Alloy strips are extensively used in various applications across several end-use industries such as automotive, aerospace, building and construction, and industrial machinery owing to their durable, lightweight and corrosion resistant properties. These strips are manufactured by mixing two or more metallic elements, and are commonly made from stainless steel, aluminum, copper, titanium and nickel alloys. Alloy strips improve the strength, toughness and surface hardness of materials due to their microstructural and compositional homogeneity. The automotive industry has been a major consumer of alloy strips which are used to manufacture vehicle frames, internal and external body parts.
The global Alloy Strips Market is estimated to be valued at US$ 5.74 billion in 2023 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trend gaining traction in the alloy strips market is the increasing manufacturing and sales of electric vehicles globally which is significantly boosting the demand for advanced lightweight alloy strips like aluminum and titanium. Alloy strips are ideal for manufacturing frames, body parts and internal components of electric vehicles as they help reduce vehicle weight and enhance performance. For instance, demand from leading electric vehicle manufacturers like Tesla, BYD and Nissan is spurring investments by alloy strip producers to expand their electric-vehicle oriented production capacities. Another notable trend is the rising popularity of corrosion-resistant nickel and stainless steel alloy strips for infrastructure applications like bridges, underground tunnels and water pipelines where durability is critical. This is expected to open new growth avenues for alloy strip vendors over the forecast period.
Porter's Analysis
Threat of new entrants: Low capital requirements and accessibility to raw materials may attract new players. However, established players dominating distribution channels pose entry barriers.
Bargaining power of buyers: Large industrial buyers can negotiate prices, while several substitutes exist. However, customized services from suppliers maintain buyer dependence.
Bargaining power of suppliers: Key raw materials include aluminum and steel, supplied by a few large companies globally. Suppliers thus exert moderate bargaining power.
Threat of new substitutes: Plastic composites and fiberglass gain popularity for light-weighting in automotive and construction industries. However, superior properties of alloys sustain demand.
Competitive rivalry: The fragmented market consists of global leaders and local SMEs. Competition intensifies on pricing, quality, and delivery timelines.
Key Takeaways
The Global Alloy Strips Market Size is expected to witness high growth.
Regional analysis - Asia Pacific dominates and is expected to grow the fastest through 2031, led by China, India, and other developing nations boosting automotive, infrastructure and other end-use industries.
Key players operating in the alloy strips market are Norsk Hydro, Constellium, Aleris, AMAG Group, Alcoa Corporation, and Kobe Steel Ltd.
For more Insights, Read –
https://www.marketwebjournal.com/alloy-strips-market-size-market-share-analysis/
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