Aerospace & Defense Materials Market Size, Share & Industry Analysis, By Material (Titanium Alloys, Aluminum Alloys, Composites, Super Alloys, Steel and Others), By Aircraft (Commercial, Military, Business & General Aviation and Others) and Regional Forecast, 2020-2027

The global aerospace & defense materials market size stood at USD 18,411.83 million in 2019 and is projected to reach USD 23,825.45 million by 2027, growing at a CAGR of 4.21% during the forecast period.

The aerospace & defense industry is one of the most stringently regulated industries in the world. The materials used in the industry are also subjected to high regulatory and performance norms in order to meet the rigorous demands of the situations they are used in. A variety of materials such as composites, aluminum, steel, titanium, alloys, and numerous others are used in several structural and non-structural components in this industry.

AEROSPACE AND DEFENSE MATERIALS MARKET TRENDS

Healthy Adoption Of Composites In Commercial Aircraft to Drive the Market Growth Over the Forecast Period

Composites have been long used in the aerospace & defense industry. However, their usage in the industry was restricted to only a few applications. Military aircraft were the first to use aerospace composites prominently in the structures to gain significant weight reduction. Boeing introduced its 787 Dreamliner (wide-body aircraft) model in 2011 (entered commercial service), which is claimed to be made of 80% composites by volume. It has been a huge success for Boeing since then, with around 1510 confirmed orders as of March 2020.

On the other hand, Boeing’s biggest rival, Airbus, back then also introduced Airbus A350 XWB, which is made up of more than 50% composites to compete with the Boeing 787 Dreamliner. As of April 2020, the company has around 930 orders for A350 XWB in its records. The usage of composites is further expected to increase in other aircraft models on the back of increased fuel efficiency benefits facilitated by the composite's usage.

AEROSPACE AND DEFENSE MATERIALS MARKET GROWTH FACTORS

Increasing Airplane Fleet Worldwide To Propel The Demand For Aerospace Materials

The rapid expansion of the middle-class coupled with rising disposable income has facilitated the growth of aerospace activities in the developing countries of the world. As a result, there has been an increase in regional aircraft as well as the development of secondary airport infrastructure across the globe. This has indeed increased the demand for aircraft in developing countries, which is propelling the consumption of aerospace & defense materials. Moreover, old aircraft fleets in the world also need to be renewed and airliners have already started replacing the old fleet with the new. Consequently, there has been a tremendous increase in the manufacturing activities of aircraft and to meet the growing demand manufacturers are focused on developing a sustainable and integrated supply chain for aerospace & defense materials to avoid any delays in aircraft delivery. Of the total demand for these materials, Boeing and Airbus account for more than 60%.

Light-Weighting To Be A Key Growth Factor For The Aerospace & Defense Materials Market

Fuel efficiency has always been the central concern for any transportation industry domain and it holds pivotal importance in the aerospace & defense industry. The quest to reduce the cost of flying and increase operation profitability has led to the development of lightweight and high-performing materials that have helped the aerospace & defense industry reach new heights. Lightweight and high strength materials such as composites, aluminum, alloys, titanium, and others find a prominent role in the main structures of the aircraft. More than 80% of the total titanium alloys in the aerospace & defense industry are utilized in engines. Composites are being used in fuselage, wings, and another interior as well as exterior structures. This has helped the airliners to boost their profitability by reducing fuel consumption by significant amounts as compared to conventional aircraft. As a result, the demand for light-weight materials in this industry has significantly increased over the last few decades.  

RESTRAINING FACTORS

Stringent Regulation Governing The Aerospace & Defense Industry Confines The Growth Of Aerospace & Defense Materials Market

The aerospace & defense industry is governed by some of the most stringent regulations in the world. It has to comply with the international as well as the regional regulations to which the aircraft is being subjected to avoid any operational restrictions. As a result, the materials used in this industry also need to meet the stringent norms prescribed by the authorities. It takes several years and numerous procedures & tests for a material to be allowed for usage in the aerospace & defense industry as the lives of hundreds are at stake. This restricts the adoption and usage of some materials in the industry and delays their inclusion time. However, these procedures are meant to ensure safety.

AEROSPACE AND DEFENSE MATERIALS MARKET SEGMENTATION ANALYSIS

By Material Analysis

Dominance Of Composites In Value Market Is Likely To Continue Throughout The Forecast Period

The composite materials segment dominates the aerospace & defense materials market in terms of value. It is also poised to be fastest-growing segment in the market, both in terms of value and volume. Though composites are finding an increasing number of applications in the aerospace & defense industry, they account only for single-digit share in the market in terms of volume. Its counterpart, aluminum, is the most widely used material in the industry owing to its high adoption in structural as well as interior components. Titanium alloys are anticipated to be the second-fastest growing segment in the market.

By Aircraft Analysis

Commercial Aircraft Segment To Lead The Market Growth

On the back of large aircraft fleet and applicability, the commercial aircraft segment has been identified as the largest consumer of these materials in the market. Furthermore, the size of commercial aircraft is significantly greater than military aircraft, which means more volume of materials is consumed in the former. However, rising regional disputes and conflicts are anticipated to result in increased spending on military & defense activities, and as a result, the military aircraft segment is poised to grow the fastest in the market.

REGIONAL AEROSPACE AND DEFENSE MATERIALS MARKET ANALYSIS

The market size in North America stood at USD 9,878.83 million in 2019 on the back of the US, which accounts for around half of the global demand. The US is home to some of the biggest players in the aerospace & defense industry such as Boeing, General Electric, CFM International, Pratt & Whitney, and various others, including foreign entities. The country not only manufacturers high number of commercial aircraft but is also the largest manufacturer of military aircraft in the world. It is also the leading manufacturer of aircraft engines in the world. Europe accounts for the second-largest share in the market, dominated by western European countries. Airbus, Rolls Royce, Safran, and others are amongst the prominent consumers of these materials in the region. France leads the market in Europe on the back of its manufacturing capabilities for commercial as well as military aircraft. Asia-Pacific is set to be fastest growing region in this market share owing to developments in countries such as China and India.

The indigenous manufacturing and development programs are booming in these countries and foreign investments are being welcomed by the governing bodies. Consequently, foreign majors are collaborating with local partners to manufacture and develop aircraft technologies in the region. China has made significant progress in this sector and its success is visible with the manufacturing and maiden flight of C919, a narrow-body aircraft manufactured by a Chinese player-COMAC, in May 2017. India is also promoting indigenous development of military aircraft and efforts in collaboration with foreign majors are underway. Latin America and the Middle East & Africa are relatively small markets and are in early phase of development. Brazil & Mexico dominate the market in Latin region on the back of consumers such as Embraer.

Israel and Turkey lead the market in the Middle East region. Countries such as UAE and Saudi Arabia are also emerging as attractive investment options in the region. However, the outbreak of COVID-19 pandemic is estimated to shrink the global aerospace & defense materials market by over 3% in 2020, with significant recovery expected from 2022 onwards. The effect of COVID-19 on the market can be assessed from the fact that prominent manufacturers of commercial & military aircraft have announced delay in deliveries due to disruption in supply chain.

KEY INDUSTRY PLAYERS

Merger & Acquisition Along With Collaborations To Remain Amongst Top Strategies For The Key Players            

The aerospace & defense materials market structure is highly fragmented and regulated. Stakeholders in the market have developed robust supply chains around the world to meet the tight schedule of deliveries and avoid any disruptions. Mergers & acquisitions and collaborations with local partners have always been prime strategies of players to ensure uninterrupted supplies. Generally, consumers enter into yearlong supply agreements with the manufacturers and suppliers to avoid any shortages and disruptions. These strategies will help the market grow in terms of revenue. For instance, in 2018, Arconic, a key player in the aerospace & defense materials market, signed a multi year-long supply contract with Boeing.

LIST OF KEY COMPANIES PROFILED IN AEROSPACE AND DEFENSE MATERIALS MARKET:

• Arconic Inc. (US)


• Toray Composite Materials America, Inc. (US)


• Huntsman (US)


• Evonik Industries (Germany)


• Hexcel Corporation (US)


• Materion Corp. (US)


• AMI Metals Inc. (US)


• TATA Advanced Materials Limited. (India)


• Koninklijke Ten Cate BV (Netherlands)


• Sofitec (Spain)


• Teijin Ltd. (Renegade Materials Corp.) (Japan)


• Others

KEY INDUSTRY DEVELOPMENTS:

• April 2020 – Hexcel Corporation, an advanced composites manufacturer headquartered in the US, and Woodward, Inc., a key player providing designing, manufacturing and other services in the aerospace industry headquartered in the US, announced mutual termination of merger agreement, which was previously announced in January 2020. The disruption caused by the COVID-19 outbreak has forced the companies to announce the termination of the agreement.  


• August 2019 – Teijin Ltd, a Japan-based manufacturer of advanced materials and chemicals, announced the successful acquisition of Renegade Materials Corporation, a key supplier of highly heat-resistant thermoset prepreg for the aerospace industry in North America. This has strengthened Tenjin’s position in the aerospace business and also increased its manufacturing capabilities.

REPORT COVERAGE

The aerospace & defense materials market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product.

Besides this, the report offers insights into the market trends, competitive landscape, and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation