High Performance Alloys Market Overview

The High Performance Alloys Market size is forecasted to grow at a CAGR of 4.1% during the forecast period 2022-2027 and reach US$12.2 billion by 2027. High-performance alloys are composed of various materials which include non ferrous metal such as aluminum and nickel, along with composite-clad materials, precious metals, refractory materials and more. Some of the examples of high-performance alloys include hastelloy alloy, inconel alloy, haynes alloy, monel alloy and more. High-performance alloys are used in a wide range of industries such as aerospace, automotive, electronics, oil & gas and other industries. In 2020, the COVID-19 lockdown had significantly reduced production activities as a result of the country-wise shutdown of manufacturing sites, shortage of labor and the decline of the supply and demand chain all across the world, which temporarily halted production from some of the major industries such as aerospace, automotive and more. This, in turn, reduced the demand for high-performance alloys that are primarily used in such industries in electrical systems, sensors, control units and other similar applications, thus, affecting the high performance alloys industry. However, a steady recovery in development activities from multiple industries has been witnessed across the world since 2021, which in turn, is driving the demand for high-performance alloys. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the total global automobile production reached 80.2 billion units in 2021, an increase of 3% as compared to 77.7 billion units in 2020. This led to an increase in demand for high-performance alloys for use in multiple automotive applications, thus, fueling the market growth. An increase in automotive production along with the surging demand from the oil & gas industry is expected to drive the growth of the high performance alloys market size in the upcoming years. On the other hand, fluctuating prices of raw materials may confine the growth of the market.

High Performance Alloys Market Report Coverage

The “High Performance Alloys Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the High Performance Alloys Market.

By Material Type: Non Ferrous Metal (Aluminum, Copper, Nickel, Others), Composite-Clad Materials, Precious Metals (Gold, Silver, Titanium), Refractory Materials (Molybdenum, Niobium, Tantalum, Tungsten, Rhenium), Stainless Steel, Others.
By Product: Temperature Resistant (Hastelloy Alloy, Inconel Alloy, Haynes Alloy), Corrosion Resistant (Nickel, Monel Alloy, Ferralium Alloy) Wear Resistant (HPA Cobalt Alloy, Nitronic Alloy)
By End-Use Industry: Automotive (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), Aerospace (Commercial, Military, Others), Power Generation (Wind, Solar, Geothermal), Electrical & Electronics, Medical, Oil & Gas, Others.
By Geography: North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East and Africa).

Key Takeaways

• The non ferrous metal segment held a significant share in the High Performance Alloys Market in 2021. Its wide range of characteristics and excellent corrosion resistance made it stand out in comparison to other types of materials in the market.
• Aerospace industry held the largest share in the High Performance Alloys Market in 2021, owing to the increasing demand for high-performance alloys from the aerospace sectors due to its high mechanical strength, along with excellent resistance to wear, temperature and corrosion.
• North America dominated the High Performance Alloys Market in 2021, owing to its increasing demand from the aerospace sectors in the region.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the High Performance Alloys Market Report.

Figure: North America High Performance Alloys Market Revenue, 2021-2027 (US$ Billion)

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High Performance Alloys Market Segment Analysis – by Material Type

The non ferrous metal segment held a significant High Performance Alloys Market share in 2021, owing to its increasing demand due to the benefits it offers over other types of materials. For instance, non ferrous metal such as aluminum, nickel and more are more durable and offers superior tensile strength in comparison to precious metals, refractory materials and other types of materials. It also offers excellent resistance to corrosion along with higher reflectivity and ductility as compared to other materials. Moreover, non ferrous metal offers high-temperature resistance and excellent resistance to wear and friction along with good electrical and thermal conductivity. Furthermore, non ferrous metal such as aluminum is lightweight, highly flexible and cost-effective as opposed to other types of materials. Hence, all of these benefits are driving its demand over other types of materials, which in turn, is expected to boost the market growth during the forecast period.

High Performance Alloys Market Segment Analysis – by End-Use Industry

The aerospace industry held the largest High Performance Alloys Market share of over 25% in 2021, owing to its increasing demand from the aerospace sectors across the world. High-performance alloys are primarily used in aircraft engines, instrumentation, radio communication equipment, wire-wound potentiometers and other similar applications, owing to their lightweight, high strength and excellent resistance to temperature, wear and corrosion. For instance, in November 2021, the Indian government announced its plan to launch its military aviation project that aims at building a fifth-generation fighter or medium combat aircraft incorporated with advanced stealth features and capabilities. The aircraft is scheduled for launch by the end of 2022. Moreover, the Indian Air Force (IAF) announced its plans to deliver 73 Tejas Mark-1A fighter jets which are scheduled to be delivered from 2024 to 2028. In December 2020, Lockheed Martin, an aerospace company, commenced the development of its new F-16V fighter jet in Taiwan. The development of the new fighter jet is scheduled to be completed in 2023.

In this way, such surging aircraft production is expected to increase the demand for high performance alloys for use in aircraft engines, instrumentation, radio communication equipment and more, owing to its above-mentioned benefits. This is expected to expand the high performance alloys market size during the forecast period.

High Performance Alloys Market Segment Analysis – by Geography

North America held a dominant High Performance Alloys Market share of around 34% in the year 2021. The consumption of high performance alloys are particularly high in this region due to its increasing demand from the aerospace sector. For instance, in January 2021, FedEx Express invested around US$6.6 billion in the development of 24 medium and large freighters from Boeing. According to the Federal Aviation Administration (FAA) of the United States, the total commercial aircraft fleet is estimated to reach up to 8,270 by the end of 2037, owing to the growth of air cargo activities. It further states that the production of the U.S mainliner carrier fleet is estimated to increase at a rate of 54 aircraft per year. Furthermore, according to CNBC (Consumer News and Business Channel), the Defense Department of the U.S requested US$715 billion for national defense expenditure for the year 2022, which also includes the production of new aircraft along with repair and maintenance of the existing aircraft.

The properties of high-performance alloys such as high strength, lightweight and excellent resistance to temperature, wear and corrosion makes them ideal for use in aircraft engines, instrumentation, radio communication equipment, wire-wound potentiometers and other similar applications. Thus, such surging development associated with the aerospace sector in the region is expected to increase the demand for high-performance alloys, owing to its above-mentioned properties. This is expected to accelerate the market growth during the forecast period.

High Performance Alloys Market Drivers

An increase in automobile production

High performance alloys such as hastelloy alloy, haynes alloy and more are primarily used in the automotive industry in electrical systems, sensors, control units along with heater cores, tubes, radiators and tanks of an automobile. Its properties such as high strength, conductivity, along with excellent resistance to heat, wear and corrosion make them ideal for use in such automotive applications. According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe and 5180 units in other regions worldwide. Likewise, in August 2021, Ford commenced the development of its automobile plant in Germany. The new facility will be responsible for the assembly of a new electric vehicle and aims at increasing electric vehicle production in the country. Furthermore, recent insights from the International Organization of Motor Vehicle Manufacturers (OICA) state that the total automobile production in 2021 in Europe, America, Asia and Africa increased by 25%, 17%, 28% and 37% respectively in comparison to 2020. Thus, such increasing production from the automotive industry is expected to increase the demand for high performance alloys utilized in such industry for use in automobile electrical systems, sensors, control units and more. This is anticipated to drive the growth of the market in the upcoming years.

Surging demand from the oil & gas industry

High performance alloys such as inconel alloy are commonly used in the valve stems, flex shafts, tanks, pump shafts, pump impellers, rock bit bearings, wear plates, piping systems and other components of an oil and gas plant, owing to their ability to deliver high performance under mechanical stress and extreme temperatures. It also offers excellent corrosion resistance against seawater and other chemicals which makes them ideal for use in oil & gas plants. For instance, the government of the USA announced the continuation of operations of the Alaska LNG Liquefaction Plant project worth US$43 billion in 2020. The Alaska LNG represents a three-train liquefaction plant, gas treatment plant and an 800-mile pipeline. The facility is expected to export around 3.5 billion cubic feet of gas per day from Alaska’s North Slope gas fields and is scheduled to begin its operations in 2025. According to recent insights published by NS Energy in 2021, 512 oil & gas projects are scheduled to start operations from 2021 to 2025 in China. One of the largest projects includes the Yantai Expansion terminal worth US$1.1 billion which has an overall capacity of 487 billion cup feet (bcf). Its operations are expected to begin in 2025.

In this way, an increase in the development of oil & gas plants in various countries across the world is expected to increase the demand for high performance alloys for use in the above-mentioned components of the plant, owing to its excellent durability, along with heat, corrosion and chemical resistant properties. This is expected to accelerate the market growth in the upcoming years.

High Performance Alloys Market Challenges

Fluctuating prices of raw materials may confine the growth of the market

High performance alloys are primarily made of several metals such as aluminum, nickel, chromium, steel and other materials. As a result, fluctuations in the prices of such materials may increase the cost of high performance alloys which may hinder the growth of the market. For instance, according to the China Nonferrous Metals Industry Association, in September 2021, aluminum prices increased sharply by 50% up to US$3,000 per ton. It further states that the prices of other metals including copper and nickel are also expected to increase significantly in 2022. Furthermore, steel prices in the U.S increased up to US$700 per ton in March 2022. Thus, such instability and fluctuating prices of materials used to produce high performance alloys may confine the growth of the high performance alloys industry during the forecast period.

High Performance Alloys Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the High Performance Alloys Market. The top companies in High Performance Alloys Market are:

1. Aperam SA
2. Alcoa Inc.
3. Allegheny Technologies Incorporated
4. Carpenter Technology
5. Haynes International Inc.
6. Hitachi Metals Ltd.
7. Outokumpu
8. Precision Castparts Corporation
9. Timken Company
10. VSMPO-AVISMA Corporation

Recent Developments

• In April 2022, Alloy Wire International launched Inconel 617, a high-performance alloy composed of nickel, chromium, cobalt, molybdenum and aluminum. The new alloy is specifically designed for use in components associated with aerospace, medical and other sectors.
• In July 2021, the Defence Research and Development Organisation (DRDO) announced the development of a high-performance beta titanium alloy that will be produced on an industrial scale for use in the aerospace industry.
• In June 2021, Rio Tinto launched a new high-performance aluminum alloy specifically for use in the automotive industry. It is specifically designed to make lighter car wheels while offering an easy and cost-efficient solution for automobile manufacturers.