March 2021
BWC19426

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high strength aluminum alloys market bwc19426
GlobalHigh Strength Aluminum Alloys Market- Industry
Trends & Forecast Report 2027
The global high-strength aluminum alloys market reached USD 31.3 billion in 2020 and is further projected to reach USD 43.1 billion by 2027, growing at a CAGR of 5.3% during 2021-2027 (forecast period). Rising demand for high-strength aluminum alloys are expected to propel the growth of the global high strength aluminum alloys market, owing to growing regulations on fuel efficiency and emissions among OEMs, as well as accelerating demand for lightweight components in the automotive industry.
Source: BlueWeave Consulting
Global High-Strength Aluminum Alloys Overview
High-strength
aluminum alloys are alloys in which aluminum (Al) is the core metal used.
Copper, magnesium, manganese, silicon, nickel, and zinc are other alloying
elements used in conjunction with aluminum. High-strength aluminum alloys are
extensively utilized in the automotive and aerospace sector. Unique
combinations of features provided by aluminum and its alloys make aluminum one
of the most versatile, inexpensive, and attractive metallic materials for a
wide range of alloy types in various end-use industries, such as aerospace
& defense, automotive & transportation, marine, and others. The
combination has high corrosion resistance, high strength, and a low weight,
making it desirable for end-use industries.
Global High Strength Aluminum Alloys Market Trends
Growth Drivers
Increasing Demand for Luxury Car Segment
The
growing demand for high-strength aluminum alloys for usage in luxurious cars as
a substitute for steel is expected to propel the market over the forecast
period. The high-strength aluminum alloys consist of properties such as
durability, corrosion-resistance, high strength to weight ratio, and lightweight,
among others. It is highly preferred in the aerospace, defense, transportation,
and automotive industries. The advancements made in the proven material
properties of aluminum alloys have fueled the growth of the combination of aluminum
alloys. The combination of aluminum alloys features high corrosion resistance,
and high strength with overly low weight, which is highly suitable for
luxurious cars. These factors are also playing a key role in amplifying the
market growth.
Recently,
Tesla has invented new aluminum alloys that are expected to aid in the
preservation of high-yield strength and conductivity. Moreover, Novelis, the
global leader in aluminum rolling and recycling, announced in 2016 that its
RC5754 alloy, a novel automotive product developed with Jaguar Land Rover
contains up to 75% recycled content. Jaguar's REALCAR (Recycled Aluminum CAR
project relies heavily on RC5754 ally. It was successfully integrated into the
structural components of the high-volume production of passenger cars. Thus,
the industry is being driven by the growing demand for high-strength aluminum
alloys in the luxury car segment.
Increase in Demand for Aerospace & Defense
Vehicular Components
The
market is also witnessing an increasing demand for high-strength aluminum
alloys in the aerospace and defense vehicle sector due to their characteristics
like lightweight, strength, and corrosion resistance. The aerospace &
defense vehicular market is consolidated, as aircraft manufacturers tend to
maintain long-term agreements with the defense aircraft component market
players for stable supply and to reduce competition. Thus, lightweight defense
aircraft materials are likely to witness significant growth due to the increase
in demand for fuel-efficient and long-haul aircraft.
For
instance, Alloy 7050 has high corrosion resistance and maintains
strength in wide sections, making it more fracture-resistant compared to other
alloys. It is commonly used in wing skins and fuselage, especially in military
aircraft. Although the strongest high-strength aluminum alloy available today
is 7068 due to its strength and low mass, it is perfect for military aircraft
as it is capable of withstanding tough conditions and attacks. According to a
survey, passenger and freight traffic are expected to grow at an average annual
growth rate of 4.7% and 4.5%, respectively, in the next 20 years, thereby,
boosting global aircraft demand by 80 million tons.
Restraints
High
Cost of Production
The
high production cost of high-strength aluminum alloys is the major factor
restraining the growth of the market. The high production cost automatically
increases the cost of the final product, including the equipment, machine,
aircraft materials, and automotive parts. Thus, manufacturing companies are looking
for alternatives to high-strength aluminum alloy due to the high production
cost. To improve the present business situation of the high-strength aluminum
alloys market, the market players have been implementing numerous growth
strategies such as joint ventures, partnerships, alliances, expansions, mergers
& acquisitions, along with new product releases & technological
advances.
Since
there are a few high-strength aluminum alloy manufacturers in India, the
country is mostly dependent on the imports of the products, which leads to high
production and output cost. Moreover, strategic alliances are growing in the
country. For example, Hindalco (India) has a Joint Venture partnership with
Almex USA, Inc. for the manufacturing of high-strength aluminum alloys for
applications in the aerospace, sporting goods, and surface transport
industries. Similarly, Nalco has a joint venture with Canada’s Almex for
producing auto-grade aluminum and special alloys for aerospace.
Impact of COVID-19
The
global high-strength aluminum alloys market has witnessed a sudden decline in
demand due to COVID-19 in the year 2020. The pandemic has severely affected the
industry players with regard to business and functional parameters. The manufacturing
and development of high-strength aluminum alloys have been severely hampered by
the pandemic-induced lockdown, which has slowed demand. Moreover, delay in
procurement of raw materials is also impeding the market growth. Furthermore, the
severe outbreak of the COVID-19 pandemic in China, Japan, and India is expected
to have a significant impact on the Asia-Pacific high-strength aluminum alloys
industry.
Despite
the crisis, demand for high-strength aluminum alloys from end-use industries,
especially automotive, is expected to keep the industry afloat. The odds of swift
global pandemic mitigation are projected to reopen the aluminum supply chain,
and demand is expected to turn optimistic in the coming years. The growing use
of aluminum's in automotive production is a promising indicator for the global
economy.
Global High Strength Aluminum Alloys Market: By Alloys
Type
Based on alloy type, the high-strength aluminum alloys market is bifurcated into wrought and cast. Of these, the wrought alloy segment registered the larger share of 54% in 2020 and is likely to grow at a CAGR of 5.0% during the forecast period, since it is the most commonly used alloy in numerous industries. Wrought aluminum alloys also have better mechanical properties, such as corrosion resistance, high strength to weight ratio, lightweight, and others. These advantages are also driving the growth of wrought alloy in the market.
Source: BlueWeave Consulting
Global High Strength Aluminum Alloys Market: By End-User
Industry
Based
In the end-use industry, the high-strength aluminum alloys market is segmented
into aerospace & defense, automotive & transportation, automotive,
marine, and others. The automotive & transportation segment registered a
share of 43% in 2020, and is expected to grow positively during the forecast period owing to its extensive application in pistons, wheel rims, front &
rear longitudinal frames, engine components, powertrain, etc. High-strength aluminum
alloys offer the best substitute to achieve upgraded performance, including
high mechanical characteristics and low weight.
Global High Strength Aluminum Alloys Market: Regional
Insights
The high-strength aluminum alloys market is segmented into five regions, i.e. the Asia-Pacific, North America, Europe, Latin America, and Middle East & Africa. The Asia-Pacific accounted for the largest market share in 2020. This can be owing to the increasing demand for products with corrosion resistance, high tensile strength, recyclability, low maintenance, and elongated shelf life in diverse end-use industries in the region. Additionally, North America is expected to exhibit the fastest CAGR during the forecast period, with the U.S. accounting for a dominant market share by 2027.
Competitive Landscape
Advances
in mining and refining processes have helped manufacturers in producing high-strength
aluminum at relatively low prices. The prominent market players operating in
high strength aluminum alloys market are Aluminum Corporation of China Ltd
(CHALCO), China Hongqiao Group Limited, Rio Tinto Ltd., United Company (U.C.)
RUSAL, Alcoa Corporation, Constellium SE, Aluminum Bahrain B.S.C., Norsk Hydro
A.S.A, Hindalco Industries Limited, and other prominent players.
Recent Development
·
In February 2021, Novelis
Inc., the global leader in aluminum rolling and recycling, launched Novelis
AdvanzTM 7UHS-s701, the best automotive aluminum offering to date. The
technologically advanced ultra-high-strength steel is now commercially available
to the global automotive industry.
·
On 30 November 2020,
Kaiser Aluminum entered into a purchase agreement with Alcoa Corporation to
acquire the Warrick Rolling Mill. This acquisition will provide them entry into
the North American aluminum packaging industry, which is a strong and growing
non-cyclical end market driven by sustainability trends and the secular shift
from plastic to aluminum in the packaging industry.
Scope
of the Report
Attribute |
Details |
Years Considered |
Historical data – 2016-2020 Base Year – 2020 Forecast – 2021 – 2027 |
Facts Covered |
Revenue in USD Million/Billion |
Market Coverage |
United States, Canada, Germany, United Kingdom, France, Italy, Spain,
Japan, South Korea, China, India, Brazil, South Africa, Saudi Arabia |
Product/Service Segmentation |
By alloys type, strength,
end-user industry, and region |
Key Players |
Key Players for the market are Aluminum
Corporation of China Ltd (CHALCO), China Hongqiao Group Limited, Rio Tinto
Ltd., United Company (U.C.) RUSAL, Alcoa Corporation, Constellium SE, Aluminum
Bahrain B.S.C., Norsk Hydro A.S.A, Hindalco Industries Limited, and other
prominent players |
By Alloy Type
Ø Wrought
Ø Cast
By Strength
Ø High-Strength
Ø ultra-high-strength
By End-Use Industry
Ø Aerospace
& Defense
Ø Automotive
& Transportation
Ø Marine
Ø Others
By Region
Ø North
America
Ø Europe
Ø Asia
Pacific
Ø Latin
America
Ø Middle
East & Africa
FAQs:
1.
What
is the current size of the global high-strength aluminum alloys market?
Answer:
The global high strength aluminum alloys market has reached USD 31.3 billion in
2020.
2.
What
are the major factors driving the growth of the global high-strength aluminum
alloys market?
Answer: The major factors driving the growth of the
global high-strength aluminum alloys market are increasing demand for the
luxury car segment and increase in demand for aerospace & defense vehicular
components.
3.
Who
are the key players in the global high-strength aluminum
alloys market?
Answer: The key players in the global high strength aluminum
alloys market are Aluminum Corporation of China Ltd (CHALCO), China Hongqiao
Group Limited, Rio Tinto Ltd., United Company (U.C.) RUSAL, Alcoa Corporation, Constellium
SE, Aluminum Bahrain B.S.C., Norsk Hydro A.S.A, Hindalco Industries Limited,
and other prominent players.
4.
Which
end-user accounted for the largest share in the global high-strength aluminum
alloys market?
Answer:
Automotive & Transportation by end-user accounted for the largest share in
the global high-strength aluminum alloys market.
5.
Which
region holds the largest share in the global high-strength aluminum alloys
market?
Answer:
The Asia-Pacific holds the largest share in the global high strength aluminum
alloys market.
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