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North America Titanium Market - Forecast (2021-2026)

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  • 345 Pages
  • December 2021
  • Region: North America
  • IndustryARC
  • ID: 5566590

North America Titanium Market Overview

North America Titanium market size is forecast to reach US$2,783.5 million by 2026, after growing at a CAGR of 3.9% during 2021-2026. Numerous applications of titanium products fueled by low thermal expansion and high co-efficient fire resistance properties that have sparked a massive increase in the North American titanium market demand. Increasing government initiatives, and investments to enhance and promote lightweight and fuel-efficient vehicles will further raise the usage of titanium. Thus, this would act as a key factor influencing the market growth during the forecast period. Moreover, the rising production of new aircraft for commercial and military use in countries such as the USA, Canada, and Mexico are further estimated to boost the North American titanium market growth. Also, the rising demand for titanium in 3D printing technology is anticipated to create opportunities for the growth of the market in the upcoming years.

COVID-19 Impact

However, in the year 2020 COVID-19 has left a lasting impact on all the sectors, especially on the aerospace and automobile sectors. The aerospace sector has been the hardest hit due to lockdowns, travel restrictions and flight bans. While the demand for defense and space products and services has been relatively immune to the pandemic due to the nature of their respective missions, commercial aviation has had to navigate an unprecedented crisis. Manufacturing was brought to a complete standstill leading to cancellation of orders. For instance, during the second quarter of 2020, Boeing temporarily suspended operations in Puget Sound, South Carolina, and Philadelphia, as well as at several other key production sites due to COVID-19-related operating restrictions. While the demand for defense & space products and services has been relatively immune to the pandemic, commercial aviation has had been hard hit. Boeing, especially, was at the receiving end already battling the grounding of 737-8 and 737-9 over safety concerns, coupled with the deep impact of the pandemic on commercial air travel. This is evident from the revenue of Boeing in 2020 that dropped to US$58,158 million in 2020.

Report Coverage

The report: “North America Titanium Market - Forecast (2021-2026)” covers an in-depth analysis of the following segments of the North America Titanium Industry.

By Form: Bar, Sheet, Pipe, Plate, Threaded Rod & Wire, Tubing, Elbows, Flanges, Stub Ends, Screwed Fittings and Pipe Plugs, and Others

By Grade: Ti 6Al-4V (Grade 5), Ti 6Al-4V ELI (Grade 23), Ti 3Al 2.5 (Grade 9), Ti 5Al-2.5Sn (Grade 6), and Others

By Application: Aerospace, Military, Industrial Process, Automotive, Building and Construction, Medical, Sporting Goods, Jewelry, Mobile Phones, and Others

By Country: USA, Canada, and Mexico

Key Takeaways

  • USA dominates the North America titanium market, owing to the increasing aerospace and automotive sector in the country. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the aerospace and automotive sector in Europe.
  • Titanium is one of the rapidly emerging markets. The industry has changed dramatically over time, mainly due to continued growth and integration in aerospace products.
  • During the forecast period, extensive growth of fuel-efficient and lightweight vehicles is expected to drive the North American titanium market demand.

North America Titanium Market Segment Analysis - By Form

The plate segment held the largest share in the North America titanium market in 2020 up to 28% by revenue and is estimated to grow at a CAGR of 3.7% during 2021-2026. Titanium Plate is about 40% lighter than steel but 60% heavier than aluminium. Titanium grade 2 plate combines flexibility and superior corrosion resistance with high tensile strength. Like Titanium sheets, the Titanium plates also have a wide range of use case applications, especially in medical or orthopaedic implant functions. 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 has 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.

North America Titanium Market Segment Analysis - By Technology

The Ti 6Al-4V (Grade 5) segment held the largest share in the North America titanium market in 2020 and is forecasted to grow at a CAGR of 3.5% during 2021-2026. The most often used titanium material is Ti 6Al-4V (Grade 5). Ti-6AL-4V refers to its chemical make-up, which includes about 90% titanium, 6% aluminium, 4% vanadium, 0.25 percent (max) iron, and 0.2 percent (max) oxygen. It possesses a high modulus of elasticity and a low modulus of elasticity, as well as excellent corrosion resistance, weldability, and heat treatability. The addition of aluminium and vanadium to the alloy matrix raises the hardness of the material, improving its physical and mechanical properties. Boeing recently designed and deployed a modelling simulation solution for Ti-6Al-4V plate, bar, and forged stock for Ti-6Al-4V plate, bar, and forged stock in 2020. Ti 6AI-4V is most commonly used in the aerospace industry. Jet engine compressor blades, discs, and rings; aircraft components; pressure containers; and many more are all applications where Grade 5 titanium is suitable. Heat treatment allows Ti-6AI-4V round bar material to acquire even higher strengths. Medical implants can also benefit from this friendly material. Titanium has a high capacity for combining with bones and other tissue because to its mechanical and physical properties. Slow speeds, high feed rates, rigid tooling, and flooding the work piece with non-chlorinated cutting fluid can all be used to manufacture Ti 6AL-4v Grade 5 Titanium bar stock.

North America Titanium Market Segment Analysis - By Application

The aerospace segment held the largest share in the North America titanium market in 2020 and is forecasted to grow at a CAGR of 3.6% during 2021-2026. Commercially available pure titanium and titanium alloys such as Ti-6Al-4V are primarily used for airframe and engine parts, respectively. Because of the low fuel consumption of aircraft, titanium demand is likely to grow. To reduce aircraft fuel consumption, the use of CFRP (Carbon Fiber Reinforced Plastic) in airframes and engine parts has increased recently. Similarly, titanium is in high demand because of its good compatibility with CFRP in terms of corrosiveness and coefficient of thermal expansion. According to Boeing, North America will require a total of 9,160 commercial airplanes deliveries during the period 2021-2040. With a nearly 9% increase in sales over 2018, space systems lead the aerospace and defense industry's growth in the United States. Thus, titanium manufacturing in the North America has been continuously increasing to suit the growing demand for new aircraft and engines. The growth in the production of aircraft will augment the demand for aircraft parts which will lead to rise in consumption and demand for titanium.

North America Titanium Market Segment Analysis - By Geography

USA held the largest share in the North America titanium market in 2020 up to 68% by revenue, owing to the flourishing aerospace industry in the region. The United States accounts for about 4% of the total world production of titanium minerals and is heavily dependent on imports of titanium mineral concentrates on meeting its domestic needs. According to the U.S. Geological Survey, in 2020 majority of titanium was used in aerospace applications. According to the International Trade Administration (ITA), the U.S. aerospace sector continues to produce the highest trade balance (US$77.6 billion in 2019) and the second highest level of exports (US$148 billion) among all manufacturing industries. This predominant position has remained unchanged for decades, with aerospace exports having grown at an average rate of 5.31 percent over the last 10 years and the aerospace trade balance increasing at an average rate of 4.64 percent since 2010. Thus, it is anticipated that with the increasing aerospace production in the region, the demand for titanium is also eventually rising, which is positively impacting the USA titanium market growth.

North America Titanium Market Drivers

Increasing Demand for Titanium over Other Metals in the Automotive Industry

Titanium is increasingly influencing the automotive industry, spurred by the need to find alternative sources of materials in production to standard steel and aluminium. Titanium connecting rods are already utilized in engines to improve fuel efficiency and minimize pollution. The same material is also used in automotive engine valves, which improves fuel efficiency and vehicle reliability. Engines with titanium valves have a 20% higher speed restriction than those with steel valves. Also, titanium is utilized in an automobile since it helps to extend the life of motor parts. Titanium springs, for instance, are more corrosion resistant when compared to steel springs, which prolong their service life. Because the young's modulus of titanium is about half that of steel, the number of turns can be lowered when used in the springs. Titanium is hence thought to be beneficial not just in terms of weight loss but also in terms of size reduction. Furthermore, in terms of specific toughness and fatigue strength, the two most important indexes for titanium application to automobiles, titanium is advantageous over steel and aluminium alloys. Titanium is also beneficial to turbochargers as it improves heat resistance and longevity. Because of their low melting point, light metals like aluminium are not suitable for turbochargers, which will enhance an engine's power output. On the other hand, titanium is an excellent material for turbochargers because of its strong heat resistance. Thus, the rising demand for titanium over other metals in automotive components is further projected to fuel the North American titanium market during the forecast period.

Surging Demand for Titanium in the Healthcare Sector

For the past years, the medical industry has employed titanium for surgical and dental equipment in the healthcare industry. Titanium is increasingly used in various biomedical implants, including pacemakers, eye implants, and hearing aids. Titanium's remarkable ability to connect with the bone and living tissue makes it an excellent material for orthopaedic implants like knee and hip replacements. It's also suitable for various other medical tools due to its strength and higher corrosion resistance. It is also the most biocompatible of all metals, and it permits human bone development to cling to prosthetic and joint-replacement devices, allowing them to endure longer. Titanium is used in pacemaker casings because it is resistant to body fluids, lightweight, flexible, and non-magnetic. Titanium is even used in artificial heart valves. Furthermore, titanium has several properties that make it an excellent choice for medical applications. Its benefits include durability, non-ferromagnetism, biocompatibility, bio interfacing, osseointegration, and others, which has raised its demand. With the launch of new titanium implant products in the healthcare sector, the North American titanium market is estimated to rise. For instance, In July 2020, CancelleX Bio-inspired spinal implants from Xenco Medical launched the first injection-molded titanium foam implants for spine surgery pre-attached to disposable instruments. In addition, The Titanium/PEEK Posterior LEIF (Lateral Expandable Interbody Fusion) cage, designed for use in the lumbar spine as a spinal fusion procedure, was launched by Zavation Medical Products company an innovative designer and manufacturer of high-quality spinal implants, instruments, MIS procedural kits, and biologics headquartered in Flowood, MS in August 2020. Furthermore, in October 2020, The Adaptix Interbody System, a guided titanium implant with Titan nanoLOCK surface technology, a blend of macro, micro, and nano surface textures, was launched in the United States by Medtronic. Thus, due to such alluring properties and rising product launches, the demand for titanium in the healthcare sector is further projected to fuel the North American titanium market during the forecast period.

North America Titanium Market Challenges

The High Cost of Titanium Can Hinder Market Growth

Titanium is generally more expensive than other metals since it is rare and the fact that it is typically only found linked to other elements, which makes processing more difficult. Titanium cannot be recovered by reducing the ore with carbon because titanium carbide forms, making the metal brittle. Instead, the extraction procedure is divided into many stages known as the Kroll Process. The high market price of titanium is due to the intricacy of the process and the amount of energy required in its manufacture. Aircraft manufacturing entails the fabrication of sophisticated components, resulting in large amounts of scrap. Scrap availability has been limited throughout the second half of 2020 and into 2021, forcing prices to surge to levels last seen in 2012. When aviation came to a halt in April 2020, however, titanium prices plummeted dramatically. As the aerospace industry returns to 'business as usual' following the lengthy COVID-19 lockdown, it is estimated that the titanium market is improving, resulting in higher prices and the end of titanium scrap shortages. Thus, the titanium market is expected to struggle to attain widespread adoption throughout the forecast period due to the concerns mentioned above.

Availability of Substitutes has Restricted Market Growth

Titanium's application in the broad consumer market may be ruled out in the following years due to its high extraction and production costs. As a result, many companies seek new ways to cut costs, reduce the weight of their products, and lessen their overall energy use. As a result, metals including aluminum, magnesium, and steel are increasingly being investigated as titanium substitutes. Because magnesium is incredibly light, it is 50 percent lighter than titanium and 33 percent lighter than aluminum, makes it a viable titanium substitute. In addition, when compared to other metals such as steel, stainless steel of the highest grade is thought to be more durable than titanium. Thus, the increasing use of aluminum, magnesium, and steel as a substitute owing to their advantageous property over titanium is estimated to restrain the market's growth.

North America Titanium Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the North America titanium market. Major players in the North America titanium market are:

  • Allegheny Technologies Inc.
  • Titanium Metals Corporation
  • U.S. Titanium Industry Inc.
  • Titanium Fabrication Corporation
  • Ulbrich Stainless Steels and Special Metals Inc.
  • AP&C Powder Metallurgy
  • United Titanium, Inc.
  • Sierra Alloys Co.
  • Corrosion Materials, Inc.

Acquisitions/Technology Launches

In December 2020, Ulbrich announced the unveiling of one of the world’s most advanced 20 High Rolling Mill at Wallingford, CT, where precision strip and foil is cold rolled for over 160 alloys of stainless steel, nickel, titanium, and other special metals. The new Rolling Mill can handle a wide range of thicknesses. This new mill has a technically advanced automatic gauge control and shape control system to closely monitor real-time variations of thickness and flatness throughout the length of each coil.