Analysts from Technavio recently released a report that predicted the global growth of the sheet coils (used in the food and beverage industry for the packaging of food or beverages) and aluminum plates market. This prediction was based on a research study that was carried out based on the present state of affairs as well as the potential for growth of the large-scale aluminum plates and sheet coils market meant for 2016-2020. Some of the other segments of the market that were mentioned in the report include:
- Building and construction
- Aerospace and defense
- Food and beverage
- Industrial and general engineering
- Automotive and transportation, etc.
The largest segment in the market, according to the lead analyst by the name Chandrakumar Badala Jaganathan, is food and beverage. This segment was labeled as such due to its 37% share in the global market in the year 2015.
Three major factors that contributed to the development of the global aluminum plates, as well as the sheet coils market, according to Technavio are:
- An upsurge of demand for cans made of aluminum
- Growing concerns about the environment
- The substitution of steel with aluminum
The demand for aluminum cans has reached an all-time high due to the sustainable property attributed to the metallic element. Not only is aluminum one of the most recyclable materials around (the amount of recycled glass or plastic containers can’t be compared to that of aluminum), but it is also lighter yet stronger than any other storage material in the market. When aluminum cans are used for storing food, the shelf-life of such food or beverage is increased without any loss in taste. The fact that breweries have taken a fancy to aluminum cans suggests that this market will continue to rise in the future.
Aluminum sheet coils or plates don’t lose their inherent properties when it undergoes a recycling process. This is a viable procedure which helps to preserve the energy as well as natural resources. The production of aluminum from its principal source, bauxite, consumes a lot of energy which could be harmful to the environment. But recycling the metal reduces the amount of energy by about 90%. Sustainable buildings are constructed using recyclable materials such as aluminum. A remarkable fact that was taken note of is that the greenhouse emissions of gas from the recycling of aluminum were reduced by up to twice its normal rate from 1990 to 2015. In fact, according to Chandrakumar, this is expected to reduce by up to 50% by the year 2020 as a result of the predictions made concerning the rising global aluminum plate and sheet market.
Aluminum, as well as magnesium, are steadily taking over from ferrous materials like iron and steel in automotive constructions. Properties such as light weight, high conductivity (of aluminum) and high resistance to corrosion have made these non-ferrous materials a favorite in the industry. The evidence of usage can plainly be seen in light vehicles and the use of steel in light vehicles is expected to be entirely eradicated while the use of aluminum is expected to rise globally.