Aerospace Raw Materials Market: Highlights
Market Overview, Forecast & Drivers
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.
The market for raw materials in the aerospace industry was estimated at US$ 15.0 billion in 2019 and is likely to experience a healthy CAGR of 4.6% during the forecast period (2020-2025) to reach the value of US$ 19.8 billion in 2025.
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
- increasing commercial aircraft fleet size,
- aging aircraft fleet size,
- growing global satellite industry,
- increasing penetration of composites in newer variants of aircraft,
- increasing use of titanium alloys and powders, and
- increasing production of LEAP engines.
Market Experiencing Gradual Consolidation
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.
- 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.
Market Share Analysis
Analysis by Platform Type: Commercial Aircraft to Maintain Dominance in Long Term
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.
Analysis by Material Type: Titanium & Aluminum Alloys - the Largest by Value & Volume Respectively
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.
Regional Analysis: North America Leads the Pack with the Largest share of USA in the Region
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).
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.
Key players in the market are
- 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.
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.
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 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.
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. 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.
- Attractive market segments and associated growth opportunities
- Emerging trends
- Strategic growth opportunities for the existing and new players
- Key success factors
Market Segmentation
The 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 Trend and Forecast)
- Aluminum & Alloys (Form Type Trend and Forecast)
- Steel & Alloy (Form Type Trend and Forecast)
- Composites (Form Type Trend and Forecast)
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 Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Sub-Region Analysis: Latin America, the Middle East, 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 at [email protected]
