The global high performance alloys market size was estimated at USD 7.51 billion in 2015. Increasing demand for high performance, lightweight materials in automotive, aerospace and industrial applications is expected to have a positive impact on growth over the forecast period. Furthermore, increasing demand for highly durable materials, capable of withstanding high temperatures is expected to drive the demand over the forecast period.
The industry is expected to benefit from the increasing magnesium mining and growing extraction of other metals such as titanium, which are used as raw materials for the production of such alloys. Rising production of raw materials required or manufacturing high performance alloys is expected to propel demand. However, growing use of these raw materials in various other end-use industries including, catalyst and jewelry designing is likely to have a negative market impact.
U.S. high performance alloys market revenue, by application, 2013 - 2024 (USD Million)
The market is characterized by continuous product innovation, demand for value-added products and increasing competition. The demand for corrosion resistant and chemically inert products in chemical processing industry is expected to drive the market growth over the projected period. However, high capital cost of setting up the industry coupled with high cost of raw materials due to complex processing techniques is expected to restrain growth.
The market is segmented by application into automotive, aerospace, industrial gas turbines, industrial, electronics & electrical and oil & gas. Aerospace accounted for the highest market share, accounting for over 50% of revenue share in 2015. This can be attributed to increasing use of these materials in aircraft and rocket engines owing to properties including high strength, reliability and low weight of the materials. Furthermore, excellent heat resistance properties have led to an increasing use of these materials in the outer bodies of satellite carrier vehicles.
The market is segmented by materials used including titanium, aluminum, and magnesium. Aluminum high performance alloys segment is expected to witness the fastest growth followed by titanium. High growth rate of aluminum based alloys can be attributed to the increasing use in manufacturing parts used in aircraft and automotive industry.
Increasing substitution of steel with titanium based high performance alloys in the automotive industry due to significant weight reduction is expected to bolster demand over the forecast period. Furthermore, increasing oil & gas exploration activities have resulted in an increasing demand for titanium, and aluminum based alloys due to their ability to withstand high-temperature and high-pressure conditions which are expected to propel growth over the next eight years.
Non-ferrous alloys had majority market share, accounting for over 50% of the volume share in 2015. Increasing demand for high strength alloys with superior resistance to corrosion is expected to augment growth. Furthermore, increasing use of these alloys in aerospace and automotive industry on account of its light weight characteristics, resulting in improved fuel efficiency is expected to propel growth.
Superalloys accounted for the second leading segment of the global high performance alloys market. This can be attributed to increasing demand for the product in industrial, automotive, and aerospace applications are owing to properties such as excellent mechanical strength, resistance to oxidation, and resistance to thermal creep formation. Superalloys find use in a variety of applications including aircraft, gas turbines, chemical and petroleum plants, and rocket engines.
Increasing demand for refractory alloys owing to growing use in incandescent light bulbs, structural tubing, and non-melting electrodes is expected to drive demand. High melting point and high strength properties of refractory metals are expected to promote its use in industrial applications over the forecast period.
North America is expected to witness substantial growth, growing at a CAGR of over 3.0% from 2016 to 2024. This can be attributed to the well-developed aerospace industry in the U.S. Furthermore, increasing shale gas exploration and production activities in the U.S. and Mexico is expected to drive the product demand. Also, the presence of a large number of high performance alloys manufacturers in North America is expected to impact the demand over the forecast period.
Asia Pacific is expected to emerge as the fastest growing region due to rapid industrialization coupled with the presence of a large number of manufacturing industries in China. Furthermore, China is expected to witness above average growth over the forecast period owing to the presence of a strong manufacturing base, low manufacturing cost, and increasing demand from the end-use industry.
The market is characterized by continuous product innovations, mergers, and acquisitions to gain market share and competitive edge. In January 2013, Precision Castparts Corp, a high performance alloys manufacturer headquartered in the U.S. acquired Titanium Metals Corporation to gain market share and manufacturing technologies manufactured by Titanium Metals Corporation.
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