Market Overview

The scandium market is expected to register a CAGR of over 11%, during the forecast period. The major factors driving the growth of the market studied are the accelerating usage in solid oxide fuel cells (SOFCs), and rising demand for aluminum-scandium alloys. However, lack of awareness, high cost, and inconsistent supply are restraining the growth of the market studied.

  • The aerospace and defense segment dominated the market. It is likely to grow during the forecast period, with increasing production of aircrafts across the world.
  • The shifting focus toward the usage in the automotive industry, and Australia’s emergence as a new growth hub are likely to provide opportunities for the market studied, during the forecast period.
  • Asia-Pacific dominated the global market, owing to the growing usage in automotive industry, and high demand from aerospace, defense, and electronic industries.



Key Market Trends

Aerospace and Defense Segment to Dominate the Market

  • One of the most important uses of scandium is in the preparation of aluminum-scandium alloy, which is used in the aerospace industry during the manufacturing of aircraft.
  • Addition of scandium with aluminum helps to improve strength, increase heat tolerance, promote corrosion resistance, extend weldability and weld strength to an array of aluminum alloy materials.
  • According to the aircraft designers, about 0.1-0.5% trace amount of scandium added to aluminum can helps to increase not only the strength of aluminum, but also helps to reduce the weight of aircraft by 15-20%.
  • With growing security concerns and increasing commercial use of aircraft as a medium of conveyance, the demand for aircraft has been increasing worldwide. Owing to this, various aircraft production orders are lined up for expected delivery in the coming years in order to deliver the orders from the aviation and defense industries.
  • Moreover, with increasing construction of airports in countries, such as China, India, Qatar, and others, the demand for aircraft is further expected to increase, thus driving the demand for aluminum and scandium in the coming years.



Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share, owing to the increasing investments and production in the end-user industries, such as aerospace and defense, ceramics, etc., are driving the demand for scandium in the region.
  • The region consists of four of the top 10 countries, in terms of defense spending. The spending has been increasing in the recent years, with the rise in terrorism and rising security concerns in the region. The United States leads in terms of defense spending, followed closely by China.
  • China is the largest producer of aircraft in the region, and invests heavily on R&D and innovation in the field of aerospace and defense.
  • Furthermore, countries, like India and South Korea, are also witnessing substantial increase in the demand for scandium.
  • Increasing defense spending, and surging ceramic demand and production are driving the demand for scandium in India and South Korea.
  • Thus, all such factors are expected to drive the demand for scandium in the region, during the forecast period.



Competitive Landscape

The scandium market is fragmented in nature, with numerous players holding insignificant share of the market demand, to individually affect the market dynamics. Some of the noticeable players in the market include Scandium International Mining Corp, Platina Resources Ltd, CleanTeq, Australian Mines Ltd, and Alfa Aesar, among others.

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