Global High Strength Aluminum Alloys Market by Application (Aerospace, Railway & Marine, Automotive, Defense & Space) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2019, the global market for high strength aluminum alloys was valued at USD 31.15 million. It is expected to grow at a compound annual rate (CAGR of 3.5%) between 2020 and 2027. Due to their superior properties, the aerospace industry is driving the market. The aerospace industry has used aluminum alloys for many years. This is due to factors like reliability, relatively isotropic, low price compared with more exotic materials and high corrosion resistance.

The U.S. has become a major market due to the growing importance of the manufacturing sector. This is increasing the demand for high-strength aluminum alloys in end-use industries. The Bureau of Statistics predicts that the U.S. aerospace products and parts manufacturing industry will grow by 2.7% between 2018-2028.

As of 2020, the growth of the global market was affected by the COVID-19 epidemic. This virus has had an impact on the demand-supply chain of the aluminum industry in terms of logistics, manufacturing, and prices. Italy, for example, was the most affected country in the world as traders were facing logistic problems. Drivers refused to work during quarantine days, which meant supplies were trapped in one place and could not reach their end customers. Some aluminum alloys saw their prices rise in such instances.

The industry will continue to be resilient despite the crisis. This is due to increased demand from automotive and other end-use industries for high strength aluminum alloys. There are good chances that the pandemic will be quickly controlled and the aluminum supply chain will reopen. The forecast period should see a positive turn in demand. The global market is positive by the rising aluminum content in vehicle manufacturing.

Application Insights

Aerospace was the biggest application segment with a revenue share at 30.8% in 2019. Segment growth is expected to be driven by increased investment by aircraft manufacturers and the increasing use of high-strength aluminum alloys.

Automotive is one of the fastest-growing application segments in the market. It is expected to grow at a volume-based CAGR rate of 2.4% over the forecast period. The average vehicle's aluminum content was 179 kilograms in 2019, which is expected to rise further. The automotive industry's increasing use of aluminum, combined with the growth in the industry, is expected to see an increase in aluminum content by 40% between 2019 and 2027.

The automakers' trust in aluminum has allowed them to continue innovation and create new alloys. In February 2020, Tesla created a new set of aluminum alloys and filed a patent application. These new alloys will be used for die casting car parts. They are expected to have high yield strengths, high thermal conductivity and high extrusion speeds.

Due to the COVID-19 pandemic, the market for high-strength aluminum alloys will see a drop in 2020-21. According to reports, the virus originated in Wuhan, China. This has disrupted the supply chain as China is a major market for many markets, particularly in manufacturing.

The automotive industry depends on China to produce many parts and systems. This has resulted in the temporary shutdown of many auto plants. As a result, many carmakers, including Nissan, Hyundai, Kia and Ssangyong have temporarily stopped production.

In the midst of this crisis, major players in the automotive and other industries have closed down their plants. GM, Ford and FCA among others announced a temporary shut down of their manufacturing plants on March 18, 2020.

Regional Insights

Asia Pacific had a 43.6% revenue share as of 2019, and it is expected to continue its lead in the future. The forecast period will see a rise in demand for high-strength aluminum alloys in automotive, railways and defense. High-speed trains are a popular use of high strength aluminum alloys due to their lightweight and ease of assembly.

The region's future rail projects are expected to have a positive impact on the demand for high-strength aluminum alloys during the forecast period. Hyundai Rotem was awarded the contract to supply 15 trainsets from SG Rail in March 2020. A joint venture between John Holland and McConnell Dwell South East Asia was awarded a contract to design and build three stations at the Pandan Reservoir branch of Singapore's Land Transport Authority.

The market is dominated by aerospace, automotive, and railways. This indicates that logistics and transportation have a significant impact on the industry. The decrease in demand for transport facilities is due to the coronavirus epidemic, which caused lockdown in most countries. The Indian Ministry of Railways has suspended passenger railway operations until April 14, 2020.

The pandemic disrupted all modes of transportation, but rails was expected to remain a viable alternative to transport in times of crisis. Nippon Express Co., in partnership with Sinotrans, launched a train service from Shanghai to Wuhan on March 20, 2020. This was for the supply of basic necessities such as food and masks. These initiatives will ensure that railways are the most affected transport system during a pandemic. This is positive for the global market growth.

Europe was the second largest market for high-strength aluminum alloys in Europe as of 2019. However, the U.S. tariff barriers and the COVID-19 pandemic are expected to cause a significant blow to its aluminum industry in 2020-21. The European markets are likely to be affected by the U.S. antidumping investigation by the International Trade Commission, which began on March 9, 2020. It was followed by a petition from five aluminum producers. The European aluminum industry is concerned about the possibility of additional trade barriers between the U.S. and the region as a result of the investigation into aluminum alloy sheets from Croatia and Slovenia, Spain and Germany.

North America will experience the highest revenue growth and CAGR over the forecast period. This growth can be attributed to the U.S. as it is one of the most important countries with high demand for high-strength aluminum alloys. In 2019, the country was responsible for 74% of all volume. The country's increasing investment in manufacturing has been a major driver of high-strength aluminum alloys' expansion in North America.

Airbus, a major manufacturer of aircraft, announced in January 2020 that it would increase its production at its Mobile, Alabama facility from seven to seven aircraft per month by 2021. A support hanger was built at the site. This resulted in an additional USD 40 million investment by Airbus, which brought the total investment to USD 1 billion.

Market Share Insights & Key Companies

Companies in the value chain are expected to use strategies such as new product development, capacity expansion and acquisitions to maintain and grow their share of the high-strength aluminum alloys market. In 2018, for example, the National Aluminium Company planned to establish a high-end aluminium product plant in India to meet the increasing demand for aluminum alloys. This would allow it to serve the needs of the expanding end-use markets, such as bullet trains, aeroplanes, and electric cars. The company announced in August 2019 that it would form a joint venture to produce aluminum alloy sheets and plates with Mishra Dhatu Nigam.

Novelis also launched Advanz6HS-s650 in August 2019. This high-strength aluminum product is for next-generation body designs. It is expected that it will be the strongest of the 6xxx series and have an in-service strength of 15-20%. The market leader in high strength aluminum alloys is:

• Advanced Materials Technology

• Alemix

• Aleris Corporation

• Alcoa Corporation

• Hindalco Industries Ltd.

• Kobe Steel, Ltd.

• NALCO

• Norsk Hydro ASA

• Precision Armament

• Rio Tinto

Up Market Research published a new report titled “High Strength Aluminum Alloys Market research report which is segmented by Application (Aerospace, Railway & Marine, Automotive, Defense & Space), By Players/Companies Rio Tinto, Hindalco Industries Ltd, Precision Armament, Norsk Hydro ASA, Alemix, Aleris Corporation, Kobe Steel Ltd, NALCO, Advanced Materials Technology, Alcoa Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global High Strength Aluminum Alloys Market Report Segments:

The market is segmented by Application (Aerospace, Railway & Marine, Automotive, Defense & Space).

High Strength Aluminum Alloys Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the High Strength Aluminum Alloys Market

Overview of the regional outlook of the High Strength Aluminum Alloys Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The High Strength Aluminum Alloys Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of High Strength Aluminum Alloys Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Aerospace

                2. Railway & Marine

                3. Automotive

                4. Defense & Space

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the High Strength Aluminum Alloys Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the High Strength Aluminum Alloys Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.