The Europe bronze market is expected to grow significantly in the coming years. This is due to the increasing demand for bronze in the marine and aerospace industries and the growing demand from the transportation industry. The presence of several regional and international suppliers characterizes the Europe bronze market. The market is highly competitive, with all the players trying to gain maximum market share. It is crucial for the players to offer cost-efficient and high-quality Bronze to succeed in an intensely competitive market environment.
The key players operating in the Europe bronze market include KME Germany GmbH & Co KG, Lebronze Alloys, Aurubis AG, Aviva Metals Europe, CONCAST METAL PRODUCTS CO, Wieland Group, LDM B.V., Diehl Metall Stiftung & Co KG, Schwermetall, Belmont Metals, Wisco Española, SA, Leeds Bronze Engineering Ltd, and Aalco Metals Limited. The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as Aurubis AG, Wieland Group, Diehl Metall Stiftung & Co KG, Aalco Metals Limited, and Schwermetall dominate the market due to brand reputation, product differentiation, and financial stability.
The key players are taking steps toward business expansions and entering the untapped European market, thereby increasing their consumer bases. The major players may strengthen their presence through acquisitions during the review period. The rising demand for Bronze is fueling market growth, thereby making it an ideal time for players to launch high-quality Bronze to increase their market shares.
Collaborations/Expansions/Investments/Acquisition
Date
Company Name
Development
June 2020
Acquisition
Aurubis AG has acquired the recycling company Metallo Group with 540 employees for a purchase price of EUR 380 million.
August 2019
Expansion
Aurubis AG inaugurated its new power-to-steam plant. It utilizes the steam from this plant in production.
April 2019
Merger & Acquisition
Wieland Group and Global Brass and Copper signed a Merger Agreement, in which Wieland Group acquired Global Brass and Copper.
Threat Of New Entrants
The demand for bronze is high among the end-use industries due to its excellent properties such as durability and high strength, which are suitable in the manufacturing of products like valves, fittings, and bearings. The growth of the end-use industries such as aerospace, automotive, and electronics is projected to fuel the growth of the regional market in the coming years. New entrants bring in new capacity, willingness to gain market share, and often substantial resources. The regional market comprises large number of producers, where the tier-1 players hold a share of over 60%, which is expected to act as a barrier to the entry of new players. Similarly, the increase in the price of raw materials in the recent past, the requirement of high capital to establish a production unit, and government regulations associated with the production of bronze products are also expected to hamper the entry of new players. However, the demand for bronze is expected to grow in several end-use industries owing to its increasing application. Besides, the forging process to form bronze products is low cost, and the end products find high-end applications. Thus, with the growing demand, the threat of new entrants in the global market is expected to increase to moderate.
Considering the aforementioned factors and taking all the past and present regional market trends, forces, and scenarios into consideration, the threat of new entrants in the Europe bronze market is expected to be low to moderate.
Rivalry
The intensity of rivalry in the Europe Bronze market is estimated to be moderate to high. There are large number of producers of bronze in the regional and global markets. However, the market is dominated by major players, such as Aurubis AG, Aviva Metals Europe, KME Germany GmbH & Co KG, Lebronze Alloys, Belmont Metals, and Wisco Española SA. These players compete on the basis of product offerings (cost, environmental sustainability, and purity) and the end-use industry coverage. Furthermore, less differential pricing for the same quantity of products and targeted segments and a large consumer base with established distribution networks to cater to the demand in various end-use industries are factors expected to intensify the rivalry.
Threat Of Substitutes
The threat of substitutes in the global market is moderate in the current scenario, as there is number of potential substitutes available for bronze in the regional and global market. Some of the companies are conducting research and development to produce alternatives having similar qualities as bronze. Some of the bronze alloys exhibit rapid erosion. For instance, manganese bronze (C67300) displays extreme weight loss and rapid erosion among all the bronze alloys. Rapid erosion is also observed in the high-lead tin bronze alloy (C94100). The damage accumulation is extensive, and the alloy’s excitation amplitude is reduced to one-half as compared to the amplitude used for other alloys. The latest substitute for bronze is a copper-nickel tin alloy, which poses excellent strength and hardness as of titanium, low coefficient of friction, and better wear resistance as of steel as compared to bronze alloys. Some of the research institutes and scientists believe that if iron, bronze, and copper did not exist, titanium, tungsten carbide, and aircraft-grade aluminum alloys would have played a similar role that of the former metals. However, the high cost associated with the production process serves as a con for the latter metals. Thus, over time with ongoing research and development, substitutes for bronze are expected to emerge, which will increase the threat of substitutes.
Bargaining Power Of Suppliers
The suppliers in the Europe bronze market are manufacturers/suppliers of raw materials, such as copper, tin, aluminum, nickel, and manganese. The Europe bronze market comprises large number of producers and distributors of these raw materials. The demand for bronze in the regional market is likely to increase moderately in the coming years, owing to the expansion of the marine trade and the increasing use of copper and copper alloys in the fast-growing electric vehicles market in Europe. However, the availability of alternatives to bronze is likely to limit the bargaining power of suppliers to a certain extent.
From the aforementioned factors, it can be concluded that the bargaining power of raw material suppliers is estimated to be moderate to high during the assessment period.
Bargaining Power Of Buyers
The bargaining power of buyers is estimated to be moderate. This is due to the presence of a large consumer base across the region, particularly from the marine, automotive, and aerospace industries. Additionally, the availability of the product in the market by various suppliers in several forms, shapes, and sizes is also projected to boost the bargaining power of buyers. However, long-term contracts with suppliers are expected to hinder the switching process, as the buyers are required to deal with the same suppliers and agree to their terms and conditions.
Besides, the high switching cost increases the bargaining power of buyers due to large number of suppliers.
