Market Overview:
Alloy strips are materials made of two or more metallic chemical elements. They are produced through melting the alloys and casting them into strips. Alloy strips offer advantages such as higher strength and corrosion resistance as compared to pure metal strips. They find wide applications in industries such as automotive, electronics, shipping, and aerospace among others.
Market key trends:
The global alloy strips market is expected to witness significant growth owing to increasing demand for higher strength and corrosion resistance materials across industries. Alloy strips made of stainless steel, titanium, and nickel-based alloys offer superior properties making them suitable for applications where high mechanical strength and corrosion resistance is required. For example, titanium alloy strips are increasingly used in aerospace industry for manufacturing airframes and jet engines components due to their high strength to weight ratio and corrosion resistance. In the automotive industry, stainless steel alloy strips are replacing carbon steel for manufacturing vehicle bodies and structural components due to their reduced maintenance and extended product lifespan.
The global Alloy Strips Market Share is estimated to be valued at US$ 28.04 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: Low capital requirement to enter the alloy strips market is a threat. However, established players dominate the supply chain are a deterrent.
Bargaining power of buyers: Large buyers can negotiate lower prices and demand better quality products. However, wide availability of substitutes limits this power.
Bargaining power of suppliers: Major raw material suppliers enjoy bargaining power due to their sizable production capacities and established relationships with buyers.
Threat of new substitutes: Aluminum or galvanized strips can replace alloy strips in some non-critical applications, posing a threat.
Competitive rivalry: Intense competition exists among key players to strengthen global footprint.
SWOT Analysis
Strength: Wide applications in various end-use industries like automotive, electronics, and construction enhance demand. Ability to impart corrosion resistance and mechanical strength are key advantages.
Weakness: Volatility in raw material prices can squeeze margins. High storage and transport costs due to weight and shape of products.
Opportunity: Growing construction and automotive industries in developing nations present an opportunity. Developing high-performance specialty alloys to target niche applications.
Threats: Trade wars and geopolitical tensions impact supply chains and prices. Stringent environmental regulations push for recycling over primary production.
Key Takeaways
The global Alloy Strips Market is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period, due to increasing demand from the automotive industry. The growing automotive production across the world is driving the consumption of alloy strips in applications such as suspension components, brake discs, and heat shields.
Regional analysis Asia Pacific dominates the global market and is expected to maintain its leading position over the forecast period as well. Countries such as China, Japan, and India are major producers and consumers of alloy strips in the region. Europe is another prominent market for alloy strips. Germany, Italy, and UK account for a significant share of the regional demand.
Key players operating in the Alloy Strips market are Nippon Steel Corporation, Thyssenkrupp AG, ArcelorMittal, Tata Steel, Outokumpu Oyj, Aperam, VDM Metals GmbH, Jindal Stainless Limited, Allegheny Technologies Incorporated, Ulbrich Stainless Steels & Special Metals, Â Inc., Carpenter Technology Corporation, Nucor Corporation, Daido Steel Co., Â Ltd., Sandvik AB, Elgiloy Specialty Metals.
