The powder metallurgy market is expected to grow at a CAGR of 7.99% over the forecast period to reach a total market size of US$11.730 billion by 2029, increasing from US$6.849 billion in 2022.
Powder metallurgy is a process for forming accurate metal components from metal powder through compacting. Increasing middle-class income coupled with rapid urbanization is increasing demand for automobiles and consumer electronics products, driving the market's growth during the forecast period. In addition, growing technological advancements and rising investment in research and development propel manufacturers' growth opportunities. However, the fluctuation in the prices of raw materials and the high capital requirement are expected to restrain the market's growth in the coming years.
GLOBAL POWDER METALLURGY MARKET DRIVERS:
Rapid urbanization coupled with growing disposable income expands the purchasing power of consumers, which further increases the demand for consumer electronics products, thus augmenting the market growth opportunities for power metallurgy vendors and manufacturers during the forecast period. The expanding manufacturing sector and rising government initiatives to promote the growth of the manufacturing sector are anticipated to witness progressive growth opportunities. In fact, according to the World Bank, the total value added by the manufacturing industry in the United Kingdom was 9% of the national GDP.
The defence industry is a significant driver of the powder metallurgy market. This manufacturing technique specializes in producing robust, lightweight components with complex geometries, which are essential for aerospace and ground vehicles. Its low cost, material diversity, and integration with additive manufacturing make it perfect for creating a wide range of defence components, including engine parts and munitions.
The National Centre for Defence Manufacturing and Machining (NCDMM) and America Makes selected the winners of the $6 million Powder Alloy Development for Additive Manufacturing (PADAM) project in 2024. The PADAM project, unveiled in August 2023 and funded by the Air Force Research Laboratory (AFRL), seeks to develop AM for aerospace and defence applications by focussing on data-driven approaches to innovative AM metal materials. It focuses on advancing high-temperature metals and is divided into two areas: $3.6 million for high-temperature refractory alloys and $2.4 million for nickel-based superalloys. Comprehensively, as demand for modern military equipment rises, so does the dependence on powder metallurgy to provide high-performance solutions.
GLOBAL POWDER METALLURGY MARKET SEGMENT ANALYSIS:
The automotive industry is utilizing powder metallurgy for multiple reasons. Owing to the changing industrial landscape, the market nowadays demands more than just a durable component; components compete to meet the lightweight requirement. The flexibility in developing mechanical parts with diverse compositions enables automotive producers to provide high accuracy and low material wastage. The emerging autonomous driving vehicles (ADV) industry is becoming popular and opening new areas of opportunity for high-quality automotive components, especially in developing countries like China and India, which have considered it a priority sector for development.
Following this, as per the IBEF, India's total production of passengers and utility vehicles, three-wheelers, two-wheelers, and quadricycles was 23,28,329 units in January 2024. India is expected to be the largest market for EVs by 2030 and has an expected investment grade of over $200 billion in the next 8-10 years.
In addition to this, the revival of the automotive industry in many parts of the world is anticipated to boost the demand for powder metallurgy in the coming years. Powder metallurgy is considered a cost-effective melt-forming solution, enabling part-to-part consistency and an excellent surface finish. This benefit attracts automotive manufacturers to use this technique.
Asia Pacific’s powder metallurgy market is anticipated to grow significantly.
By geography, the global powder metallurgy market has been segmented into the following: North America, South America, Europe, the Middle East, Africa, and Asia Pacific regions. The Asia Pacific accounts for a significant share of the powder metallurgy market in 2022 and is projected to remain at that position throughout the forecast period. This growth is attributed to the strong presence of key regional players and the established automotive industry. The region is showing exponential growth opportunities owing to the expanding manufacturing industry and favorable government policies for developing the manufacturing sector.
Besides, due to rising household expenditure, there is an increasing demand for consumer electronics, which attracts market players to invest in the country to cater to the growing consumer base. This is further expected to propel the market growth opportunities for manufacturers and vendors in the coming years. For Instance, China’s countrywide per capita consumer spending in the first quarter of 2024 was 7,200 Yuan, an increase of 8.3 percent over 2023.
Additionally, in Europe, due to the expanding aerospace industry and the presence of major commercial aircraft, the market is growing substantially. Similar trends have been noticed in the North American region, which is witnessing significant growth due to an expanding manufacturing industry coupled with increasing investment by market players.
Global Powder Metallurgy Market Key Developments:
The global powder metallurgy market is segmented and analyzed as follows: