Nickel alloys – a market outlook
The global nickel alloy market is ever-changing, particularly when it comes to its multitude of end-use industries. Technology continuously evolves, and production methods and manufacturing processes are streamlined and improved. There have been significant changes in manufacturing, for example, with the introduction of Industry 4.0 innovations and smart factory improvements. However, one thing that remains consistent is the demand for corrosion-resistant, conductive, heat-resistant, high-performance alloys, such as those supplied by stockists like Corrotherm International.
Nickel alloys are used across such a wide-ranging number of industries, from domestic goods and consumer electronics, through to aerospace, chemical processing and power generation. These industries continue to drive the growth of the nickel alloy market worldwide with increasing demand. Read more about the potential applications of such products here.
It is innovation and emerging markets that are the biggest drivers in this continuing market growth. On the flipside, cost is its biggest limitation, which may cause design engineers to seek out lower-cost alternatives.
In some key industries, however, the longevity and exceptional corrosion resistance of nickel alloys is incomparable to alternative solutions. As such, it is the category of ‘high-performance nickel alloys’ that are the key products in this market, helping it to remain buoyant. Products like the flagship INCONEL alloy 625, for example, is a standard material of construction in a number of industry applications, offering superior resistance in severe corrosive environments that cannot be easily replicated by alternative material choices.
What’s the forecast?
In one report, the nickel alloy market is projected to grow from $12.14 billion (USD) in 2017 to an estimated $14.68 billion (USD) by 2022. It cites the main contributing factor for this growth as increasing demand from the aerospace, defence, chemical, electrical and electronics, oil and gas, energy and power, and automotive sectors. Nickel alloys are used widely to create components across these industries; in aerospace, for example, it is an essential material of construction for engine components, where it is vastly superior to alternatives like steel or stainless steel.
Meanwhile, another report from June 2019, extends that forecast with an expected market value of $16.86 billion (USD) by 2026. The Reports and Data research explains one of the reasons behind the projected growth: “Industry players are involved in improving the metalworking and machining features of several nickel alloys. These efforts will bring in new opportunities in the coming years.”
Across the whole market, high-performance nickel alloys accounted for $3.61billion (USD) in 2018 with an estimated value of $4.87 billion (USD) by 2026. The reason behind the growth of this specific category of nickel alloys is cited as the increasing demand from end users in oil and gas, and aerospace and defence worldwide.
Key global locations
The nickel alloys market is truly global, but its largest region is Asia Pacific. According to the Reports and Data research released in June, this area accounts for the biggest share of the whole market at 31.3% in 2018. This is due to its ongoing population growth, as well as its ever-increasing end-use industries and applications. It has lucrative aerospace, energy, power generation, automotive and defence industries, as well as an overall increase in manufacturing, production and export. Within Asia Pacific, those countries that are contributing most greatly to the nickel alloy market include China, South Korea, Japan and India.
In a report published by Coherent Market Insights, India’s automotive market is likely to reach $16.5 billion by 2021, which will increase demand for high-performance and heat-resistant nickel alloys. These Asia Pacific developing economic regions show no signs of slowing over the next few years, which will continue to boost the nickel alloys market.
In North America, nickel alloys have always enjoyed a steady market, and this is continuing to hold and grow. The chemical industry is emerging as a large player, but traditional end-use industries, like automotive, electronics, aerospace and defence, are showing consistent growth year on year. Latin America is also an emerging growth market for nickel alloy applications.
Here in Europe, nickel alloy operations are mainly based in the UK, France, Germany, Italy and Sweden. With a strong export market, as well as domestic uses, there is little sign of the continuing growth of nickel alloys halting any time soon. The Middle East is proving to be a strong driver, with growing automotive and oil and gas sectors fuelling increased demand.
Industrial opportunities
The individual growth and innovation within certain industrial sectors is helping to push the demand for high-performance and corrosion-resistant nickel alloys.
In aerospace, for example, the physical increase in aircraft size, which is turn means enhanced performance requirements, has opened up more opportunities for nickel alloy usage. As new models of aircraft are tested and produced, applications for the best high-performance nickel alloys also grow in number.
With increased investment in the defence sector across the world, the use of nickel alloys is growing exponentially alongside the extra funding. In fact, the aerospace and defence sector is estimated to reach $6.66 billion (USD) by 2026. Similarly, the oil and gas industry and its use of nickel alloys is also expected to increase throughout the forecast period in the same report.
Here at Corrotherm International, it’s important that we keep an eye on these forecasts and trends. This enables us to ensure that we can supply products to meet the global demand, and adapt to changes and growth in the industry. With teams located around the world, we are well placed to respond to the increasing global demand for high-performance nickel alloys. Browse our website to see the Grades we stock, and get in touch to find out more about working with us.
