Low-Carbon Aluminum Market Report 2023: Growing Research and Development Activities to Achieve Near Zero Emissions Bolsters Sector
DUBLIN, May 26, 2023 /PRNewswire/ -- The "Low-Carbon Aluminum Market - A Global and Regional Analysis: Focus on Source of Production, Product, End User, and Region - Analysis and Forecast, 2022-2031" report has been added to ResearchAndMarkets.com's offering.
The global low-carbon aluminum market is projected to reach $119.97 billion by 2031 from $81.89 billion in 2022, growing at a CAGR of 4.3% during the forecast period 2022-2031.
The use of low-carbon aluminum is becoming more common in several industries, including transportation, building and construction, electrical engineering, foil and packaging, and others. The market is anticipated to benefit from the growing preference for lightweight materials over heavy metals, as this would enable weight reduction and foster market growth. In the automobile industry, the demand for low-carbon aluminum is rising due to the increasing number of electric vehicles that are made from lightweight materials.
Amongst all industries, the automotive industry has been majorly focusing on decarbonization and has been witnessing high adoption of low-carbon aluminum. Government securities are also pushing the adoption of low-carbon aluminum. It helps in the weight reduction of vehicles, which contributes significantly to vehicles' fuel efficiency.
Further, the use of low-carbon aluminum helps reduce CO2 emission, which is an environment-friendly aspect of applications of low-carbon aluminum in the automobile industry. There is a growing trend in the aluminum industry toward investing in low-carbon aluminum production. This is driven by several factors, including increasing pressure from consumers and investors to reduce carbon emissions, as well as regulatory initiatives aimed at curbing greenhouse gas emissions.
Market Lifecycle Stage
The low-carbon aluminum market has been in its growth stage, and much has been attributed to the increasing need for carbon reduction in commodity products such as aluminum. The ecosystem of the low-carbon aluminum market comprises primary aluminum manufacturers, aluminum recyclers, aluminum value-added product manufacturers, OEMs, and end users. The market is still developing, with Europe at the forefront, followed by other regions such as North America, the Middle East and Africa, Asia-Pacific, China, and South America.
Segmentation 1: by End User
Based on end users, the low-carbon aluminum market is estimated to be led by the transportation segment during the forecast period 2022-2031.
Sementation 2: by Source of Production
Based on the source of production, the low-carbon aluminum market is estimated to be led by the recycling segment during the forecast period 2022-2031.
Segmentation 3: by Product
Based on product, the low-carbon aluminum market is estimated to be led by the flat-rolled segment during the forecast period 2022-2031.
Segmentation 4: by Region
In the global low-carbon aluminum market, Europe and North America are anticipated to gain traction in terms of low-carbon aluminum production, owing to the presence of the world's largest manufacturers in those regions.
Recent Developments in Low-Carbon Aluminum Market
Demand - Drivers and Limitations
The market is expected to face some limitations due to the following challenges:
How can this report add value to an organization?
Product/Innovation Strategy: The product segment helps the reader understand the different sources of production and products involved in the low-carbon aluminum market. The source of production segment has been segmented into solar energy, wind energy, hydro energy, recycling, carbon capture and storage (CCS), and others. The product segment has been segmented into flat-rolled, castings, extrusion, forgings, rod and bar, and others. Moreover, the study provides the reader with a detailed understanding of the low-carbon aluminum market based on end users, including transportation, building and construction, the electrical industry, consumer goods, foil and packaging, machinery and equipment, and others. The increasing adoption of low-carbon aluminum in manufacturing components in sustainable technologies is expected to fuel the growth of the market.
Growth/Marketing Strategy: The low-carbon aluminum market has seen major development by key players operating in the market, such as business expansions, partnerships, collaborations, mergers and acquisitions, and joint ventures. The favored strategy for the companies has been business expansions to strengthen their position in the low-carbon aluminum market. For instance, in February 2022, Emirates Global Aluminium PJSC announced its plan to build a 150,000 tons per year aluminum recycling facility, the company's first and set to be the largest in the U.A.E. The company intends to market recycled aluminum under the brand name EternAL.
Competitive Strategy: Key players in the low-carbon aluminum market analyzed and profiled in the study involve low-carbon aluminum producers and the overall ecosystem. Moreover, a detailed competitive benchmarking of the players operating in the low-carbon aluminum market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
Aluminum that has greenhouse gas (GHG) emission intensity below 4 tons of CO2 equivalent per ton of aluminum manufactured has been considered as low-carbon aluminum. To achieve this, renewable energy source is used in the manufacturing of primary aluminum. Furthermore, recycling aluminum further reduces energy consumption and CO2 emissions and can be considered low-carbon aluminum. Among product segmentations, the flat-rolled segment dominated the low-carbon aluminum market in 2021 and is the largest segment owing to growing demand from end-use industries such as transportation, building and construction, and others. Flat-rolled products have high strength-to-weight ratios, are corrosion-resistant, durable, and can be recycled multiple times, which further reduces their environmental impact.
Some of the prominent producers of low-carbon aluminum are:
Company Type 1 (by Source of Production): Solar Energy
Company Type 2 (by Source of Production): Hydro Energy
Company Type 3 (by Source of Production): Recycling
Company Type 4 (by Source of Production): Carbon Capture and Storage (CCS) (Planned)
Key Topics Covered:
5 Markets - Competitive Benchmarking and Company Profiles
6 Research Methodology
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SOURCE Research and Markets