Powder Metallurgy Market Size, Share & Trends Report

Powder Metallurgy Market Size, Share & Trends Analysis Report By Material (Steel, Titanium), By End Use (AM Operators, OEMs), By Process, By Application, And Segment Forecasts, 2020 - 2027

  • Published Date: May, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-660-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 133

Report Overview

The global powder metallurgy market size was valued at USD 2.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2027. The growth of the market can be attributed to rising demand from various end-use industries, especially the aerospace & defense sector.

U.S. powder metallurgy market size

The growing penetration of additive manufacturing in medical, automotive, and aerospace & defense sectors is projected to drive the market in the U.S. For instance, in 2019, Lima Corporate, a U.S.-based company, commercialized hip cup implants produced using additive manufacturing. The company announced that it will start an on-site additive manufacturing facility at a hospital located in New York by 2020.

The accelerating growth of the market is expected to be obstructed by certain limitations involved with powder metallurgy. The cost of the metal powder used in the processes is high as compared to other raw materials, which are used in casting and forging. The tooling and equipment costs are quite high, especially when the required production volume is less.

The PM processes are not yet efficient and capable of producing large parts and components. Such drawbacks, limit their usage in component manufacturing. Moreover, the products may face low demand in 2020-2021 on account of the outbreak of COVID-19 across the world.

This outbreak has forced several manufacturing industries to cut output and halt production, which is resulting in reduced demand for metal or metal powder. This has severely impacted the metal prices from March 2020 onwards. For instance, copper prices fell by 22% in March from beginning of the year. Similar trend was observed for nickel, zinc, lead, tin, molybdenum, and cobalt.

Application Insights

Aerospace was the largest application segment in 2019 and held over 51% of the global revenue share. Rising awareness about significant cost and weight savings among various manufacturers is expected to propel the demand for 3D printing materials to produce cost-effective and high-performance aircraft elements. The decreasing prices of 3D printers and easy raw material availability have created positive impact on low-volume manufacturing, especially in the aerospace sector, which is expected to boost the demand for additive manufacturing.

Industrial application accounted for the second-largest volume share of the global powder metallurgy market in 2019. Increasing industrial output and energy requirements are the key driving factors for segment growth. Rapid prototyping and on-site production are projected to offer numerous opportunities for market vendors over the coming years.

Medical & dental segment is anticipated to register the highest CAGR over the forecast period on account of increasing health consciousness. Powder metallurgy in dental industry is used to produce patient-suitable dental products, such as partial dentures, crowns, and bridges.

Process Insights

Metal injection Molding (MIM) accounted for the largest volume share of 46% in 2019, followed by Powder Metal Hot Isostatic Pressing (PM HIP) and additive manufacturing. However, this trend is expected to be reversed by 2027 as additive manufacturing is anticipated to emerge as the largest shareholder of the market.

MIM has been in demand over a long period and is capable of manufacturing a large volume of complex-shaped parts with high manufacturing precision. Great machining efficiency from PM HIP coupled with the strong combination of enhanced raw materials is projected to drive the demand for PM HIP over the coming years.

The additive manufacturing process can be further segmented into powder bed and blown powder, where powder bed accounts for a larger share. Powder bed uses sintering and melting techniques whereas, blown powder uses laser engineered net shaping and laser metal deposition.

End-use Insights

The OEM segment held the largest share of over 70% in 2019 and the trend is expected to continue over the forecast period. Large-scale OEMs, especially in aircraft industry, are investing significantly in metal 3D printing to manufacture aeronautical parts, which is expected to positively impact the market growth. AM operators segment can be subdivided into online and offline operators. The online AM operators are anticipated to outperform as the process of outsourcing the production of metal parts through online platforms is trending.

Online 3D printing services are gaining prominence as they help streamline the ordering process through online platforms, thereby, reducing the overall production time. On the other hand, traditional offline 3D printing services require a considerable amount of pre-production work and constant communication between suppliers, which delays the final production time.

Material Insights

The steel segment accounted for the largest share of over 44% in 2019. The low cost and easy availability of the metal are expected to increase its utilization in the producing of machines, car frames, and transport equipment, thereby augmenting the segment growth. Steel can be utilized in combination with other metals, such as bronze, which also boosts its demand in the market.

Global powder metallurgy market share

Titanium is anticipated to register the fastest growth rate over the forecast period. The demand for titanium, especially in additive manufacturing, is directly linked to the growth of the aerospace sector, where it has wide usage in aircraft parts production. The demand for commercial aircraft is expected to grow at double the rate over the next 20 years owing to increasing air travel, which in turn, is expected to augment the demand for titanium.

Nickel is another key material in the market accounting for the second-largest share, in terms of revenue. The demand for nickel-based alloys is attributed to their excellent corrosion and thermal-fatigue properties that make them suitable in additive manufacturing technologies, such as selective laser melting and direct metal laser sintering.

Regional Insights

North America accounted for the largest revenue share of 37.3% in 2019. It is projected to maintain its leading position throughout the forecast years on account of the strong presence of major manufacturers in the region. The region also held the largest share in terms of usage of 3D printed titanium components.

Europe was the second-largest market in 2019. Favorable government policies across Europe are expected to boost market growth over the forecast period. In May 2016, Europe held a conference to adopt 3D printing technology across the region. Increased funding for the research & development and standardization of the technology is further anticipated to fuel the market growth.

Germany dominated the European market in 2019 and is a leading country when it comes to industrialization and adoption of new technologies. It has 148 research institutions that are actively dedicated to the development of additive manufacturing, which is likely to play a crucial role in propelling market growth in the Europe region.

However, the growth of all regional markets is anticipated to be paused or declined during 2020-21 due to the COVID-19 pandemic outbreak. However, China is expected to recover in the second quarter of 2020 and resume its operations as the impact of the virus has been reducing in the country.

Key Companies & Market Share Insights

Major companies are following key strategies, such as mergers & acquisitions and capacity expansions, to gain competitive edge. Increasing demand for powder metallurgy by various industries has propelled the raw material producers to expand their production capacity to be in line with the market growth.

For instance, in May 2019, Epson Atmix Corp. installed a new production line at its Kita-Inter Plant in Japan for producing amorphous alloy powder. The company invested around ¥800 million (~USD 7.43 million) for the installation of new line and it plans to further increase its production capacity in stages and reach 6,000 tons per year by 2023. Some of the prominent players in the powder metallurgy market include:

  • Arcam AB

  • Carpenter Technology Corp.

  • ExOne GmbH

  • GKN Plc

  • Höganäs AB

  • Materialize NV

Powder Metallurgy Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 2.3 billion

Revenue forecast in 2027

USD 5.2 billion

Growth Rate

CAGR of 11.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Material, application, process, end use, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

U.S.; Germany; U.K.; France; China; Japan; Brazil

Key companies profiled

Arcam AB; Carpenter Technology Corp.; ExOne GmbH; GKN PLC; Höganäs AB; and Materialise NV

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, country, and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global powder metallurgy market report on the basis of material, application, process, end use, and region:

  • Material Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

    • Titanium

    • Nickel

    • Steel

    • Aluminum

    • Cobalt

    • Others

  • Application Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

    • Aerospace & defense

    • Automotive

    • Medical & Dental

    • Oil & Gas

    • Industrial

  • Process Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

    • Additive manufacturing

      • Powder bed

      • Blown Powder

    • Metal Injection molding

    • Powder Metal Hot Isostatic Pressing (PM HIP)

  • End-use Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

    • OEMs

    • AM Operators

  • Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • Germany

      • The U.K.

      • France

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

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