Aluminium Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The aluminium market attained a value of USD 157.03 Billion in 2024. The market is expected to grow at a CAGR of 5.65% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 272.07 Billion.

Construction and urbanization are influencing the aluminum market dynamics as rapid infrastructure development is demanding lightweight, durable, and corrosion-resistant materials. With global urban population, large-scale projects in emerging economies are increasing aluminium consumption. According to industry reports, 68% of the global population is estimated to reside in urban areas by 2050. Innovations in aluminium alloys are further enhancing performance, making it a preferred choice for smart cities and energy-efficient buildings, adding to market growth.

Regulatory frameworks are favoring the aluminium industry by enforcing emissions reductions, promoting transparency, and incentivizing sustainable practices. Mechanisms, such as the European Union’s Emissions Trading System and China's national ETS are compelling aluminium producers to account for their carbon emissions whilst increasing financial pressure on high-emission producers. Certifications such as the Aluminium Stewardship Initiative (ASI) and TÜV Rheinland’s CertAl are providing frameworks for producers to demonstrate compliance with environmental and social standards for enhancing market access and competitiveness.

Recycled aluminium is a major driver of the aluminium market due to its significant energy savings and environmental benefits. As per industry reports, the recycling rate of aluminium packaging globally touched 68.2% in 2024, drastically reducing carbon emissions and costs. As sustainability has become a priority globally, the automotive, packaging, and construction industries are increasingly relying on recycled aluminium to meet green standards and circular economy goals.

Key Trends and Recent Developments

May 2025

Emirates Global Aluminium revealed plans to build a USD 4 billion primary aluminium smelter at the Tulsa Port in Oklahoma. This first facility in the United States is expected to produce 600,000 tpa, create 1,000 direct and 1,800 indirect jobs, and requires legislative approval for incentives and power agreements.

April 2025

Rio Tinto and India-based AMG Metals & Materials signed an MOU to assess a low carbon aluminium project in India. This partnership enabled AMG Metals & Materials to assess the method of developing low-cost responsible aluminium production that is powered by renewable energy.

July 2024

Aluminum fabricator Taber Extrusions disclosed plans of a USD 60 million expansion in Arkansas to add to North America’s largest direct-extrusion press. The new 10,000 ton machine, scheduled for operation in 2026, is supporting aerospace and defence production.

October 2023

Alro approved three new €15 million investments for boosting its aluminium operations. Projects include a 1.5 MW photovoltaic plant with EV chargers, a fume treatment system extension for cast house emissions, and advanced slab-cutting and milling equipment to enhance value-added production.

Lightweighting in Automotive

The strong automotive demand and the growing focus of manufacturers on vehicle lightweighting and electric vehicle efficiency are offering multiple aluminium market opportunities. As per industry reports, the number of electric vehicles globally sold touched 1.7 million in March 2025. Automakers are increasingly turning to aluminium for its lightweight and durable properties to enhance vehicle performance, fuel economy, and emissions compliance. With global regulations tightening around emissions and efficiency, the shift towards lighter vehicles is expected to further accelerate aluminium usage in the automotive sector.

Renewable Energy Infrastructure

The clean-energy transition is boosting the aluminium market trends with rising usage in solar panels, wind turbines, and transmission lines. Governments worldwide are investing heavily in renewable energy projects to meet climate targets. As a result, solar and wind installations are requiring significant aluminium inputs to offer strength and corrosion resistance. In March 2025, Hydro established a new wire rod cast house at its Karmøy smelter to supply aluminium for Europe’s critical energy infrastructure. The corrosion resistance and conductivity of aluminium also make it ideal for structural and electrical components.

Low-Carbon Smelting Technologies

To curb emissions, producers are adopting green smelting methods, adding to the aluminium market expansion. Inert-anode technology is helping to eliminate carbon emissions during electrolysis, while powering smelters with hydro, wind, or solar energy cuts reliance on fossil fuels. Companies are pioneering low-emission solutions, further enabling the production of green aluminium. In February 2022, Vedanta Aluminium introduced Restora, India's first low-carbon aluminium, produced using renewable energy. This shift is helping to meet stringent environmental regulations and appeal to eco-conscious customers and investors.

Packaging & Beverage Can Demand

Aluminium cans are dominating the packaging market while significantly driving the aluminium demand due to their sustainability, convenience, and versatility. As consumer preference shifts towards eco-friendly options, aluminium cans have become the packaging of choice for beverages, including soft drinks, beer, and energy drinks. In June 2025, Ball Brazil partnered with Açaí Motion to launch Brazil’s first ASI-certified aluminium cans for ensuring sustainable practices from mining to recycling. Additionally, advancements in can design and manufacturing are improving product preservation and consumer experience, bolstering market growth.

Technological Trends & Advanced Manufacturing

Innovation in 3D printing, alloy development, and AI-driven recycling are transforming production in the aluminium industry. In July 2024, Bright Laser Technologies introduced BLT-AlAM500, a high-strength aluminium alloy designed for 3D printing applications in aerospace. These innovations are enhancing material performance, manufacturing efficiency, and sustainability, positioning aluminium as a key material in the transition towards a more sustainable and technologically advanced future. Startups are also exploring aluminium additive manufacturing for aerospace, while AI scrap sorting is improving recycling efficiency.

Aluminium Industry Segmentation

The report titled “Aluminium Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by End Use

• Transport
• Construction
• Electrical
• Packaging and Foil
• Consumer Goods
• Others

Key Insight: The transport segment is largely impacting the aluminium market outlook, driven by demand for lightweight, durable materials to enhance fuel efficiency and reduce emissions. Automakers are increasingly replacing steel with aluminium for vehicle bodies and engine components. In March 2025, Novelis introduced automotive’s first aluminium coil made entirely from 100% recycled end-of-life vehicle scrap. The aerospace industry also relies on high-strength aluminium alloys for structural parts. With the global push for electric mobility and sustainable transportation, aluminium demand in this sector is growing significantly in developed and emerging markets.

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Key Insight: Asia-Pacific dominates the aluminium market, driven by robust industrial growth, high consumption, and a vast manufacturing base. China has emerged as the largest aluminium producer and consumer in the region due to its expansive infrastructure and automotive sectors. As per industry reports, China's total aluminium production totalled to 11.2 million tonnes in Q4 of 2024. India is rapidly emerging as a key player, with major investments from several companies and collaborations for low-carbon aluminium projects. Japan and South Korea are also contributing significantly via technological innovations and demand for lightweight materials in transportation and electronics.

Aluminium Market Share

Construction & Electrical to Witness Huge Aluminium Adoption

The construction segment is contributing to the aluminium industry revenue, due to its strength, corrosion resistance, and design flexibility. In rapidly urbanizing regions, such as Asia and the Middle East, aluminium is playing a key role in modern infrastructure and smart buildings. Major urban projects in China and the United Arab Emirates are heavily incorporating aluminium for both structural and aesthetic applications. Moreover, green building standards are encouraging the use of recyclable materials, further boosting the demand for sustainable aluminium products in residential, commercial, and industrial construction.

The aluminium demand growth in the electrical sector can be attributed to its excellent conductivity, lightweight nature, and cost-effectiveness compared to copper. India and Brazil are expanding their power grids using aluminium-based solutions to meet rising energy demands affordably. With growing global investments in electrification and renewable energy, the electrical segment continues to expand as a vital aluminium-consuming sector. In April 2025, India’s aluminium sector revealed a ₹42,500 crore investment to add 18-20 GW of solar and wind power capacity by 2030, adding to the regional market growth.

Aluminium Market Regional Analysis

Thriving Aluminium Production in North America & Europe

North America records a strong position in the aluminium market, supported by mature aerospace and automotive sectors that demand high-quality, lightweight aluminium alloys. The United States is witnessing renewed investments in domestic production. In March 2024, Century Aluminum received up to USD 500 million in funding to build a new green primary aluminium smelter. Meanwhile, Canada is leveraging its access to clean hydroelectric power for sustainable aluminium smelting. With increasing focus on supply chain security, low-carbon materials, and advanced manufacturing, North America is strengthening its role as a major producer and consumer in the market.

The aluminium market in Europe is rapidly growing on account of the increasing demand for lightweight, sustainable materials in construction, packaging, and renewable energy. The strong push towards decarbonization and circular economy practices is boosting the demand for recycled and low-carbon aluminium. Key players are investing in greener production methods. Additionally, the influx of stricter environmental regulations is encouraging innovation and capacity expansions. The stronger commitment to sustainability is further fueling Europe's long-term market growth.

Competitive Landscape

Key players operating in the aluminium market are deploying vertical integration by controlling the entire supply chain in bauxite mining, alumina refining and aluminium smelting. This strategy is helping to reduce costs while securing a steady supply of raw materials and improving the overall profit margins. By managing multiple production stages, companies are effectively navigating market fluctuations and enhancing operational efficiency. Aluminium producers are also introducing specialized alloys and downstream products tailored for the automotive, aerospace, packaging, and construction sectors.

Companies are investing in energy-efficient smelting technologies along with advanced recycling processes. These innovations are mitigating the production costs and environmental impacts, which is largely important due to the rising energy prices and stricter sustainability regulations. Many players are also focusing on expanding into emerging markets such as China, India, and Southeast Asia. These regions are experiencing rapid industrialization and infrastructure growth, creating strong demand for aluminium. By increasing production capacity and sales efforts, companies are tapping into new growth opportunities and diversifying their market presence.

RusAL

RusAl, formed in 2000 and headquartered in Moscow, Russia, is a leading aluminium producer providing a vast range of products including primary aluminium, alumina, and aluminium alloys. The company is serving the automotive, packaging, and construction sectors globally.

Chalco Aluminum Co. Ltd

Chalco Aluminum Co. Ltd., founded in 2001 and headquartered in Beijing, China, is a major aluminium producer with a portfolio including primary aluminium, alumina, and fabricated aluminium products. Chalco serves various sectors, such as transportation, aerospace, and electronics whilst focusing on mining and smelting operations.

Rio Tinto plc

Rio Tinto plc, launched in 1873 and is headquartered in London, United Kingdom, is a diversified mining major with aluminium as one of its key businesses. Rio Tinto supplies alumina, bauxite, and primary aluminium across the globe for catering to the automotive, packaging, and construction industries.

China Hongqiao Group Co., Ltd

China Hongqiao Group Co., Ltd., founded in 1994 and headquartered in Shandong, China, specializes in producing primary aluminium and alumina. The firm is known as one of the biggest aluminium producers as it is focusing on energy-efficient production as well as supplying multiple industrial sectors.

Other players in the aluminium market include Alcoa Corporation, Norsk Hydro ASA, Alux do Brasil, and Companhia Brasileira de Alumínio (CBA), among others.

Key Features of the Aluminium Market Report

• Comprehensive quantitative analysis of market size, share, and growth trends.
• Detailed segmentation by end use, and region.
• In-depth competitive landscape and company profiles.
• Insights on emerging technologies and sustainability practices.
• Forecasts and market projections through 2025 and beyond.
• Analysis of supply chain dynamics and pricing trends.

Why Choose This Research?

• Trusted insights backed by rigorous data and expert analysis.
• Timely, accurate reports with actionable market intelligence.
• Customized research tailored to client business needs.
• Global coverage with local market expertise and trends.