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Tantalum Market Overview
The Tantalum market size is
estimated to reach a value of US$451.6 million by the end of 2027 after growing at a CAGR of 4.5% during the forecast period 2022-2027.
Tantalum is a transition metal with a high melting point and strong corrosion
resistance and it includes indium, lithium, molybdenum and niobium. The
tantalum market is expanding due to reasons such as increased demand for
tantalum in the manufacture of electronic equipment and gadgets, as well as
developing industries such as aviation and aerospace. The high demand for
tantalum wire/powder in super alloys is also helping to drive the tantalum
market forward. The covid-19 pandemic majorly impacted the tantalum market due to
restricted production, supply chain disruption, logistics restrictions and a
fall in demand. However, with robust growth and flourishing applications across
major industries such as aerospace, electrical & electronics and others, the
tantalum market size is anticipated to grow rapidly during the forecast
period.
Tantalum Report Coverage
The “Tantalum Report –
Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis
of the following segments in the tantalum industry.
Key Takeaways
- Asia-Pacific dominates the Tantalum market size, the increase in demand from end-user sectors, such as electronics, aerospace and medical equipment, is the main factor driving the region's growth.
- The demand for electronic devices has increased due to a number of factors, including the expanding use of tantalum indium, lithium, tantalum- molybdenum, niobium, tantalum alloys in gas turbines and aviation, rising adoption of cutting-edge technologies, automation and others, as well as rising product demand in the electronics sector for high power resistors and capacitors.
- Increasing advancement and replacement of aging power infrastructure, an increasing number of applications in medical, space, renewable energy and others, an increase in mining activities and long-term supply agreements will all contribute to the growth of the tantalum market.
Figure: Tantalum Market Revenue Share, By Geography, 2021 (%)
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Tantalum Market Segment Analysis – by Application
The Capacitors segment held a
significant share in the Tantalum market share in 2021 and is forecasted to
grow at a CAGR of 4.3% during the forecast period 2022-2027, owing to
increasing demand from end-use industries. The capacitors are utilized in the
production of electrolytic capacitors. These electrolytic capacitors are widely
utilized in a variety of industries, including medical, aerospace and renewable
energy. Moreover, tantalum capacitors, which have the largest capacitance per
unit space of any capacitor, are widely utilized in miniaturized electrical
equipment. With the robust growth in various end-use industries, the demand
for tantalum will rise. Thus, with the high growth of tantalum in various
applications, it is anticipated that the demand for the tantalum industry will
flourish during the forecast period.
Tantalum Market Segment Analysis – by End-use Industry
The Electrical & Electronics
segment held a significant share in the Tantalum market share in 2021 and is
projected to grow at a CAGR of 4.8% during the forecast period 2022-2027. The electronics industry is growing
rapidly owing to the high demand for electrical devices and consumer
electronics such as smartphones, TV, PC and others in the work-from-home scenario.
According to the India Brand Equity Foundation (IBEF), the electronics
manufacturing industry in India is projected to reach US$520 billion by the
year 2025. According to the Semiconductor Industry Association (SIA), global
semiconductor sales reached US$151.7 billion in the first quarter of 2020,
showing an increase of 23% over the first quarter of 2021. With the increasing
growth in electronics production and semiconductor, the demand for tantalum for
applications in capacitors, semiconductors and others is growing. The growing
electrical and electronics sector is driving the market and offering major
growth opportunities in the tantalum industry.
Tantalum Market Segment Analysis – by Geography
The Asia-Pacific segment held a significant share in the Tantalum market share in 2021 up to 41% and is expected to grow at a CAGR of 4.9% during the forecast period 2022-2027. The fueling demand and growth of tantalum in this region are influenced by flourishing demand from major industries such as electrical & electronics, aerospace and others, along with fueling manufacturing activities across APAC. According to the People’s Republic of China, in 2021, the electronics industry grew by 15.7 percent, an increase of 8 percentage points year over year. And according to the India Brand Equity Foundation, By 2025, Electronics consumption will increase to US$400 billion by 2025, up from US$33 billion in FY20. By 2025, India is predicted to be the world's fifth-largest consumer electronics and appliances market. Thus, the growth of the tantalum market in the region is being aided by the increasing electrical & electronics sector in APAC, thereby dominating the market in the Asia-Pacific region.
Tantalum Market Drivers
Bolstering Growth of the Aerospace Industry:
Tantalum is utilized in aerospace and defense as a heat-resistant
high-strength material for rockets, missiles and jet engines, as well as parts
for control and regulatory systems. Increasing demand from the aerospace
industry is driving the market growth of the tantalum market. According to
the Federal Aviation Administration (FAA), the total commercial aircraft fleet,
for example, is expected to grow from 7,397 in 2018 to 8,270 by 2037. According
to the Boeing Commercial Market Outlook 2021-2040, North America will require
9,160 new airplane deliveries by the end of 2040 and airline fleet growth in
North America is expected to be 1.7 percent between 2019 and 2040. According
to the India Equity Foundation, By 2030, the Indian aerospace and defense
(A&D) sector is expected to reach US$ 70 billion. With the
rise in the aerospace industry across the globe, the demand for tantalum is
anticipated to rise for various applications in engine turbine
blades and others and is projected to boost the market growth in the
aerospace industry during the forecast period.
Rising Demand from the Chemical Industry:
Tantalum
can be used in place of stainless steel in the chemical industry to produce a
variety of inorganic acids, greatly extending the equipment's lifespan as
compared to that of stainless steel, which drives the growth of tantalum in the
chemical industry. According to the National Investment
Promotion & Facilitation Agency, the chemical industry in India is projected
to reach US$300 billion by 2025. According to the European Chemical Industry Council (CEFIC), the
chemical output in EU27 to grow by 2.5% in 2022, after following a growth of 6%
in 2021. According to the International Trade Administration (ITA), the estimated
value of specialty chemicals in Korea accounted for US$55 billion in 2020, an
increase of 3% compared to 2019. With the rise in the chemical industry across
the globe, the demand for tantalum is anticipated to rise for various
applications in chemical processing equipment and others, which is projected to
boost the market growth in the chemical industry during the forecast period.
Tantalum Market Challenge
Volatility in Prices:
The Tantalum
market expansion could be hampered by fluctuation in prices as it includes
indium, lithium, molybdenum and niobium. Tantalum is a metal that is
extensively utilized in sectors like electronics, aerospace and automobiles and
is regarded as one of the important elements across the globe. The prior
disruptions and price changes in the tantalum market suggest issues with the
stability and resilience of the supply chain. Moreover, Due to the ban on
imports from Central Africa and the fluctuating price of tantalum ores in
various mining regions, there is an imbalance in demand and supply. As an
illustration, the cost of tantalum imported from South America is marginally
less than that of the Australian-mined ore. Other issues for end-use industries
include the supply chain and inventory. Long-term supply agreements, however,
are predicted to significantly lower the cost compared to spot pricing and also
provide supply assurance. Thus, owing to factors such as volatility in prices and demand
and supply imbalance, the tantalum market faces a major challenge.
Tantalum Industry Outlook
Technology launches, acquisitions and R&D activities are
key strategies adopted by players in the tantalum market. The top 10 companies
in the tantalum market are:
- Cabot Corporation
- China Minmetals Corporation
- Duoluoshan Sapphire Rare Metal Co. Ltd.
- Ethiopia Mineral Development Share Company
- Fogang Jiata Metals Co. Ltd.
- H.C. Strack
- Metallurgical products India pvt. Ltd.
- Ningxia Orient Tantalum Industry Co. Ltd.
- Talison Minerals Pty. Ltd.
- ULBA Metallurgical Plant
Recent Developments
- In July 2021, Tantalex Resources Corporation signed a legally binding letter of intent (LOI) with MINOR SARL to increase the size of its land holdings in the thriving Manono lithium, tin and tantalum center and to grant MINOR SARL an earn-in option to purchase all of the dumps on PER 13698.
- In June 2021, Vishay Inter technology introduced a new series of HI-TMP surface-mount wet tantalum capacitors in the compact C case code with high operating temperatures to +200C.
- In February 2021, Tantalex Resources Corporation announced an agreement of a non-binding Memorandum of Understanding (MOU) Agreement with Ximei Resources (Hong Kong) Limited to establish a collaboration model for the establishment of a Tantalum refining plant in the Manono region of Tanganyika, Democratic Republic of the Congo.
Relevant Reports
Report Code: CMR 79207
Report Code: CMR 1078
Report Code: CMR 0317
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