Titanium Market - Forecast(2021 - 2026)
Titanium Market Overview
Titanium Market size is forecast to reach $7,608 million by 2025, after growing at a CAGR of 4.7% during 2020-2025, owning to growing application of titanium in various industries such as automotive, construction, aerospace and so on. Numerous applications of titanium alloys led by their low thermal expansion and co-efficient fire resistance properties, escalate the market demand hugely. Due to its nontoxic nature it is used in many medical equipment such as hip balls, hip balls, sockets and dental implants. Titanium circuits can also be used in applications that involve heating elements, weighing, load cells and force measurement, and can be used for flow measurement, fluid pressure and temperature measurement and strain gauge applications. Moreover, various advantages offered by titanium such as heat resistance and fuel efficiency are expected to drive a massive demand from the aircraft manufacturing industry in the coming years.
Titanium Market Report Coverage
The report: “Titanium Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Titanium Industry.
By Form: Bar, Sheet, Pipe, Plate, Threaded Rod & Wire, Tubing, Elbows, Flanges, Stub Ends, Screwed Fittings and Pipe Plugs, others.
By Grade: Ti 6Al-4V (Grade 5), Ti 6AL-4V ELI (Grade 23), Ti 3Al 2.5 (Grade 12), Ti 5Al-2.5Sn (Grade 6), and others
By Application: Aerospace, Military, Industrial Process, Automotive, Construction, Medical, Sporting Goods, Jewelry, Mobile Phones, and others.
By Geography: Americas, Europe, APAC, and RoW.
Key Takeaways
North America and Europe are considered as vital regions for the R&D and they are also important as sales markets. The US is considered to be an important consumer market owing to its technological advancements and increasing R&D in the manufacturing processes of the country.
In the world of chemical processing, titanium pipes have been found to be very cost-effective methods of resisting damaging corrosion in the process line and is very often specified for highly-corrosive industrial applications and frequently specified in processes which leads to increase in the usage of pipes which is directly proportional to the market growth.
Due to the Covid-19 pandemic, many key end user industries such as aerospace, automotive and construction have shown a significant decrease in demand which directly affects the sales of Titanium mill products for 2020 with demand slowly returning back in 2021-2022.
Titanium Market Segment Analysis - By Form
Plate held the largest share in the titanium market in 2019 and is growing at a CAGR of 4.1% during the forecast period, owning wide usage of titanium plate in various applications, especially in the medical or orthopedic implant functions. Titanium plates are used in laptops for instance and is present in Apple laptops as well as Samsung for examples. Titanium sheets and plates are used in the skin and frame structure of aircraft ranging from high-speed military jets to large 747s. Titanium plates are also used around the moving parts of an aircraft and in aircraft propellers and engines. Titanium plates and sheets have been used in panels for skyscrapers to museums. Memorials and statues have also been created using titanium panels. Titanium plates have also been used to provide support for buildings. Titanium plates are used in protective armor, tanks, vests, helmets and personnel carriers. These protective applications are used by both the military and police departments across the world. As a biocompatible metal, titanium is handled in large doses but provides minimal impact on the human body. Although it’s ingested daily, it’s not always absorbed. The medical industry uses the titanium plates for the human body because it presents a similar density to bone and used for joint replacements, hip replacements or knee replacement purposes. A titanium plate can also be used for sporting equipment. An example of how the titanium plate can be used for equipment includes golf club heads/drivers. The lightweight structure of the plate allows golfers (of all abilities) to hit the ball with ease, enhancing their overall performance
Titanium Market Segment Analysis - By Grade
Ti 6Al-4V (Grade 5) held a significant share in the titanium market in 2019, and is growing at a CAGR of 4.0% during the forecast period. Ti 6Al-4V, or Grade 5 titanium is known as the “workhorse” of the titanium alloys, and is the most commonly used of all titanium alloys. It accounts for around 52% of total titanium revenue across the world. Grade 5 usability lies in its many benefits as it can be heat treated to increase its strength, can be used in welded construction at service temperatures of up to 600°F. This alloy also offers its high strength at a light weight, useful formability and high corrosion resistance. Ti 6AI-4V’s usability makes it the best alloy for use in several industries, such as the aerospace, medical, marine and chemical processing industries. Owning to these factors its demand is high as compared to other grades.
Titanium Market Segment Analysis - By Application
Aerospace is the dominant application for titanium market and is anticipated to grow at a CAGR of 4.3% through the forecast period. The demand for titanium in aerospace is growing as it has excellent compatibility with CFRP with respect to corrosiveness and coefficient of thermal expansion issues. For example, the amount of titanium used in the low fuel consumption aircraft A350XWB manufactured by Airbus S.A.S., where a large amount of CFRP is used, has grown to more than twice the amount used in conventional aircraft. The usage of titanium in aircraft can also increase that aircraft’s range while decreasing its fuel use. A lighter aircraft requires less fuel to fly, allowing for fewer refueling stops and subsequently longer time periods spent in continuous flight. Titanium is used for multiple areas of aircrafts such as Fuselage, Engines, compressors, fan blades, landing gear, flaps, spoilers, fuel tanks and so on.
Titanium Market Segment Analysis - By Geography
Americas held the largest share in the titanium market in 2019 up to 41%, owning to increasing aircraft production in the region. With the increasing population and rising per capita income of the individuals, the demand for commercial aircraft is also increasing. The passenger volumes grew from 114.1 million passengers in 2015 to 126.8 million passengers in 2016 and 137.6 million passengers in 2017 in Mexico. The Mexican commercial aviation and related demand for maintenance repair and overhaul (MRO) have been driven by several factors such as Volaris and Interjet, the 2016 approval of the Delta-Aeromexico partnership, the Open Skies Agreement. However, Asia Pacific was the fastest-growing geographic segment in the titanium market, with a CAGR of 7.3%. According to China’s 13th Five Year Plan (2016-2020), by the end of 2020, China will have more than 4,500 civil aircraft, and by 2018, the number of Chinese civil airports had grown to 235. According to the International Trade Administration (ITA), in 2018 the Indian government spent a total of $645 in the civil aviation sector. As the use of titanium has increased in aircraft therefore, growth in production of these directly support titanium market growth.
Titanium Market Drivers
Long-term Growth Prospects for New Aircraft Shipments
According to the International Trade Administration (ITA), in 2019 China was the world’s second-largest civil aerospace and aviation services markets and one of the fastest growing markets. By the end of 2018, China had more than 59 airlines and 3,615 civil aircraft, an increase of 10% over 2017. In 2016, according to Boeing, China is estimated to require around 6,810 new commercial aircraft, valued at USD 1 trillion, over the next two decades. Also, according to Boeing India is expected to drive the demand for 2,300 aircrafts worth US$320 billion over the next 20 years. Also, the Eastern Economic Corridor (EEC) is targeting US$ 7 billion in investment in MROs and aviation-related industries in Thailand over the next 5 years. Titanium is used in engine applications such as rotors, compressor blades, hydraulic system components and nacelles. Titanium 6AL-4V alloy accounts for almost 50% of all alloys used in aircraft applications. Therefore, the growth in the production of new aircraft is expected to influence titanium products demand.
Titanium Market Challenges
Higher cost of titanium
Titanium offers performance as well as mass saving benefits in automotive components subjected to reciprocating and suspension loads and in components subjected to extreme temperatures and gradients. However, the extensive use of titanium is hampered by the high cost of the raw material and the special handling that is needed. With advances in extraction/fabrication techniques and ever-increasing gasoline prices, the advantage of using lightweight materials such as aluminum, magnesium, and titanium in automobiles continues to increase. The major drawback for titanium, much more so than the other light metals, is high cost. However, innovative extraction and fabrication approaches are leading to decreased cost.
The emergence of COVID-19
The COVID-19 pandemic has negatively impacted the global economy and lowered equity valuations, in addition to disrupting global supply chains and workforce participation. Quarantines and "stay in place" orders, the timing and length of containment and eradication solutions, travel restrictions, absenteeism by infected workers, labor shortages, or other disruptions to supply chain or customers have adversely impacted the sales and operating results and has resulted in some production delays in titanium market. In addition, from the demand perspective also, due to the grounding of airplanes, construction and manufacturing industries being in limbo contributed to a drop in fresh orders for Titanium mill products as customers are waiting to get a deeper understanding of the full impact of COVID-19 on their respective markets. In addition, order lead times could be extended or delayed and pricing or pricing of suppliers for needed materials could increase. To date, various countries have experienced some delays in state and municipal construction projects due to COVID-19. Site closures or project delays have occurred and increased social distancing and health-related precautions are required on many work sites, which may cause additional project delays and additional costs to be incurred. In addition globally, various companies have experienced the temporary closure of many of the customer's retail locations and temporarily shut down factories to comply with the government "stay in place" orders. It is expected that this global pandemic will have a major impact on the titanium market. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021.
Titanium Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Titanium Market. In 2019, the market of titanium has been consolidated by the top five players accounting for 73% of the share. Major players in the titanium market are Huntsman International, Ineos Group, Iluka Resources Ltd, Sumitomo Corporation, Vsmpo-Avisma Corporation, Toho Titanium Co., Ltd, Arconic Corporation, Allegheny Technologies Incorporated, TIMET, and Western Superconducting Technologies Co., Ltd.
Expansion/Acquisitions
In May 2020, Tronox Holdings plc has signed a definitive agreement to purchase for approximately $300 million the TiZir Titanium and Iron ('TTI') business from Eramet S.A., a publicly traded French international mining and metallurgy firm. This strategic transaction is an advancing vertical integration approach which will provide Tronox to expand titanium feedstock capability to better meet internal requirements and, in exchange, better support for pigment customers with a low-cost, reliable supply source.
In 2019, Western Superconducting Technologies Co., Ltd expanded its service by supplying a 63/80-MN two-column high-speed push-down open-die forging press by SMS group. Two integrated railbound 25-ton manipulators and a mobile eight-ton loading and unloading manipulator were also included in the supply.
In 2018, Arconic Corporation expanded aluminium and titanium aerospace parts facility in Bestwig, Germany. The expansion increased its production capacity in meeting growing demand from commercial aircraft manufacturers.
In 2018, Allegheny Technologies Incorporated invested $95million to expand its buisness in iso-thermal forging and heat treatment to meet rising demand from the market for aerospace jet engines.
Titanium Market size is forecast to reach $7,608 million by 2025, after growing at a CAGR of 4.7% during 2020-2025, owning to growing application of titanium in various industries such as automotive, construction, aerospace and so on. Numerous applications of titanium alloys led by their low thermal expansion and co-efficient fire resistance properties, escalate the market demand hugely. Due to its nontoxic nature it is used in many medical equipment such as hip balls, hip balls, sockets and dental implants. Titanium circuits can also be used in applications that involve heating elements, weighing, load cells and force measurement, and can be used for flow measurement, fluid pressure and temperature measurement and strain gauge applications. Moreover, various advantages offered by titanium such as heat resistance and fuel efficiency are expected to drive a massive demand from the aircraft manufacturing industry in the coming years.
Titanium Market Report Coverage
The report: “Titanium Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Titanium Industry.
By Form: Bar, Sheet, Pipe, Plate, Threaded Rod & Wire, Tubing, Elbows, Flanges, Stub Ends, Screwed Fittings and Pipe Plugs, others.
By Grade: Ti 6Al-4V (Grade 5), Ti 6AL-4V ELI (Grade 23), Ti 3Al 2.5 (Grade 12), Ti 5Al-2.5Sn (Grade 6), and others
By Application: Aerospace, Military, Industrial Process, Automotive, Construction, Medical, Sporting Goods, Jewelry, Mobile Phones, and others.
By Geography: Americas, Europe, APAC, and RoW.
Key Takeaways
North America and Europe are considered as vital regions for the R&D and they are also important as sales markets. The US is considered to be an important consumer market owing to its technological advancements and increasing R&D in the manufacturing processes of the country.
In the world of chemical processing, titanium pipes have been found to be very cost-effective methods of resisting damaging corrosion in the process line and is very often specified for highly-corrosive industrial applications and frequently specified in processes which leads to increase in the usage of pipes which is directly proportional to the market growth.
Due to the Covid-19 pandemic, many key end user industries such as aerospace, automotive and construction have shown a significant decrease in demand which directly affects the sales of Titanium mill products for 2020 with demand slowly returning back in 2021-2022.
Titanium Market Segment Analysis - By Form
Plate held the largest share in the titanium market in 2019 and is growing at a CAGR of 4.1% during the forecast period, owning wide usage of titanium plate in various applications, especially in the medical or orthopedic implant functions. Titanium plates are used in laptops for instance and is present in Apple laptops as well as Samsung for examples. Titanium sheets and plates are used in the skin and frame structure of aircraft ranging from high-speed military jets to large 747s. Titanium plates are also used around the moving parts of an aircraft and in aircraft propellers and engines. Titanium plates and sheets have been used in panels for skyscrapers to museums. Memorials and statues have also been created using titanium panels. Titanium plates have also been used to provide support for buildings. Titanium plates are used in protective armor, tanks, vests, helmets and personnel carriers. These protective applications are used by both the military and police departments across the world. As a biocompatible metal, titanium is handled in large doses but provides minimal impact on the human body. Although it’s ingested daily, it’s not always absorbed. The medical industry uses the titanium plates for the human body because it presents a similar density to bone and used for joint replacements, hip replacements or knee replacement purposes. A titanium plate can also be used for sporting equipment. An example of how the titanium plate can be used for equipment includes golf club heads/drivers. The lightweight structure of the plate allows golfers (of all abilities) to hit the ball with ease, enhancing their overall performance
Titanium Market Segment Analysis - By Grade
Ti 6Al-4V (Grade 5) held a significant share in the titanium market in 2019, and is growing at a CAGR of 4.0% during the forecast period. Ti 6Al-4V, or Grade 5 titanium is known as the “workhorse” of the titanium alloys, and is the most commonly used of all titanium alloys. It accounts for around 52% of total titanium revenue across the world. Grade 5 usability lies in its many benefits as it can be heat treated to increase its strength, can be used in welded construction at service temperatures of up to 600°F. This alloy also offers its high strength at a light weight, useful formability and high corrosion resistance. Ti 6AI-4V’s usability makes it the best alloy for use in several industries, such as the aerospace, medical, marine and chemical processing industries. Owning to these factors its demand is high as compared to other grades.
Titanium Market Segment Analysis - By Application
Aerospace is the dominant application for titanium market and is anticipated to grow at a CAGR of 4.3% through the forecast period. The demand for titanium in aerospace is growing as it has excellent compatibility with CFRP with respect to corrosiveness and coefficient of thermal expansion issues. For example, the amount of titanium used in the low fuel consumption aircraft A350XWB manufactured by Airbus S.A.S., where a large amount of CFRP is used, has grown to more than twice the amount used in conventional aircraft. The usage of titanium in aircraft can also increase that aircraft’s range while decreasing its fuel use. A lighter aircraft requires less fuel to fly, allowing for fewer refueling stops and subsequently longer time periods spent in continuous flight. Titanium is used for multiple areas of aircrafts such as Fuselage, Engines, compressors, fan blades, landing gear, flaps, spoilers, fuel tanks and so on.
Titanium Market Segment Analysis - By Geography
Americas held the largest share in the titanium market in 2019 up to 41%, owning to increasing aircraft production in the region. With the increasing population and rising per capita income of the individuals, the demand for commercial aircraft is also increasing. The passenger volumes grew from 114.1 million passengers in 2015 to 126.8 million passengers in 2016 and 137.6 million passengers in 2017 in Mexico. The Mexican commercial aviation and related demand for maintenance repair and overhaul (MRO) have been driven by several factors such as Volaris and Interjet, the 2016 approval of the Delta-Aeromexico partnership, the Open Skies Agreement. However, Asia Pacific was the fastest-growing geographic segment in the titanium market, with a CAGR of 7.3%. According to China’s 13th Five Year Plan (2016-2020), by the end of 2020, China will have more than 4,500 civil aircraft, and by 2018, the number of Chinese civil airports had grown to 235. According to the International Trade Administration (ITA), in 2018 the Indian government spent a total of $645 in the civil aviation sector. As the use of titanium has increased in aircraft therefore, growth in production of these directly support titanium market growth.
Titanium Market Drivers
Long-term Growth Prospects for New Aircraft Shipments
According to the International Trade Administration (ITA), in 2019 China was the world’s second-largest civil aerospace and aviation services markets and one of the fastest growing markets. By the end of 2018, China had more than 59 airlines and 3,615 civil aircraft, an increase of 10% over 2017. In 2016, according to Boeing, China is estimated to require around 6,810 new commercial aircraft, valued at USD 1 trillion, over the next two decades. Also, according to Boeing India is expected to drive the demand for 2,300 aircrafts worth US$320 billion over the next 20 years. Also, the Eastern Economic Corridor (EEC) is targeting US$ 7 billion in investment in MROs and aviation-related industries in Thailand over the next 5 years. Titanium is used in engine applications such as rotors, compressor blades, hydraulic system components and nacelles. Titanium 6AL-4V alloy accounts for almost 50% of all alloys used in aircraft applications. Therefore, the growth in the production of new aircraft is expected to influence titanium products demand.
Titanium Market Challenges
Higher cost of titanium
Titanium offers performance as well as mass saving benefits in automotive components subjected to reciprocating and suspension loads and in components subjected to extreme temperatures and gradients. However, the extensive use of titanium is hampered by the high cost of the raw material and the special handling that is needed. With advances in extraction/fabrication techniques and ever-increasing gasoline prices, the advantage of using lightweight materials such as aluminum, magnesium, and titanium in automobiles continues to increase. The major drawback for titanium, much more so than the other light metals, is high cost. However, innovative extraction and fabrication approaches are leading to decreased cost.
The emergence of COVID-19
The COVID-19 pandemic has negatively impacted the global economy and lowered equity valuations, in addition to disrupting global supply chains and workforce participation. Quarantines and "stay in place" orders, the timing and length of containment and eradication solutions, travel restrictions, absenteeism by infected workers, labor shortages, or other disruptions to supply chain or customers have adversely impacted the sales and operating results and has resulted in some production delays in titanium market. In addition, from the demand perspective also, due to the grounding of airplanes, construction and manufacturing industries being in limbo contributed to a drop in fresh orders for Titanium mill products as customers are waiting to get a deeper understanding of the full impact of COVID-19 on their respective markets. In addition, order lead times could be extended or delayed and pricing or pricing of suppliers for needed materials could increase. To date, various countries have experienced some delays in state and municipal construction projects due to COVID-19. Site closures or project delays have occurred and increased social distancing and health-related precautions are required on many work sites, which may cause additional project delays and additional costs to be incurred. In addition globally, various companies have experienced the temporary closure of many of the customer's retail locations and temporarily shut down factories to comply with the government "stay in place" orders. It is expected that this global pandemic will have a major impact on the titanium market. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021.
Titanium Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Titanium Market. In 2019, the market of titanium has been consolidated by the top five players accounting for 73% of the share. Major players in the titanium market are Huntsman International, Ineos Group, Iluka Resources Ltd, Sumitomo Corporation, Vsmpo-Avisma Corporation, Toho Titanium Co., Ltd, Arconic Corporation, Allegheny Technologies Incorporated, TIMET, and Western Superconducting Technologies Co., Ltd.
Expansion/Acquisitions
In May 2020, Tronox Holdings plc has signed a definitive agreement to purchase for approximately $300 million the TiZir Titanium and Iron ('TTI') business from Eramet S.A., a publicly traded French international mining and metallurgy firm. This strategic transaction is an advancing vertical integration approach which will provide Tronox to expand titanium feedstock capability to better meet internal requirements and, in exchange, better support for pigment customers with a low-cost, reliable supply source.
In 2019, Western Superconducting Technologies Co., Ltd expanded its service by supplying a 63/80-MN two-column high-speed push-down open-die forging press by SMS group. Two integrated railbound 25-ton manipulators and a mobile eight-ton loading and unloading manipulator were also included in the supply.
In 2018, Arconic Corporation expanded aluminium and titanium aerospace parts facility in Bestwig, Germany. The expansion increased its production capacity in meeting growing demand from commercial aircraft manufacturers.
In 2018, Allegheny Technologies Incorporated invested $95million to expand its buisness in iso-thermal forging and heat treatment to meet rising demand from the market for aerospace jet engines.
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