Non-ferrous metals: Key market research findings
- APAC dominates the market geographically
- The copper segment to showcase fastest growth during the forecast period
- Key vendors – Alcoa, BHP Billiton, Glencore, Hindalco-Novelis, Rio Tinto, RUSAL, and Vale
Technavio’s market research analysts predict the global non-ferrous metals market to grow at a CAGR of around 5% between 2016 and 2020. The growth of the aerospace industry is triggering a rise in the demand for non-ferrous metals, leading to the growth of the global market. Global revenues in the defense subsector will continue to grow during the forecast period, as governments equip their armed forces with advanced defense weapons and next-gen technologies such as intelligence gathering, including cyber, defense electronics, and precision strike capabilities. During 2015, the global market for non-ferrous metals was dominated by APAC with a market share of around 63%. The increased consumption of non-ferrous metals in China, Japan, and India will fuel the growth of the non-ferrous metals market in APAC in the coming years.
The new market research report from Technavio presents a breakdown and analysis of the non-ferrous metal segments based on the product.
“Recently, there has been an upsurge in the demand for lightweight products in the market. Many organizations across the automotive, telecommunications, and industrial machinery sectors are developing lightweight products to reduce the overall weight of their products and improve quality. Besides, many automotive manufacturers are steadily moving from the deployment of cast iron engine blocks to aluminum engine blocks because they are lighter in weight and sturdier under high horsepower conditions than cast iron products,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
According to our analysts, the copper segment will exhibit the fastest growth during the forecast period due to an increase in building and construction expenditure, which will, in turn, increase the demand for copper wires, tubes, and other copper products for applications such as electrical, building wire, and plumbing. The metal is used extensively in different end-user segments and sectors such as electrical and electronics, construction, industrial, transportation, and consumer durables. The rapid growth rate will be an outcome of the increase in production at existing plants across the world and new and expanded capacities at electrolytic plants in China and Africa.
The key vendors in the global non-ferrous metals market include Alcoa, BHP Billiton, Glencore, Hindalco-Novelis, Rio Tinto, RUSAL, and Vale. The global non-ferrous metals market is extremely competitive and consolidated due to the presence of only a few key suppliers. Imbalance in demand and supply, price fluctuations, environmental concerns, and labor issues are some of the challenges faced by the vendors in this market.
A more detailed analysis is available in the Technavio report, Global Non-ferrous Metals Market 2016-2020.
