Global Powder Metallurgy Market: Snapshot

A flourishing automobile industry is said to be at the forefront of driving growth in the global powder metallurgy market. They are also seeing an increased demand on account of the booming heavy industries and aerospace sectors. Powder metallurgy is used in processing of powdered feedstock, a crucial component in the production of mechanical components in heavy machinery. Powder metallurgy technology is relatively affordable and this explains their swift uptake.

A challenge facing the market is the limitation in size and weight of the parts processed through powder metallurgy technology. This is because powder metallurgy is not quite capable in manufacturing three-dimensional products which entails imparting it through-thickness or axial direction. However, use of powder metallurgy products in other new applications such as hard and soft magnets and growing use of alternative energy sources will likely open up new avenues of expansion for the market.

The powder metallurgy industry has a low to medium degree of backward integration as just a handful of producers of powder metallurgy products are involved in upstream activities. This backward integration accords market players a competitive edge vis-à-vis customer retention and market share.

A report by Transparency Market Research predicts the global market for metallurgy powder to rise at a lackluster 5.4% CAGR between 2014 and 2020. At this rate, it will likely reach a value of US$8.7 bn by 2020 from US$6 bn in 2013.

Flourishing Automobile Industry Propels Demand for Ferrous Powder Segment

The different types of powder metallurgy available in the market are ferrous and non-ferrous, among others such as metal matrix composites and cemented carbides. Among them, the ferrous powder segment held a mammoth 80.0% share in the overall global market in 2013. The demand for ferrous powder as intermediate material in the fast-expanding automobile industry is said to have resulted in the massive share of the segment.

Non-ferrous powder comes in second position in terms of market share in the global powder metallurgy market and is followed by metal matrix composites and cemented carbides.

Based on end-use segments, the market can be classified into automotive, industrial, electrical and electronics, medical, and energy. Of them, the automotive segment accounts for maximum share in the market. In 2013, for example, it held a leading 65% share in the market. The growing popularity of lightweight and fuel-efficient vehicles has resulted in the automotive segment emerging as the most prominent end user in the powder metallurgy market. Powder metallurgy is also preferred in electronics and electrical applications as it is economical in terms of energy consumption.

Manufacturers Rushing in to Build Capacities in Asia Pacific Market Sensing Good Profits

Geographically, the key segments in the global powder metallurgy market are Asia Pacific, Europe, North America, and the Rest of the World. At present, Asia Pacific is a dominant market and it held a share of over 46% in 2013. In the near future too, the Asia Pacific market is slated to outpace all others both in the consumption and production of powder metallurgy on the back of rapid industrialization and substantial growth in the automobile industry. Sensing an opportunity in the growth potential in the region, manufacturers are already rushing in to build capacities there.

North America and Europe follow Asia Pacific vis-à-vis demand. North America will likely exhibit a CAGR of 4.0% between 2014 and 2020 in terms of revenue.

Demand for powder metallurgy is primarily led by growth in the automotive industry and cost effectiveness of the technology across the globe. Asia Pacific dominates the global market for powder metallurgy. This report by Transparency Market Research analyzes, estimates and forecasts the demand for powder metallurgy on a global and regional level for a six-year period from 2014 to 2020 in terms of volume and revenue. The study also provides information on restraints, drivers and opportunities along with their impact on the overall market during the forecast period. The report segments the market based on application and region and offers estimates and forecast of the powder metallurgy market for each segment. 
The study analyzes the product value chain, beginning with feedstock up to end-use. Additionally, it evaluates the market based on Porter’s five forces model, which analyzes the degree of competition in the market by considering factors such as bargaining power of buyers and suppliers, and threat from substitute products and new entrants. The report includes a detailed competitive landscape of the powder metallurgy market. It comprises market share analysis of companies and profiles of key market participants.
Inflation is not a part of pricing in the report. Prices of powder metallurgy vary across each region. Considering that different end-users use different types of products, pricing for each application varies according to regions while estimating and forecasting market revenue on the global basis. The regional average price has been considered while breaking down the market by end-application in each region. The market size of the global powder metallurgy market has been presented in terms of both volume as well as revenue. Market volume is provided in kilo tons, while market revenue is in USD million. Both domestic and institutional sales of powder metallurgy have been considered. Market numbers are provided based on product types and applications in the context of the global as well as regional market. Market size and forecast for each major application is also provided in the context of the global as well as regional market. Numbers provided in the report are derived based on demand for powder metallurgy from various end-user industries across different regions. The industrial application segment consists of heavy machinery and aerospace applications. All the prices have been considered as FOB prices. Market revenue has been calculated based on sales and consumption trends. All USD exchange rates are as of 2013. Inflation is not a part of pricing; price has been kept constant throughout the forecast period for calculating the market size.
The report provides a decisive view on the powder metallurgy market by segmenting the market based on product types and applications. Product segments analyzed in this report include ferrous, non-ferrous and others (including metal matrix composites and cemented carbides). Based on applications, the powder metallurgy market is segmented into automotive, electrical and electronics, industrial and others (including, medical and energy). These application segments have been analyzed based on present and future trends, and the market has been estimated from 2014 to 2020.
The powder metallurgy market is segmented based on geography into North America, Europe, Asia Pacific and Rest of the World. In terms of revenue and consumption, the market for powder metallurgy for each application type for each of these regions has been forecast in the report for the period from 2014 to 2020.
Leading manufacturers profiled in the report include GKN PLC, Hitachi Chemical Company Ltd., Höganäs AB, Fine Sinter Company Ltd., Sumitomo Electric Company Ltd. and Sandvik AB. These companies are profiled in detail with features such as company overview, financial overview, business strategies, SWOT analysis and recent developments.
Powder Metallurgy Market - Product Segment Analysis
  • Ferrous
  • Non-ferrous
  • Others (Including metal matrix composites and cemented carbides)
Powder Metallurgy Market - Application Analysis
  • Automotive
  • Electrical and electronics
  • Industrial
  • Others (Including medical and energy)
Powder Metallurgy Market - Regional Analysis
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)