Nickel base alloy market size is forecast to reach
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$5,667.61 million by, after growing at a
CAGR of 2.6%during -oil & gas, power plants, electronics, and more. Nickel base alloys have excellent characteristics such as corrosion resistant, strength, toughness, metallurgical stability, high-temperature strength, fabricability, weldability, and these properties are expected to increase the market demand for electronic alloys.
, owing to the increasing usage of nickel base alloy in various end-use industries such as automotive, aerospace,, power plants, electronics, and more. Nickel base alloys have excellent characteristics such as corrosion resistant, strength, toughness, metallurgical stability, high-temperature strength, fabricability, weldability, and these properties are expected to increase the market demand for electronic alloys.
Renowned for their strength at elevated temperatures, nickel-based alloys find widespread applications across diverse industries. In the aerospace sector, these alloys contribute to the manufacturing of aircraft components, engine parts, and exhaust systems, benefiting from their high-temperature and corrosion-resistant qualities. The chemical processing industry utilizes nickel alloys for equipment such as reactors, showcasing their resilience in handling corrosive substances. Additionally, nickel-based alloys play a crucial role in the energy sector, especially in power plants, where components like turbine blades rely on their high-temperature strength. Furthermore, its anticipated growth in demand driven by ongoing industrialization anddevelopment, continuous efforts in R&D to enhance alloy properties and reduce production costs.
The rapid growth of the oil & gas industry has increased the demand for nickel base superalloy, nickel base corrosion-resistant alloy, and nickel base shape memory alloy; thereby, fueling the market growth. Furthermore, the flourishing aerospace & defense industry is also expected to drive the nickel base alloy industry substantially during the forecast period.
Market Snapshot:
COVID-19 Impact
Due to the Covid-19 outbreak, the nickel base alloy end-use industries are facing issues such as delays in receiving nickel base alloy from the manufacturers due to the restriction on import and export of materials. Owing to the non-availability of vessels and blank sailing, shipping orders are also heavily impacted. Also, the pandemic of COVID-19 is having a major effect on the aviation industry.
Aircraft production has been disruptively halted, leading to a substantial loss in the overall aerospace market. For instance, according to the International Air Transport Association (IATA), worldwide domestic flights have dropped by 70% and the loss of passenger revenue is reaching $314 billion. With the decrease in aircraft production, the demand for nickel base superalloy, nickel base corrosion-resistant alloy, and nickel base shape memory alloy for manufacturing various parts has significantly fallen, which is having a major impact on the nickel base alloy market growth.
Report Coverage
The report: &#;Nickel Base Alloy Market &#; Forecast (-)&#;, by IndustryARC, covers an in-depth analysis of the following segments of the nickel base alloy Industry.
By Type: Wrought Nickel, Nickel-Iron, Nickel-Copper, Nickel-Chromium, Nickel-Molybdenum, Nickel-Titanium, and Others.
By Application: Corrosion Resistant, Heat Resistant, Low-Expansion, Electrical Resistance, Soft Magnetic, and Others.
By End-Use Industry: Aerospace & Defense (Commercial, Military, and Others), Electrical & Electronics (Batteries, Computers, Smart Phones, and Others), Chemical, Oil & Gas (Pipelines, Splash Zone Sheathing, FPSO Vessels, and Others), Energy & Power (Wind Energy, Nuclear Energy, Solar Energy, Power Plants, and Others), Automotive (Passenger Vehicles, and Commercial Vehicles), Healthcare (Dentistry, Medical Devices, Surgical Tools, and Others), and Others.
By Geography: North America (U.S., Canada, and Mexico), Europe (U.K, Germany, France, Italy, Netherland, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).
Key Takeaways
North America dominates the nickel base alloy market, owing to the flourishing aerospace industry in the region.
The batteries sector is also one of the key consuming sectors of nickel alloys (electronic alloys) owing to their conduction and resistance properties. Lithium-ion batteries require nickel due to their excellent power density in electric vehicle applications over long distances.
In the power industry, for nickel base superalloy, nickel base corrosion-resistant alloy, and nickel base shape memory alloy are extensively used in boiler applications because of their creep strength and hot corrosion resistance in elevated temperature environments, which will eventually boost the market growth.
Nickel Base Alloy Market Segment Analysis &#; By Type
The nickel-copper segment held the largest share in the nickel base alloy market in and is growing at a CAGR of 5% during -. Often known as models, Ni-Cu alloys typically have 65 percent nickel and minimal proportions of other metals. They are used in thermal exchangers, marine engineering, shafts, pumps, fasteners, fittings, propeller shafts, valves, and more due to their excellent corrosion resistance and high strength.
These nickel-copper alloys are used in comparison to pure nickel where higher strength is needed. Nickel copper alloys are widely used in oil refining and marine applications where long life without corrosion is needed. Nickel copper alloys are also used for heat exchangers because of their strong thermal conductivity, where seawater is one of the fluids concerned. All these extensive characteristics of nickel-copper are the key factors anticipated to boost the demand for nickel-copper based alloys during the forecast period.
Nickel Base Alloy Market Segment Analysis &#; By Application
The high-performance segment held the largest share in the nickel base alloy market in , because of their outstanding mechanical and physical properties, they are highly suitable for applications such as engine turbines, blades, exhaust systems, and more. Nickel base superalloy, nickel base corrosion-resistant alloy, and nickel base shape memory alloy are highly engineered to have superior properties to work in the most technically challenging applications in the world.
These properties may include heat resistance, corrosion resistance, strength, fabricability, electrical resistance, controlled thermal expansion, or magnetic characteristics, which is the major driving factor for the high-performance nickel base alloys market during the forecast period.
Nickel Base Alloy Market Segment Analysis &#; By End-Use Industry
The aerospace & defense segment held the largest share in the nickel base alloy market in and is growing at a CAGR of 5% during -. A significant market for nickel alloys in the aerospace & defense industry, are used primarily for high-temperature applications. Due to its properties such as excellent mechanical strength, and creep resistance at high temperatures; surface stability; and corrosion and oxidation resistance, demand for alloys grew in the aircraft construction industry.
In the aerospace industry, nickel alloys are commonly used to produce turbine blades, discs, and other essential jet engine components, because they have excellent adhesion, corrosion safety, resistance to hardness, wear, and erosion, and, are ideal for applications where stress needs to be minimized. According to Boeing's current business forecast, the Middle East would need 2,520 new aircraft by . The aerospace industry is credited with growing air traffic in emerging economies and demand for new-generation fuel-efficient aircraft. The aerospace industry's expansion is expected to boost demand for nickel alloys and drive the global economy.
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Nickel Base Alloy Market Segment Analysis &#; By Geography
North America region held the largest share in the nickel base alloy market in up to 39%, owing to increasing demand for aircraft in the region. In , U.S. aerospace exports to Germany amounted to $12.26 billion, according to the International Trade Administration (ITA), and the trade surplus was USD 8.3 billion. According to Boeing commercial market outlook -, North America will require 8,995 new aircrafts delivery in the region by . And since nickel base alloys are widely used in the aerospace industry to make turbine blades, discs, and other critical jet engine parts, it is anticipated that with the increasing aerospace sector in the region, the demand for nickel base alloys will also substantially increase, which will then drive the nickel base alloy market growth in North America during the forecast period.
Nickel Base Alloy Market Drivers
Growing Consumer Electronics Market
Nickel base shape memory alloys wire and strips have been extensively used in consumer electronic devices because of their high strength at high and low temperatures, toughness, corrosion resistance, controlled thermal expansion, workability, and excellent spring properties. The electronic & electrical industry requires electronic alloys that can be utilized at elevated operating temperatures. In the United States, overall exports of electronic goods rose by $7.9 billion (3 percent) to $498 billion in , according to the United States International Trade Commission. According to Invest India, India's consumer electronics and appliances market will rise to become the world's fifth-largest by . By , India's digital economy could be worth $800 billion to $1 trillion, and it could account for 18 to 23 percent of overall economic activity.
And since the consumer electronic products require nickel base alloy for their production, the growing consumer electronics sector acts as a driver for the nickel base alloy market during the forecast period.
Increasing Oil & Gas Sector
In the oil and gas industry, corrosion resistant control is a major problem. Thus, oil & gas companies are using nickel base superalloy, nickel base corrosion-resistant alloy, and nickel base shape memory alloy-based equipment and components, owing to their high corrosion resistance and superior mechanical and physical properties. Nickel base superalloys and nickel base corrosion-resistant alloys are used in process piping systems, separators, scrubbers, pumps, manifolds, Christmas tree components, flowlines, and pipelines transporting corrosive oils. According to the BP Statistical Review of World Energy. In view of reduced demand owing to factors like the Ukraine war, inflated inventories, and supply chain disruptions, MEPS has lowered its production forecast to 56.5 million metric tons in . However, the production is anticipated to rebound to 60 million metric tons in . Chinese stainless steel mills consume more than half of the primary nickel. Stainless steel production in China witnessed a year-on-year growth of 1.6% in to a total of 30.6 million metric tons which is 54.4% of the global output. Similarly, according to the World Bureau of Metal Statistics, Indian production of stainless steel reached around 4 million metric tons in , registering a year-on-year growth of 25% between -. Tangguh Train 3 is nearing completion, with Indonesia's BP-operated LNG export facility adding 3.8 MTPA to the current facility's capacity, increasing the plant's total capacity to 11.4 MTPA. Thus, with the flourishing oil and gas sector, the demand for nickel base alloy will also increase, which will drive the market.
Nickel Base Alloy Market Challenges
Volatility in Price of Nickel and Nickel Base Alloy
There is often volatility in the price of nickel and nickel base alloy. The demand for nickel in China during the first 9 months of was estimated at 1.12 million tons, an increase of 98.1 kilo tons in comparison to . In Indonesia, the production of nickel between January and September was 0.79 million tons, registering a year-on-year increase of 23%. Furthermore, the increasing consumption level of nickel in Electric Vehicles (EVs) is also expected to boost the market in the region, as it accounts for a considerable share of nickel demand. China is the global leader in the electric car market, with the sales of new electric vehicles being four times higher than that of the United States. Thus, the fluctuations in supplies in few regions are affecting the global consumption pattern, driving frequent changes in nickel and nickel base alloy prices, which may hinder the nickel base alloy market growth during the forecast period
Nickel Base Alloy Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the nickel base alloy market. Major players in the nickel base alloy market are
1.
HAYNES INTERNATIONAL
2.
Alloys International, Inc.
3.
Sandvik AB
4.
ATI
5.
VDM Metals
6.
Berkshire Hathaway Inc.
7.
Kennametal Inc.
8.
SANYO SPECIAL STEEL Co., Ltd.
9.
Thyssenkrupp Materials NA, Inc.
10.
Voestalpine Specialty Metals
Acquisitions/Technology Launches
Aperam S.A., Luxembourg, and Tekna, a subsidiary of Arendals Fossekompani ASA, have approved the framework of a global joint venture which will combine their expertise to create nickel and specialty alloy spherical powders through newly-established company ImphyTek PowdersTM SAS