Global Nickel Alloys Market - 2023-2030

Market Overview

The Global Nickel Alloys Market reached US$ 14.6 billion in 2022 and is expected to reach US$ 19.1 billion by 2030, growing with a CAGR of 3.5% during the forecast period 2023-2030.

The Global Nickel Alloys Market has experienced significant growth in recent years, driven by various factors, including the expansion of the aerospace and power generation industries and the increasing demand for high-performance materials.

Nickel Alloys possess exceptional mechanical strength, resistance to creep, corrosion, and thermal stability, making them highly suitable for critical applications in aerospace, power generation, and automotive sectors.

With continuous advancements in metallurgy and manufacturing techniques, nickel alloys are expected to experience significant market opportunities for growth. Regarding regional dominance, the Asia-Pacific region holds the largest share in the global nickel alloys market, covering approximately 1/3rd of the market share.

The individual fact is attributed to the region's abundant mineral reserves and the rapid growth of end-user verticals, particularly the automotive and aerospace industries. The Asia-Pacific region has witnessed positive market trends and increased participation in the nickel alloys industry due to the expanding power requirements and generation.

Furthermore, among the various material segments in the global nickel alloys market, electroplating dominate, accounting for nearly 2/3rd of the market share. The respective dominance is primarily driven by their extensive utilization in the automotive and aerospace sectors.

Market Dynamics

The Exceptional Properties of Nickel Alloys that Increase their Applications in Oil and Gas Exploration

Nickel Alloys are high-performance alloys that exhibit exceptional resistance to high temperatures, corrosion, and mechanical stress. Despite the increasing focus on renewable energy sources, oil and gas remain vital. The oil and gas industry is crucial in driving the demand for nickel alloys, particularly in upstream exploration and production activities. Nickel Alloys are used in drilling and extraction equipment that operates under high-pressure and high-temperature conditions.

According to the U.S. Energy Information Administration (EIA), global liquid fuel consumption reached 101.6 million barrels per day in 2020. The sustained demand for oil and gas fuels the need for advanced drilling technologies, driving the demand for nickel alloys. As oil and gas industries continue to push technological boundaries and operate under extreme conditions, the demand for high-performance nickel alloys is expected to rise, offering lucrative opportunities for market players in the coming years. Thus, the exceptional properties of superalloys that increase their applications in oil and gas exploration could be a major driver for the nickel alloys market.

Growing Applications of Nickel Alloys in Aerospace and Automotive Industries

Nickel Alloys are high-performance alloys that exhibit exceptional mechanical strength, resistance to corrosion, and heat resistance, making them indispensable in critical applications across industries such as aerospace and automotive. The aerospace sector is a significant consumer of nickel alloys, primarily for gas turbine engines used in aircraft propulsion.

The demand for commercial and military aircraft continues to rise, fueled by increasing air travel, defense budgets, and technological advancements. According to the International Air Transport Association (IATA), global air passenger traffic is projected to double by 2037 compared to 2017.

Further, the automotive industry is witnessing a growing demand for high-performance and fuel-efficient engines, leading to the adoption of nickel alloys in critical components. Nickel Alloys enhance engine performance, durability, and resistance to high temperatures and corrosive environments.

Government initiatives to reduce carbon emissions and improve fuel efficiency are driving the demand for advanced engine technologies. For instance, the European Union's regulation on CO2 emissions for passenger cars and light commercial vehicles aims to achieve an average emission target of 95 grams of CO2 per kilometer by 2021. As aerospace and automotive industries continue to prioritize high-performance and reliable materials, the demand for nickel alloys is expected to further surge in the coming years.

Stringent Environmental Regulations and Competition from Substitutes

Environmental and sustainability concerns pose a significant restraint to the global nickel alloys market. Nickel mining and refining processes can have adverse environmental impacts, including deforestation, water pollution, and greenhouse gas emissions. Governments and regulatory bodies worldwide are implementing stricter environmental regulations, increasing pressure on the nickel industry to adopt sustainable practices.

For instance, the European Union's (EU) circular economy strategy aims to promote sustainable material use, recycling, and waste reduction. Compliance with these regulations adds additional costs and challenges for market players, potentially hampering market growth.

The availability of alternative materials challenges the Global Nickel Alloys Market. In certain applications, nickel alloys compete with substitutes such as stainless steel, aluminum alloys, and composites. Such materials offer similar properties at a lower cost, making them attractive alternatives for certain industries.

The development of advanced materials and manufacturing processes further intensifies the competition. Market players need to continuously innovate and demonstrate the unique advantages of nickel alloys to maintain their market position.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic in early 2020 has had a significant impact on various industries worldwide, and the nickel alloys market is no exception. Nickel alloys, known for their superior corrosion resistance and high-temperature strength, find extensive applications in sectors such as aerospace, automotive, oil and gas, and chemical processing.

The pandemic-induced economic downturn resulted in fluctuating demand for nickel alloys across key end-use industries. The aerospace sector, one of the significant consumers of nickel alloys, faced a severe decline in air travel and aircraft production.

According to data from the International Air Transport Association (IATA), global air passenger traffic plunged by 65.9% in 2020 compared to 2019. The respective fact has led to reduced orders for new aircraft and a decrease in maintenance and repair activities, directly affecting the demand for nickel alloys.

Similarly, the automotive industry witnessed a decline in vehicle production and sales, impacting the demand for nickel alloys used in engine components and exhaust systems. However, the resilience and adaptability of the nickel alloys industry will play a crucial role in overcoming the challenges posed by the pandemic and shaping its future growth.

Segment Analysis

The Global Nickel Alloys Market is segmented based on type, product, application, end-user and region.

Exceptional Properties of Nickel Alloys That Boost their Applications in Chemical and Aerospace Verticals

With the continuous investment in aerospace and defense and the growth of the chemical industry, the demand for nickel-plated components is set to surge. The aerospace and defense sectors are significant contributors to the growth of the electroplating segment in the global nickel alloys market.

Electroplated nickel alloys offer superior protection against corrosion and wear, making them ideal for aerospace and defense applications. With increasing defense budgets worldwide, governments have invested heavily in the aerospace and defense sectors. According to government sources, global military expenditure reached US$ 1.98 trillion in 2020, with an increase of 2.6% compared to the previous year.

The increased investment in aerospace and defense drives the demand for nickel-plated components used in aircraft engines, missile systems, and other critical applications.

The chemical processing and petrochemical industries also contribute to the growth of the electroplating applications segment in the nickel alloys market. Electroplated nickel alloys provide excellent corrosion resistance, making them suitable for various chemical processing and petrochemical applications.

The demand for nickel-plated components in these industries is driven by the need to ensure safety, durability, and long-term performance. Government sources indicate steady growth in the chemical industry, with global chemical sales reaching over $4.1 trillion in 2020. The respective growth underscores the increasing demand for nickel-plated components used in chemical processing and petrochemical applications.

Geographical Analysis

Booming Automotive and Aerospace Industries and Increasing Energy Demand and Power Generation

The Asia-Pacific region demonstrates substantial growth potential in the global nickel alloys market, driven by booming automotive and aerospace industries and increasing energy demand and power generation. The automotive and aerospace sectors play a crucial role in driving the growth of the nickel alloys market in the Asia-Pacific region.

As economies in Asia-Pacific experience a rise in disposable income and urbanization, there is a surge in automotive production and air travel demand. Nickel alloys, known for their excellent strength-to-weight ratio and corrosion resistance, are widely used in engine components, exhaust systems, and aircraft structures. According to the International Air Transport Association (IATA), Asia-Pacific accounted for nearly 40% of global air passenger traffic in 2020, underscoring the region's dominance in the aerospace sector.

The Asia-Pacific region's escalating energy demand, particularly in emerging economies like China and India, drives the growth of the nickel alloys market. Nickel alloys are extensively used in the production of power generation equipment, including gas turbines, heat exchangers, and nuclear power systems.

With the rising focus on clean and renewable energy sources, the demand for nickel alloys in solar power and wind energy applications is also increasing. The Asia-Pacific region has witnessed significant investments in renewable energy projects, supported by government initiatives and policies promoting sustainable energy sources.

Competitive Landscape

The major global players include: Anglo American Plc, BHP Billiton, Eramet SA, Glencore, Jinchuan Group, Norilsk Nickel, Minara Resources, Norilsk Nickel, PT Antam and Sherritt International Corp.

Why Purchase the Report?

• To visualize the Global Nickel Alloys Market segmentation based on type, product application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of nickel alloys market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Nickel Alloys Market Report Would Provide Approximately 70 Tables, 91 Figures And 223 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies