum producers in Asia. Hindalco offers creative solutions for a sustainable planet, guided by its aim to create a greener, stronger, smarter world. Novelis Inc., a subsidiary that is fully owned by the company, is the biggest manufacturer of aluminum beverage can material globally and the leading recycler of used beverage cans (UBCs). Hindalco's copper plant in India includes a top-tier copper smelter, additional facilities, and a private dock. The copper smelter is one of the biggest custom smelters in the world operating in just one location. Hindalco has a presence in 10 countries, with 50 manufacturing units worldwide. Hindalco was declared the top sustainable aluminum company globally in the Dow Jones Sustainability Indices (DJSI) for the years 2020, 2021, and 2022.

 

4. VEDANTA LIMITED - ALUMINUM BUSINESS

 

Headquarters: New Delhi, Delhi

Vedanta Aluminum, a segment of Vedanta Limited, is the biggest manufacturer of aluminum and aluminum products with added value in India. Aluminum is the world's second most vital metal, with crucial uses in various industries including aerospace and electrification. Vedanta Aluminum & Power Business, through its top-notch Aluminum smelters, alumina refinery, and power plants, is responsible for producing over 50% of India's Aluminum. Vedanta products, made with cutting-edge technology from global industry leaders, dominate their specific markets. They have a wide range of uses in the automotive and electric vehicle industries, building and construction sector, electrification, steel industry, and various other fields.

 

5. UC RUSAL

 

Headquarters: Moscow

RUSAL is a leading global producer of low-carbon Aluminum. More than 90% of the Company's Aluminum is produced from renewable electricity, and by implementing innovative and energy-saving technologies RUSAL is able to reduce greenhouse gas emissions at all production stages. This has enabled RUSAL to become one of the first in the world to master the production of 'green' metal under the ALLOW brand.

 

Recent Developments

 

• In July 2024, Emirates Global Aluminum and Veolia's RECAPP have teamed up to encourage product recycling in educational institutions throughout the UAE. The company is expected to greatly decrease production costs by recycling the product, which uses 95% less energy than making new metal.

 

• In September 2023, Norsk Hydro ASA revealed the launch of its new HyForge foundry line in Rackwitz, Germany. The decision comes after the auto industry's request to reduce carbon emissions by including recycled Aluminum scrap in car production.

 

• In June 2023, Rio Tinto revealed intentions to allocate $1.1 billion towards the expansion of its "low carbon" Aluminum smelter at the Jonquière Complex in Quebec, Canada. This choice will enable the company to raise its yearly capacity by around 160,000 tons of primary product.

 

• In August 2022, Rio Tinto revealed intentions to spend USD 29 million on constructing a new facility for recycling products at its Arvida site in Quebec, Canada. This decision aligns with the company's objective to increase its range of environmentally friendly Aluminum options for clients in the construction, packaging, and automotive sectors.

 

• In February 2022, RusAL created a 5xxx series Aluminum alloy that has been optimized for anodizing capabilities. Production of the new alloy commenced at the Bratsk Aluminum Smelter by the company. Anodizing alloys results in the formation of a protective oxide layer on the finished product. This also enhances the aesthetic appearance of products, increasing their service life and improving their resistance to corrosion.

 

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

Which is catering to different industry such as financial sectors, industrial sectors, government organizations, universities, non-profits and corporations. The company's mission is to work with businesses to achieve business objectives and maintain strategic improvements. 

 

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