Alloy strips have a wide range of applications in various end-use industries such as automotive, construction, machinery, and equipment manufacturing among others. Alloy strips are made up of different metals such as stainless steel, aluminium, copper, brass, and bronze. They offer advantageous properties such as high strength, durability, resistance to corrosion and wear, and flexibility. Owing to these properties, alloy strips find significant usage in manufacturing automobile components, heat exchangers, fasteners, springs, and other mechanical and structural parts.
The global Alloy Strips Market is estimated to be valued at US$ 128.7 billion in 2023 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Automotive manufacturers are increasingly using alloy strips such as stainless steel strips and aluminium strips in manufacturing engine components, chassis, suspension components, heat shields, radiators, and exhaust systems owing to their light weight and corrosion resistance properties. According to OICA, global passenger car production reached 70.82 million units in 2020 and is expected to witness steady growth in the coming years. The growing automotive industry will augment the demand for alloy strips for use in automotive manufacturing, thereby driving the growth of the alloy strips market during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the alloy strips market requires high capital investment and is dominated by a few major players. Bargaining power of buyers: The bargaining power of buyers is moderate as there are a few substitutes available for alloy strips. Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in alloy strips such as chromium, nickel, etc. have a large number of suppliers globally. Threat of new substitutes: The threat of new substitutes is low as alloy strips have good corrosion and heat resistance properties making them difficult to substitute. Competitive rivalry: The competitive rivalry is high as the market is dominated by a few major players competing on the basis of product quality, reliability, and pricing.
SWOT Analysis
Strength: Alloy strips have good corrosion and heat resistance properties making them suitable for applications in various industries. Weakness: Processing of alloy strips requires high capital and maintenance cost. fluctuating raw material prices can impact the margins. Opportunity: Increasing application of alloy strips in automotive, chemical processing and industrial machinery industries presents an opportunity for market growth. Threats: Stringent environmental regulations regarding metal processing can increase compliance costs for manufacturers. Growing adoption of alternate materials poses a threat.
Key Takeaways
The Global Alloy Strips Market Size is expected to grow from USD 22.3 billion in 2024 to USD 27.2 billion by 2031, registering a CAGR of 3.6% during the forecast period.
The Asia Pacific region dominates the global alloy strips market and is expected to maintain its leading position over the forecast period aided by high demand from end use industries.
Key players operating in the alloy strips market are POSCO, Acerinox S.A., Outokumpu, Nippon Steel Corporation, JFE Steel Corporation. POSCO is a leading manufacturer of alloy strips with a global production capacity of over 7 million tons per year. The company offers a wide range of 300 series, 400 series and specialty alloy strips.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it