MEA Aluminum Extrusion Market Size Is Expected To Reach USD 2.23 Billion By 2028
MEA Aluminum Extrusion Industry Overview
The MEA aluminum extrusion market size is expected to reach USD 2.23 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.0% over the forecast period. The demand for aluminum extrusion products in UAE and Saudi Arabia is expected to drive market growth over the long term.
The building & construction sector dominated the overall market with a volume share of 73.8% in 2020. In terms of volume, the UAE aluminum industry is estimated to grow at a CAGR of 1.9% over the forecast period. The UAE is a lucrative construction market, which offers attractive propositions for global investors. In addition, the emergence of the country as one of the financial hubs of the world further prompted the growth of the construction sector in the country. The market in the country is dominated by Dubai and Abu Dhabi.
In terms of volume, the electrical & energy segment depicts high growth and penetration in 2020. The growth is attributable to the upcoming renewable energy projects, which are being constructed to reduce carbon dioxide emissions in the region. The construction of solar and wind energy farms is anticipated to accelerate the demand for aluminum extrusion in the MEA region over the forecast period.
Qatar is a developing country in the region with potential growth for the market. The manufacturers in the country are increasing their customer base by adopting strategic initiatives, such as mergers & acquisitions. For example, in November 2020, Qatar Aluminum Extrusion acquired Abdul Noor Aluminum Extrusion factory. The acquisition increased Qatar Aluminum Extrusions’ production capacity to 30 kilotons per annum.
The implementation of large-scale infrastructure projects associated with the 2022 FIFA World Cup played a significant role in driving the demand for aluminum extruded products in Qatar. However, the FIFA-related investments have slowed down since 2018 following a rapid boom from 2011 until 2018. The slowdown is majorly caused by the emergence of coronavirus and slugging economic growth since the latter half of FY 2019.
MEA Aluminum Extrusion Market Segmentation
Grand View Research has segmented the MEA aluminum extrusion market on the basis of product, application, and region:
Based on the Product Insights, the market is segmented into Shapes, Rods & Bars, and Pipes & Tubes.
- The shapes product segment accounted for the largest volume share of over 79% in 2020. The segment is also expected to register the fastest CAGR over the forecast period owing to advantages, such as ease of fabrication and durability, of aluminum. The shapes are classified into solid, semi-hollow, and hollow.
- The most regularly used shapes are channels, sections, tubing, and angles. The dimensions and sizes of these shapes vary based on end use. The building & construction industry is the major end user of aluminum extruded shapes, where they are largely used in cladding systems, architectural framing, and window & door frames applications.
Based on the Application Insights, the market is segmented into Building & Construction, Automotive & Transportation, Consumer Goods, Electrical & Energy, and Others.
- Building & construction was the largest application segment in 2020 with a revenue share of over 72%. This trend is expected to continue during the forecast period, considering the ongoing infrastructural developments in the construction industry in MEA. Doors & windows, curtain walls, storefronts, and entrance doors are among the major construction-related application areas for aluminum extrusions.
- The automotive & transportation application segment is expected to grow at a significant CAGR during the forecast period. Aluminum extrusions have wide applications in cross rails, seat tracks, longitudinal beams, engine mounts, radiator beams, fuel distribution pipes, anti-intrusion beams, tailgate frames, and roof rails among others.
MEA Aluminum Extrusion Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market is fragmented due to the presence of small- and medium-sized players. Organic and inorganic growth strategies including new product innovation, capacity expansion, and joint ventures provide a competitive edge to these players. Some of the players are focusing on achieving economies of scale through optimization of operations and processes at manufacturing plants.
In the UAE, a large amount of manufactured aluminum extrusion is domestically consumed while Gulf Extrusions LLC, the largest player in the region, exports 30% of its total products internationally. Its plant in Jebel Ali has an annual production capacity of 60,000 tons. Some of the prominent players operating in the MEA aluminum extrusion market are:
- Alupco
- Gulf Extrusions Co. LLC
- Taweelah Aluminum Extrusion Co. (TALEX) LLC
- National Aluminum Products Company SAOG (NAPCO)
- Balexco Bahrain Aluminium Extrusion Company
- Emirates Extrusion Factory LLC
Order a free sample PDF of the MEA Aluminum Extrusion Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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