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Powder Metallurgy Market Overview
Powder
metallurgy market size is forecast to reach US$10.6 billion by 2026, after growing
at a CAGR of 7.8% during 2021-2026, as it provides a host of advantages over other
competing metal powders forming technologies such as increased efficiency,
cost-effectiveness, flexibility, consistency, and more. The recent advances in powder
metallurgy manufacturing techniques continue to grow and expand the scope of
applications in which powder metallurgy can be induced, which is also
anticipated to propel the market of powder metallurgy. The rapid growth of the
aerospace industry has increased the demand for powder metals such as tungsten
carbide; thereby, fueling the market growth. Furthermore, the flourishing
automotive industry is also expected to drive the powder metallurgy industry substantially
during the forecast period.
COVID-19 Impact
The onset of
Covid-19 in the entire nation had a negative impact on the automotive industry.
There was an overall revenue impact across the automotive industry. The
pandemic also impacted all the stakeholders present in the value chain for the short
as well as medium term. Shortage of raw material, shifting of production to
other countries, liquidity crunch to delays in availability of models, deferred
launches, and shrinkage in consumer demand were some of the main issues faced
by the automotive stakeholders, owing to which the production and demand of
automobiles had significantly fallen. For instance, according to the China
Passenger Car Association (CPCA), China's passenger car sales in June fell 6.5%
year on year to 1.68 million units. The unstable automotive production and
demand have significantly impacted the market of powder metallurgy as the demand
for powder metal was also uncertain during the period. A prolonged truncation
of consumer demand due to the lockdown has significantly affected auto manufacturers’
revenues and cash flows. Even after the restriction is eased in 2021, with
discretionary spending taking a backseat, further declines in the market for
passenger vehicles are expected.
Powder Metallurgy Market Report Coverage
The report: “Powder Metallurgy Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the powder metallurgy Industry.
By Material: Ferrous (Iron,
Steel, and Stainless Steel), Non-Ferrous (Copper, Aluminium, Cobalt, Tin,
Nickel, Magnesium, Zinc, Titanium, Molybdenum, and Others
By Process: Conventional
Process, Metal Injection Moulding, Hot Isostatic Pressing, and Metal Additive
Manufacturing
By Application: Porous
Products, Bearing and Bushes, Filters (Ceramic Filter, Fiber Metal Filter, and
Others), Refractory Metal Composites, Electric Motors, Cemented Carbides, Machinery
Parts (Gears, Sprockets, Rotors, and Others), Tungsten Wires, Medical Implants,
Magnetic Materials, Cutting Tools and Dies, and Others
By End-Use Industry: Medical
& Healthcare, Automobile (Transmission, Engine Parts, and others), Oil
& Gas, Electrical and Electronics (Refrigerators, Vacuum Cleaners, Circuit
Breakers, Electric Motors, Sewing Machines, and Others), Industrial (Hydraulics,
Motors/Controls, and Others), Aerospace (Aero-engine, Land-based Gas Turbine,
Airframes, and Others), Household Appliances, Recreation and Leisure, and
Others
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands,
Spain, Russia, Belgium, and 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), Rest of the World (Middle East, and Africa)
Key Takeaways
- Asia-Pacific dominates the powder metallurgy market, owing to the increasing demand and production of lightweight vehicles in the region. For instance, according to OICA, the production of passenger cars has increased by 2.6 % in Malaysia in 2019.
- There are many cases in which powder metallurgy over casting has a strong benefit. The benefits of the powder metallurgy process are particularly apparent when dealing with high-value and high-melting-point materials, owing to which there is increasing adoption of powder metallurgy over die casting, which will propel the market growth.
- There are growing interests in producing customized medical implants using additive manufacturing and in producing porous implant structures (to match bone stiffness and to aid osteointegration) by powder metallurgy processing, which may boost the market growth.
Figure: Asia-Pacific Powder Metallurgy Market Revenue, 2020-2026 (US$ Billion)
Powder Metallurgy Market Segment Analysis - By Material
The ferrous
segment held the largest share in the powder metallurgy market in 2020. Ferrous
powdered metals such as iron, steel, and more offer the highest level of
mechanical properties. Ferrous metal powders are also known for their extensive
characteristics such as durability, hardness, tensile strength, lower costs,
broad flexibility, and more. The ferrous powdered metal is largely employed in
the automotive industry for designing bearings, gears, or other auto parts,
owing to its good strength and flexibility. Furthermore, ferrous metals are also
widely utilized in various other end-use industries such as construction,
piping, aerospace, electronics, and more. Thus, it is anticipated that these extensive characteristics and
wide applications of ferrous powder metallurgy are the major factors driving
its demand during the forecast period.
Powder
Metallurgy Market Segment Analysis - By Application
The bearings segment
held the largest share in the powder metallurgy market in 2020 and is growing
at a CAGR of 7.4% during 2021-2026, owing to its self-lubricating property. Bearings
that are made from powder metallurgy are known as self bearings of sintered
metal. They are economical, suitable for high production rates, and precision
tolerances can be produced. The majorities of porous-metal bearings consist of
either bronze or iron with pores that are interconnected. These voids take up
10 percent of the total volume to 35 percent. In operation, lubricating oil is
deposited in these voids and feeds to the bearing surface through the
interconnected pores. Sintered-metal self-lubricating bearings are widely used
in home appliances, small motors, machine tools, aircraft, and automotive
accessories, business machines, instruments, and farm and construction
equipment, owing to which it holds a prominent share in the powder metallurgy
application segment.
Powder
Metallurgy Market Segment Analysis - By End-Use Industry
The automotive
segment held the largest share in the powder metallurgy market in 2020 and is
growing at a CAGR of 8.6% during 2021-2026. Powder metal parts display
excellent controlled porosity and self-lubricating properties that allow gases
and liquids to be filtered. Powder metallurgy is also a strongly recommended
method in the manufacture of components involving complex bends, depressions,
and projections. Flexibility in the development of mechanical parts of
different compositions, such as metal-non-metal and metal-metal hybrids, allows
high dimensional precision in the production of automobile parts and ensures
consistent properties and measurements with very little scrap and waste of
material. The most popular vehicle parts that are manufactured through the
method of powder metallurgy are the bearings and gears. A variety of metals,
including ferrous, and non-ferrous are used in automotive components including
chassis, steering, exhaust, transmission, shock absorber parts, engine,
battery, seats, air cleaners, brake disc, and more. The powder metallurgy is
often used in these components as it improves the net shape, utilizes heat
treatment, enhances surface treatment, and improves the precision of these
components. Thus, the demand for powder metallurgy in the automotive sector is
growing due to such factors.
Powder
Metallurgy Market Segment Analysis - By Geography
Asia-Pacific region held the largest share in the powder metallurgy market in 2020 up to 45%, owing to the increasing automotive manufacturing coupled with population growth in the region. China is the world's largest vehicle market, according to the International Trade Administration (ITA), and the Chinese government expects automobile production to reach 35 million by 2025. In 2019, according to OICA, the automotive production in Malaysia and Vietnam has increased up to 571632, and 250000, i.e., 1.2%, and 5.5%. India's annual production in 2019 was 30.91 million vehicles, according to Invest India, compared to 29.08 million in 2018, recording a healthy 6.26 percent growth. Also, by 2026, the US$118 billion Indian car industry is projected to cross US$300 billion. The increasing automation production in the Asia Pacific will eventually boost the demand for powder metallurgy to manufacture various automobile components, which will likely influence the growth of the powder metallurgy market in the APAC region.
Powder Metallurgy Market Drivers
Flourishing Aerospace Industry
Powder metallurgy is used extensively in aerospace, because of its
advantages of high strength/weight ratio, high heat capacity, and high modulus
of elasticity. Within aerospace, powder metallurgy finds its most significant
application in turbine engines, compressors, fan sections, discs, airframes,
fasteners, and landing gear. Tungsten metallurgy based tungsten
carbide has received considerable attention in the aerospace industry
because of its high strength at very high temperatures. Tungsten carbide
is sintered through a selective laser sintering process based on the additive
manufacturing process. In 2019, China was the second-largest civil aerospace
and aviation services market in the world and one of the fastest-growing
markets, according to the International Trade Administration (ITA). China will
need 7,690 new aircraft over the next 20 years, valued at US$1.2 trillion,
according to Boeing (Commercial Market Outlook 2018-2037). China also currently
accounts for 15 percent of the world's commercial aircraft fleet, and it will
be almost 20 percent by 2037. According to Boeing, the demand for 2,300
airplanes worth US$320 billion is projected in India over the coming 20 years.
Boeing's current market outlook (BMO) forecasts demand for 2,520 new aircraft
in the Middle East by 2030. With the flourishing aerospace industry, the demand
for aircraft components will also gradually increase, which will drive the
market growth.
Expanding Electrical and Electronics Sector
The powder metallurgy method offers the opportunity to
cost-effectively produce net form components from a variety of materials. A
market segment that has exhibited the ability to take advantage of powder
metallurgy's flexibility has been in electromagnetic applications such as
household appliances, industrial applications, and more. Magnetic materials are
essential elements in the electronic industry in recent times. From the motors
and turbines that provide the power for the industry to the high-frequency
transformers that power computers, magnetic materials are becoming increasingly
important for consumers.
The electronic sector is booming
in various regions, which will further drive the market growth as there is an
increasing demand for powder metallurgy from the electrical and electronics
sector. For instance, the consumer electronics and appliances sector in India
is expected to become the fifth-largest in the world by 2025, according to
Invest India. India could create an US$800 billion to US$1 trillion digital
economy by 2025, and India's digital economy could fuel 18-23 percent of
overall economic activity by 2025. According to the
Government of Canada, revenues in
the ICT sector reached an estimated US$210 billion in 2019. ICT sector revenues
grew from US$158 billion to US$200 billion from 2013 to 2018, a 26.9 percent
increase.
Powder Metallurgy Market Challenges
Various Drawbacks Associated with Powder Metallurgy
The cost of metal powders compared to the cost of raw material used
for casting or forging a component is relatively higher. At the time the cost
of tooling and equipment is also higher. When production volumes are limited,
this is especially a limitation. Also, low melting point metal powders such as
zinc, tin, and cadmium give thermal difficulties during sintering operation, as
most oxides of these metals cannot be reduced at temperatures below the melting
point. Furthermore, large or complex-shaped parts, and uniformly high – density
products are difficult to produce by the powder metallurgy process. Without any
degradation, a few powders are also difficult to store. All these drawbacks
associated with the powder metallurgy may hinder the market growth during the
forecast period.
Powder Metallurgy Market Landscape
Technology launches,
acquisitions, and R&D activities are key strategies adopted by players in
the powder metallurgy market. Major players in the powder
metallurgy market are Arcam AB, Carpenter Technology Corp., ExOne GmbH, GKN Plc,
Höganäs AB, Materialize NV, Melrose Industries PLC, Sumitomo Electric
Industries, Ltd., and Hitachi Chemical Co., Ltd.
Acquisitions/Technology Launches
- In May 2019, Epson Atmix Corp. installed a new production line at its Kita-Inter Plant in Japan for producing amorphous alloy powder. The company invested around ¥800 million (USD 7.43 million) for the installation of a new line and it plans to further increase its production capacity in stages and reach 6,000 tons per year by 2023.
- In October 2019, GKN Powder Metallurgy a leading metal powder and parts manufacturers acquired specialist polymer 3D printing service provider Forecast 3D. The acquisition presents a significant expansion of GKN powder metallurgy’s additive capabilities.
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