Global Scandium Market Grows Steadily at a CAGR of 8.7 %

Introduction

Scandium is a metallic element with a silvery-white color developed in conjunction with rare earth elements and recovered from uranium mill tailings. Similar to aluminum, it has a high melting temperature and low density, and its small ion size allow it to react chemically with magnesium, zirconium, and aluminum. The market is expected to increase during the estimated period due to factors such as the rising demand for solid oxide fuel cells (SOFCs).

Market Analysis

Increasing Demand for Aluminum-Scandium Alloys in the Aerospace and Defense Industry Drives the Global Market

Utilizing aluminum-scandium alloys in place of traditional alloys offers the potential to further reduce aircraft weight by 15% to 20% without sacrificing the alloy's performance, said Scandium International Mining Corporation. The superior weldability of the aluminum-scandium alloys lowers the possibility of cracking and weld failure. Thus, employing aluminum-scandium alloys offers an opportunity for cost reduction for aircraft manufacturers. One of the first applications for the Scandium-Aluminum alloy in the aerospace and defense industry was the construction of the Russian military aircraft MiG-21. NioCorp Developments Ltd.'s creation of an aluminum-scandium master alloy in August 2019. It is anticipated to boost commercial manufacturing of these alloys and allow the scandium industry to meet the growing demand from the aerospace and defense industries.

Accelerating Usage in Solid Oxide Fuel Cells (SOFCs) Creates Tremendous Opportunities

Scandium's utilization in aluminum-scandium alloys for Solid Oxide Fuel Cells is primarily driven by the metal's electrical conductivity and heat stabilization capabilities (SOFCs). Primary uses for aluminum-scandium alloys include aerospace and other high-performance fields. Operating at low temperatures increases fuel cell life and lowers component costs, making SOFCs competitive and less expensive than conventional electricity sources. According to estimates, the market for SOFCs alone will consume nearly five times as much scandium as it does now, assuming it is readily available.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global scandium market size and is expected to grow at a CAGR of 9.1% during the forecast period. China is, without a doubt, the world's largest producer of rare earth metals. Scandium is produced in China as a byproduct of zirconium, titanium, and iron ore production. The Bayan Obo rare earth (Nb/REE/Fe) mining complex in Inner Mongolia, China, is the other source of scandium production. Russia has long been one of the significant producers of scandium in the world. Due to the increased metal demand, Russia and other former Soviet Union members are predicted to dominate the global scandium industry.

Europe is expected to grow at a CAGR of 8.67%, generating USD 385.4 million during the forecast period. Germany is one of Europe's major producers and buyers of electric vehicles. Even though the country's overall car sales have decreased, registrations for electric vehicles have increased significantly during the previous several years. The German government and the EV industry have decided to expand their combined subsidies for the nation's sales of electric vehicles from 2020 to 2025. Consumer desire to spend more on durable products is expected to drive the scandium market in the UK during the forecast period.

The United States was one of the first nations to commercially introduce fuel cells, doing so with support from the government and growing consumer demand, particularly in the auto industry. The enormous opportunities offered by the use of SOFC-based fuel cells as internal combustion engine replacements in warehouse forklifts and light-duty vehicles to increase vehicle efficiency and support the goals of reducing oil consumption and emissions from the transportation sector are likely to lead to a significant increase in the deployment of fuel cells in the country. The US electronics market is the largest in the world in terms of size. It is also projected that this market would maintain its dominance during the projection period due to the adoption of cutting-edge technology, an increase in the number of R&D facilities, and a rise in consumer demand.

Key Highlights

• The global scandium market was valued at USD 460.89 million in 2021. It is projected to reach USD 977.29 million by 2030, growing at a CAGR of 8.7% during the forecast period (2022-2030).
• Based on product type, the global scandium market is bifurcated into oxide, fluoride, chloride, nitrate, iodide, alloy, carbonate, and others. The fluoride segment is the highest contributor to the market and is expected to grow at a CAGR of 9.21% during the forecast period.
• Based on the end-user industry, the global scandium market is bifurcated into aerospace and defense, solid oxide fuel cells (SOFCs), ceramics, lighting, electronics, 3d printing, sporting goods, and others. The solid oxide fuel cells (SOFCs) segment owns the highest market share and is expected to grow at a CAGR of 10.31% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global scandium market and is expected to grow at a CAGR of 9.1% during the forecast period.

Competitive Players

Competitive Analysis of the Global Scandium Market:

The global scandium market’s major key players are Atlantic Equipment Engineers (Micron Metal Inc.), Australian Mines Ltd, Clean TeQ Holdings Limited, Huizhou Top Metal Materials Co. Ltd (TOPM), Hunan Oriental Scandium Co. Ltd, Hunan Rare Earth Metal Material Research Institute, JSC Dalur, Materion Corporation (Cerac Inc.), NioCorp Development Ltd, Platina Resources Limited, Rusal, Scandium International Mining Corp., Sigma-Aldrich (Merck KGaA), Stanford Advanced Materials, Sumitomo Metal Mining Co. Ltd (Taganito HPAL Nickel Corp), Thermo Fisher Scientific Inc. (Alfa Aesar), and Treibacher Industrie AG.

Recent Developments

Market News

• In August 2022, Materion established a new facility to accelerate growth in the semiconductor and electric vehicle markets.
• In September 2022, Niocorp Developments Ltd is focused on advancing a superalloy materials project in Nebraska.

Segmentation

Global Scandium Market: Segmentation

By Product Type

• Oxide
• Fluoride
• Chloride
• Nitrate
• Iodide
• Alloy
• Carbonate
• Others

By End-User Industry

• Aerospace and Defense
• Solid Oxide Fuel Cells (SOFCs)
• Ceramics, Lighting
• Electronics
• 3D Printing
• Sporting Goods
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA