General Outlook to Aluminum Extrusion Sector

Driven by a deliberate transition towards a 100% recyclable metal to promote sustainability, the demand and use of aluminium extrusions in end-user products is on a steady rise. In 2023, the estimated usage of aluminium extrusions stood at 31.5 million tonnes, and with the growth projection, it is expected to reach 40.1 million tonnes by 2030, marking a CAGR of 3.51 per cent.
Interestingly, extrusion stands out as the most widely used form of semi-finished aluminium globally, representing 32.12 per cent of usage in 2023. It is followed closely by flat-rolled products at 31.8 per cent, castings at 22.73 per cent, and wire rod at 8.25 per cent.
The building & construction sector primarily drives the usage of aluminium extrusions worldwide, contributing 55 per cent to the global usage, followed by transportation, accounting for 18 per cent. With the shift in market dynamics, aluminium extrusions usage in the building & construction sector is expected to reduce by 1 per cent, reaching 54 per cent by 2030, followed by transportation (19 per cent).
The industrial sector also consumes a substantial volume of aluminium extrusions, accounting for 10 per cent of the worldwide usage. In the industrial sector, particularly solar industry, contributes to the maximum usage of aluminium extrusions. On average, manufacturing 1 MW of photovoltaic capacity necessitates 21 tonnes of aluminium. So, for manufacturing 1 GW of photovoltaic capacity necessitates 21,000 tonnes of aluminium.
The popularity of aluminum extrusions has reached globally and across innumerable industrial sectors. China, popularly the world's largest market of aluminum, is the highest consumer of aluminum extrusions, accounting for 66 per cent, followed by Europe, Rest of Asia Pacific, North America, Middle East & Africa, and South America. Significant growth in China’s economy, particularly in the infrastructure, construction, and renewable energy sectors, and its exports has been the driving force. In line with the anticipated rising demand and consumption in the next few years, China's usage of aluminum extrusions will grow, accounting for 69 per cent.
According to AL Circle’s comprehensive report titled “The World of Aluminium Extrusions – Industry Forecast to 2030”, China’s estimated aluminium extrusion sector consumption in 2023 stood at 20.94 million tonnes. In 2024, it is poised to grow to 21.47 million tonnes and by 2030 to 27.51 million tonnes, reflecting a compound growth rate of 3.98 percent. Europe used approximately 3.17 million tonnes of extrusions in 2023, and is expected to use 3.56 million tonnes in 2030, which is an increase at a CAGR of 1.67 per cent. In the Rest of Asia Pacific and North America, aluminium extrusion usage is expected to stand at 3.45 million tonnes and 2.95 million tonnes, growing at a CAGR of 3.62 per cent and 1.82 per cent, respectively.
Among the application areas, aluminium extrusion finds its most extensive usage in the building & construction. In 2023, this specific industry accounted for 55 per cent of the total usage of aluminium extrusions across various other sectors, followed by transportation contributing 18 per cent. Other sectors utilising aluminium extrusions include renewable energy, electrical & electronics, industrial, and consumer durables. By 2030, with the expected shift in market dynamics, the usage of aluminium extrusions in the transportation sector is likely to grow by 1 per cent, while in the building and construction sector is estimated to drop by 1 per cent.
In 2023, aluminium extrusions capacity across the world stood at around 49 million tonnes per annum. Of this, Chinese extruders accounted for about 64%, equating to about 31.07 million tonnes. Aluminium extruders around the world are beginning to show preference for billets made from “cleaner” energy (“green billets”) and billets produced using post-consumer scrap. Extruders are also installing larger extrusions presses.
In 2022, China added 1.1 million tonnes of aluminium extrusion capacity, and projections indicate that an additional 0.8-1 million tonnes were online in 2023.
According to the Shanghai Metals Market, China’s aluminium extrusion exports amounted to 990,800 tonnes in 2023, registering an increase of 42,800 tonnes year-on-year.