In the competitive landscape, the report analyses the degree of competition among the industry players, industry growth, and market scenario. The global master alloys market is fragmented and consists of tier-1, tier-2, and small players with tier-2, where small players are dominating the market. Being a fragmented market, competitive pricing is declining profit margins. However, the global market growth is expected to soar with the increasing adoption of titanium in the aerospace industry during the forecast period. The titanium, iron & steel, aerospace, defense, and automotive industries are some of the main end customers of master alloys. Aluminum-based master alloys dominate the global market. However, in the recent past, titanium and vanadium-based master alloys have been getting more traction in the global market owing to the rapidly developing aerospace industry in emerging economies. With the rising demand for master alloys, competition is expected to increase over the forecast period.
In the global master alloys market Belmont Metals (US), KBM Affilips (The Netherlands), Heraeus Holding (Germany), MMTC-PAMP (India), ALUMETAL S.A. (Poland), Asturiana de Aleaciones, S.A. (Spain), Axayya Alloys Pvt. Ltd. (India), Advanced Metallurgical Group, N.V. ( Netherlands), Minex Metallurgical Co. Ltd. (India), Milward Alloys, Inc. (US). However, the global market is dominated by a mix of tier-2 and small players.
No substantial market development has been noted in the last five years among the major players operating in the global master alloys market apart from Asturiana de Aleaciones, S.A., and Alumetal S.A. In 2016, 49% of the company’s stake was acquired by Bahrain Mumtalakat Holding Company, the investment fund of the Kingdom of Bahrain. This strategy helped the company establish its presence in Bahrain and, at the same time, has also helped the company capture new clients in Asia. The positive outlook for the global master alloys market, in the long run, might witness both organic and inorganic strategy adoption by major players operating in the global market.
Threat of New Entrants
Considering the past and present global master alloys market’s scenario, the target market is projected to witness low to moderate threat of new entrants. With fragmented nature of the market, existing players are facing the challenge of declining margin. However, with increasing demand for master alloys in high-end applications such as titanium and superalloys, it is expected to witness business expansions from existing alloy manufacturers in the market.
Threat of Substitutes
The threat of substitutes for master alloys is low at present. However, rapidly changing material technologies in the end-use industries may restrict the demand for master alloys in the years to come. For instance, replacement of titanium alloys in aircraft structure with composites might hinder the titanium alloys demand, which, in turn, may pose a threat to master alloys.
Bargaining Power of Suppliers
The bargaining power of supplier is estimated to be moderate to high in the global market owing to the intense competition and market fragmentation. For traditional master alloys, such as aluminum based, the bargaining power of suppliers is relatively low. Since the portfolio of manufacturers differ in terms of traditional and specialty master alloys, the bargaining power of specialty master alloy manufacturers is expected to be high.
Bargaining Power of Buyers
The bargaining power of buyer is estimated to be moderate to high. Consumers have a pool of supplier options in the market, especially the small-scale manufacturers from China, at relatively low prices. However, the high end-use customers opt for master alloys that don’t jeopardize the quality of their end-products, wherein, the bargaining power of buyers is low.
Intensity of Rivalry
The master alloys market is estimated to exhibit moderate to high intensity of rivalry depending on the location of manufacturers. In developing markets (highly fragmented with Chinese manufacturers and other tier-2 players), the competition on the pricing front is highly intense. On the other hand, in the developed markets, the majority of the stakes are held by tier-1 players and prevalence of small-scale manufacturers is less. Thus, the threat of rivalry is anticipated to be low.
