The global powder metallurgy market size is expected to reach a valuation of USD 6,324 million by 2030 growing at a CAGR of 12% during the forecast period (2022–2030).
Powder metallurgy (PM) refers to various methods for fabricating materials or components from metal powders. PM methods can eliminate or considerably minimize the need for metal removal operations, leading to significant reductions in manufacturing yield losses and, in many cases, lower prices.
Powder mixing (pulverization), die compaction, and sintering is three essential phases in the powder metallurgy press and sinter process. Compaction is usually done at room temperature, and the elevated-temperature sintering process is generally done at atmospheric pressure and under strict control of the atmosphere composition. Secondary processing, such as coining or heat treatment, is frequently used to provide unique qualities or improve precision.
|Market Size||USD 6,324 million by 2030|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Powder metallurgy is in high demand in the aerospace and defense industry due to its increasing ability to reduce aircraft part weight and focus on improving overall efficiency, otherwise costly and time-consuming, using standard manufacturing methods. Metal additive manufacturing is set to grow in popularity due to the capacity to produce cheaper equipment in less time and on-demand.
The need for 3D printing materials to generate cost-effective and high-performance aerospace components is forecast to rise as manufacturers become more aware of high cost and weight reductions. Low-volume production has benefited from reduced 3D printer prices and improved raw material availability, particularly in the aerospace sector.
Additive manufacturing equipment is increasingly being utilized to make complicated components that would be difficult to fabricate traditionally. The technique must be cost-effective to create 3D printing materials more generally available. The equipment must be redesigned to make it faster and capable of handling a more extensive range of materials.
Because the aerospace and defense industries were early adopters of additive manufacturing, lightweight materials like aluminum, titanium, and steel are increasing in demand. Additive manufacturing is a versatile technology that helps fabricate complicated parts that are difficult to make using traditional processes like forging and casting.
It permits the manufacture of complicated parts with internal chambers and lattice structures, lowering equipment weight and improving overall performance. Also, when compared to the traditional way, additive manufacturing reduces material waste. Because of the reduced carbon footprint, this is expected to influence the environment positively.
The aerospace and defense sector is likely to be driven by the rising defense budget and passenger traffic in many countries. According to the International Air Transport Association, India's domestic passenger traffic increased by 3.74% in 2019, 144.17 million passengers. By 2036, India is expected to be the third-largest aviation market, with over 478 million passengers. Also, China will demand approximately 7,500 commercial aircraft valued at USD 1.2 trillion by 2040. Thus, the growth of the aerospace and defense sector is likely to drive the powder metallurgy market over the forecast period.
Powder metallurgy can be found in various industries, including automotive, aerospace and defense, healthcare, and electronics and electrical. Compared to generating components using traditional methods, this technique offers numerous benefits. The rising use of electrical and electronic equipment in both homes and offices is expected to drive the powder metallurgy market growth in the years ahead. The global market is likely to be caused by an increase in demand for automotive components derived from powder metallurgy.
During the forecast period, advances in technology and an increase in powdered metals in electrical and electronic equipment, such as automobile batteries and electronic gadgets, are expected to drive the powder metallurgy market. Powder metallurgy is being used in aerospace components due to increased demand for controlled porosity, high heat capacity, and high modulus of elasticity. The aerospace industry's growing demand for thermoplastic parts is driving up powder metallurgy demand.
Due to the high purity, size, and composition consistency required throughout the printing process, additive manufacturing or 3D printing materials such as powder metals currently cost 10 to 100 times more than their powder or bulk resin counterparts (depending on the material).
Powder metallurgy is one of the materials employed by metal 3D printers to create various end-use items. It is expensive compared to materials used in traditional manufacturing methods. The stainless steel used in additive manufacturing costs about USD 8.0 per square centimeter, more than 100 times the cost of commercial-grade stainless steel used in traditional manufacturing.
Metal additive manufacturing allows for the fabrication of light yet solid structures and the production of complex designs in small quantities. These characteristics broaden its applicability in various industries, including medical, aerospace, automotive, and consumer goods. Quality consistency, limited multi-material printing capabilities, a limited variety of materials, high material costs, size, and scalability are issues that 3D printing technologies face. Thus, the high cost of additive manufacturing is likely to impede market growth.
Powder metallurgy is employed in the automotive sector for a variety of reasons. Due to the changing industrial landscape, the market demands more than just a long-lasting component, and manufacturers compete to meet the lightweight requirement. Automotive manufacturers can deliver outstanding accuracy and minimal material waste due to the flexibility in developing mechanical parts with various compositions.
Autonomous driving vehicles (ADV) are gaining traction and opening up new markets for high-quality automotive components, particularly in developing nations such as China, where the industry has been designated a significant growth industry. According to the Chinese government, China's car production climbed from 23,492 thousand in 2018 to 27,809 thousand in 2020. During the forecast period, the recovery of the automobile sector following the global COVID-19 outbreak is expected to raise demand for powder metallurgy, presenting potential opportunities for the market.
The global powder metallurgy market share has been segregated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.
With a market value of USD 2,204 million by 2030, registering a CAGR of 11%, North America is expected to be the largest market for powder metallurgy. In the long run, the powder metallurgy market in North America is forecast to rise, owing to an increase in the number of 3D printers in terms of size, feature, and material compatibility. Markets are likely to be driven by factors such as the existence of significant competitors in the region and the ability of consumers to spend.
With an expected market value of USD 1,956 million by 2030, registering a CAGR of 12%, Europe is the second-largest market for powder metallurgy. European countries' stringent fuel efficiency standards are likely to drive demand for lightweight powder metallurgy components in aircraft and applications.
In the long run, the powder metallurgy industry is likely to benefit from increasing the number of small and medium-sized businesses in the additive manufacturing sector. Europe has the most additive manufacturing companies, according to AMFG, a renowned European provider of automation software for additive manufacturing. According to the corporation, Europe is home to around 55% of all additive manufacturing companies worldwide.
The global powder metallurgy market share has been classified based on the material, process, application, end-use, and regions.
The powder metallurgy market has been segmented into titanium, nickel, steel, aluminum, cobalt, and others based on material. The steel segment is expected to dominate the global market, and it is projected to reach USD 3,028 million by 2030, registering a CAGR of 12% during the forecast period.
Sensor bosses, flanges, antilock sensor rings, and hot exhaust gas outlet fittings are expected to grow in the automotive sector due to rigorous environmental requirements and rising consumer preference for durable parts. For the manufacture of antilock sensor rings, stainless steel grades such as 434L, modified 434L, and 410L are extensively used. Thus, the demand for steel from the automotive sector is likely to grow during the forecast period.
Based on process, the powder metallurgy market has been segmented into additive manufacturing, metal injection molding, and hot isostatic pressing. The additive manufacturing process segment is expected to dominate the global market, and it is projected to reach USD 3,505 million by 2030, registering a CAGR of 25% during the forecast period.
The process of additive manufacturing, sometimes known as 3D printing, is used to create three-dimensional parts by layer deposition. This technology works by sending digital data to a machine that makes the component. Thus, the high adoption of additive manufacturing in the aerospace and defense sector to design lightweight and critical components is likely to drive demand over the forecast period.
The powder metallurgy market has been segmented into aerospace & defense, automotive, medical & dental, oil & gas, industrial, and others, based on application. The aerospace & defense segment is expected to dominate the global market, and it is projected to reach USD 3,219 million by 2030, registering a CAGR of 12% during the forecast period.
The aerospace and defense industry's ability to tolerate high initial costs and adapt to new technology is expected to drive its growth. The use of various technologies in the powder metallurgy market is expected to conduct innovative aerospace approaches supported by the demand for complex geometric structures, thereby helping the consumption of powder metallurgy products.
The powder metallurgy market has been segmented into original equipment manufacturers (OEMs) and AM Operators based on end use. The OEMs segment is expected to dominate the global market, and it is projected to reach USD 4,423 million by 2030, registering a CAGR of 12% during the forecast period. For original equipment manufacturers, the adoption of metal additive manufacturing represents lucrative potential. Metal 3D printing is heavily invested by large original equipment manufacturers, particularly in the aerospace industry, to make aeronautical parts.
This is due to the multiple benefits of in-house 3D printing, including shorter turnaround times, increased production, cost savings, reduced errors, innovation, improved security, and higher design standards. Thus, OEMs are expected to witness market growth during the forecast period.
The global spread of COVID-19 directly impacted industrial business activities, among other things. In FY 2020, the powder metallurgy industry's primary end-use sectors, such as automotive, aerospace, and consumer products, saw a downward trend. Lockdowns imposed by numerous countries worldwide have halted automobile and other industry output, resulting in a sharp drop in downstream demand for powder metals, including iron, steel, and aluminum.
Due to temporary dealership closures and supply chain disruptions caused by the COVID-19 pandemic, the automotive industry, a major consumer of powder metallurgy products, experienced declines, as are other industries. Due to reduced demand, raw materials for steel, iron, and aluminum saw larger stock levels, resulting in price drops. For example, from USD 1,807/tonne in January 2020 to USD 1,421.5/tonne in April 2020, aluminium prices declined by 21.49% to USD 1,421.5/tonne. The pricing of powder metallurgical raw materials was also affected by a sudden drop in demand.
Thus, the COVID-19 outbreak slows down the growth of the global powder metallurgy market.
The post-pandemic phase will be significant for the global powder metallurgy market. The recovery can be hindered by supply chain disruptions, which will affect the market dynamics and the prices of the product. Furthermore, distribution and transportation capabilities restrictions, unfavorable financial conditions, and ascended expenses will challenge the global market. Also, limited production, support operations, labor shortages, and constraints for other end-user sectors, suppliers, and vendors may fail to meet the consumer demand. Overall, the recovery will be challenging for the global powder metallurgy market.