Global Nickel Based Alloys Tube Market - Forecast(2023 - 2028)

Global Nickel Based Alloy Tube Market Overview

Global Nickel Based Alloy Tube market size is forecasted to reach US$2.9 billion by 2027 after growing at a CAGR of 4.6% during 2022-2027. Nickel-based alloys are very useful materials for manufacturing high-quality tubing products. Nickel-based alloy tubes are non-ferrous metals with high strength and toughness, excellent corrosion resistance, and superior elevated temperature properties. They can be electroplated and are easily welded, making them suitable for use in industries where very high and low temperatures became effective. Nickel alloys are excellent for heat exchangers in the chemical processing and nuclear industries. They are used in steam generator tubing in the nuclear power industry, high-temperature aircraft systems, and oil and gas extraction programs where corrosion and pressure- and temperature-resistant tubing are required. Their corrosion resistance also makes them useful in desalination equipment. The duplex steel of chromium-nickel molybdenum composition is commonly used for handling phosphoric acid solutions within limits of concentration, temperature, aeration purity for which are suitable. Furthermore, major properties like corrosion, pressure and temperature resistibility are expected to drive the global nickel-based alloy tube industry substantially during the forecast period.

Global Nickel Based Alloy Tube Market COVID-19 Impact

The Coronavirus pandemic has impacted the global nickel-based alloy tube market. Currently, the core industries such as aerospace, automotive, energy, medical, oil and gas, nuclear, and construction industries are highly impacted. Due to the social distancing policy, most aircraft and automobile manufacturing plants were in a standstill position, which declined the demand for global nickel-based alloy tubes. The implications are not consistent among continents or even among neighboring countries making the outlook extremely difficult in a global market. According to International Civil Aviation Organization (ICAO), in 2020, the global airline industry has incurred a revenue loss of USD 372 billion. Thus, the halt of the aviation industry affected the global nickel-based alloy tube market during the forecast period.

Report Coverage

Key Takeaways

• The global nickel-based alloy tube properties such as high-performance, corrosion-resistant, electronic, and heat resistant are driving the global nickel-based alloy tube market
• Nickel alloys are used to manufacture various components of aircraft engines, due to their superior properties compared to other materials like steel and stainless steel are supporting the market growth.
• Nickel alloy tubing is also ideal for transporting other heat-sensitive liquids like milk because it does not corrode over time, unlike stainless steel tubes.

Figure: Asia-Pacific Nickel Based Alloy Tube Market Revenue, 2021-2027 (US$ Billion)

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Global Nickel Based Alloy Tube Market Segment Analysis – By Application

The heat exchangers tube segment held the largest share in the global nickel-based alloy tube market in 2021 and it is expected to grow at a CAGR of 4.1% during 2022-2027. Nickel based alloy tube are excellent for heat exchangers in the chemical processing and nuclear industries. These are used in steam generator tubing in the nuclear power industry, in high-temperature aircraft systems, and in oil and gas extraction programs where corrosion, pressure and temperature-resistant tubing is required. Their corrosion resistance also makes them useful in desalination equipment. Heat exchangers are found in power plants, chemical processing plants, petrochemical production plants, waste treatment systems, and oil and gas processing. The nuclear industry also uses heat exchangers to help cool or heat its systems. According to International Energy Agency (IEA), global nuclear industry was raised by 3.5% in 2021 compared to 2020. Thus, the heat exchanger tube is owing to the growth of nickel-based alloy tube market during the forecast period.

Global Nickel Based Alloy Tube Market Segment Analysis – By End-Use Industry

The oil and gas segments accounted for around 22% of the market share in 2021 in the global nickel-based alloy tube market. Oil & gas companies are using nickel-based alloy equipment and components, owing to their high corrosion resistance and superior mechanical and physical properties compared to other types of materials such as stainless steel and iron. Various grades of nickel alloys are used in the oil & gas industry for their improved corrosion and stress resistance. Nickel-based alloys are used in process piping systems, separators, scrubbers, pumps, manifolds, Christmas tree components, and flowlines and pipelines transporting corrosive oils and gas. The Kingdom of Saudi Arabia, the second-largest member country of the organisation of the Petroleum Exporting Countries (OPEC), holds around 17% of the world’s proven petroleum reserves. The oil and gas sector accounts for about 50% of gross domestic product and approximately 70% of export earnings. Therefore, the growth of oil and gas companies are owing to the growth of nickel-based alloy tube market during the forecast period. 

Global Nickel Based Alloy Tube Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the nickel base alloy market in 2021 up to 34% owing to increasing demand for aircraft in the region. India is the third-largest defense spender after the United States and China. India imports approximately 60% of its defense requirements, according to the Government of India. According to International Trade Administration, India is expected to be a market of 442 million passengers, with the aviation industry supporting 19.1 million jobs and contributing to $172 billion in GDP by 2035. Thus, the upsurge in the demand for aerospace components is anticipated to drive the global nickel-based alloy tube market in the Asia-Pacific region.

Global Nickel Based Alloy Tube Market Drivers

Accelerating Technology in Production of Nickel Based Alloy Tube

The global nickel alloy tube market is ever-changing, particularly when it comes to its multitude of end-use industries. Technology continuously evolves, and production methods and manufacturing processes are streamlined and improved. There have been significant changes in manufacturing, for example, with the introduction of Industry 4.0 innovations and smart factory improvements. However, one thing that remains consistent is the demand for corrosion-resistant, conductive, heat-resistant, high-performance alloys. Nickel alloys are used across such a wide-ranging number of industries, from domestic goods and consumer electronics to aerospace, chemical processing, and power generation. These industries continue to drive the growth of the global nickel-based alloy tube market worldwide with increasing demand. It is innovation and emerging markets that are the biggest drivers in this continuing market growth. According to the Aerospace and Defense Industries Association of Europe, aviation industry contributed US$1.7 trillion of the total GDP. Therefore, the advancement in technology is anticipated to drive the global nickel-based alloy market during the forecast period.

Substantial Utilization by Medical Industry

Nickel based alloy tubes and nickel-containing stainless steels are essential materials in a wide spectrum of medical instruments and devices. These range from innovative surgical tools and techniques to a variety of devices used to manage chronic conditions. Nickel based alloy tube are employed in a range of implantable medical devices, ranging from orthopedic applications such as joint replacements to stents used in angioplasty. Nickel-based alloy tubes are These materials that are equally vital in hospitals and medical centers, where they help maintain the optimal hygiene levels required to prevent the spread of harmful organisms. According to the India Brand Equity Foundation (IBEF) by 2022, the healthcare sector in India is expected to reach US$ 372 billion. Thus, the development in medical devices is driving the global nickel-based alloy market during the forecast period.

Global Nickel Based Alloy Tube Market Challenges

Growing Environment Concerns

Environmental concern has always been a major challenge in the global nickel-based alloy tube market. There are many environmental issues associated with nickel including greenhouse gas emissions, habitat destruction, and contamination of air, water, and soil. Nickel deposits are typically found in low-grade ores with 1-2% nickel, thus, making it highly energy-intensive to extract and refine the metal. Not only is nickel, and its processing, toxic to the environment, it is also toxic to work with, making it a health concern. The use of recycled metals does reduce the overall impact of mining and processing nickel, but increasing global demand will continue to drive land-use changes that benefit the mining industry. Furthermore, national and international organizations are working globally to reduce their usage to an extent.

Global Nickel Based Alloy Tube Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Global Nickel Based Alloy Tube market. Global nickel-based alloy tube market top 10 companies are

1. VDM Metals
2. Aperam S.A. (Luxembourg)
3. Sandvik Materials Technology AB
4. Allegheny Technologies Incorporated
5. Carpenter Technology Corporation
6. ThyssenKrupp AG
7. Haynes International Inc
8. Voestalpine AG
9. Rolled Alloys Inc.
10. Precision Castparts Corporation

Recent Developments

• In February 2022, Sandvik Materials Technology has received a major order for advanced tubes for the energy segment. The order was booked in the first quarter of 2022 and is valued at approximately SEK 800 million, with deliveries scheduled between 2023 and 2025.
• In February 2022, ATI is a global producer of high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical, and specialty energy, and have contributed US$3 billion towards the production.
• In September 2019, The companies Aubert & Duval and OxMet Technologies, have announced a partnership, for the production and distribution of nickel-base powders.
  
  

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