Global Superalloy Honeycomb Materials Market Anticipated to Generate a Revenue of $26,38,497.50 Thousand, Growing at a CAGR of 8.0% from 2021 to 2028Download Sample Reports Overview
The global superalloy honeycomb materials market is estimated to be valued at $26,38,497.50 thousand by 2028, surging from $14,66,666.70 thousand in 2020 at a noteworthy CAGR of 8.0%.
Impact Analysis of COVID-19 on the Superalloy Honeycomb Materials Market
The global market for superalloy honeycomb materials experienced a low growth amid the COVID-19 pandemic. This low growth is the result of disruptions in the supply chain and the non-availability of workforce. In addition to this, transportation disruptions had a significant impact on the supply chain, affecting the growth of the superalloy honeycomb materials market. Moreover, the government has strictly issued lockdown guidelines that have affected manufacturing activities. Besides, automotive and aircraft manufacturers such as Airbus and Boeing have cut down their production during the lockdown, resulting in sluggish demand for superalloy.
However, almost all the countries have lifted the lockdown, as well as companies, have resumed manufacturing operations. These activities are expected to fuel the demand for superalloy honeycomb materials in the coming years.
Global Superalloy Honeycomb Materials Market Analysis
To meet energy demand and net-zero climate goals, developing countries such as China, India, and Brazil are investing billions of dollars in renewable energy sector. This has led to an increase in onshore and offshore wind energy. For instance, according to India Brand Equity Foundation, in June 2021, Reliance Industries announced to invest $ 10.07 billion in the green energy segment. Besides, China is expected to add significant offshore wind power every year to meet the growing energy demand. These factors are expected to fuel the demand for superalloy honeycomb materials in the power sector.
The demand for nickel is steadily increasing in the automotive, aerospace, defense, and power industries due to its superior mechanical properties. Owing to the growing popularity, cost of nickel and other raw materials is steadily rising. For instance, it has been estimated by the Argus that the total intrinsic value of Inconel 718 alloy rose to $5.8355/lb on 30 July, up from $5.5996/lb at the start of the month. The rising cost of nickel superalloy is expected to discourage buyers, thereby hampering the market growth.
The global electricity demand is growing at 2.1% per year. The growing electricity demand is attributed to rapid urbanization and industrialization, especially in developing countries. To meet the growing electricity demand, countries such as China and India have increased investment in brownfield and greenfield expansion of power plants. As per the Carbon Brief Ltd, since 2000, the world has doubled the coal-fired power capacity to 2,045 gigawatts (GW) after explosive growth in China and India. These factors are projected to fuel the demand for steam turbines, thereby providing growth opportunities for superalloy honeycomb materials market.
Global Superalloy Honeycomb Materials Market, Segmentation
The global superalloy honeycomb materials market is segmented based on material type, application, and region.
The material type segment is further classified into nickel, stainless steel, and others. Among these, the nickel superalloy honeycomb materials type sub-segment is anticipated to have the fastest as well as dominant growth and surpass $20,09,151.00 thousand by 2028, with an increase from $10,93,802.90 thousand in 2020. Nickel superalloy is widely used material in turbine engines due to its high strength, long fatigue life, and corrosion resistance. The demand for aircraft continues to rise due to emergence of low-cost carrier. According to Airbus estimates, the deliveries is expected by 2040. These factors are expected to drive the demand for nickel superalloy honeycomb materials during the forecast period.
The application segment is further divided into aerospace & defense, automotive, power, and others. The aerospace & defense sub-segment is anticipated to be the dominating sub-segment in the global market and register a revenue of $13,30,465.70 thousand during the analysis timeframe. However, automotive sub-segment is projected to grow with highest CAGR of 9.8% from 2021 – 2028 due to growing demand for automobiles. In addition, the diesel, petrol, and hybrid versions of any automobile require turbochargers. These turbochargers and exhaust valves are made of superalloy, thereby driving the demand for superalloy market.
The superalloy honeycomb materials market for the North America region is projected to witness dominant share. This market generated a revenue of $5,42,666.70 thousand in 2020 and is further projected to reach up to $9,34,028.10 thousand by 2028. Presence of Boeing, GE, NASA, and Lockheed Martin Corporation, among others in the U.S. is driving the demand for superalloy materials in the region. Besides, increasing investment by Tesla in the U.S., and presence of turbine manufacturers such as GE, is expected to drive the market in North America. The demand for superalloy honeycomb materials is surging in the Asia-Pacific region specifically because of factors such as increasing investment in defense and power sector.
Key Players in the Global Superalloy Honeycomb Materials Market
- Allegheny Technologies Incorporated (ATI)
- Chromalloy Gas Turbine LLC
- OC Oerlikon Management AG
- HAYNES INTERNATIONAL
- AMETEK Inc.
- Hi Tech Honeycomb
- Indy Honeycomb
- Quality Honeycomb
- JSC ROTEC
- Howmet Aerospace
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Superalloy Honeycomb Materials Market
- Bargaining Power of Suppliers: The suppliers involved in the market are extensive in number. Thus, manufacturers and companies have several options and alternatives to handle expensive supplies.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: Due to the presence of numerous suppliers offering similar products, buyers can switch from one vendor to another.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: The process of manufacturing superalloy is complex, requires huge capital investment. Furthermore, companies in the superalloy honeycomb materials market require specialized knowledge.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: No substitute is available.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The ventures operating in the global superalloy honeycomb materials are opting for various businesses deployment strategies to hold their position in the market. Companies are launching innovating products in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.