1. Growing Demand from the Aerospace & Defense Industry anticipated driving the High-performance Alloy Market
The aerospace industry, being the largest end-user segment for high-performance alloys with nearly half of the worldwide demand, has a significant impact on the dynamics of the market for high-performance alloy. In the aerospace industry, military aerospace and commercial aerospace are the largest consumer and growth segments, respectively. Inconel 718 (nickel-based) superalloy is the most widely used high-performance alloy, which is extensively used in aerospace applications. Currently, nickel-based superalloy constitutes to over 50% of the total weight of an advanced aircraft engine. The consumption of high-performance alloys has gained momentum not only in the aerospace but also in the defense vertical. The latest trend of the increasing investment in the defense industry, worldwide, is expected to continue over the next decade and further benefit the high-performance alloy market.
Source: IATA Airline Industry Economic Performance, December 2017
2. Oil & Gas End-user Segment Expected to Fuel up the Market Growth
The oil & gas industry is one of the major end-user industries for high-performance alloy market, representing a significant market share. Total oil and gas production share from offshore sectors has increased prominently over the recent years. Moreover, a rapid growth of ultra-deepwater production is likely to be witnessed in the near future. Recently, oil and gas production has presented more challenging situations, as the sites have been experiencing severe conditions, like high temperatures, high pressures, and sour fields (high H2S content) with high CO2 levels. In order to ensure a smooth and safe production of oil and gas, all these situations require advanced technologies, improved equipment, and high-performance alloy materials. This factor has created a huge scope for the corrosion-resistant alloys (CRAs) to penetrate the market, as they are better suited to meet the growing demand for exploration and production. Thus, the demand for special alloy steels, stainless steels, and overall high-performance alloys for upstream oil & gas applications has grown substantially, and this trend is projected to continue in the near future.
3. North America to Lead the Market Demand
North America, powered by the technology-driven economic bases like the United States and Canada, is the largest regional market for high-performance alloy, with approximately half of the overall demand in the world. The often used high-performance alloys in the region are nickel-based and cobalt-based with concentrations of exotic elements, such as molybdenum, tungsten, and niobium. In the region, the United States accounts for over 70% of the regional market share and has become the largest market in the world. The high-performance alloy manufacturing companies have exposure to the international commercial experience and business systems in order to serve the market, across the world, with all national and international requirements (including national specifications of Germany, Japan, and Great Britain and quality-system compliance with ISO standards). The dominance of the United States in the high-performance alloy market is mainly because of the strongly established aerospace & defense industry in the country.
Source: Annual Report, Aerospace Industries Association, June 2017
4. Asia-Pacific likely to ignite the Market Growth
Asia-Pacific is expected to fuel up the high-performance alloy market growth to a great extent over the forecast period, due to the growing demand from the end-user industries, such as automotive, aerospace & defense, and energy & power. With more than 60% of the regional market share, China represents a major market, which is fueling up the demand for high-performance alloys in Asia-Pacific. Recently, the Australia-India Strategic Research Fund supported a major collaboration, concerning high-performance alloys, which has paved a way for both India and Australia to be more active in the high-performance alloy market.
5. Leading Companies to Watch
The report also examines the role of the leading market players involved in the industry. Some of the key players listed in the study include:
Allegheny Technologies Incorporated
Carpenter Technology Corporation
Haynes International Inc.
High-Performance Alloys, Inc.
Hitachi Metals, Ltd
Precision Castparts Corporation
About Mordor Intelligence
Mordor Intelligence is a market intelligence and advisory firm operating in 14 industry segments, serving over 600 clients, worldwide.