The global aluminum extrusion market size is expected to reach USD 104.15 billion by 2028, expanding at a CAGR of 7.8% over the forecast period, according to a new report by Grand View Research, Inc. Increasing investments in infrastructure and residential construction is projected to drive the market growth over the forecast period. Emerging economies of Asia Pacific, Central & South America, and Middle East & Africa are witnessing increasing investments in the residential and infrastructure sector owing to the rapid urbanization, rising per capita income levels, and growing population.
For instance, in the economic budget of FY 2020-21, the Indian government announced around USD 1.41 trillion funding for infrastructure projects in the country. The Indian government is set to develop 6,500 projects under its National Infrastructure Pipeline (NIP) over the next five years. Besides the construction industry, growth in the automotive & transportation sector is also expected to play a crucial role in driving the market growth. Aluminum, being a lightweight material, helps in curbing emissions from automobiles. Also, due to various stringent government regulations regarding carbon emissions, automobile companies are preferring this material over steel for automotive manufacturing.
The Covid-19 pandemic has created disruptions in the value chain of the industry across various countries, such as China. However, the country is all set for a strong rebound in its economic activities, following the relaxation of economic and social controls since April 2020. Where the other major economies of the world reported a negative GDP for the second quarter (April-June) of 2020, China registered a GDP growth of 3.2%. The economic growth of the country has helped soften the impact of the pandemic for the remainder of 2020.
Asia Pacific dominated the global market and accounted for the largest revenue share of over 74% in 2020. The region will retain its dominant position throughout the forecast years due to the major manufacturing sectors in countries, such as China, India, Vietnam, Japan, and South Korea. Among these countries, China is projected to play a key role in promoting industry growth through its extensive construction sector. The plan of the Chinese government to invest in transport and energy infrastructure is likely to positively influence the aluminum extrusion market growth over the forecast period.
North America is projected to grow at a significant growth rate from 2021 to 2028, in terms of revenue. The resumption of industrial operations post Covid-19 lockdown is projected to provide a push to the market growth. Government initiatives regarding economic development are also expected to help recover the regional market. For example, in October 2020, Canada unveiled a new infrastructural plan worth CAD 7.5 billion (~USD 5.8 billion) for pushing an array of renewable energy initiatives and create jobs in the country, which were impacted by the pandemic.
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