A shape memory alloy belongs to the category of specialty materials. These alloys have the ability to deform themselves after being heated and can be returned to pre-deformed shape when cooled down. The global market for shape memory alloys is projected to show robust growth throughout the course of the next five years owing to the fact that these alloys have unique properties that are pseudo elasticity and shape memory effect. This further makes shape memory alloys suitable for a wide variety of applications across the different industry verticals. Furthermore, the market is also poised to witness growth on account of the growing investments by major market players in the form of research and development for the adoption and development of new materials. Also, the adoption of specialty metals across the healthcare sector is gaining a lot of traction these days on account of growing applications in biomedical devices. Thus, a significant increase in the health spending worldwide for the up-gradation as well as the adoption of new healthcare infrastructure especially in the developing economies of the globe is further expected to positively impact the market growth throughout the course of the next five years.
Current Health Expenditure (% of GDP) - China, Brazil, 2010 to 2017
Source: The World Bank Group
The figure above represents the current healthcare expenditure in Brazil and China as the percentage of the GDP of the respective countries which shows that in China the health spending reached 5.15% of the GDP by the year 2017 from 4.21% in the year 2010. Similarly, in Brazil, it increased from 7.95% in 2010 to 9.47% by the year 2017. Thus, the growing health spending further plays a significant role in shaping up the shape memory alloy market growth over the next five years.
The market for shape memory alloys is also projected to grow substantially on account of the constantly growing demand for consumer electronics such as household electronics appliances such as refrigerators, air conditioners, and coffee makers among others. The ability of these alloys such a superelasticity and shape memory effect further makes it suitable for the wide application in electronic appliances. The growing disposable income and the improvement in the standards of people living across the developed economies of the world are further propelling the demand for consumer electronics, thus positively impacting the market growth throughout the forecast period.
Shape Memory Alloy Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The figure represents the global market size of shape memory alloys from 2019 to 2025 which further shows that the market reached US$19.276 billion by the year 2025 from US$9.581 billion in 2019.
However, the market is expected to be restrained by the fact that manufacturing activities across several industry verticals such as automotive and consumer electronics among others have been temporarily suspended in some countries due to the outbreak of the novel coronavirus disease. Several government restrictions such as lockdowns and social distancing measures have led to a temporary closure of manufacturing plants in many countries. Furthermore, the shortages of labor coupled with the non-availability of raw materials due to a disruption in the global supply chain have further impacted the manufacturing output of the industries globally. Thus, the advent of COVID-19 is expected to hamper the market growth moderately during a short period of the next six to eight months. Furthermore, the volatile prices of raw materials coupled with the availability of a range of substitute products of shape memory alloys is also a major factor that is projected to negatively impact the market growth to some extent until the end of the forecast period.
The segmentation of the shape memory alloy market has been done into type, end-user industry, and geography.
Copper-Based Alloys to Grow Substantially
By type, the market has been segmented nickel-titanium based, copper-based, and others. The copper-based alloys are anticipated to grow at a healthy pace throughout the forecast period. These alloys are widely used in actuators, fluid connectors, and couplings among others which is a key factor bolstering the growth of this segment throughout the forecast period. Furthermore, the lower cost of copper-based alloys is also supplementing the market growth of this segment during the forecast period. However, the nickel-titanium based alloys are expected to hold a notable amount of share in the market. The major factors supporting the growth of this segment include the vast use in cardiovascular applications across the healthcare sector.
Healthcare to Hold a Healthy Share
By the end-user industry, the shape memory alloy market has been segmented as automotive, healthcare, aerospace and defense, electronics, and others. The healthcare industry is expected to hold a notable share in the market owing to the vast applications of specialty materials in biomedical devices as well as the high adoption of shape memory alloys in cardiovascular applications. The majority of the cardiovascular stents are made using these alloys owing to high flexibility and fatigue resistance. Furthermore, the booming penetration of technologies in the automotive sector has further propelled the adoption of microcontrollers, sensors, and actuators among others. Features such as ADAS, ABS, and EBS further augment the use of sensors and other electronic components necessary for the functioning of these systems. Thus, a significant growth of the automotive industry is further expected to drive the growth of this segment throughout the forecast period.
Apac to Show Promising Growth
Geographically, the distribution of the market has been done into North America, South America, Europe, Middle East and Africa, and Asia Pacific among others. The North American region is projected to hold a substantial market share throughout the course of the next five years on account of the early adoption of technology and the presence of a world-class infrastructure across the industries in countries like the United States and Canada among others. However, the APAC region is expected to show promising growth on account of the growing industries in the region coupled with the presence of well-established chemicals and materials industry in countries like Japan, China, and India among others.