High Strength Aluminum Alloys Market Growth & Trends
The global high strength aluminum alloys market size is expected to reach USD 41.06 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 3.5% in terms of revenue over the forecast period. Increasing use of high strength aluminum alloys in the transport industry for construction of aircrafts, trains, and vehicles is expected to propel market growth over the forecast period.
Factors such as high disposable income, growth of the tourism industry, and increase in global trade relations have resulted in the need for a robust transportation infrastructure. Growth of the transport industry with regard to increase in commuters and logistics across the world is leading to the rise in manufacturing for the transport industry.
With concerns over global warming, the transport sector needs to make use of sustainable and environmental friendly materials for their production. In such a scenario, aluminum alloys are most preferred and reliable materials owing to their characteristics including lightweight, strength, and corrosion resistance in building aircrafts, coaches, buses, ships, and cars for the past many years.
Government concerns and their initiatives towards limiting the conventional polluting vehicles have led to the growth of the electric vehicles segment, which has compelled the electric vehicle manufacturers to expand their production. For example, in September 2019, an electric bus manufacturer, Olectra-BYD (a joint venture between Indian Olectra Green Tech and China’s BYD) announced its plan to expand its production capacity at its plant in Jadcherla, Telangana, India. The company aims at expanding its capacity from 2,100 to 6,000 electric buses per annum. Increasing production in the auto industry is a positive sign for the market.
Defense and space is expected to register the fastest CAGR of 4.9%, in terms of revenue, during the forecast period. High strength aluminum alloy extrusions are expected to hold a major share in defense related applications, like combat vehicles, as they play a significant role in providing input materials in the form of plates, profiles, rods, and seamless tubes. Increase in defense spending in various nations is anticipated to provide lucrative opportunities for the market during the forecast period.
North America is anticipated to register the highest CAGR of 2.1% in terms of volume during the forecast period. Increasing consumption of high strength aluminum alloys in the region is attributed to rise in spending in various end-use industries, including defense and space. High strength aluminum alloys are used extensively in space applications, such as unpressurized structures, turbomachinery, and combustion devices. Alloys 6061-T6, 6061-T651, 7075, and 5052-H32 are included in spacecraft structural materials.
Increasing spending on space operations by major countries, including U.S., is expected to accelerate the demand for high strength aluminum alloys. In September 2019, NASA began the Orion spacecraft production line for supporting around 12 Artemis missions, which also includes the mission to carry first woman and next man to moon by 2024. NASA received a budget of USD 22.6 billion for the fiscal year 2020.
Alcoa Corporation, Rio Tinto, Norsk Hydro ASA, Aleris Corporation, and Hindalco Industries Ltd. are amongst the leading manufacturers for high strength aluminum alloys across the world. Capacity expansion and new product development are some of the strategic initiatives adopted by the companies to expand their footprints.
Increasing research & development for production of new high strength aluminum alloys is a positive sign for the market. For instance, in October 2019, a new manufacturing process was implemented for producing nano-structured rods and tubes from high strength aluminum alloys powder in one step. This was accomplished by using Pacific Northwest National Laboratory’s Shear Assisted Processing and Extrusion (ShAPE) technology
High Strength Aluminum Alloys Market Report Highlights
- Asia Pacific is expected to witness sluggish growth during the forecast period on account of the disruption in product demand in 2020-21, considering the COVID-19 pandemic, which originated in China and spread across the world
- Central & South America is anticipated to expand at a CAGR of 2.9% in terms of revenue over the forecast period. The growth can be attributed to increase in defense spending in Brazil
- In Middle East and Africa, the aerospace application segment accounted for a revenue share of over 26.0% as of 2019. Growing investments in the aviation industry of United Arab Emirates are anticipated to propel market growth
- Railway and marine accounted for a share of 19.3% in 2019 in terms of volume owing to increase in shipbuilding and railway projects across the globe. For instance, in July 2019, the Indian Ministry of Defence issued four shipbuilding Requests for Proposal worth _15,000 crore (~USD 2 billion) for acquiring several ships and craft for the Indian Navy and the Coast Guard.