Aluminum Alloys?Industry Outlook, Growth Prospects and Important Opportunities

The global aluminum alloys market place functions a relatively fragmented and very competitive vendor landscape, states Transparency Marketplace Analysis in a recent report. The marketplace functions a higher degree of backward integration, with top aluminum alloy vendors focusing on securing bauxite sources for constant raw material supply. To sustain within the high degree of competition inside the industry, agencies are focusing on strategic collaborations with raw material suppliers, mergers and acquisitions, and increased investment in R&D activities.

Transparency Market Analysis estimates that the global aluminum alloy market will exhibit a healthy 4.8% CAGR over the period between 2014 and 2020, rising from a valuation of US$91.2 bn in 2013 to an opportunity of US$126.5 bn in 2020.

Transportation Sector to Contribute Much Needed Acceleration to Marketplace

In terms of end-use sector, the report covers the usage of aluminum alloy in industries such as construction, transportation, machinery, electrical, packaging, and sporting good. Of these, the transportation industry is presently the major contributor of revenue to the worldwide aluminum alloy industry, holding over 40% of the overall industry in 2013. The segment is also likely to remain the leading end-use sector in terms of growth rate over the forecast period, driven chiefly due to the high usage of aluminum alloys within the automotive, marine, and aerospace arms for the manufacture of lightweight vehicle parts.

In terms of geography, the market in Asia Pacific led with a nearly 60% share of the total worldwide consumption of a variety of aluminum alloys in 2013. The regional market is likely to continue its bullish run within the next few years, thanks to the thriving transportation and construction sectors.

Rising Scope of Usage in Increasing Set of Application Areas to Drive Market

The global market for aluminum alloys benefits from a plethora of factors, including the rising scope of use of a variety of aluminum alloys across an increasing number of application areas. The transportation sector, in its lookout for materials capable of reducing the overall weight of vehicles, making them more fuel efficient, while also maintaining their strength and toughness, has emerged as a key use of aluminum alloys over the years. Industries such as automotive and aerospace continue to use aluminum alloys inside a number of parts and accessories and the thriving growth of these industries across developed as well as developing economies is positively impacting the growth prospects of the global aluminum alloy marketplace as well.

Fluctuating Provide and Costs of Raw Materials to Rein in Industry Growth

Despite observing vast rise in demand across the transportation sector, some factors will rein inside the growth of the global aluminum plate alloy market. Chief ones of these include the fluctuating raw material costs and the concerns related to the mining of bauxite across a number of regional markets with strict environment protection norms. With chief bauxite countries such as Indonesia and Malaysia coming under the radar of environmentalists owing to poorly regulated production operations, the industry is expected to continue to bear the brunt of fluctuating provide of raw materials, and thus their fluctuating costs inside the international industry.aluminum plate