Nickel Base Alloy Market Size Forecast to Reach $5,114.6 Million by 2026

Nickel Base Alloy Market Size Forecast to Reach $5,114.6 Million by 2026
Nickel Base Alloy Market.
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.

Nickel Base Alloy Market size is forecast to reach $5,114.6 million by 2026, after growing at a CAGR of 2.6% during 2021-2026, owing to the increasing usage of nickel base alloy in various end-use industries such as automotive, aerospace, 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.

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.

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.

Nickel Base Alloy Market Segment Analysis – By Type

The nickel-copper segment held the largest share in the nickel base alloy market in 2020 and is growing at a CAGR of 5.8% during 2021-2026. Often known as models, Ni-Cu alloys typically have 67 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.

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Nickel Base Alloy Market Segment Analysis – By Application

The high-performance segment held the largest share in the nickel base alloy market in 2020, 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 2020 and is growing at a CAGR of 5.8% during 2021-2026. 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 2030. 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.

Nickel Base Alloy Market Segment Analysis – By Geography

North America region held the largest share in the nickel base alloy market in 2020 up to 36%, owing to increasing demand for aircraft in the region. In 2018, U.S. aerospace exports to Germany amounted to $8.92 billion, according to the International Trade Administration (ITA), and the trade surplus was USD 6.36 billion, reflecting a 67 percent rise compared to 2016 (USD 3.8 billion). And in 2017, Canada was the fourth-largest international aerospace export market in the United States, estimated at approximately US$9.2 billion, a rise of ten percent over 2016. Airline passenger flows recorded in Mexico show annual average growth of nearly 10 percent from 2015-2017, according to the Federal Civil Aviation Agency (AFAC). Mexico’s national and international passenger volume rose by 5.5 percent in 2018, from 90.5 million in 2017 to 97.3 million in 2018, suggesting that the country’s demand for aircraft is rising. According to Boeing commercial market outlook 2020-2039, North America will require 8,995 new aircrafts delivery in the region by 2039. 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 $268 billion in 2017, 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 2025. By 2025, 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. According to the International Trade Administration (ITA), Colombia’s total imports of IT equipment in 2018 amounted to USD 106 billion, a 7.5 percent increase compared to 2017. 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 2020, the production of oil increased from 361.0 million tonnes in 2018 to 361.8 million tonnes in 2019, an increase of 0.2% in the Asia Pacific. While the production of oil increased from 1042.2 million tonnes in 2018 to 1116.5 million tonnes in 2019, an increase of 7.1% in North America. Furthermore, new projects are under construction to sustain the increasing demand for oil and gas. For instance, In 2021, Eni S.p.A. expects to start extracting natural gas from its Merakes offshore project in Indonesia. 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. According to United States Geological Survey (USGS), the price of nickel (dollars per pound) was 6.30 in 2019 and 4.719 in 2017, when compared with 5.367 in 2015. And according to the U.S. Bureau of Labor Statistics (BLS), the producer price index (PPI) of nickel and nickel-base alloy mill shapes in 2020 was 151.3 in June, 148.6 in September, and 151.7 in October. 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 VDM Metals, Aperam S.A., Sandvik Materials Technology AB, Allegheny Technologies Incorporated, Carpenter Technology Corporation, ThyssenKrupp AG, Haynes International Inc., Precision Castparts Corporation, Voestalpine AG, and Rolled Alloys Inc.

Acquisitions/Technology Launches

In December 2019, Sandvik acquired privately-owned Summerill Tube Corporation.

In November 2019, 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.

Related Reports :

A. High Performance Alloys Market

https://www.industryarc.com/Report/15512/high-performance-alloys-market.html

B. Shape Memory Alloy Market

https://www.industryarc.com/Report/16235/shape-memory-alloy-market.html

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