by Alloy strips find wide usage in various end-use industries such as automotive, packaging, building & construction, consumer goods, and others. In the automotive industry, alloy strips are used for making car body panels, engine parts, brake calipers, and other components due to properties like corrosion resistance, ductility, and strength.
The global Alloy Strips Market is estimated to be valued at US$ 77 Bn 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 Dynamics:
The global Alloy Strips Market is projected to witness significant growth due to increasing usage of alloy strips in the automotive industry as mentioned in the heading. The demand for alloy strips from the automotive industry is rising significantly owing to the growth in vehicle production across the world and preference of automakers to use advanced alloy materials in vehicles in order to reduce weight and increase strength. Furthermore, strict emissions regulations are also propelling automakers to adopt lightweight materials like alloy strips. This rising demand from the automotive industry is projected to drive the growth of global alloy strips market over the forecast period.
SWOT Analysis
Strength: India is one of the largest producers and exporters of alloy strips globally. Some major steel producers in India have extensive production facilities and supply chain networks for alloy strips. This help them to cater to the growing domestic as well as global demand in a cost-effective manner. The government of India also offers various incentives and tax benefits to steel producers in special economic zones to boost manufacturing.
Weakness: The alloy strips market is highly fragmented in nature with the presence of several small and medium scale manufacturers. This increases the competition and bargaining power of buyers. Further, volatility in prices of major raw materials like steel can impact the margins of alloy strips producers.
Opportunity: Growing infrastructure development and construction activities across regions like Asia Pacific and Middle East & Africa are expected to drive the demand for alloy strips in the coming years. Also, increasing sales of automobiles and other end-use industries will support the market expansion.
Threats: Protectionist trade policies adopted by major economies can impact the international trade of alloy strips. Also, shifting focus towards renewable energy and other green technologies may reduce the demand from conventional end-use sectors in long term.
Key Takeaways
The Global Alloy Strips Market Size is expected to witness high growth on account of increasing consumption from construction and automotive sectors.
Regional analysis: Asia Pacific dominates the global alloy strips market and the region is estimated to maintain its leadership position during the forecast period. This can be attributed to rapid infrastructure development and expanding auto manufacturing industry in major countries like India and China. The Asia Pacific alloy strips market is projected to grow at over 4% annually till 2031.
Key players operating in the alloy strips market are ArcelorMittal, POSCO, NSSMC, JFE Steel, Baosteel Group, ThyssenKrupp AG, and Outokumpu. These companies collectively account for over 50% of the global production capacity. They are focusing on mergers & acquisitions to expand their geographical footprints as well as new product development to capture emerging application areas.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
