Nickel Alloy Market Trends

Growth Drivers

• Growing aerospace and defense sector: The aerospace and defense sectors continue to be major niches for nickel alloys as they require materials that have excellent heat resistance, excellent lightweight properties, and good durability. In July 2024, Aubert & Duval NDT joined forces with Alloyed to develop and launch ABD-1000AM, a nickel superalloy designed for additive manufacturing, which enhances its use in aerospace, defense, and space exploration. The demand for nickel alloys in military jets, rockets, and space vehicles is expected to soar as the global defense budget increases and the commercial aviation industry recovers.
• Petrochemical and renewable energy growth: Nickel alloys are gaining widespread adoption in the petrochemical, oil, gas, and renewable energy markets due to their corrosion resistance and ability to operate in high pressures. In April 2024, VDM Metals expanded its partnership with Rosswag Engineering, which will help promote VDM Powder Alloy 699 XA for hydrogen, ammonia, and methanol production processes. The exceptional performance of this alloy in highly corrosive environments is advancing its use in renewable fuel production and e-fuel cooling systems. Demand for advanced nickel alloys is escalating in line with shift to renewable energy infrastructure and decarbonization initiatives across the energy sector.
• Additive Manufacturing Technological Advancements: Additive manufacturing (AM) is altering the standard nickel alloys market to produce complex geometries and custom solutions with faster delivery time. EOS developed two nickel based superalloy powders specifically for Laser Beam Powder Bed Fusion (PBF-LB) in November 2024 in order to serve industries with high strength and heat resistance materials needs. Manufacturing processes are undergoing this technological advancement in all sectors of aerospace, automotive, and industrial equipment. AM not only facilitates design flexibility but also substantially limits material wastage, making nickel alloys major players in sustainable manufacturing practices.

Challenges

• Supply chain disruptions and dependency on critical minerals: Supply chain disruptions due to geopolitical tensions, trade restrictions, and variable availability of critical minerals, such as nickel and cobalt, make the nickel alloys market very sensitive. Limited sources of these essential materials cause price volatility and production delays and due to the growing demand for nickel alloys in sectors such as aerospace and renewable energy, supply chains are increasingly put under pressure. To make way for stable nickel alloys markets, the business is diversifying supply channels and securing long-term contracts with mineral producers.
• Environmental regulations and sustainability concerns: Stricter environmental regulations governing mining, production, and emissions create significant obstacles for nickel alloy manufacturers. Companies everywhere around the world are being forced to get greener by governments worldwide tightening policies around carbon emissions, waste management, and energy consumption. These regulations often necessitate expensive upgrades to production facilities and investments in cleaner technologies to comply. Failure to meet environmental standards can also result in fines and even legal issues and reputation damage.