Nickel Alloys See Strong Growth in U.S. Market: Demand Soars in Aerospace and Energy Sectors

Demand for high-performance nickel alloys is on the rise in the U.S. market as global industrial technology upgrades and clean energy transitions accelerate. Industry analysts predict that the U.S. nickel alloy market will grow at a CAGR of more than 6% over the next five years and is expected to exceed $5 billion by 2028, driven by aerospace, power & energy, and defense applications.

Core Drivers

1. Continued Leadership in Aerospace

U.S. aerospace giants such as Boeing and Lockheed Martin have increased their purchases of high-temperature-resistant, high-strength nickel alloys to meet the demand for next-generation aircraft engines (e.g., GE’s GE9X) and airframe components. Nickel-based superalloys (e.g., Inconel 718) have become key materials for high thrust-to-weight ratio engines due to their stability in extreme environments.

2. Energy Transition Brings New Opportunities

The U.S. government’s support for renewable and nuclear energy has opened up new markets for nickel alloys. Corrosion-resistant nickel alloys (such as the Hastelloy series) have seen a surge in demand for hydrogen electrolyzers, advanced nuclear reactors (such as the Small Modular Reactor SMR) and natural gas turbines. In addition, the demand for high-purity nickel in the cathode materials of electric vehicle batteries has also indirectly boosted investment in the industry chain.

3. Supply chain localization trend

Driven by geopolitics and the Inflation Reduction Act (IRA), the U.S. is accelerating the localization of key materials. Local nickel alloy manufacturers, including Haynes International, ATI and Special Metals, have announced capacity expansions to reduce dependence on imported materials.

Challenges and Responses

Despite the positive outlook, the industry continues to face the challenges of volatile raw material prices (nickel prices are significantly affected by Indonesian policy) and tightening environmental regulations. U.S. companies are responding to cost pressures through recycling technologies (e.g., scrap remelting) and the development of low-cobalt/low-cost alternative alloys (e.g., new nickel-iron alloys).

EXPERT VIEW

“Nickel alloys are the ‘invisible backbone’ of high-end manufacturing in the U.S.,” noted analysts at materials consulting firm Roskill, “As 3D printing technology becomes more widespread, production of customized nickel alloy parts efficiency will increase dramatically, further broadening its applications in the medical and military sectors.”