The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Powder Metallurgy Market Growth & Trends
The global powder metallurgy market size is expected to reach USD 5.2 billion by 2027 registering a CAGR of 11.6%, according to a new report by Grand View Research, Inc. Growing use of powder metallurgy in component manufacturing from metal powder, which reduces overall costs due to lesser yield loss in manufacturing, is anticipated to drive the market growth over the forecast period.
Powder metallurgy consists of various processes that produce components using metal powder. The processes included are additive manufacturing, Powder Metal Hot Isostatic Pressing (PM HIP), and Metal Injection Molding (MIM). The additive manufacturing is expected to register the fastest growth rate over the forecast period. It is a novel technology as compared to other processes and makes use of laser sintering or melting for making parts.
MIM accounted for the largest volume share of 46% in 2019. The technology offers higher density to the manufactured components. For example, steel products and components made using MIM process can achieve up to 99% density. The process provides various advantages, such as freedom of design, complicated and intricate shapes, and miniaturization.
There are various metal powders that are used in the powder metallurgy processes. Aluminum is anticipated to register a high growth rate from 2020 to 2027, in terms of volume. The high demand is attributed to its softness compared to other materials, which makes it applicable in industries that require lightweight components, such as automotive and aerospace.
The outbreak of COVID-19, which has impacted the global economy, leading to shut down of various manufacturing plants will negatively affect the demand for metal powder and powder metallurgy. However, medical & dental application segment is anticipated to emerge as the least affected industry during the crisis, owing to increasing demand for the medical devices, ventilators, and other utilities.
The invoking of the Defense Production Act by the U.S. government can prove as an opportunity for the market in 2020. There are certain companies that are striving to contribute during this crisis. For instance, the DSH Technologies will be offering its debind and sinter services at no charge to those producing additively manufactured metal parts in response to the Covid-19 crisis.
Demand for additive manufacturing and MIM is propelling manufacturers to expand their production capacity and presence. For instance, in November 2019, Aperam and Tekna made an announcement about creating a joint venture combining their expertise and technology. The joint venture, ImphyTek PowdersTM SAS will be based in France and will be engaged in marketing high-quality spherical powders to meet the growing demand for MIM and additive manufacturing across all industrial segments.
Powder Metallurgy Market Report Highlights
- North America to remain the largest region due to increasing adoption of powder metallurgy technologies, especially, additive manufacturing
- Moreover, the U.S. military has shown keen interest in additive manufacturing and has pointed towards the significance of using 3D printing for production of spare parts. This is a positive sign for the market
- Additive manufacturing is anticipated to register the fastest CAGR during the forecast period
- Demand for this process is attributable to the ease of design, reduced time, and low-cost manufacturing it provides over other processes
- Medical & dental is expected to be the fastest-growing application segment during the forecast period, as this industry requires high-quality intricate parts for its applications
- Steel held the largest volume share in 2019. Low cost and abundant availability coupled with its characteristics, such as high strength and heat and corrosion resistance drive its demand
- Major companies have undertaken key business strategies, such as mergers & acquisitions, to gain a competitive edge and larger market share
- For instance, Carpenter Technology Corporation acquired three companies, Puris LLC, CalRAM, and LPW Technology, in 2017 and 2018.