The powder metallurgy market is expected to grow at a CAGR of 7.94% over the forecast period to reach a total market size of US$10.017 billion by 2027, increasing from US$5.868 billion in 2020.
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, which is driving the growth of the market during the forecast period. In addition, growing advancements in technology and rising investment in research and development are propelling growth opportunities for vendors and manufacturers. However, the fluctuation in the prices of raw materials, and the high capital requirement are expected to restrain the growth of the market in the coming years.
Urbanization and increasing government initiatives are expected to boost the market
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. Also, expanding the manufacturing sector and rising government initiatives to promote the growth of the manufacturing sector are anticipated to witness progressive growth opportunities for the powder metallurgy market during the forecast period. For instance, in the United States, the Trump administration has announced policies favourable for the manufacturing sector, which has resulted in the year-on-year growth of total industrial production. In fact, according to the World Bank, the total value added by the manufacturing industry as a percentage of the GDP has increased from 16% in 2019 to 17% by 2021.
Demand from the automotive industry is driving the market during the forecast period
The automotive industry is utilizing powder metallurgy for multiple reasons. Due to the changing industrial landscape, the market nowadays is demanding more than just a durable component, and components are now competing to meet the lightweight requirement. The flexibility in the development of mechanical parts with diverse compositions enables automotive producers to provide high accuracy and low material wastage. Also, the nascent industry of autonomous driving vehicles (ADV) is getting popular and opens new areas of opportunity for high-quality automotive components, especially in developing countries like China which has considered it a priority sector for development.
According to the US Bureau of Transportation Statistics, US vehicle production stood at 10,893 thousand in 2019. 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. Power metallurgy is considered a cost-effective melt-forming solution and enables part-to-part consistency with excellent surface finish. This benefit is attracting automotive manufacturers to use this type of technique.
The Asia Pacific is estimated to hold a significant share in the market.
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 2019 and is projected to remain at that position throughout the forecast period. This growth is attributed to the strong presence of key players in the region and established the automotive industry. The region is showing exponential growth opportunities owing to expanding the manufacturing industry in the region and favourable government policies for the development of 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, which is further expected to propel the market growth opportunities for manufacturers and vendors in the coming years. For instance, according to the Organisation for Economic Co-operation and Development, household spending in China has increased from USD 8,570,799 million in 2018 to USD 9,164,397 million in 2020. Also, in Europe, due to the expanding aerospace industry and the presence of major commercial aircraft, the market is growing at a substantial rate. Similar trends have been noticed in the North American region, which is witnessing significant growth on account of an expanding manufacturing industry coupled with increasing investment by market players.
The powder metallurgy market was adversely impacted due to the COVID-19 pandemic. During the pandemic, major end-user industries such as the automotive industry experienced set back in terms of demand due to lockdown and shutdown of operations. For instance, according to the statistics from the US Department of Transportation, the domestic sales of Motor Vehicles in the US contracted by 2,106 thousand units in 2020. But the growth prospects of the automotive industry are projected to grow with the introduction of innovative technologies like EVs, hence, the market for powder metallurgy is expected to recover in the forecast period.
Powder Metallurgy Market Scope:
|Market Size Value in 2020||US$5.868 billion|
|Market Size Value in 2027||US$10.017 billion|
|Growth Rate||CAGR of 7.94% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Material, Application, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Sumitomo Electric Industries, Ltd., H.C. Starck GmbH, Höganäs AB, Fine-sinter Co., Ltd, Miba AG, Sandvik AB, Melrose Industries PLC, ATI, Showa Denko Materials Co., Ltd., GKN Powder Metallurgy|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global powder metallurgy market?
A1. Powder Metallurgy Market was valued at US$5.868 billion in 2020.
Q2. What are the growth prospects for the powder metallurgy market?
A2. The global powder metallurgy market is expected to grow at a CAGR of 7.94% over the forecast period.
Q3. What factors are anticipated to drive the powder metallurgy market growth?
A3. Increasing middle-class income coupled with rapid urbanization is increasing demand for automobile and consumer electronics products, which is driving the powder metallurgy market growth.
Q4. What will be the powder metallurgy market size by 2027?
A4. The powder metallurgy market is expected to reach a market size of US$10.017 billion by 2027.
Q5. Which region holds the largest market share in the powder metallurgy market?
A5. The Asia Pacific accounts for a significant share of the powder metallurgy market and is projected to remain at its position throughout the forecast period.
Sumitomo Electric Industries, Ltd.
H.C. Starck GmbH
Fine-sinter Co., Ltd
Melrose Industries PLC
Showa Denko Materials Co., Ltd.
GKN Powder Metallurgy
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