Aerospace Raw Materials Market Forecast | 2021-2026

Market Insights

The aerospace raw materials market is estimated to grow from USD 10.9 billion in 2020 to reach USD 17.2 billion by 2026 at an impressive CAGR of 7.4% during the forecast period.

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The market suffered a slight impact by B737MAX grounding, only the North American demand suffered a minor downturn in 2019. As the industry stakeholders were eagerly waiting for the B737 MAX grounding storm to clear up, they were unexpectedly hit by the intensely incalculable pandemic in 2020, bringing in brusque changes in the business. The jarring effects of the pandemic shook even the big guns of the aerospace industry, compelling them to restructure their strategies and fight for survival.

As a result, Stratview estimates suggest that the aerospace raw materials market experienced a grave downturn in 2020, more than a 25% plunge in 2020 (YoY).

What are aerospace raw materials?

Materials used in the aerospace industry have had 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 the market stakeholders in the industry in years to come.

Market Dynamics

These factors are expected to boost the demand for the market in the coming years:

• An expected rebound in commercial and regional aircraft deliveries.
• Upcoming aircraft programs (B777X, C919, A321XLR and Irkut MC-21).
• Aging aircraft fleet size.
• Growing global satellite industry.
• Increasing penetration of composites in newer variants of aircraft.
• Increasing use of lightweight titanium alloys and powders. 

Key Players

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.

Some of the key players in the market are-

• Solvay S.A.
• Toray Industries, Inc.
• VSMPO-AVISMA Corporation
• Allegheny Technologies, Inc.
• TIMET (Berkshire Hathaway Inc.)
• Alcoa Corporation
• Kaiser Aluminum
• Constellium SE
• Hexcel Corporation
• Carpenter Technology Corporation.

All the major raw material suppliers have different growth strategies based on their synergies, product portfolio, market reach, geographical presence, and market positioning. However, the 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.

Market Experiencing Gradual Consolidation

The aerospace raw materials 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. Listed below are some examples.

• 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.
• In 2015, Alcoa Corporation, the world’s leading supplier of aluminum, acquired RTI International Metals, gaining excellent capabilities in the aerospace titanium market.

Segments Analysis

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By Material Type: Titanium & Aluminum Alloys - the Largest by Value & Volume Respectively

The market is segmented into titanium & alloys, aluminum & alloys, steel & alloys, composites, and others. In terms of value, titanium & alloys held more than 35% market share in 2020 and are expected to remain the largest segment of the market during the forecast period.

Over the eons, 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.

By Platform Type: Commercial Aircraft to Maintain Dominance in The Long Term

The market is segmented as commercial aircraft, regional aircraft, general aviation, military aircraft, helicopter, and spacecraft. Despite enduring a massive blow in 2020, commercial aircraft held more than 55% market share in 2020 and is expected to remain the largest as well as the fastest-growing segment of the market during the forecast period. 

Early signs of healing are apparent – The lift of FAA’s B737max grounding order (Nov. 2020) and Airbus’ highest delivery figures (Oct. 2020), since before the onset of the pandemic. The healthy recuperation is well backed by strong order backlogs of 11,987 (Airbus: 6,998 and Boeing: 4,989) aircraft as of March 2021.

Regional Analysis: North America Leads the Pack with the Largest Share of the USA in the Region

North America held more than 45% market share in 2020 and 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.

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Asia-Pacific is anticipated to register the quickest recovery in the post-pandemic market developments, driven by a host of factors including increasing demand for commercial aircraft to support rising passenger traffic, increasing defense budget of key economies, the opening of assembly plants of Boeing and Airbus, and upcoming indigenous commercial aircraft (COMAC C919).

Research Methodology

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 2021 to 2026. 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 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 2,000 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 the 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 the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Customization Options

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.