The aluminum billets market has experienced significant growth in recent years, expanding from $95.93 billion in 2023 to an estimated $104.47 billion in 2024. This growth is driven by rising demand from the automotive and aerospace industries, along with infrastructure development and government initiatives aimed at boosting the aluminum sector.
A key factor driving the aluminum billets market is their rapid adoption in the automotive industry. Aluminum billets are valued for their strength-to-weight ratio, durability, and versatility, making them essential in manufacturing components such as engines, suspension systems, wheels, and transmissions. A 2023 study by European Aluminum highlighted a notable increase in the average aluminum content in European cars, from 174 kg in 2020 to 205 kg in 2022, an 18% rise. This figure is projected to reach 237 kg by 2026 (+15.6%) and 256 kg by 2030 (+24.9%). This growing use of aluminum billets in the automotive industry is expected to fuel further market expansion.
The market is expected to continue its upward trajectory, reaching $141.61 billion by 2028, with a slightly lower CAGR of 7.9%. The forecasted growth can be attributed to increasing urbanization, the development of renewable energy infrastructure, rising demand for aluminum in the packaging industry, and higher disposable incomes. Additionally, aluminum-based product launches, technological advancements in production, transportation innovations, and investments in aluminum manufacturing are notable trends expected to influence the market's future.
