Shape Memory Alloy Market - Forecast(2023 - 2028)

Shape Memory Alloy Market Overview

The Shape Memory Alloy Market size is forecast to reach US$19.8 billion by 2027, after growing at a CAGR of 10.2% during 2022-2027. Shape-memory alloys are metals that return to their original shape before deformation on being heated, even on becoming deformed at a temperature below a given mark. Shape-memory alloys can be copper-based, iron manganese silicon alloys, nitinol and others. The alloy goes through a transformation from martensite to austenite, on being heated and is utilized as functional materials in actuators, temperature sensors and clamping fixtures. The demand for the shape-memory alloy to produce implants in the medical and healthcare industry and to improve the sealing of aircraft doors in the aerospace industry is driving market growth. Moreover, the surging demand for shape memory alloy in the building and construction industry to mitigate natural disasters and enhance structural performance is further estimated to propel the demand for shape memory alloy industry in the forecast period. The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for automobiles, consumer electronics and other applications all across the world, which had a significant impact on the growth of the Shape Memory Alloy Market size.

Shape Memory Alloy Market Report Coverage

The “Shape Memory Alloy Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Shape Memory Alloy Industry.

By Type: Nickel-Titanium Alloy (Nitinol), Copper-based Alloy, Iron-Manganese-Silicon Alloy and Others.
By Application: Motor and Actuators, Transducers, Structural Materials, Sensors, Transistors, Memories, Vibration Dampers, Shock Absorbers and Others.
By End-use Industry: Automotive (Passenger Vehicles, Light Commercial Vehicles and Heavy Commercial Vehicles), Medical & Healthcare (Dental Implants, Orthodontic Wires and Others), Aerospace (Commercial Aircraft, Military Aircraft, Helicopters and Others), Consumer Goods (Toys, Gas Water Heaters, Water Regulator Valves, Subfloor Vents and Others), Electrical & Electronics and Others
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Russia, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

• The North American region dominates the Shape Memory Alloy Market owing to the rising growth in the automotive industry. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), the total automobile production in the U.S including cars and commercial vehicles reached 91,67,214 units in 2021, an increase of 4% in comparison to 2020.
• Rapidly rising demand for Shape-Memory Alloy in the aerospace industry to reduce the unpleasant plane noise produced during landing and to improve the sealing of aircraft doors has driven the growth of the Shape Memory Alloy Market.
• The increasing demand for Shape-Memory Alloy in the medical & healthcare sector, due to its usage in the production of dental implants, is projected to be a critical factor driving the growth of the Shape Memory Alloy Market in the upcoming years.
• However, the increasing cost of raw materials can hinder the growth of the Shape Memory Alloy Market.

Figure: North America Shape Memory Alloy Market Revenue, 2021-2027 (US$ Billion)

Shape Memory Alloy Market Segment Analysis – By Type

The nickel-titanium alloy segment held the largest Shape Memory Alloy Market share in 2021 and is estimated to grow at a CAGR of 10.5% during the forecast period 2022-2027. The growing medical & healthcare industry, specifically for medical implants, is leading the demand for nickel-titanium (nitinol) shape-memory alloys. It is the most widely used shape memory alloy as compared to other alloys such as copper-based alloy, iron-manganese-silicon alloy and others, owing to its excellent electrical and mechanical characteristics, long fatigue life and high corrosion resistance, shape memory, biocompatibility and super-elasticity. This alloy regains its original shape, from martensite to austenite, by heating to their transition temperature. Thus, all these exhibit characteristics of nickel-titanium alloy (nitinol) make it a preferred choice over the other alloy types which is driving its segmental growth.

Shape Memory Alloy Market Segment Analysis – By End-use Industry

The medical and healthcare industry held the largest Shape Memory Alloy Market share in 2021 and is estimated to grow at a CAGR of 10.8% during the forecast period 2022-2027. Shape-memory alloys are widely utilized in dental applications for the manufacture of orthodontic wires, owing to their superior properties such as super-elasticity, resistance to corrosion and high toughness. The rise in the aging population and advancements in medical devices would increase the usage of shape memory alloys, such as in dental implants and other surgical devices. According to Invest India, the medical device sector is growing steadily at a CAGR of 15 percent over the last 3 years and the medical devices industry in India is poised for significant growth with the market size expected to reach US$50 billion by 2025. Additionally, according to the U.S. Food & Drug Administration, in 2022, the government announced a US$5 million increase towards the improvement in the safety and security of medical devices. Thus, with the growing medical devices sector in the medical and healthcare industry, the demand for the Shape Memory Alloy Market would further flourish over the forecast period.

Shape Memory Alloy Market Segment Analysis – By Geography

North America region dominated the Shape Memory Alloy Market share by 37% in 2021 and is projected to dominate the market during the forecast period 2022-2027 due to the growing medical & healthcare and aerospace industries in the region. The shape-memory alloys are utilized to produce dental implants in the medical & healthcare sector, owing to their properties such as elasticity and toughness. This alloy is also used in actuators and temperature sensors. The medical & healthcare industry is estimated to strengthen due to its increasing growth. According to the article published by the Canadian Medical Association Journal (Cmaj Group) on "Ensuring adequate capital investment in Canadian healthcare", Canada's total healthcare capital funding has grown from US$2.3 billion to US$8.1 billion annually. Also, according to International Trade Administration, in Mexico, the total local production of medical devices and equipment increased from US$16.80 billion in 2020 to US$15.12 billion in 2021. Thus, the rising government investments and growing demand for implants in the medical & healthcare sector are proving to be a market booster for the Shape Memory Alloy Market size in this region.

Shape Memory Alloy Market Drivers

Growing Aerospace industry:

In the aerospace industry, Shape-Memory Alloys are utilized because of their characteristic to twist on cooling down. Due to this twisting motion, the fins are pulled down to lie flat against the wing. Also, the alloy regains its original shape in warmer conditions and lifts the fin into an upright position. This alloy is used to reduce the unpleasant plane noise produced during landing and to improve the sealing of aircraft doors. The aerospace industry is growing. For instance, in 2021, the Government of Quebec and the Government of Canada, funded US$2 billion in the aerospace industry to drive the recovery of the sector. Moreover, according to the International Trade Administration (ITA), in 2021, the Dutch Government has increased its investments in the aerospace industry, investing €1.5 billion (US$1.57 billion) over the next five years, with a one-time increase of €1.2 billion (US$1.26 billion) in 2019 and an annual increase of €162 million (US$170 million) in the following years. Thus, increasing investments in the aerospace industry would require more Shape-Memory Alloy for manufacturing aircraft, which will drive the demand for the Shape Memory Alloy Market during the forecast period.

Rising Building & Construction Industry:

In the building & construction industry, Shape-Memory Alloys are utilized to mitigate natural disasters, enhance structural performance, reduce vibration by increased damping and improve energy efficiency. Shape-memory alloys are also integrated into building envelopes to respond to the environment. According to Invest India, by 2025, the building and construction industry is estimated to reach US$1.4 trillion. Moreover, according to the U.S Department of Commerce, the privately-owned housing units authorized by building permits in March 2022 were around 1,873,000 which was 0.4% above February 2022 of 1,865,000 units and was 6.7% above March 2021 of around 1,755,000 units. Thus, the growing building and construction industry will require more shape-memory alloy due to its exhibit characteristics, which will drive the growth of the Shape Memory Alloy Industry during the forecast period.

Shape Memory Alloy Market Challenge

Rising Cost of Raw Materials:

The raw materials of Shape-Memory Alloy are metals such as nickel, titanium, aluminum and copper. Prices of these metals continue to increase constantly. For instance, Russia is a major producer of aluminum and copper. Due to the Russia-Ukraine war, the prices have already surged 33% and 25%, respectively, year-over-year in January 2022 as stated in a report published by The White House Washington. Therefore, the price of the shape-memory alloy, forged from these raw materials could rise even higher. Due to the high prices of shape-memory alloys and the presence of similar properties, stainless steel is preferable for many applications in the medical & healthcare, consumer electronics and automotive industries. Thus, with the increasing cost of raw materials, the growth of the Shape Memory Alloy Market will be hindered in the forecast period.

Shape Memory Alloy Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the Shape Memory Alloy Markets. The top 10 companies in the Shape Memory Alloy Market are:

1. SAES Getters
2. ATI Specialty Alloys & Components
3. Furukawa Electric Co. Ltd.
4. Nippon Steel & Sumitomo Metal
5. Johnson Matthey
6. Ultimateniti
7. Arquimea
8. Nippon-Seisen Co. Ltd.
9. Dynalloy
10. Daido Steels

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