Report ID: PMRREP33650
Number of Pages: 187
Format: PPT, PDF, EXCEL
Industry: Chemicals and Materials
Published Date: March-2024
The global market for nickel alloy is forecasted to expand at a CAGR of 5.7% and thereby increase from a value of US$10.6 Bn in 2024, to US$15.6 Bn by the end of 2031.
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Attributes |
Key Insights |
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Market Size (2024E) |
US$10.6 Bn |
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Projected Market Value (2031F) |
US$15.6 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
5.7% |
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Historical Market Growth Rate (CAGR 2018 to 2023) |
1.0% |
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Nickel alloys are highly valued for their remarkable resistance to corrosion, strength at high temperatures, and adaptability in a wide range of industrial contexts. These alloys are commonly formed by fusing nickel with additional elements including chromium, iron, and molybdenum. As a result, they produce substances that demonstrate exceptional mechanical and thermodynamic characteristics. The demand for nickel alloys, which are an essential component of the metals and alloys market as a whole, is propelled by their critical function in industries such as aerospace, energy, and chemical processing. This renders nickel alloys indispensable for the progress of technology and the development of infrastructure.
Numerous significant factors drive the expansion of the worldwide nickel alloy market. To begin with, the growing necessity for materials that are resistant to corrosion in severe environments, specifically within the chemical processing and oil & gas sectors, significantly escalates the demand for nickel alloys. Furthermore, the aerospace industry, which is experiencing significant growth due to increased air travel and technological progress, is heavily dependent on nickel alloys to produce components that possess exceptional strength-to-weight ratios.
Furthermore, nickel alloys are required in the burgeoning renewable energy industry, which encompasses wind and solar power, due to their exceptional resistance to severe weather conditions. These elements, in conjunction with continuous efforts in research and development to improve the characteristics of nickel alloys, collectively contribute to the perpetual expansion and significance of the worldwide market for nickel alloy.
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The rapid expansion of the aerospace sector, in which nickel alloys are instrumental in determining the course of aviation, substantially supports the unprecedented growth of the global nickel alloy market. The primary catalyst for this upswing is the rising air travel demand, which is propelled by urbanization, rising disposable income, and the expansion of the middle class worldwide. The increasing number of individuals utilizing aircraft necessitates the aerospace industry to improve their performance and efficiency, which generates a significant market demand for advanced materials such as nickel alloys.
Nickel alloys, which are widely recognized for their remarkable strength-to-weight ratio, corrosion resistance, and stability at high temperatures, have become indispensable in the production of vital components for contemporary aircraft. Nickel alloys play a significant role in the aviation industry's quest for lightweight and durable materials, encompassing engine components such as turbine blades and structural elements in airframes.
This pursuit ultimately leads to enhanced fuel efficiency and reduced environmental footprint. The aerospace industry's unwavering pursuit of improved fuel efficiency and decreased emissions establishes nickel alloys as a fundamental material, guaranteeing that aircraft satisfy rigorous performance criteria while simultaneously upholding sustainability objectives. Moreover, the aerospace sector's swift technological progressions, encompassing the creation of airframe designs that are more efficient in terms of fuel consumption, require materials with enhanced functionalities.
Volatility of the Expenses Associated With Primary Materials
One notable limiting factor impacting the worldwide nickel alloy market is the intrinsic instability observed in the costs of primary materials, specifically nickel. Nickel, an essential constituent of these alloys, is susceptible to volatile market conditions that are impacted by macroeconomic trends, geopolitical events, and supply-and-demand dynamics, among others.
The volatility of nickel prices in response to these external factors poses difficulties for maintaining market stability, as it affects production expenses and, as a result, the pricing and competitiveness of nickel alloys. Nickel alloy manufacturers face a direct obstacle in the form of fluctuating nickel prices, which complicates the management of operational expenses and the preservation of profit margins.
Disruption in Intricate Supply Chains of Nickel, and Associated Raw Materials
Geopolitical instability poses a significant obstacle to the global market due to its potential to disrupt the complex supply chain of nickel and related raw materials. The vulnerability of the nickel alloy industry to geopolitical tensions, trade disputes, and regional conflicts presents a substantial threat to its stability and predictability.
Due to its extensive dependence on raw material supplies, the global market is susceptible to supply chain disruptions that may result in escalated production expenses, postponed deliveries, and heightened levels of unpredictability for participants in the industry. Nickel price fluctuations and significant geopolitical occurrences, including but not limited to trade tariffs, export limitations, and political sanctions targeting critical nickel-producing areas, have the potential to directly influence the cost structure of nickel alloy producers.
Worldwide Embrace of EVs
Global electric vehicle (EV) adoption growth is a significant opportunistic factor driving the Global Nickel Alloy Market into a period of robust expansion. In light of the automotive sector's ongoing transition towards electric and environmentally friendly modes of transportation, nickel alloys assume a pivotal role in battery production, thereby establishing themselves as leaders in the burgeoning electric vehicle revolution.
The increased desire for electric vehicles is driven by the combined dedication of consumers, governments, and industries to mitigate environmental issues and decrease dependence on conventional internal combustion engines. Nickel alloys, characterized by their exceptional blend of high conductivity and durability, are indispensable components in the fabrication of sophisticated batteries, specifically in the cathodes.
Nickel-rich cathodes, including nickel-manganese-cobalt (NMC), and nickel-cobalt-aluminum (NCA) contribute to the extended range and improved efficacy of electric vehicles by increasing energy density and overall performance. Due to their crucial function, nickel alloys are well-positioned to take advantage of the rapid and substantial expansion of the electric vehicle industry. Furthermore, with the ongoing progress in battery technology, it is anticipated that there will be a heightened need for nickel alloys.
The worldwide nickel alloy market is anticipated to experience significant expansion, propelled by a convergence of factors that emphasize the adaptability and essentiality of nickel alloys in various sectors. The market is experiencing significant expansion due, in part, to the increasing demand originating from the aerospace, automotive, and energy industries. Particularly, the aerospace sector is highly dependent on nickel alloys due to their remarkable strength-to-weight ratio, resistance to corrosion, and stability at high temperatures.
The constant and substantial market share of nickel alloys is ensured by the increasing global demand for lightweight yet durable materials, particularly in critical components such as turbine blades and airframes, as air travel continues to expand. The increasing prevalence of electric vehicles (EVs) in the automotive industry contributes to a heightened need for nickel alloys. The integration of nickel alloys into electric vehicle propulsion systems through the utilization of nickel-rich cathodes establishes nickel alloys as pivotal constituents in the push for environmentally friendly transportation.
Furthermore, the expanding dependence of the energy sector on sustainable energy sources, including wind and solar power, serves to strengthen the demand for nickel alloys in environmentally resilient components, thereby driving the expansion of the market. However, it is crucial to recognize the obstacles that can affect the stability of the market, such as the volatility of raw material prices and geopolitical instability. The successful resolution of these obstacles and the maintenance of the worldwide market's robustness will require the implementation of proactive risk management tactics, collaborative efforts throughout the supply chain, and advancements in technology.
In a nutshell, the worldwide market for nickel alloy is experiencing a consistent upward trend, driven by its indispensable function in vital sectors and the continuous surge of technological progress. By fostering collaboration between manufacturers and consumers and demonstrating a steadfast dedication to sustainability, the market is positioned to witness sustained growth and innovation in the foreseeable future.
Supply-side Dynamics
In the global nickel alloy market, several dominant companies influence the competitive environment. Precision Castparts Corp., Thyssenkrupp AG, Sandvik AB, and Haynes International, Inc. are prominent entities within the industry. These corporations possess considerable sway by capitalizing on their technological expertise and broad market reach. Prominent nations that have made extensive use of nickel alloys are Japan, China, the US, and Germany.
China, specifically, emerges as a significant participant, propelling market expansion through its robust industrial operations and a meteoric demand for nickel alloys in various industries. The aerospace sector in China, for example, is highly dependent on nickel alloys to produce components that demand exceptional strength and resistance to corrosion. This sector significantly contributes to the overall utilization of nickel alloys in the global market.
The market leaders in the global nickel alloy industry are proactively altering the configuration of the industry through the implementation of strategic initiatives, technological progress, and market expansions. Due to its global presence and diverse range of products, Precision Castparts Corp. is exerting a significant impact on market dynamics through its services to the aerospace and energy industries. Thyssenkrupp AG, a prominent entity in the European market, maintains its commitment to research and development by introducing groundbreaking nickel alloy solutions that revolutionize conventions within the industry.
Market trends are being impacted by Sandvik AB's commitment to eco-friendly manufacturing practices and sustainability, which is in line with the rising demand for environmentally conscious materials. Haynes International, Inc. is recognized for its expertise in high-performance nickel alloys, which it uses to meet the specific requirements of vital industries and thereby contribute to the evolution of the market. As a group, these market leaders are not only fulfilling present market demands but also establishing a foundation for forthcoming expansion and novelty in the worldwide nickel alloy industry.
Which Compositions are Anticipated to Witness the Highest Demand?
Ni-Cr-Fe Alloys Excel, Especially in Power Generation and Chemical Processing Industries
The Ni-Cr-Fe (Nickel-Chromium-Iron) alloy segment is anticipated to hold the most significant market share within the global nickel alloy market, among the segments mentioned. The pervasive utilization of Ni-Cr-Fe alloys in sectors including power generation, chemical processing, and aerospace accounts for this dominance. The alloy's substantial market share can be attributed to its exceptional resistance to corrosion and high-temperature stability, which establish it as a favored option for critical components across diverse sectors.
It is expected that the Ni-Mo (Nickel-Molybdenum) alloy sector will witness the most rapid expansion among all nickel alloy segments worldwide. Ni-Mo alloys are experiencing accelerated development due to the rising demand for materials with improved strength and corrosion resistance, especially in industries such as oil and gas, automotive, and marine engineering. Due to their remarkable resistance to severe environments and conditions, Ni-Mo alloys have emerged as indispensable materials in emergent sectors, thereby facilitating the exponential growth of this industry in the forthcoming years.
Which is the Most Prominent End-use Industry?
Aerospace & Defense Industry Remains the Largest End-use Category in Demand Generation
It is anticipated that the aerospace and defense sector will hold the most market share of the worldwide nickel alloys industry. Nickel alloys, specifically those characterized by exceptional strength, resistance to corrosion, and ability to withstand high temperatures, are essential in the production of vital components for defense systems and aircraft. Nickel alloys, including Ni-Cr-Fe, and Ni-Cr-Mo, are indispensable materials in the aerospace and defense sectors due to their adherence to rigorous performance criteria and safety standards. As a result, these alloys substantially contribute to the segment's prevailing market share.
It is expected that the electrical & electronics sector will witness the most rapid expansion within the worldwide nickel alloy market. The ongoing progress in electronics technology has led to an increased need for nickel alloys, particularly in the fabrication of connectors, sensors, and electronic components. The expansion of this market segment is propelled by renewable energy technologies, the expanding electric vehicle market, and the increasing complexity of electronic devices. These applications rely heavily on nickel alloys that are resistant to corrosion and possess exceptional conductivity; consequently, the electrical and electronics sector is poised for explosive growth in the coming years.
East Asia Tops with Increased Investments in Energy, Aerospace, and Automotive
It is anticipated that East Asia will hold the largest market share of the worldwide nickel alloy market. The pre-eminence can be ascribed to the region's formidable industrial infrastructure, specifically in nations such as South Korea, China, and Japan. Nickel alloys are extensively utilized in various industries, such as energy, aerospace, automotive, and electronics, among others, in these countries. Due to its robust manufacturing sector and significant R&D investments, East Asia has emerged as a prominent participant in the nickel alloy industry.
Moreover, the substantial market share of the region is reinforced by the high demand for nickel alloys, which is fuelled by the region's robust export-oriented industries. The dominance of the East Asian market is attributable to the adoption of cutting-edge technologies and ongoing innovation in manufacturing processes. Particularly, the automotive and electronics sectors in the area make extensive use of nickel alloys to improve product performance and durability.
Opportunities Flock South Asia, and Oceania
South Asia, and Oceania are anticipated to witness the most rapid expansion of the worldwide market. The demand for nickel alloys is propelled by the region's swift industrialization, which is accompanied by a surge in infrastructure development and rising investments in critical sectors. Significant growth is being observed in the automotive, construction, and energy sectors in nations such as India, Australia, and Indonesia, all of which rely heavily on nickel alloys for their distinctive properties.
The increasing urbanization, rising disposable income, and technological progress all contribute to the burgeoning market in South Asia, and Oceania. The expanding aerospace and defence industries also contribute to the region's rapid development, as several South Asian nations are investing in the modernization of their defence capabilities. Furthermore, the escalating focus on sustainable energy alternatives, including wind and solar power, serves to augment the requirement for nickel alloys within the power generation industry.
To maintain and increase their market share, the market leaders in the global nickel alloy market utilize a comprehensive strategy that includes technological advancements, strategic investments, and a concentration on critical industry verticals. A crucial approach is to allocate significant resources towards research and development (R&D) to perpetually improve the characteristics and practical uses of nickel alloys.
Precision Castparts Corp., for instance, devotes substantial resources to research and development, which enables the company to introduce innovative nickel alloy solutions that address the changing requirements of vital sectors including aerospace and energy. By this dedication to innovation, they not only fortify their standing in established markets but also gain access to untapped sectors and applications. The expansion of the market is an additional critical element of the approach taken by market leaders.
Through the formation of strategic alliances and the establishment of a global presence, these businesses gain access to emerging markets and broaden their clientele. Prominent in Europe, Thyssenkrupp AG strategically broadens its market presence using acquisitions and collaborations, thereby establishing itself as a pivotal supplier within the nickel alloy industry. Geographic diversification enables dominant entities to effectively manage the risks that arise from geopolitical uncertainties and regional economic fluctuations, thereby enhancing their resilience within the competitive environment.
In summary, the key participants in the worldwide nickel alloy industry attain and maintain their largest market share through a strategic blend of innovation, market penetration, sustainability, and specialization. Implementing this strategic approach establishes them as frontrunners in an industry that demands proactive thinking and flexibility as prerequisites for sustained prosperity.
New Product
Proterial Ltd. (previously Hitachi Metals, Ltd., Japan) introduced the ADMUSTER C21P nickel-base alloy powder for metal additive manufacturing in September 2022. This powder facilitates the fabrication of intricate geometries characterized by exceptional strength and resistance to corrosion. As one of the granules in the ADMUSTER series from Hitachi Metals, the alloy reportedly contributes to the additive manufacturing of products with at least 100 times the corrosion resistance of standard 316L stainless steel.
Market Impact: The advent of ADMUSTER C21P nickel-base alloy powder by Proterial Ltd. signifies a substantial progression within the worldwide nickel alloy industry. This advancement expands the functionalities of additive manufacturing for metals, enabling the fabrication of complex geometries characterized by remarkable strength and resistance to corrosion. The corrosion resistance of the alloy is said to be at least one hundred times greater than that of standard 316L stainless steel. This characteristic establishes the alloy as a revolutionary material in sectors including aerospace, energy, and healthcare, where corrosion-resistant and durable materials are essential for critical operations. The increased adoption of nickel alloys in additive manufacturing processes is anticipated to be a result of this innovation, thereby impacting the market's trajectory in the direction of more sophisticated and high-performing applications.
New Production
Sandvik added the superalloy Sanicro 625 bar (UNS 06625) to its expanding family of high-performance nickel alloys in April 2022, marking yet another first. Advanced components that have been subjected to acids, alkalis, seawater, and other moist, corrosive conditions in cryogenic environments and temperatures as high as 593°C (1100°F) will be machined using the bar.
Market Impact: The global market is profoundly impacted by the April 2022 addition of Sandvik's high-performance nickel alloy portfolio to include the superalloy Sanicro 625 bar. This innovation broadens the scope of uses for sophisticated components that are exposed to corrosive environments, such as salinity, acids, and alkalis, across a wide temperature range extending from cryogenic conditions to temperatures reaching 593°C (1100°F). In sectors including energy, aerospace, and chemical processing, where components operate in adverse environments and require materials with superior mechanical strength and corrosion resistance, the incorporation of Sanicro 625 bar improves performance. This technological advancement is anticipated to stimulate a surge in worldwide demand for high-performance nickel alloys, which fulfil the rigorous specifications of vital applications across diverse industries.
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Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
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The market is anticipated to grow at a CAGR of 5.6% during the projected period.
The global nickel alloy market size was valued at US$10.1 billion in the year 2023.
As of 2023-end, the US held the largest market share in 2023 by value.
Some of the prominent players in the nickel alloy market include PJSC Mining & Metallurgical Co Norilsk Nickel, Haynes International, Nippon Steels, Aperam SA, and CARPENTER TECHNOLOGY CORPORATION.
The electrical and electronics industry represents the fastest-growing market segment.
