Superalloy Honeycomb Materials Market by Material Type (Nickel, Stainless Steel, and Others), Application (Aerospace & Defense, Automotive, Power, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Superalloy Honeycomb Materials Market Analysis

The global superalloy honeycomb materials market size is predicted to garner $26,38,497.50 thousand in the 2021–2028 timeframe, growing from $14,66,666.70 thousand in 2020, at a healthy CAGR of 8.0%.

Market Synopsis

Superalloy honeycomb materials are used in aerospace & defense, automotive, power, and marine industries due to their superior properties. Growing R&D investment to develop technologically advanced aircraft is fueling the demand for superalloy honeycomb materials.

The process of manufacturing superalloy materials is lengthy, time consuming, and expensive. These factors are expected to hinder the superalloy honeycomb materials market growth over the forecast period.

According to the regional analysis, the Asia-Pacific superalloy honeycomb materials market is anticipated to grow during the review period generate a revenue of $7,15,032.80 thousand in 2028, with a CAGR of 9.0%. The growing importance of superalloy honeycomb materials in defense and automotive industry is the key factor driving the growth of superalloy honeycomb materials in the region.

Superalloy Honeycomb Materials Overview

Superalloy honeycomb materials have superior mechanical properties. These types of materials have high strength, corrosion resistance, and high thermal resistance and as a result they find application in turbine blades, jet engines, and advanced machineries.

Impact Analysis of COVID-19 on the Global Superalloy Honeycomb Materials Market

As the novel coronavirus continues spreading across the world, the aerospace & defense sector is feeling the impact during this unprecedented time. There is uncertainty about the economy's recovery, with many countries shut down and the shock of COVID-19 affecting global GDP and putting a significant strain on aerospace OEMs' and suppliers' revenue. In the aerospace industry, the impact is significant, especially for small and mid-size suppliers. Due to the necessary measures taken to contain the spread of novel coronavirus by the governing bodies, the companies have to work with a limited workforce, disturbing the production and supply chain. Additionally, due to restrictions on travel, there has been postponements in the delivery of new aircraft. As a result, the demand for spare parts and maintenance of aircraft plummeted, resulting in revenue losses.

However, the lockdown has been lifted in most countries, as well as companies have resumed operations. These activities are expected to fuel the demand for superalloy honeycomb materials in the coming years.

Growing Aerospace & Defense Activities across the World to Drive the Market Growth

The aviation sector in the U.S., Europe, China, and India is growing significantly. This is attributed to the growing investment by both, civil and defense sectors. The growing demand for advanced military aircraft and larger commercial aircraft is projected to fuel the demand for the superalloy honeycomb materials market. For instance, India Brand Equity Foundation, aerospace & defense market in India, is expected to reach $70 billion by 2030, driven by the increasing demand for advanced infrastructure and favorable government policies.

According to the International Civil Aviation Organization (ICAO), by 2035, passenger traffic and freight volume should be double. This is driven by the rising middle-class population, disposable income, and rise in low-cost airlines offering competitive prices on popular destinations. Due to growing air traffic and economic activities, the demand for commercial aircraft is steadily increasing. As per the Airbus press release, 13 November 2021, to meet growing demand, the world will require around 39,000 new-build passengers and freighter aircraft by 2040. These factors are expected to fuel the demand for the superalloy honeycomb materials market.

To know more about global superalloy honeycomb materials market drivers, get in touch with our analysts here.

The High Cost of Base Materials Used for Developing Superalloys to Restrain Market Growth

The nickel-based superalloy used in the aerospace industry has high strength, corrosion resistance, and can withstand temperatures as high as 700°C. The cost of a superalloy used in the aerospace industry continues to rise to a new high. For instance, Argus estimates that the total intrinsic value of Inconel 718 alloy, with 52pc nickel, 19pc chromium, 5pc niobium, and 3pc molybdenum, rose to $5.8355/lb on 30 July, up from $5.5996/lb at the start of the month. The rising cost of nickel superalloy is expected to discourage buyers, thereby hampering the market growth.

Growing Investment in the Electric Vertical Take-off and Landing (eVTOL) Aircraft to Generate Huge Opportunities

Owing to the advancement in aerostructure, the concept of eVTOL is gaining popularity as the sustainable mobility solution for the future generation. The significant advantage of these aircrafts lies in inaccessible transit between the vertical landing and horizontal thrust. Moreover, uncompromised speed and endurance eliminate the need for long runways, imparting space-efficiency.

The eVTOL startups prefer to collaborate with leading aircraft manufacturers to develop prototypes that can efficiently deal with existing mobility problems such as noise, urban commuting, affordability, operating efficiency, reliability, and safety. Many giants such as Boeing, Lockheed Martin, and Airbus are making considerable investments in eVTOL military, intercity, intra-city, and cargo transportation to increase operational efficiency. Furthermore, increasing trade volumes is one of the vital factors for surging the demand for superalloy honeycomb market during the forecast period.

To know more about global superalloy honeycomb materials market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The nickel superalloy honeycomb materials sub-type is anticipated to have a dominant market share and generate a revenue of $20,09,151.00 thousand by 2028, growing from $10,93,802.90 thousand in 2020. The nickel materials have superior mechanical properties such as high strength, corrosion resistance, and high thermal resistance. In addition, nickel superalloy is cost-effective, withstands high temperatures, and is resistant to most chemical solvents. As a result, the nickel superalloy material finds application in the space and aviation industry.

Source: Research Dive Analysis

The aerospace & defense sub-segment is anticipated to have a dominant market share and generate a revenue of $13,30,465.70 thousand by 2028, growing from $7,42,048.90 thousand in 2020. Declining cost, advancement in technology, and growing government interest in space exploration are driving investment in the space industry. The growing interest in satellite broadband, human travel to space, and high-speed product delivery have resulted in increasing private sector investment in the space industry. These factors are expected to drive the demand for superalloy honeycomb materials in the aerospace & defense application.

Source: Research Dive Analysis

The Market for Superalloy Honeycomb Materials in North America to be the Most Dominant

North America superalloy honeycomb materials market accounted for the highest market share in 2020. The region accounted for $5,42,666.70 thousand in 2020 and is estimated to reach $9,34,028.10 thousand by 2028, with a CAGR of 7.4%. Growing investment in the aerospace & defense industry is the main factor driving the demand for superalloy honeycomb materials in North America. Besides, North America, is among the top consumer of automobile in the world. Superalloys are used in manufacturing turbocharger. Growing investment in developing electric vehicle is propelling the market in the North America.

The Market for Superalloy Honeycomb Materials in Asia-Pacific is projected to grow with the Highest CAGR

Asia-Pacific superalloy honeycomb materials market is estimated to reach $7,15,032.8 thousand by 2028, at a significant CAGR of 9.0%. The superalloy honeycomb materials are used in heat-resistant turbochargers. The growing investment in automotive industry, especially in China and India, is driving the demand for superalloys in the Asia-Pacific region.

Competitive Scenario in the Global Superalloy Honeycomb Materials Market

Acquisition and investment are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading superalloy honeycomb materials market players are Allegheny Technologies Incorporated (ATI), Chromalloy Gas Turbine LLC, OC Oerlikon Management AG, HAYNES INTERNATIONAL, AMETEK Inc., Hi Tech Honeycomb, Indy Honeycomb, Quality Honeycomb, JSC ROTEC, and Howmet Aerospace.

Porter’s Five Forces Analysis for the Global Superalloy Honeycomb Materials Market:

• Bargaining Power of Suppliers: Raw materials such as nickel, steel, and others used to produce superalloy honeycomb materials. However, presence of large number of suppliers reduces their profits as the buyer can switch from one supplier to another based on the basis of cost factor and demand.
  Thus, the bargaining power of suppliers is low.
• Bargaining Power of Buyers: There are significant number of suppliers in the market. Buyers can easily switch from one supplier to another.
  Thus, buyer’s bargaining power will be high.
• Threat of New Entrants: Manufacturing superalloy honeycomb materials is complex process and capital intensive. Furthermore, aircraft manufacturers are shifting towards the innovative materials such as carbon fiber. However, companies that are in the superalloy honeycomb materials market are much more globalized.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: No substitute is available.
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The companies operating in this market are focusing on bringing innovative technologies in superalloy honeycomb materials which increase the industry competition.
  Therefore, competitive rivalry in the market is high.