Materials price, relative performance, sustainability credentials, availability, extrusion tolerances and changing regulations are just some of the many factors that contribute to potential wide-ranging substitution in material applications.
The need for better performing materials, and the introduction of more and far reaching environmentally focused regulations, makes for a competitive market. Whilst competition might be fierce, materials are anticipated to gain in use due to a wide variety of future growth markets such as private and commercial buildings, transport, renewables equipment, air heating and cooling, and electrical grid development.
Amongst pockets of fierce competition, most materials substitution seems relatively stable, enduring manageable losses (and gains). Broadly, the low rate substitution activity has been underpinned by new demand emerging from losses during the global pandemic, and moreover, with inflationary costs persistent, and factors such as war and a changing world order evident, commodities growth is still potentially volatile.
For at least the short-term, where materials offer the best cost-performance combination, market demand will likely remain resilient. Further properties and factors such as competitive price, high electrical conductivity, corrosion resistance, malleability and recyclability continue to be very important.
In the world of substitution, specification of materials amongst engineers and procurement remains a major focus. Nowadays, specification might be originated by brands in any region, with some products being manufactured in North America and Europe, but a vast amount being manufactured in China and Asia geographies. For steady business growth, it is key to understand where and how materials are specified and substituted, and this is something that MM Markets is able to answer.
Thank you, and until next time!
Discover more:
MM Markets provide strategy and insight through market intelligence sourced directly from market participants. We cover trending and important issues such as recycling, substitution, competitor benchmarking, see the wide range of issues we cover www.mm-markets.com.
If you would like to discuss a project with us, please do contact me colin.bennett@mm-markets.com.
MM Markets personal view. Legal disclaimer applies. Picture from Freepik.com
