Aerospace Raw Materials Market Report | Covid-19 Impact Analysis
Aerospace Raw Materials Market is Segmented by Platform Type (Commercial Aircraft, Regional Aircraft, General Aviation, Military Aircraft, Helicopter, and Spacecraft), by Material Type (Titanium & Alloys, Aluminum & Alloys, Steel & Alloys, Composites, and Others), by Form Type [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)], by Sales Channel Type (Direct Sales and Distributor Sales), and by Region (North America, Europe, Asia-Pacific, and Rest of the World).
Aerospace Raw Materials Market is Segmented by Platform Type (Commercial Aircraft, Regional Aircraft, General Aviation, Military Aircraft, Helicopter, and Spacecraft), by Material Type (Titanium & Alloys, Aluminum & Alloys, Steel & Alloys, Composites, and Others), by Form Type [Titanium & Alloys (Plate...
Covid-19 has impacted the market dynamics, competition, and global supply chains. The revenues has gone down in 2020 and may resume an uptrend gradually form 2021. Companies optimizing their operation and statergy will sustain and beat the competition.
Note: The summary below might not have included insights on covid impact since we have large number of reports.
Aircraft designing and manufacturing depends upon various factors including comfort, safety, efficiency, and reliability. Aircraft manufacturing is always highly regulated where a material has to undergo many quality checks and legal documentation, before it is used in an aircraft. This is a time-consuming process and any delay in aircraft manufacturing, due to shortage of raw materials, can lead to catastrophic results and put enormous pressure on OEMs with loss of millions of dollars.
Some of the raw materials have witnessed a remarkable journey in the aerospace industry over a period of time. Titanium and composite materials have been at the top in the list of materials contributing higher in OEMs’ strategies for next-generation aircraft. Other materials such as superalloys, have also witnessed fair growth over the years. It is anticipated that titanium and composites will remain the industry favourites in the years to come.
Raw materials majorly used in the aerospace industry are aluminum & alloys, titanium & alloys, composites, steel & alloys, and superalloys. Composite materials have been witnessing the most unsettling journey especially in the aerospace & defense industry where the penetration of advanced composites has increased to more than 50% of the structural weight in the next-generation aircraft programs, such as A350XWB and B787, with an aim to enhance fuel efficiency.
The year 2019 was challenging for the aerospace industry, especially for commercial aerospace, with several setbacks, compelling the industry giants to reconfigure their strategies. Grounding of B737 Max, P&W 1100G engine series failure (A320neo), delayed deliveries of upcoming aircraft programs such as B777X, and revised production rates of key aircraft programs, A350XWB and B787, due to cancellation of Boeing’s orders from China and other parts of the world, are some of the burning challenges of the industry, negatively impacting the entire supply chain including the demand for raw materials.
However, the long-term outlook is still extremely promising with good growth opportunities across regions. Boeing in its 2019-2038 outlook, anticipated the total new commercial and regional aircraft deliveries to be 44,040 aircraft units during 2019-2038. Similarly, Airbus anticipated the 39,210 commercial and regional aircraft deliveries during the same period.
Several other factors are also driving the growth of raw materials in the aerospace industry in which some of the most noticeable ones are
The aerospace raw materials market is gradually heading towards consolidation as the industry recorded good number of mergers & acquisitions to tap growing opportunities in this briskly expanding market. Listed below are some examples.
The market is segmented based on the platform type as commercial aircraft, regional aircraft, general aviation, military aircraft, helicopter, and spacecraft. Commercial aircraft is expected to remain the largest as well as the fastest-growing segment of the market during the forecast period. Strong order backlogs of the best-selling aircraft programs such as B737 and A320 including their variants; upcoming aircraft programs such as C919 and MC-21; and large aircraft fleet size are likely to create a healthy demand for raw materials in the commercial aircraft segment.
The grounding of B737Max across the world may have some short-term impact on the demand for raw materials. The long-term outlook still seems impressive with good growth opportunities across the world.
Based on the material type, the market is segmented as titanium & alloys, aluminum & alloys, steel & alloys, composites, and others. In terms of value, titanium & alloys are expected to remain the largest segment of the market during the forecast period. Over the decades, 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 usage 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. Opening of assembly plants of the A320 and A220 aircraft programs by Airbus in the USA further assures a healthy growth of the market in the region.
Asia-Pacific is likely to witness the highest growth during the same 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 and regional aircraft (COMAC C919 and Mitsubishi SpaceJet).
The supply chain of this market comprises raw material suppliers, intermediate product manufacturers, aerospace component manufacturers, aircraft and engine OEMs, airlines, aircraft leasing companies, and MRO companies.
Key players in the market are
All the major raw material suppliers have different growth strategies based on their synergies, product portfolio, market reach, geographical presence, and market positioning. However, formation of long-term contracts, new product developments, and strategic alliances are some of the key strategies adopted by major players to gain a competitive edge in the market.
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s market realities and future market possibilities for the forecast period of 2020 to 2025. After continuous interest in our aircraft aerostructures market report from the industry stakeholders, we have launched the aerospace raw materials market report in order to provide the most crystal-clear picture of the market. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of low-hanging fruits available in the market as well as in the formulation of growth strategies.
This report offers high-quality insights and is the outcome of 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 2,000 authenticated secondary sources, such as company annual reports, fact book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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 the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
The Aerospace Raw Materials Market is segmented into the following categories:
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The aerospace raw materials market is expected to witness an impressive growth of 4.6% CAGR in the foreseeable future.
VSMPO-AVISMA Corporation, Allegheny Technologies, Inc., TIMET (Berkshire Hathaway Inc.), Alcoa Corporation, Kaiser Aluminum, Constellium SE, Hexcel Corporation, Solvay S.A., Toray Industries, Inc., Carpenter Technology Corporation are among the key players in the aerospace raw materials market.
North America is expected to remain the largest aerospace raw materials market during the forecast period of 2020-2025.
Commercial aircrafts are expected to remain dominant in the aerospace raw materials market in the coming five years.
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