Powder Metallurgy Market

Powder Metallurgy Market Size & Growth (2023-2028)

The Powder Metallurgy Market size was anticipated at USD 4.1 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 13.5% during the forecast period from 2023-2028

Powder metallurgy is the process of manufacturing different types of components from metallic powders. It is used to make filters that require greater strength and resistance to impact. Powder metallurgy is also used to manufacture cutting tool inserts and machine parts such as rotors, gears, bushings, bearings, and magnets. They are also applied in the hardware, commercial machinery, hydraulics, and hand tools sectors.

Powdered metal parts show absorbency and self-lubricating properties which allow them to filter gases and liquids. For this reason, powder metallurgy is a highly recommended process in the manufacture of parts that require intricate bends, depressions, and protrusions. Bearings and gears are the most common vehicle parts manufactured using a powder metallurgy process. Also, it is used in a large number of parts in a vehicle, including chassis, steering, exhaust, transmission, shock absorber parts, engine, battery, seats, air filters, brake discs, etc. Due to these factors, the demand for powder metallurgy in the automotive sector is increasing. The automotive industry in countries such as the United States and China has accounted for the most significant share in automotive markets worldwide, both in terms of production and sales. Most of the powder metallurgical fabricated parts are produced in the automotive sector. Powder metallurgy applications are majorly focused on gearbox parts, engine parts, and brake systems. Its future applications, including high-performance magnets, interconnects, H2 storage, and battery parts like anode and cathode, are likely to add to the powder metallurgy application base. Therefore, due to the above-mentioned reasons, the automotive application is likely to dominate the powder metallurgy market during the forecast period.

Powder Metallurgy Market Drivers

The major factor propelling the powder metallurgy market is the increasing demand for powder metallurgy among automotive OEMs. The Asia-Pacific region is the fastest-growing market with the highest CAGR of 4.01% during the forecast period; This market is fueled by increasing competition, consumer awareness, increasing consumer spending, demand for powder metallurgy components, and technological advancements. The increased demand for components made by powder metallurgy has fueled the growth of the metal powder market. The huge applicability of powder metallurgy components in vertical industries such as medical, alternative energy, aerospace, etc., is an important factor that is expected to drive the growth of the market. In addition, the rapid industrialization, increasing manufacturing and sales of automobiles, coupled with the increasing adoption of products by manufacturers in the automotive industry to improve the fuel efficiency of vehicles by reducing emissions, are other factors that should support the growth of the goal. Another factor that is expected to support the growth of the market is the growing demand and adoption of products by the oil and gas industry and the healthcare industry.

Powder Metallurgy Market Restraints

On the other hand, the decline in automobile production and the impact of the COVID-19 pandemic are likely to hamper the growth of the market. Fluctuations in raw material prices and limitations related to the dimensions and weight of finished components are some of the major factors that may hamper the growth of the global market.

Opportunities in the Powder Metallurgy Market

Rapid prototyping and on-site production are expected to provide many opportunities for market vendors in the years to come. The growing demand for controlled porosity, high thermal capacity, and high modulus elasticity aerospace components for 3D printed additive manufacturing is expected to provide lucrative opportunities for manufacturers operating in the market.

Challenges in the Powder Metallurgy Market

In the powder metallurgy market, the special materials and processes used can be hazardous to life and property. The high surface area to volume ratio of dust can increase their chemical reactivity during biological exposures (for example, inhalation or ingestion) and increase the risk of dust explosion. A health hazard can arise during the manufacture and use of certain metal powders. Lead is easily absorbed in the lungs and can become a poison spread throughout the body, while cadmium inhaled by metal spray can also cause toxic effects. Some metals can also produce allergic effects. Cobalt can cause acute asthma in susceptible people, and the slow-growing pulmonary fibrosis that occurs in tungsten carbide workers is almost certainly due to cobalt. The aluminum powders used for the fireworks caused very acute and severe pulmonary fibrosis. Hence, these effects will create hurdles for the powder metallurgy market during the forecast period.

POWDER METALLURGY MARKET REPORT COVERAGE:

Powder Metallurgy Market Segmentation

Powder Metallurgy Market - By Material

• Ferrous

• Non-ferrous

Among the materials segments, the ferrous segment holds the largest revenue share in the global metal powders market and is anticipated to continue throughout the forecast period. This can be assigned to the increasing use of steel and iron powder for filter and bearing parts, friction parts, and magnetic materials.

Powder Metallurgy Market - By Application

• Automotive

• Aerospace and defense

• Healthcare

• Other Applications

Among the application segments, the automotive segment is expected to account for the largest revenue share of the global market during the forecast period. 

Powder Metallurgy Market - By Region

• North America 

•  Europe 

•  Asia Pacific 

•  Latin America 

•  Middle East & Africa 

Asia-Pacific has grown as one of the major contributors to the powder metallurgy market and a key destination for powder metallurgy producers, because of its economic development, along with increasing disposable income. Positive economic growth trends in countries like China, India, and Japan have driven demand for powder metallurgy products and applications in recent years. For example, the number of manufacturing plants in the country is increasing with the investments of manufacturers all over the world. One of the upcoming manufacturing plants in the country is: AGC plans to set up a new production facility in Suzhou Industrial Park to produce large 3D / intricate shape glass covers for car-mounted displays. The Japanese aerospace industry manufactures aircraft components, primarily for commercial and defense aircraft. Due to the growing demand for freight, the production of commercial aircraft has increased in recent years. Japan manufactures next-generation F-35A fighter jets and other military jets, strengthening the aerospace manufacturing base in the country. Hence, owing to the aforementioned factors, the Asia-Pacific region is anticipated to dominate the market during the forecast period.

Europe was the second-largest market in 2020. Supportive government policies across Europe are expected to drive market growth during the forecast period. In May 2016, Europe hosted a conference to adopt 3D printing technology across the region. Increased funding for research and development and standardization of technologies is expected to drive the growth of the market.

Germany dominated the European market in 2020 and is a leading country in the industrialization and adoption of new technologies. It has 148 research institutes actively engaged in the development of additive manufacturing, which is likely to play a crucial role in the growth of the market in the European region.

The powder metallurgy market shares in North America are growing at a higher rate in the past few years and are to continue the same in the forecast period. Increasing investments in the development of innovative products in various fields are surging the growth rate of the market in this region. 

Impact of Covid-19 on the Powder Metallurgy Market:

The COVID-19 pandemic has disrupted the global economy in an enormous way. The powder metallurgy market had declined growth rate during the pandemic as there were disruptions in the supply chain and manufacturing units. All the companies were shut down for a period of time. This led the market shares to degrade. Key players are actively working on the development of different products to propel the powder metallurgy market shares. 

Recent Developments in the Powder Metallurgy Market

•  In May 2019, Epson Atmix Corp. installed a new production line at its Kita-Inter plant in Japan to produce amorphous alloy powder.

•  In January 2021, Equispheres launched new aluminum powders for AM.

• In December 2020, VDM Metals launched two alloys for additive manufacturing applications 

Powder Metallurgy Market Key Players

1. Melrose Industries PLC

2. Sumitomo Electric Industries, Ltd.

3. Höganäs AB

4. Hitachi Chemical Co., Ltd.

5. GKN Hoeganaes

6. AMES S.A

7. Fine Sinter Company Ltd

8. H.C. Starck

9. Schunk Group

10. SHW AG

11. SMC Powder Metallurgy

12. Miba AG