The metal powder market, which had a market size of USD 6.2 Billion in 2021, is projected to witness significant growth during the forecast period, with a Compound Annual Growth Rate (CAGR) of 4.2 percent. The increasing adoption of additive manufacturing and 3D printing techniques is one of the primary factors driving the demand for powdered metal, owing to its functional properties, rapid production, and high reusability rate. Additionally, the availability of various compatible materials at lower prices further fuels the growth of the metal powder market worldwide.
Increased Demand from Automotive and Electronics Industries to Propel Market Growth
The automotive and electronics industries are major contributors to the metal powder market's expansion. The use of metal powders in manufacturing various automobile parts, such as transmission, engine, exhaust system, and chassis, has led to cost savings and increased efficiency. The rising demand for automobiles, driven by higher disposable income and consumer-friendly financing options, is expected to further boost the market's value.
In the electronics sector, powdered metals are gaining traction for applications like electric car batteries and sintered components in electronic gadgets, which is likely to drive market growth in this segment.
COVID-19 Impact and Recovery
The COVID-19 pandemic had a substantial impact on the metal powder market, as manufacturing industries faced disruptions due to lockdowns and travel restrictions. However, as restrictions eased and demand for final goods recovered, the market is expected to rebound.
The automotive industry, in particular, faced challenges with disrupted high-volume manufacturing in Europe, supply constraints from China, and assembly line closures in India and the United States. Despite these setbacks, the market is anticipated to regain momentum as automotive sales pick up.
Price War Challenges Global Market Growth
The presence of low-cost, subpar metal powder manufacturers in Asia, particularly China, has led to a price war that impacts international players. Chinese companies, with established sales and distribution networks, often offer products at comparatively lower prices, causing some international manufacturers to struggle with maintaining profit margins. As a result, metal powder sales are predicted to face challenges in the global market in the coming years.
Regional Landscape and Key Players
Asia-Pacific dominates the metal powder market due to the rapid growth of the automotive industry in countries like China, India, and Japan. Europe also holds a significant share, with countries like Germany and France showing strong demand for metal powders. Key players in the market include Rio Tinto, Sandvik AB, Carpenter Technology Corporation, GKN Plc., Hoganas AB, and Allegheny Technologies Incorporated, among others.
Despite the challenges brought on by the COVID-19 pandemic and intense competition from Chinese manufacturers, the Metal Powder Market is poised for growth driven by increasing demand in additive manufacturing, automotive, and electronics industries. The market's resilience and innovative applications are expected to create opportunities for key players and contribute to its expansion in the forecast period.
Table of Contents
Companies Mentioned
- BASF SE
- GKN Plc
- Höganäs AB
- Sandvik AB
- Advanced Powders and Coatings
- Rio Tinto Group
- Kobe Steel
- Allegheny Technologies Incorporated
- JFE Holdings
- Vale S.A.
- ALTANA AG
- Alcoa
- Carpenter Technology Corporation
- Eramet SA
- H.C. Starck GmbH
Methodology
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