Aluminum Market: Products, Applications & Beyond

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Aluminum Market Products, Applications Beyond
Aluminum is a versatile element with several
beneficial properties, such as a high
strength-to-weight ratio, corrosion resistance,
recyclability, electrical thermal conductivity,
longer lifecycle, and non-toxic nature. As a
result, it witnesses high demand from industries
like automotive transportation, electronics,
building construction, foil packaging, and
others. The high applicability of the metal is
expected to drive the global aluminum market at a
CAGR of 5.24 in the forecast period from 2023 to
2030.
Aluminum Mining Into Key Products Triton
Market Researchs report covers bauxite, alumina,
primary aluminum, and other products as part of
its segment analysis. Bauxite is anticipated to
grow with a CAGR of 5.67 in the product segment
over the forecast years. Bauxite is the primary
ore of aluminum. It is a sedimentary rock
composed of aluminum-bearing minerals, and is
usually mined by surface mining techniques. It is
found in several locations across the world,
including India, Brazil, Australia, Russia, and
China, among others. Australia is the worlds
largest bauxite-producing nation, with a
production value of over 100 million metric tons
in 2022.
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Moreover, leading market players Rio Tinto and
Alcoa Corporation operate their bauxite mines in
the country. These factors are expected to propel
Australias growth in the Asia-Pacific aluminum
market, with an anticipated CAGR of 4.38 over
the projected period. Alumina is expected to grow
with a CAGR of 5.42 in the product segment
during 2023-2030. Alumina or aluminum oxide is
obtained by chemically processing the bauxite ore
using the Bayer process. It possesses excellent
dielectric properties, high stiffness strength,
thermal conductivity, wear resistance, and other
such favorable characteristics, making it a
preferable material for a range of
applications. Hydrolysis of aluminum oxide
results in the production of high-purity alumina,
a uniform fine powder characterized by a minimum
purity level of 99.99. Its chemical stability,
low-temperature sensitivity, and high electrical
insulation make HPA an ideal choice for
manufacturing LED lights and electric vehicles.
The growth of these industries is expected to
contribute to the progress of the global HPA
market. EVs Spike Sustainability Trend As per the
estimates from the International Energy Agency,
nearly 2 million electric vehicles were sold
globally in the first quarter of 2022, with a
whopping 75 increase from the preceding year.
Aluminum has emerged as the preferred choice for
auto manufacturers in this new era of
electromobility. Automotive transportation
leads the industry vertical segment in the
studied market, garnering 40792.89 million in
2022. In May 2021, RusAl collaborated with
leading rolled aluminum products manufacturer
Gränges AB to develop alloys for automotive
applications. Automakers are increasingly
substituting stainless steel with aluminum in
their products owing to the latters low weight,
higher impact absorption capacity, and better
driving range. Also, electric vehicles have a
considerably lower carbon footprint compared to
their traditional counterparts. With the growing
need for lowering emissions and raising awareness
of energy conservation, governments worldwide are
encouraging the use of EVs, which is expected to
propel the demand for aluminum over the forecast
period. The Netherlands is one of the leading
countries in Europe in terms of EV adoption. The
Dutch government has set an ambitious goal that
only zero-emission passenger cars (such as
battery-operated EVs, hydrogen FCEVs, and plug-in
hybrid EVs) will be sold in the nation by 2030.
Further, according to the Canadian government,
the countrys aluminum producers have some of the
lowest CO2 footprints in the world. Alcoa
Corporation and Rio Tinto partnered to form
ELYSIS, headquartered in Montréal, Canada. In
2021, it successfully produced carbon-free
aluminum at its Industrial Research and
Development Center in Saguenay. The company is
heralding the beginning of a new era for the
global aluminum market with its ELYSIS
technology, which eliminates all direct GHG
emissions from the smelting process, and is the
first technology ever to emit oxygen as a
byproduct. Wrapping Up
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Aluminum is among the most widely used metals in
the world today, and is anticipated to underpin
the global transition to a low-carbon economy.
Moreover, it is 100 recyclable and can retain
its properties quality post the recycling
process. Reprocessing the metal is a more
energy-efficient option compared to extracting
the element from an ore, causing less
environmental damage. As a result, the demand for
aluminum in the sustainable energy sector has
thus increased. The efforts to combat climate
change are thus expected to bolster the aluminum
markets growth over the forecast period.
FAQs Q 1) What are the revenue estimates for the
global market? The global aluminum market, which
was valued at 146054.04 million in 2022, is
estimated to reach 221113.42 million by 2030. Q
2) What is a key challenge faced by the studied
market? The rising cost of aluminum is a major
challenge in the path of market growth.