Alloy Strips Market is Estimated to Witness Strong Growth Owing to Rising Demand from Automobile Industry
They find extensive applications in various end-use industries such as automobiles, construction, packaging, and others due to their strength, durability, and corrosion resistance. Alloy strips are commonly used in automobiles for designing automobile bodies and other structural components. They help in reducing the overall weight of vehicles and improving fuel efficiency. Increasing automobile production globally is augmenting the demand for alloy strips significantly.
The global Alloy Strips Market is estimated to be valued at US$ 28.04 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The rising demand from the automobile industry offers significant growth opportunities for players in the Global Alloy Strips Market Size. Lightweighting has emerged as a key trend in the automotive industry to improve fuel efficiency and reduce carbon emissions. Auto manufacturers are increasingly using high strength alloy strips made of aluminium and magnesium alloys to reduce vehicle weight. This growing emphasis on lightweighting presents lucrative opportunities for alloy strip suppliers to collaborate with automakers and strengthen their market position. Ability of alloy strips manufacturers to develop novel lightweight and high strength alloys as per evolving needs of automotive OEMs will determine their success in capitalizing on opportunities arising from this trend.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the alloy strips market requires significant capital investment into manufacturing facilities, R&D, and establishing supply chains. However, the market is expected to grow at a steady pace providing opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high as alloy strips have numerous applications and buyers can switch between suppliers based on quality and pricing. Buyers seek competitive prices and unique product properties.
Bargaining power of suppliers: The bargaining power of suppliers is moderate to high as raw materials such as aluminum, steel, and polymers used in manufacturing alloy strips have few substitutes and suppliers have established relationships with buyers.
Threat of new substitutes: The threat of substitutes is low as alloy strips have distinct properties making them suitable for applications that require corrosion resistance, durability, and tensile strength. However, fiberglass reinforced composites pose competition in select applications.
Competitive rivalry: The competitive rivalry is high due to the presence of numerous global and regional players competing on the basis of pricing, product innovation, and supply reliability.
SWOT Analysis
Strength: Alloy strips have high corrosion resistance, durability, and tensile strength making them suitable for infrastructure, agriculture, and construction applications. The market is expected to grow at a steady CAGR through 2030.
Weakness: Fluctuations in raw material prices can impact profit margins. Environmental regulations pertaining to alloy production are steadily becoming stricter.
Opportunity: Growing investments in infrastructure development across regions present an opportunity. Demand from the agriculture sector is rising with advancement of irrigation systems.
Threats: Substitution threat from fiberglass composites in select applications. Intense competition among suppliers can lead to pricing pressures.
Key Takeaways
The global alloy strips market size was valued at US$ 28.04 Bn in 2023 and is expected to witness high growth over the forecast period. The market in Asia Pacific dominated in 2023 and is expected to continue its dominance supported by growth in China, India, and other developing countries where investments in infrastructure, construction and agriculture are rising.
Regional analysis: Asia Pacific remains the fastest growing as well as the largest market for alloy strips globally. China dominates alloy strips consumption in this region primarily driven by the country’s massive infrastructure development plans coupled with a strong manufacturing sector. India is also expected to contribute significantly to the regional growth supported by the government’s investment plans in transportation, irrigation, and housing.
Key players: Key players operating in the alloy strips market include SOLMAX (Canada), NAUE GmbH & Co. KG (Germany), Officine Maccaferri Spa( Italy), Berry Global Inc ( US), and Agru America, Inc ( US). SOLMAX and NAUE collectively account for over 35% of the global market share primarily due to their diversified product portfolio and strong distribution networks across major markets.
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