Powder Metallurgy Market – Snapshot

Powder metallurgy is used to process powdered feedstock in order to manufacture various types of components. It is used in various applications across several industries globally. Powder metallurgy is used to manufacture filters that require greater strength and shock resistance. It is used for manufacturing cutting tool inserts and machinery parts such as gears, bushes, bearings, sprockets, rotors, and magnets. It finds application in business machines, hardware, household appliances, industrial motors, hydraulics, and hand tools. Rapid technological advancements in electronic and computer components is likely to increase demand for non-ferrous metal powders such as aluminum and titanium-based powder metals during the forecast period. Powder metallurgy is a preferred manufacturing process for various structured parts due to the cost effectiveness and uniqueness of the product.

The global powder metallurgy market has been segmented based on material, end-user, and region. In terms of material, the iron powder and steel powder segment lead the powder metallurgy market. This is due to the high stability, heat resistance, and density of iron and steel powders. In addition, rise in usage of iron powder as a carrier for toners in electrostatic copying machines, hand warmers, automotive components, and waterproof cements is likely to boost demand for iron powder during the forecast period. Demand for non-ferrous powders such as aluminum and copper is expected to increase in the near future due to increase in demand for cost-effective structural components for the automotive and aerospace industries. Utilization of copper-based metal powders obtained from the powder metallurgy process has been increasing over the past few years due to their properties such as high thermal and electrical conductivity, corrosion resistance, and ductility. Copper metal powders are used in various electrical components such as commutator rings, contacts, shading coils, nose cones, and twist type electrical plugs. Copper products manufactured using the powder metallurgy possess offer an excellent surface finish and are nonmagnetic in nature. These favorable attributes increase the use of powder metallurgy-based copper and copper alloy products in automotive, appliances, electronics applications. In terms of end-user, automotive is a leading segment of the powder metallurgy market. Powder metallurgy plays an important role in the automotive industry. Rise in demand for lightweight components with superior performance, durability, and reliability in order to produce safe and low-cost vehicles is driving demand for powder metallurgy products for automotive applications. Powdered metals are used to manufacture various engine parts; suspension parts; mission parts; and components used in door locks, sunroofs, ABS sensor parts, and rotors for power steering and side plates. The automotive sector is a major driver of demand for powdered metals such as iron, tin, and steel. The powder metallurgy technique is used extensively in the automotive industry due to its better productivity, high heat resistance, and precision, among other advantages.

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Apart from the automotive industry, powder metallurgy also find applications in various other sectors such as industrial, aerospace, and electrical & electronics. The powder metallurgy technique is extensively used to manufacture industrial equipment. Powder metal products are employed in a variety of hardware products, including large-scale industry machinery, machine parts, porous oil impregnated bearings, and friction materials. Rapidly developing manufacturing sector, particularly in Asia Pacific, and expanding aerospace and marine industries in North America and Europe are propelling demand for powder metallurgy products in industrial applications. Development in technology and increase in the use of powdered metals in electronic devices such as electric car batteries and sintered parts for various electronic gadgets are expected boost demand for powder metallurgy in the electrical and electronic industry.

Increase in demand for powder metallurgy in manufacturing automotive components is a significant driver of the powder metallurgy market. Use of powder metallurgy parts in automobiles is expected to increase in the next few years due to changing fuel economy standards across the globe. These new legislations are expected to alter the characteristics of several automotive such as reduction in vehicle weight, change in powertrain design, and globalization of production and design. Another factor driving the powder metallurgy market is the inherent advantages of powder metallurgy such as low energy consumption and superior utilization of raw materials as compared to other technologies. Powder metallurgy has a superior raw material utilization rate of around 95% as compared to machining, which utilizes only about 50% of the raw materials. Furthermore, the energy required for producing a kilogram of finished product is the lowest for powder metallurgy. All these factors are expected to drive the powder metallurgy market during the forecast period. High capital investment, complexity in producing 3D shapes, and requirement of expensive feed stock are some of the factors anticipated to restrain the market during the forecast period. However, rise in research activities and technological advancements are anticipated to help the powder metallurgy technology overcome a majority of its limitations in the near future. Rise in demand for aerospace components with controlled porosity, high heat capacity, and high modulus of elasticity for additive manufacturing with 3D printing is expected to provide lucrative opportunities to manufacturers operating in the powder metallurgy market.

In terms of region, the global powder metallurgy market has been classified into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In terms of consumption, North America was a leading region of the powder metallurgy market in 2017. Increase in emphasis on higher fuel efficiency through improvement in engine performance, weight reduction, and alternative or supplemental power systems boost demand for powder metallurgy in the automotive end-user segment in the region. In addition to automotive, demand for powder metallurgy in the aerospace industry in the U.S. is expected to increase significantly during the forecast period. Rise in demand for airframes due to increasing need for more efficient engines is expected to encourage manufacturers to develop higher-strength materials that can operate at higher temperatures. Powder metallurgy-based super alloy components have significant demand in various applications, such as turbine discs, as they do not possess the solidification defects inherent in castings and cast and wrought alloys. In terms of consumption, Asia Pacific is expected to surpass North America during the forecast period. This is primarily due to the expanding automotive industry and increase ein foreign direct investment in the electrical & electronic industry in developing economies such as China, India, and ASEAN. In addition, rise in purchasing power parity and increase in disposable incomes of consumers have boosted the automotive industry in Asia Pacific. This, in turn, has augmented the demand for powder metallurgy in the automotive end-user industry in Asia Pacific. The market in Europe is expected to expand at a moderate pace. Countries such as Germany, France, the U.K., and countries in Rest Europe are expected to provide lucrative opportunities to manufacturers in the near future. Rise in demand for fuel-efficient aircraft and motor vehicles due to higher fuel costs and pressure to reduce greenhouse gas emissions are boosting demand for powder metallurgy-based aerospace as well as automotive components. Latin America and Middle East & Africa contribute less in terms of consumption of powder metallurgy compared to other regions. Both regions are highly dependent on powder metallurgy imports from neighboring countries. However, manufacturers are striving to expand manufacturing output to these regions through strategic acquisitions and merger activities.

GKN Hoeganaes, Sumitomo Electric Company Ltd, and Fine Sinter Company Ltd are few of the key players operating in the global powder metallurgy market. They are focusing on mergers and acquisitions for expansion. For instance, in 2016, Sumitomo Electric Industries, Ltd., acquired Keystone Powdered Metal Co, a U.S.-based manufacturer of powder metal components and assembly parts.

Powder Metallurgy Market - Overview

Powder metallurgy is the process of forming precision structural metal components from metal powders. The powder metallurgy process is a cost-effective process for manufacturing simple or complex shapes and provides significant advantages over conventional processes. These advantages include favorable surface finish, controlled porosity, low scrap generation, high production rate, excellent wear resistance and friction co-efficient, and superior chemical homogeneity. Increase in usage of powder metal in various applications such as magnetic assemblies, filtration systems, structural parts, sharp gemstone-grinding blades, and auto metal components is boosting the powder metallurgy market.

Based on material, the powder metallurgy market has been classified into iron powder, steel powder, and non-ferrous powder. The non-ferrous segment has been further split into aluminum, copper, nickel, cobalt, tungsten, and others. Iron powder is a leading segment of the global powder metallurgy market. In terms of end-user, the global powder metallurgy market has been categorized into automotive, electrical & electronics, industrial, aerospace, and others. Expansion in the automotive industry across globe is driving the powder metallurgy market. In addition, rise in industrial activities and increase in demand for cost-effective solutions for structural components in various applications such as agricultural machinery, OA equipment, motorcycles, and home appliances are propelling the powder metallurgy market. Low energy requirements and high raw material utilization rate of the powder metallurgy process are some of the other factors boosting the market.

Based on region, the global powder metallurgy market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominates the global powder metallurgy market, followed by Asia Pacific. Rise in consumer interest in electrical vehicles and emphasis on fuel efficiency of vehicles are pushing manufacturers toward designing lightweight components, thereby impacting the powder metallurgy market positively in both the regions. The market in Europe is likely to expand at a moderate pace during the forecast period. Germany is a hub for premium car production and is likely to continue to set a benchmark for the automotive industry due to the presence of world class R&D, labor force, infrastructure, and automotive manufacturing heritage. Demand for powder metals is projected to increase significantly in the country due to a rise in international demand for lightweight, high-value, small, and compact cars and premium SUVs. These factors are expected to propel the powder metallurgy market in the region. The market in Latin America and Middle East & Africa is anticipated to expand at a sluggish pace compared to mature economies due to the heavy reliance of these regions on imports. However, expansion in the automotive industry in countries such as Mexico, South Africa, and Brazil is expected to offer lucrative opportunities to manufacturers operating in the market.

The report analyzes and forecasts the powder metallurgy market at the global and regional levels. The market has been projected in terms of volume (kilo tons) and revenue (US$ Mn) from 2017 to 2026. The study includes drivers and restraints for the global powder metallurgy market. It also covers the impact of these drivers and restraints on the demand for powder metallurgy during the forecast period. The report also highlights expansion opportunities for the powder metallurgy market at the global and regional levels.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global powder metallurgy market. Porter’s five forces model for the powder metallurgy market has also been included to help understand the competition landscape. The study encompasses market attractiveness analysis, wherein the end-user and material segments have been benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global powder metallurgy market by segmenting it in terms of material, end-user, and region. These segments have been analyzed based on present and future trends. Regional segmentation includes current and future demand for powder metallurgy in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers individual material and end-user segments of the market in all regions.

The study includes profiles of major companies operating in the global powder metallurgy market. Key players profiled in the report include GKN Hoeganaes, Sumitomo Electric Company Ltd, H.C. Starck, Hitachi Chemical Company Ltd, Sandvik AB, Fine Sinter Company Ltd, Miba AG, Carpenter Technology Corporation, Allegheny Technologies Incorporated, SMC Powder Metallurgy, Metaldyne Performance Group, and SHW Group. Market players have been profiled in terms of company overview, business strategies, recent developments, and SWOT analysis.

The report provides the estimated market size of the global powder metallurgy market for 2017 and forecast for the next nine years. The size of the global powder metallurgy market has been provided in terms of revenue. Market numbers have been estimated based on material, end-user, and region. Market size and forecast for each material and end-user segments have been provided for the global and regional markets.

Global Powder Metallurgy Market, by Material

  • Iron Powder
  • Steel Powder
  • Non-ferrous Powder
    • Aluminum
    • Copper
    • Nickel
    • Cobalt
    • Tungsten
    • Others

Global Powder Metallurgy Market, by End-user

  • Automotive
  • Electrical & Electronics
  • Industrial
  • Aerospace
  • Others

 Global Powder Metallurgy Market, by Region

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • The report provides extensive analysis of market trends from 2017 to 2026 to identify opportunities and market developments
  • It provides analysis of various materials and end-user industries, in which powder metallurgy  is used
  • It identifies key factors responsible to build a roadmap for upcoming opportunities for the Powder Metallurgy Market    at the global, regional, and country levels
  • The report offers comprehensive analysis with respect to investments and regulatory scenario that would subsequently impact the outlook and forecast for the global powder metallurgy  market between 2017 and 2026
  • The report provides detailed competition landscape for key players operating in the market to understand competition level
  • Porters’ five forces analysis and SWOT analysis to highlight the power of buyers and suppliers
.