India Aluminum Extrusion Market is Expected to Reach $2.5 Billion by 2027

According to a new report published by Allied Market Research, titled, “India Aluminum Extrusion Market by Product Type and End-User: Opportunity Analysis and Industry Forecast, 2020–2027”, 

The India aluminum extrusion market size was valued at $1.3 billion in 2019, and is projected to reach $2.5 billion by 2027, growing at a CAGR of 8.3% from 2020 to 2027.

Aluminum extrusion is the process of shaping the aluminum with the help of a shaped opening in a die. It applies strong pressure on the aluminum and obtain required sections through directional deformation. After the extruded products are cooled down and moved to stretcher to make them fully straight. Aluminum extrusion is capable to produce wide range of extruded products with various shapes and sizes.

Increase in demand for lightweight materials in various end-user industries is the major growth driver of the aluminum extrusion market in India. However, high capital cost and slow productivity of aluminum extrusion restricts the market growth. 

Based on product, anodised extrusion is expected to witness highest India aluminum extrusion market growth. This is attributed to high chemical resistance of anodized extrusion, which are becoming increasingly important for industrial applications. Due to the thick layer of aluminum oxide, it is highly resistant to corrosion.

Based on end user, the building and construction segment accounted for highest revenue share. Due to high strength to weight ratio of aluminum is more suitable for large buildings in seismic zones. For instance, aluminum's strength to weight ratio is 1/8, whereas for stainless steel it is 1/16. 

Major players have adopted product launch, collaboration, and acquisition to sustain the intense market competition. Some of the key players profiled in the report include Banco Aluminium Limited, Eagle Extrusion Private Limited, Alpro Extrusions Pvt. Ltd., Kunal Aluminium, Bhoruka Extrusions, Jindal Aluminium, Maan Aluminium, Hindalco, and Century Extrusions. 

COVID-19 scenario analysis

• The India aluminum extrusion market is expected to witness temporary downfall, owing to decline in demand for automotive and constructions. Consumers intend to leave home to shop for necessities, but maintain low engagement in shared services.
• In addition, a large number of manufacturing industries and commercial areas went under complete lockdown for the last few months, thereby negatively impacting the market growth. 
• Furthermore, extended lockdown across the globe negatively affected the global supply chain of the alumina and bauxite mining. Regulations on cross-border imports and exports delayed the lead time for replenishment of raw materials, thereby negatively affecting the upstream process.
• However, implementation of IoT, robotics, and artificial intelligence may decrease the number of active labors on shop floor; thus, restricting further spread of the virus. This will slowly improve the market scenario.

Key findings of the study

• The anodized segment is projected to grow at the highest CAGR of approximately 9.5%, in terms of revenue, during the forecast period.
• By end user, the building and construction segment held more than 60% market share with a CAGR of 7.9%, in terms of revenue, during the forecast period.