Aluminum for building and construction: Key market research findings
- Drive towards green environment spurs market growth
- APAC dominates the market geographically
- Key vendors – Alcoa, Constellium, Gulf Extrusions, Hindalco Industries, Novelis, Sapa, and RUSAL
Technavio’s market research analysts predict the global aluminum market for building and construction to grow at a CAGR of more than 6% between 2016 and 2020. The growth in the market can be accredited to the rise in concerns about a green environment. Aluminum is the preferred material for construction as it is a vital component of sustainable buildings. Aluminum projects qualify for green building status under the Leadership in Energy and Environmental Design standards. Furthermore, aluminum composite panels are easily recyclable and retain properties during the recycling process. During 2015, the aluminum market for the building and construction sector in APAC was around 10 million metric tons and is expected to grow at a CAGR of around 7% during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the aluminum for building and construction segments based on the type.
“The lead time and cost advantage offered by aluminum extrusions is expected to reflect positively on the growth of the market. Extrusions lead time for tooling design and manufacture is less when compared to other processes, which takes 13-18 weeks for completion. Besides, aluminum extrusions are five times lower in cost than, other processes depending on the size and shape,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, global aluminum extrusions market for the building and construction sector will account for almost 74% of the overall market share to continue its dominance as the key revenue generator. Aluminum extruded products are used in windows and doors, curtain walls, elevator shafts, and lighting fixtures. Aluminum extrusions are preferred over other materials owing to its lead time and cost. For instance, extrusion dies are five times less expensive than die casting products, injection molding dies, and rolled products.
The key vendors in the global aluminum market for building and construction includeAlcoa, Constellium, Gulf Extrusions, Hindalco Industries, Novelis, Sapa, and RUSAL. The market is highly fragmented and exclusively dominated by aluminum extrusion products. The market is characterized by the presence of well-diversified international and regional vendors. These vendors provide cost-effective casting products with limited functional capabilities. The competition in this market will intensify during the forecast period with the increase in technological innovations and mergers and acquisitions. It is expected that international players would grow inorganically by acquiring local players over the next four years.
A more detailed analysis is available in the Technavio report, Global Aluminum Market for Building and Construction 2016-2020.
We can customize reports by other regions and specific segments upon request.
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