Tungsten Carbide Market - Forecast(2023 - 2028)

Tungsten Carbide Market Overview

The Tungsten Carbide Market size is forecasted to reach USD25.0 billion by 2027, after growing at a CAGR of around 4.4% from 2022 to 2027. Tungsten carbide is a chemical compound, prepared from equal proportions of carbide and tungsten. It is used as an electro catalyst for the hydrogen evolution reaction. The tungsten carbide is used in metal cutting tools, using submicron cemented carbides which are prepared by blending cobalt powders with the micron-sized tungsten carbide particles. The high demand for tungsten carbide for metal cutting applications is offering a major drive in the market. Furthermore, with growing demand across end-use industries such as oil & gas, mining, construction and others, the Tungsten Carbide Market will grow rapidly during the forecast period.

COVID-19 Impact

The tungsten carbide industry faced major disruption and slowdown during the covid-19 outbreak phase. Tungsten carbide has high demand in construction, automotive and other sectors. The construction industry was majorly impacted by the slowdown and disruptions. The closure of construction sites across the globe, rising prices of raw materials, supply chain disturbance and logistic restrictions to a major fall in the growth. The contraction in the construction output halt in construction activities and resulted in a slowdown in the market. According to the World Bank data and OECD national accounts data, the value added by the global construction sector declined from US$ 23 trillion in 2019 to US$ 22 trillion in 2020. The fall in the growth of the construction sector led to a major decline in the applications of tungsten carbide, thereby creating a slowdown and fall in demand during the outbreak phase. However, with recovery in major end-use industries and established demand, the global carbide market will grow rapidly.

Report Coverage

The report: “Tungsten Carbide Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the global Tungsten Carbide industry.

By Grade: Metal Forming Grade, Mining Grade, Technical Grade and Others.
By Purity: Below 99%, 99% and Above 99%.
By Application: Cutting Tools, Industrial Alloys, Wear Part Tools, Jewelry, Surgical Instrument and Others.
By End-Use Industry: Automotive (Passenger Vehicle and Commercial Vehicle), Construction (Commercial, Industrial and Residential), Mining Industry, Oil & Gas Industry, Medical Industry, Defense and Others.
By Geography: North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa).

Key Takeaways

• The Tungsten Carbide Market size will increase owing to its rising application in automotive, construction, industrial alloys, metal cutting tools, oil and gas and others during the forecast period.
• The Asia Pacific is the fastest-growing region in the Tungsten Carbide Market due to high demand from major end-use industries, flourishing production base and development in mining projects in this region, thereby boosting the demand for tungsten carbide.
• The demand for tungsten carbide in cutting tool applications is rising across various end-use industries, thereby providing major growth in the market.

Figure: Asia Pacific Tungsten Carbide Market Revenue, 2021-2027 (US$ Billion)

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Tungsten Carbide Market Segment Analysis – by Application

By application, the cutting tool is the fastest-growing segment and is expected to grow with a CAGR of around 5.7% during the forecast period. The cutting tool segment acquired a significant portion of the Tungsten Carbide Market share in 2021. That tungsten carbide has a major application in the cutting tool application. The cemented carbide, which is a metal matrix composite, uses tungsten carbide particles and cobalt powder for metal cutting tools. The high demand of cutting tools across various end-use industries such as automotive, mining, construction and others is offering major growth in the market. The superior properties of tungsten carbide such as wear resistance, toughness and hardness boost its application in cutting tools for metal across major industries. Moreover, the rise in cutting tool applications in major sectors, majorly automotive is influencing the growth in the market. According to the Society of Indian Automobile Manufacturers (SIAM), the total automotive production in India accounted for 22,933,230 units in the year 2021-22. The growth of the automotive sector and flourishing production on automotive is boosting the demand for tungsten carbide for metal cutting tool applications. Thus, with the robust growth of cutting tool applications across various industries, the Tungsten Carbide Market size will grow rapidly during the forecast period. 

Tungsten Carbide Market Segment Analysis – By End-Use Industry

By end-use industry, the automotive segment held the largest Tungsten Carbide Market share in 2021, with a share of over 26%. Tungsten Carbide has major applications in the automotive industry such as drills, metal cutting tools and others owing to its excellent features such as durability, hardness, wear-resistance and rust-free feature. The use of tungsten carbide for manufacturing various automotive components and industrial machinery tools is offering high demand in the market. According to the International Organization of Motor Vehicle Manufacturers (OICA), total global automotive production accounted for 80,145,988 units in 2021. The production and development in the automotive sector are growing rapidly, thereby propelling the demand for tungsten carbide in cutting tools and other automotive machinery parts. Thus, with the major demand for tungsten carbide in the automotive sector, the global tungsten carbide industry will grow rapidly during the forecast period. 

Tungsten Carbide Market Segment Analysis – By Geography

By geography, the Asia Pacific is the fastest-growing region in the Tungsten Carbide Market and is expected to grow with a CAGR of around 5.9% during the forecast period. The APAC region acquired a significant portion of the Tungsten Carbide Market share in 2021. The robust growth of tungsten carbide in the Asia-Pacific is influenced by its flourishing demand across various industries such as metalworking, construction, automotive and others. The rise in construction activities in major countries such as China, Japan, India and others is propelling the demand for tungsten carbide for its application in saws, alloys, drill bits and other construction materials. According to the World Bank data, the construction sector held a 38% value in the GDP of China for the year 2020. Moreover, the flourishing oil and gas projects and mining and drilling activities in the APAC region are boosting the growth prospects in the Tungsten Carbide Market. The large-scale mining activities and establishment of mineral-processing units is propelling the demand for tungsten carbide. Thus, with development in major end-use sectors and growing demand for tungsten carbide in APAC, the Tungsten Carbide Market will grow rapidly during the forecast period.

Tungsten Carbide Market Drivers

Rise in the application of Tungsten Carbide in the medical sector

The demand for Tungsten Carbide is flourishing in the healthcare sector. Tungsten Carbide has major applications in the medical sector such as surgical instruments, wire cutters, scissors and others. The high demand for tungsten carbide in surgical equipment is due to its properties such as toughness, hardness, durability and strength. Moreover, the growth of medical technology, healthcare infrastructure and advancement is offering major demand in the market. According to the Indian Brand Equity Foundation (IBEF), the healthcare sector in India is expected to reach US$ 372 billion in 2022. Thus, with increasing application and demand in the medical sector, the Tungsten Carbide Market is experiencing major growth.

Growing demand in the mining sector

Tungsten Carbide has major demand for its application in the mining industry. Tungsten Carbide is widely used in mining for drilling and cutting tools due to aid superior properties such as hardness, wear resistance and toughness. Moreover, the growing mining and mineral processing projects across the globe are propelling the demand of tungsten carbide. The increasing usage of tungsten carbide in mining tools and equipment is boosting the growth in the market. According to the United States Geological Survey (USGS), the U.S. mines produced an approximate US$ 90.4 billion in mineral commodities in 2021, showing a US$9.7 billion increase from 2020. Thus, the increasing application and demand of tungsten carbide in the mining sector are driving the market and offering major growth opportunities in the global tungsten carbide industry.

Tungsten Carbide Market Challenges

Toxicity and health hazards associated with Tungsten Carbide

Tungsten Carbide has growing applications across various end-use industries. However, the toxicity of Tungsten Carbide and health hazards create a major challenge in the industry. The restriction laid by the government on toxicity and air contamination is hampering the application and growth in the Tungsten Carbide Market. For instance, the international tungsten industry Association (ITIA), the SWA released an interim occupational exposure limit for the hard metals that contain textile carbide and Cobalt of 0.005 mg/mg3. The submicron tungsten carbide powder is highly flammable and causes severe health impacts such as inhalation difficulty, eye irritation, lung infection and others. Thus, the hazardous effects of tungsten carbide create a hamper on the growth opportunities in the Tungsten Carbide Market.

Global Tungsten Carbide Industry Outlook

The top 10 companies in the global Tungsten Carbide industry include:

1. Nanchang Cemented Carbide Co. Ltd.
2. Jiangxi Yaosheng Tungsten Company Limited
3. American Elements
4. Sandwik AB
5. Durit HartMetall GmBH
6. Federal Carbide Company
7. H.C. Stark GmbH
8. International Metalworking Companies Group
9. Mitsubishi Materials Corporation
10. Extramet AG

Recent Developments

• In May 2022, Sandwik company introduced the 3D-printed components in the cemented carbide, which is prepared using Tungsten Carbide powder. The technology is aimed to have major applications in metal cutting, oil & gas and the agriculture sector.
• In June 2021, Hyperion Materials & Technologies announced the agreement for the acquisition of Sinter Sud S.p.A, a manufacturer of cemented carbide products. This acquisition aimed to boost the production of cemented carbide for cutting and metalworking and offer the best services to toolmakers globally.
• In October 2020, Mitsubishi Materials Corporation agreed to invest USD 90 million in the tungsten-focused Masan High-Tech Materials Corporation in order to boost its tungsten business, including cemented carbide recycling.

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