Shape memory alloy refers to those types of alloys that have the ability to return to its pre-deformed shape when it is heated after being deformed to any other shape by cooling it. These alloys are also called memory metals, smart metals and alloys.
Shape Memory Alloy Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The global market for shape memory alloys is expected to witness a healthy growth over the course of the next five years primarily due to its special properties that are pseudoelasticity and shape memory effect which is amplifying its adoption across several end-user industries that include automotive, healthcare and others. The constant participation of the major market players in product innovations, partnerships, and mergers further plays a significant role in shaping up the shape memory alloy market growth over the course of the next five years. Additionally, the growth of industries such as automotive, healthcare, and aerospace and defense among others along with the inflow of investments by players across these industries for the adoption of smart materials is also propelling the business growth opportunities for the market players over the next five years. The booming health spending in various economies for the adoption and up-gradation of the healthcare infrastructure also bolsters the market growth during the next five years. The impressive economic growth combined with the increased spending on various consumer electronics products due to the improvements in the standards of living further acts as a catalyst for the market to witness a robust growth over the next five years. Thus, the growing consumer electronics industry is also a key factor that is driving the demand for shape memory alloys for various electronic components, thereby positively impacting the market growth throughout the course of the next five years. The rising acceptance of these materials across the aerospace and defense sector will also soar the market growth over the next five years.
The Booming Consumer Electronics Industry
The constantly growing consumer electronics industry is considered to be one of the major factors that is augmenting the demand for numerous specialty electronic materials and shape memory alloys play a significant role in it. The increasing disposable income and improvements in the standards of living of the people especially in the developing economies have further increased their propensity to spend on various high-end electronic products such as automatic washing machines, dishwashers, coffee makers, and others. Thus, the wide applications of shape memory alloys across the consumer electronics industry due to excellent properties coupled with the significant growth in the demand for electronic products is significantly driving the market growth during the next five years. The figure below represents the gross national income per capita at the global level.
Global Gross National Income per Capita, Atlas Method, Current US$, 2001 to 2018
Source: The World Bank Group
The shape memory alloy market has been segmented into type, end-user industry, and geography. By type, the market has been segmented as nickel-titanium based, copper-based, and others. By the end-user industry, the classification of the market has been done into automotive, healthcare, aerospace and defense, electronics, and others. Moreover, on the basis of geography, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Nickel-Titanium to Hold a Healthy Share
By type, the nickel-titanium segment is expected to hold a noteworthy share in the market throughout the course of the next five years owing to its wide applications across the healthcare sector in cardiovascular stents as well as various other applications. Furthermore, the companies are also investing heavily in the R&D for the development of new nickel-titanium based products which is also a major factor supporting the growth of this segment throughout the next five years. However, the copper-based alloys segment is expected to witness a substantial growth throughout the forecast period primarily due to its growing applications in actuators, fluid connectors, and couplings among others. Also, the considerably lesser cost of these materials is also a key factor bolstering the adoption of copper-based alloys across the different end-user industries, thus positively impacting the growth of this segment in the next five years.
Automotive Industry to Witness Notable Growth
By the end-user industry, the automotive segment is projected to show promising growth throughout the forecast period. The major factors augmenting the growth of this segment include the rising penetration of advanced technologies in the vehicles for the enhancement of performance, safety, and other important features of the cars. This, in turn, has further propelled the usage of microcontrollers, sensors, and actuators in the vehicles which in turn also driving the growth of this segment during the next five years. Furthermore, the growing penetration as well as investments in the field of electric vehicles is further providing an impetus for the automotive shape memory alloy market to witness a healthy growth throughout the forecast period. Moreover, the healthcare segment is expected to hold a substantial market share throughout the course of the next five years owing to the wide applications across various fields of specialty. Additionally, the globally growing healthcare spending is further enabling the citizens to opt for costly medical treatments and surgical procedures which is further bolstering the growth of this segment during the next five years.
APAC to Show Propelling Growth Opportunities
Geographically, the North American region is projected to hold a noteworthy amount of share in the market during the next five years primarily due to the presence of a well-established infrastructure across the industries in the region. Furthermore, the early technology adoption is also a key factor which is supporting the significant share of the North American region in the market.
In the Asia Pacific region, the market is expected to show good growth due to the growth of the electronics as well as the automotive industry in countries like China and India among others. Furthermore, the presence of a vast chemical and materials industry is also supporting the growth in the APAC region during the next five years.