Market Highlights
Materials used in the aerospace industry have undergone a remarkable transition in the industry over the decades concerning properties, applications, and other factors. Raw materials majorly used in the aerospace industry are aluminum & alloys, titanium & alloys, composites, steel & alloys, and other alloys. Titanium and composites are rapidly gaining traction in key applications.
Recent industry focus indicates that major players are moving from aluminum to advanced materials, especially carbon composites and titanium, in the latest aircraft programs. It is anticipated that titanium and composites will remain the apple of the eye of market stakeholders in the industry in years to come.
In 2020, the aviation industry faced a significant downturn due to the COVID-19 pandemic. Decreased traveler interest resulted in reduced flight schedules, which had a cascading effect on aircraft manufacturers, particularly Boeing and Airbus. Aerospace raw materials, a sizeable market, could not escape from such trends and witnessed a colossal decline of more than 35% in 2020.
However, the long-term outlook for the market seems very promising, as the market recorded robust growth in 2022. In 2022, Boeing bolstered its portfolio by introducing a new 777X-based freighter, expanding its 777X and cargo offerings. Boeing aims to achieve a delivery rate of four 777s per month by 2025/26. In September 2023, Airbus achieved significant milestones, delivering 55 jets, comprising four A220s, 44 A320s (all NEO), two A330s, and five A350s. Both Airbus and Boeing are planning to raise their production rates for key programs in the coming years. Overall, the aerospace raw materials market is likely to rebound at a promising CAGR of 5.3% in the long run to reach US$ 19.3 Billion in 2028.
Recent Market JVs and Acquisitions:
- In May 2023, Arconic Corp., known for its portfolio encompassing the rolled products business, which manufactures aluminum coils, sheets, and plates through cold rolling and hot rolling processes, agreed to be acquired by Apollo Global Management Inc. (APO.N) in a take-private deal valued at about US$ 5.2 billion.
- In June 2023, Constellium, a technology and market leader in aluminum solutions, and TARMAC Aerosave, a global leader in aircraft green recycling, joined forces to progress toward achieving complete aluminum circularity in the commercial aviation sector.
- In June 2023, MiddleGround Capital, a private equity firm, acquired A.M. Castle & Co., a leading provider of metals and supply chain solutions for industrial and aerospace customers.
- In November 2020, Kaiser Aluminum Corp. took steps to enter the North American aluminum packaging industry by acquiring the rolling mill business in Indiana from Alcoa Corp. subsidiary Alcoa Warrick LLC for US$ 670 million.
- In April 2020, Novelis Inc., a supplier of aluminum sheet and plate materials for fuselage and wing structure components, completed the acquisition of Aleris Corporation (a global supplier of rolled aluminum products).
Market Segments' Analysis
|
Segmentations
|
List of Sub-Segments
|
Dominant and Fastest-Growing Segments
|
|
Platform-Type Analysis
|
Commercial Aircraft, Regional Aircraft, General Aviation, Military Aircraft, Helicopter, and Spacecraft
|
Commercial aircraft is anticipated to remain the biggest demand generator for raw materials in the years to come.
|
|
Material-Type Analysis
|
Titanium & Alloys, Aluminum & Alloys, Steel & Alloys, Composites, and Others
|
Titanium & Alloys stand at the forefront as the dominant material type in the market.
|
|
Form-Type Analysis
|
Titanium & Alloys (Plate, Billet, and Others), Aluminum & Alloys (Extruded Products, Sheet & Plate, Cast Products, and Others), Steel & Alloys (Long Products and Flat Products), and Composites (Prepreg, Compounds, and Others)]
|
Billet (of titanium & alloys), sheet & plate (of aluminum & alloys), and long products (of steel & alloys), and prepreg (of composites) stand at the forefront as the dominant forms type in the market.
|
|
Sales Channel-Type Analysis
|
Direct Sales and Distributor Sales
|
Direct sales stand out as the prevailing sales channel type during the forecast period.
|
|
Regional Analysis
|
North America, Europe, Asia-Pacific, and The Rest of the World
|
North America is expected to remain the largest market over the next five years, whereas Asia-Pacific is likely to grow at the fastest rate.
|
Based on the platform type, the aerospace raw materials market is segmented into commercial aircraft, regional aircraft, general aviation, military aircraft, helicopter, and spacecraft. Commercial aircraft is expected to remain the largest and fastest-growing platform in the market during the forecast period. With the consistent rise in commercial aircraft deliveries in 2022, Airbus secured the delivery lead for the fourth consecutive year, having delivered 663 aircraft, surpassing Boeing's 480 shipments. In the previous year (2021), Boeing and Airbus delivered 340 and 611 aircraft, respectively. Boeing's recent announcement for setting up a line for B737Max in the USA is likely to allow the company to produce the aircraft at a faster rate. A similar exercise was performed by Airbus, installing its first A320neo assembly line in France.
Based on the material type, the market is segmented into titanium & alloys, aluminum & alloys, steel & alloys, composites, and others. Titanium & Alloys are expected to remain the dominant material in the market during the forecast period. Over the years, there has been a greater penetration of titanium parts as new aircraft programs are built with higher titanium content. In terms of volume, aluminum & alloys hold a significant share as all the legacy aircraft platforms, such as B737 and A320, are built with extensive use of aluminum alloys.
In terms of regions, North America is expected to remain the largest market for aerospace raw materials during the forecast period. The USA is the growth engine of the region’s market and has one of the largest fleets of commercial and military aircraft in the world. Due to the presence of major companies, the region is the early go-getter in the industry concerning technology and material adoption.
Asia-Pacific is likely to witness the fastest growth during the forecast period, driven by a host of factors including increasing demand for commercial aircraft to support rising passenger traffic, increasing defense budget of key economies, opening of assembly plants of Boeing and Airbus, and upcoming indigenous commercial aircraft (COMAC C919).
Key Players
The market is gradually heading towards consolidation as the industry recorded a good number of mergers & acquisitions to tap growing opportunities in this briskly expanding market. For instance, in 2015, Solvay SA acquired Cytec Industries Inc. to enhance its advanced material portfolio. Similarly, in 2018, Toray, the world’s largest supplier of carbon fiber, acquired TenCate Advanced Composites Holding B.V. (TCAC) from Koninklijke Ten Cate B.V. Also, in 2015, Alcoa Corporation, the world’s leading supplier of aluminum, acquired RTI International Metals, gaining excellent capabilities in the aerospace titanium market. The following are the key players in the aerospace raw materials market.
- Arconic Corporation
- VSMPO-AVISMA Corporation
- Allegheny Technologies, Inc.
- Titanium Metals Corporation (TIMET)
- Constellium SE
- Kaiser Aluminum Corporation
- Carpenter Technology Corporation
The formation of long-term contracts, new product developments, and strategic alliances are some of the key strategies adopted by major players.
Research Methodology
This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s aerospace raw materials market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis
- Market trend and forecast analysis
- Market segment trend and forecast
- Competitive landscape and dynamics: Market share, Product portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for existing and new players
- Key success factors
The aerospace raw materials market is segmented into the following categories.
Aerospace Raw Materials Market, by Platform Type
- Commercial Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Regional Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- General Aviation (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Military Aircraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Helicopter (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Spacecraft (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Aerospace Raw Materials Market, by Material Type
- Titanium & Alloys (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Aluminum & Alloys (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Steel & Alloys (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Composites (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Aerospace Raw Materials Market, by Form Type
- Titanium & Alloys (Form Type: Plate, Billet, and Others)
- Aluminum & Alloys (Form Type: Extruded Products, Sheet & Plate, Cast Products, and Others)
- Steel & Alloy (Form Type: Long Products and Flat Products)
- Composites (Form Type: Prepreg, Compounds, and Others)
Aerospace Raw Materials Market, by Sales Channel Type
- Direct Sales (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Distributor Sales (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Aerospace Raw Materials Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com
