PMR Foresees a Stable Growth Outlook for the Nickel Alloy Market Based on the Consistent Growth of the Aerospace Sector, and Rapid EV Advancements
Industry: Chemicals and Materials
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 187
Report ID: PMRREP33650
The global nickel alloy market is anticipated to rise from US$12.5 Bn in 2024 to US$15.6 Bn by the end of 2031. The market is anticipated to secure a CAGR of 4.8% during the forecast period from 2024 to 2031.
Key Highlights of the Market
|
Attributes |
Key Insights |
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Market Size (2024E) |
US$12.5 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) |
4.8% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
4.4% |
The demand for nickel alloys, an essential component of the metals and alloys market, 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.
Aerospace industry remains the most significant sector fueling the expansion of the nickel alloys market.
The aerospace industry, which is growing significantly due to increased air travel and technological progress. It is completely reliant on nickel alloys to produce components that possess exceptional strength-to-weight ratios.
Aerospace applications need materials, which can withstand corrosion, mechanical stress and high temperature like conditions. Superior properties including excellent corrosion resistance and thermal stability are provided by nickel alloys.
There are many key factors that fuel the expansion of the nickel alloy market. These factors include the increasing necessity for materials, which are corrosion resistant to severe environment, particularly within the chemical processing and oil and gas sectors. Consequently, it escalates the demand for nickel alloys.
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.
Developments in manufacturing techniques such as additive manufacturing have increased the applications as well as capabilities of nickel alloys, fueling their adoption in new products and companies.
Continuous R&D efforts also contribute to the development of new alloy compositions and enhanced manufacturing processes, augmenting the cost-effectiveness and performance of nickel alloys.
The market for nickel alloys recorded a CAGR of 4.4% during the historical period.
Nickel alloys are estimated to hold great significance in the energy industry, especially in power generation, and oil and gas sector.
Both the corrosion resistance and biocompatibility of nickel alloys make them suitable for medical equipment and devices.
There will be growing demand for nickel alloys in the coming years with aging global population and advancement in healthcare technologies. The nickel alloys market is expected to record a CAGR of 4.8% during the forecast period.
Shift Towards e-Mobility
The shift toward electronic vehicles are one of the crucial market driving factors. It is transforming the automotive industry and bringing notable industry growth.
Nickel alloys are important in enabling sustainability, performance and efficiency of electric vehicles from advanced battery motor components to battery materials.
With the growing global adoption and continuous evolving of EV technology, the demand for nickel alloys is projected to expand further, driving innovations in the market for nickel alloys.
Increasing preference toward electric vehicles affect the market profoundly across many dimensions, fueled by evolving consumer preferences and technological developments.
In 2020, Oslo, Norway saw a remarkable shift in vehicle sales, with 75% of new vehicles being electric, a stark contrast from 2010 when 75% were diesel. Shenzhen, China led the world in 2017 by becoming the first city to fully electrify its bus fleet.
The International Energy Agency's Global EV Outlook 2021 revealed that the worldwide fleet of electric vehicles (EVs) surpassed 10 million in 2020, marking a 43% surge from 2019.
Nickel alloys play an important role in batteries powering electric vehicles, particularly in cathode materials including nickel-cobalt-aluminum, and nickel-manganese-cobalt chemistries.
The growing adoption of high-nickel content cathodes for enhancing battery efficiency directly impels the nickel alloys demand.
Swift Growth of Aerospace Industry
Rapidly expanding aerospace sector in which nickel alloys are instrumental to determine the course of aviation supports the contributory nickel alloy market growth.
The main catalyst for this increase is the increasing air travel demand, which is driven by growing disposable income, urbanization and the middle glass population expansion.
The increasing number of individuals utilizing aircraft necessitates the aerospace industry to improve their performance and efficiency. Consequently, it 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 eventually 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.
The aerospace sector's swift technological progressions, encompassing the creation of airframe designs that are efficient in terms of fuel consumption, require materials with enhanced functionalities.
Intrinsic Instability in Primary Material Costs
One of the key factors limiting the 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 consequently 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 Related Raw Materials
Geopolitical instability poses a significant obstacle to the market because of its potent 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.
The market is susceptible to supply chain disruptions that may result in escalated production expenses. It is due to its extensive dependence on raw material supplies, 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.
Demand for Renewable Energy Continues to Increase
Nickel alloys are the perfect choice for components including towers and turbine blades that need materials to withstand harsh environmental conditions.
Since the global demand for renewable energy is continuously rising, the nickel alloys demand is projected to expand, giving rise to opportunities for the market players.
Energy storage is crucial in balancing intermittent renewable energy sources including solar and wind power.
Nickel alloys are mainly employed in battery materials including lithium-ion batteries because of their ability of enhancing energy density, safety and cycle life.
Hydrogen is mainly identified as a clean energy carrier for different applications such as industrial processes and transportation.
Nickel alloys are utilized in electrolyzer cells for hydrogen production and in hydrogen fuel cells as catalyses, providing durability and high corrosion resistance.
The demand for nickel alloys in hydrogen applications increases with the rise in investments in hydrogen infrastructure and technologies.
Aerospace & Defense Industry to Exhibit a Substantial Market Share of 24%
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Category |
Market Share through 2033 |
CAGR through 2033 |
|
Aerospace & Defense |
24% |
6.20% |
The aerospace segment is estimated to witness notable market share for nickel alloys over the projection period.
Nickel alloys are mainly used in both the airframe materials and structural components such as structural fasteners, landing gear and hydraulic systems.
As aerospace manufacturers attempt to improve fuel efficiency and decrease emissions, they mainly go with lightweight materials including nickel.
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 global 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.
Another key reason driving the segment growth in the market is the increasing number of passengers for air travel.
Ni-Cr-Fe Alloys to Top in the Market
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Category |
Market Share through 2033 |
CAGR through 2033 |
|
Ni-Cr-Fe – Composition Type |
30% |
5.60% |
The Ni-Cr-Fe alloy segment is expected to hold a CAGR of 5.60% within the nickel alloy market. 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.
The Ni-Mo alloy sector is projected to witness the notable expansion among other nickel alloy segments.
These alloys are experiencing accelerated development due to the rising demand for materials with improved strength and corrosion resistance in different industries including 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.
Asia Pacific is all Set to Dominate the Nickel Alloy Market Holding a 5.1% CAGR
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Region |
Market Share through 2033 |
CAGR through 2033 |
|
Asia Pacific |
54.2% |
5.1% |
Asia Pacific is one of the leading regional markets for nickel alloys and exhibits a healthy share of the global market. One of the key factors fueling the regional growth is the growing demand for electric vehicles.
Being a leader in the electric car market, China exhibits notable increase in both the sales as well as production of new electric vehicles. Consequently, growing electric vehicle market in China results into increasing demand for nickel alloys.
China stands out as a leading regional player fueling market expansion through its significant industrial operations and growing demand for nickel alloys in different 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.
June 2023
Rolled Alloys Inc. achieved a fresh milestone in June 2023 with the acquisition of ISO 9001:2015/AS 9100 certification for its quality management system. This distinction pertains directly to the company's production and distribution of heavy metals mill products crafted from stainless steel and nickel alloys. The acknowledgment underscores Rolled Alloys' unwavering dedication to superior quality, poised to catalyze an upsurge in its overall sales performance.
September 2022
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.
April 2022
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.
There are several key dominant companies in the global nickel alloy market influence the competitive environment. Precision Castparts Corp., Thyssenkrupp AG, Sandvik AB, and Haynes International, Inc. are prominent entities within the industry.
These market leaders are not only fulfilling present market demands but also establishing a foundation for forthcoming expansion and novelty in the nickel alloy 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.
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.
Sandvik AB's commitment to eco-friendly manufacturing practices and sustainability 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.
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Attributes |
Details |
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Forecast Period |
2024 to 2033 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion 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 |
Available upon request |
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Increasing demand from aerospace and automotive industry is driving the market growth.
Increasing demand for renewable energy presents a key opportunity for the market players.
PJSC Mining & Metallurgical Co Norilsk Nickel, Haynes International, Nippon Steels are some of the leading players operating in the market.
Asia Pacific to lead the market with a significant market CAGR.
Aerospace & defense industry to dominate the market.
