Stainless Steel Honeycomb Core Market Size Forecast to Reach Around $1 Billion by 2025

The global Stainless Steel Honeycomb Core Market size is forecast to reach around $1 billion by 2025, after growing at a CAGR of 9% during 2020-2025. Growing uses of Stainless Steel Honeycomb Core in the manufacture of aerospace, automotive, and construction structures drive the growth of Stainless Steel Honeycomb Core market size. Furthermore, the demand for Stainless Steel Honeycomb Core is growing from various industries due to its features such as excellent moisture and corrosion resistance, flame resistant, and fungi resistance. Whereas, the outbreak of COVID-19 pandemic worldwide is significantly declining the growth of various industries, as most of the countries have issued “stay at home guidance” i.e., lockdown. This factor is limiting Stainless Steel Honeycomb Core industry growth during the forecast period.

Key Takeaways
Among the regions, in 2019, in the North America region, the US dominates the Stainless Steel Honeycomb Core market owing to growing transportation, increasing construction, and developing the aerospace sector across the region.
Stainless Steel Honeycomb Core is highly in demand from hostile environments.
Stainless Steel Honeycomb Core with adhesive-bond offers affordable pricing when compared against conventional welded stainless cores.
The high stiffness, corrosion-resistant, and lightweight nature of Stainless Steel Honeycomb Core makes it suitable for construction applications like exterior cladding, RF shielding, joining panels, and floors.
Increasing trend to replace the heavier conventional sheet and stringer or beam support approach in multi-engine airplane flying drives the growth of stainless steel honeycomb core industries.

By Type – Segment Analysis
Among types, the monolayer type segment holds a larger share of more than 60% in 2019 and is projected to witness significant growth over the forecast period due to the growing uses in the aviation, energy, automotive, railways, and construction industries. Whereas, the growing demand for high tensile and compression strength that helps to reduce the risk of tensile failure, risk of buckling failure, and a shear failure further drives the demand for monolayer stainless steel honeycomb core, which in turn drives the growth of this market. As monolayer structure increases the core thickness that withstands the mentioned demand.

By Application – Segment Analysis
Among the application, the doors and floors type segment held a larger share of more than 22% in 2019 and is projected to witness significant growth over the forecast period due to the growing uses from transportation and building and construction sectors. The growth in building and construction activities across the developed and developing regions is driving the demand for stainless steel honeycomb cores for door and floor applications. Additionally, the use of stainless steel honeycomb cores for doors and floors application offers various benefits such as absorption of vibrations, dimensional stability, shock resistance, and good thermal and acoustic insulation properties. Furthermore, the stainless steel honeycomb cores are also used in interior decoration for traditional or designer furniture is also contributing to the growth of this market.

By End-Use Industry – Segment Analysis
Among the end-use industry types, the railways segment is projected to grow at a substantial rate of CAGR 11% during the forecast period. The growing demand for lighter and stronger materials with reduced environmental impact, enhanced safety features include the incorporation of fire resistant materials, the noncorrosive materials that helps to reduce maintenance costs, and passengers to travel in greater comfort drives the growth of stainless steel honeycomb core market. Furthermore, the growing railway infrastructure development in the emerging countries like China and India is also contributing to the growth of this market during the forecast period.

Geography – Segment Analysis
Among the regions, APAC dominated the Stainless Steel Honeycomb Core Market with more than 35%, followed by Europe and APAC. The growth of end-use industries such as construction, oil & gas, healthcare, manufacturing, and marine has led to ample growth opportunities in the APAC Stainless Steel Honeycomb Core market. Furthermore, the presence of emerging countries like China and India with a huge customer base and growing building and construction activities across the countries are also contributing to the growth of Stainless Steel Honeycomb Core market share in the APAC region. For instance, the Civil Aviation Administration of China (CAAC) is planning to build an additional 215 airports to reach a target of 450 by 2035.

Drivers – Stainless Steel Honeycomb Core Market
Growing demand from the transportation sector
The properties of stainless steel honeycomb core offer various benefits to the transportation sectors like due to its high stiffness from structural materials reduces supporting framework, increases passenger room, and high-temperature resistance brings associated benefits of high-speed and low fuel consumption, resulting in increased passenger satisfaction and improve transportation profits. In addition, the lightweight and easy to handle & install modular interiors offer rapid fitting, resulting in man-hour savings. Hence, due to these benefits and excellent properties, the demand for stainless steel honeycomb core is growing from the transportation sector. Besides, the growing deployment of advanced technology, increasing tourism destinations, growing population, and rise in demand for sustainable and environmentally friendly transportation are driving the growth of the transportation sector, which in turn propels the stainless steel honeycomb core market size during the forecast period. For instance, in 2019, the American Road & Transportation Builders Association (ARTBA), the U.S. transportation infrastructure market transportation construction market grew by 8 percent in 2019 compared to 2018. Additionally, in the US, the construction work on private highways, bridges, parking lots, and driveways will grow from $69.1 billion in 2019 to $71.8 billion in 2020.

Challenges – Stainless Steel Honeycomb Core Market
Unstable economic conditions and volatile prices of raw materials
The growing trade war between the two largest economies includes the US and China, along with geopolitical tensions, global trade tensions, and global macroeconomic performance as a whole are the factors responsible for the current unstable economic conditions. The unstable economy is considered as a challenge for the growth of this market. For instance, in 2019, the US has imposed a 25% trade tariff on stainless steel. Whereas, in 2019, the prices of stainless continued to decline in China due to the oversupply of stainless steel across the country resulting in a high level of inventory. Additionally, in 2020, the ongoing outbreak of COVID-19 pandemic affecting lives, businesses, individuals, and industries. The rapid spread of this pandemic disease has had a major impact on global stainless steel honeycomb core markets due to the lockdown and drastically falling demand to various industry verticals like transportation, energy, and construction from developed and developing nations across various industries.

Availability of other alternatives of stainless steel honeycomb core
The other alternatives of stainless steel honeycomb core are aluminum, thermoplastic, and aramid bases honeycomb core acts as a key restraining factor to the growth of this market during the forecast period. These alternatives also offer similar kinds of properties like flame-resistant, fungi resistant, low weight, high strength, corrosion-resistant, and good thermal stability. The other alternatives and the stainless steel honeycomb core are characterized on the basis of quality, price, durability, and environmental impact. For instance, for products that require an optimal stiffness-to- weight-ratio then the aluminum honeycomb core is highly preferred than stainless steel core due to its lightweight and environmentally friendly (recyclable) material. Furthermore, the price of thermoplastic and aramid based honeycomb core is less as compared to the stainless steel honeycomb core is also acts as a restraining factor to the growth of this market.

Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Stainless Steel Honeycomb Core market report. Major players in the Stainless Steel Honeycomb Core industry analysis are Tricel Honeycomb Corporation, Paramount Metal Finishing, MachineTek LLC, Avion Alloys, Goodfellow, Prime Laminating, Inc., Koshii Maxelum America, Inc., Coast-Line International, Plascore, and Benecor, Inc., EconCore, Universalmetaltek, Panel Built, Inc.

Acquisitions/Technology Launches
In February 2018, MachineTek LLC received the AS9100 Rev D certification that complies with the requirements of ISO 9001:2015 + AS9100:2016. With this certification, MachineTek performs value-added services for a wide range of aerospace composite fabrication companies throughout the United States.