Powder Metallurgy Market Size, Share & Trends Analysis Report By Material (Titanium, Steel), By Process (MIM, PM HIP), By Application (Automotive, Oil & Gas), By End-use (OEM, AM Operators), And Segment Forecasts, 2021 - 2028

Report Overview

The global powder metallurgy market size was valued at USD 2.11 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.4% from 2021 to 2028. The increasing adoption of additive manufacturing to reduce the weight of parts or components used in the aerospace, defense, and healthcare sectors will drive the market over the forecast period. 3D printing, also called additive manufacturing, offers properties, such as reduced weight, cost-effectiveness, and complexity in designs, which have attracted various manufacturers to implement the technology in their manufacturing processes. 3D printing is used in various industries, such as jewelry, medical, food, footwear, and aerospace. This has positively influenced the market growth.

The growing focus of leading metallurgy companies on increasing their production has enabled them to invest in strategic initiatives. For instance, in October 2019, GKN Powder Metallurgy, a U.S.-based global metal powder producer, acquired the plastic 3D printing company, FORECAST 3D. This acquisition enabled the delivery of industrial 3D printing to various industries across the globe.

The growing penetration of additive manufacturing in the medical, automotive, and aerospace & defense sectors is also projected to drive the market. The demand for titanium in additive manufacturing is linked to the growth of the aerospace sector, where it is used in the production of aircraft parts. 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 drive the market growth.

The COVID-19 pandemic is an ongoing challenge for the industry. A large number of industries have largely been impacted by the pandemic and witnessed both upsides and downsides in the year 2020. For instance, the global sales of passenger cars fell to 60.5 million units in 2020. The crisis caused new challenges to emerge, particularly for the manufacturing & processing industries, including cost escalation, procession stoppages, disruption of the supply chain, and workforce minimal capacities.

Although with ease in the restrictions, companies have started ramping up their operations. For instance, in February 2021, the European Automobile Manufacturers’ Association (ACEA) has projected a rise in automotive sales by 10% in 2021 compared to 2020, which embarks the first step on the recovery path. Automotive manufacturers are competing to achieve lightweight components, which are primarily catered by powder metallurgy. This is expected to positively influence the market growth over the forecast period.

Material Insights

The steel segment held the largest revenue share of 46.8% in 2020 of the global market. Steel is considered one of the cheapest materials in additive manufacturing, which can also be utilized in a mixture with other metals, such as bronze, titanium, and aluminum. The low cost and easy availability of steel are expected to increase its utilization in the printing of large products, including machines, car frames, and transport equipment over the coming years. Other applications of steel include spare parts and fully functional components.

The newly emerging applications of steel powder from aerospace, construction, mechanical engineering, and various other industries are further expected to augment its demand. For instance, in September 2020, Outokumpu made an announcement of selecting SMS Group to deliver an atomization plant for producing stainless steel powder used in additive manufacturing. With the development and distribution of this sustainable material, Outokumpu aims at attracting new customer segments.

The other materials segment includes metals such as iron, copper, zinc, molybdenum, tungsten, magnesium, and chromium. The utilization of these metals in the manufacturing, chemical, oil & gas, general, and other industries is projected to create a positive impact on the market. For instance, copper and copper-based alloy powders have excellent electric conductive properties, which makes them applicable in various electrical & electronics applications.

Process Insights

The Powder Metal Hot Isostatic Pressing (PM HIP) segment accounted for the largest volume share of over 55% in 2020, followed by the Metal Injection Molding (MIM) and additive manufacturing segments. The high share is primarily attributed to its growing significance in the components manufacturing industry over the last 20 years. The higher machining efficiency from PM HIP coupled with the strong combination of enhanced raw materials is projected to accelerate the demand for PM HIP over the forecast period.

The process is used to produce components that are complex to manufacture using conventional processes, such as casting and forging. In this process, the powder is subjected to extremely high vacuum and elevated temperature, which helps remove the internal voids and forms a strong bond throughout the material. These factors are expected to augment the usage of the HIP process over the forecast period.

The additive manufacturing process is expected to register the fastest growth rate of 24.6%, in terms of revenue, over the forecast period. This method is based on the transfer of digital data to a machine, which builds the component. The inception of additive manufacturing to create prototypes has widely gained prominence across key end-use sectors, such as aerospace & defense, medical, and automotive, respectively. Its rising prominence is anticipated to benefit the market growth during the forecast period.

End-use Insights

Based on end-use, the market is segmented into Original Equipment Manufacturers (OEMs) and AM operators. Large OEMs, especially in the aerospace industry, are investing in metal 3D printing to manufacture aeronautical parts, which offer advantages such as reduced turnaround time, reduction in error, innovation, improved security, improved productivity, cost savings, and enhanced design standards.

AM operators include online and offline 3D printing service providers. Online 3D printing services are gaining prominence as they help streamline the ordering process through online platforms, thereby reducing the overall production time substantially, which drives the market growth.

Application Insights

The aerospace & defense application segment accounted for the largest revenue share of more than 51.0% in 2020 of the global market. The ability of the aerospace & defense industry to bear high initial costs and adaptable nature for new technologies are anticipated to propel the segment growth. An innovative aerospace approach aided by the demand for complex geometric structures is expected to drive the use of various technologies in the market, thereby boosting market growth.

Increasing industrial output and energy requirements are the key driving factors for the segment growth. In the oil & gas industry, the demand for metal-based products manufactured using additive manufacturing has shown significant growth. For example, burner for gas turbine, pumps, turbomachinery, valves, gas turbine nozzles, and other applications.

Increasing health consciousness and rising consumer disposable income levels are the key factors driving the growth of the medical & dental industry. This, in turn, is boosting the demand for powder metallurgy in medical & dental applications. For instance, in 2019, Lima Corporate, a U.S.-based company, commercialized hip cup implants produced using additive manufacturing. The company had planned to start an on-site additive manufacturing facility at a hospital located in New York by 2020. Thus, the growing application scope of metal additives across various industries propels the market growth.

Regional Insights

In terms of revenue, North America accounted for the highest share of more than 36.5% in 2020, owing to the high demand from the aerospace & defense industry. The presence of major government and private aerospace companies coupled with high defense expenditure in the U.S. is expected to propel the market growth over the forecast period.

Asia Pacific is estimated to register the fastest CAGR over the forecast period. Factors such as high population levels and increasing consumer disposable income have led to the adoption of additive manufacturing in the automotive and healthcare industry. The promotion of private investments by various governments is projected to boost the manufacturing sector in the region, which, in turn, is expected to propel the demand for powder metallurgy.

In Europe, stringent regulations to achieve fuel efficiency are expected to propel the demand for lightweight powder metallurgy components in the automotive & aerospace industries. Germany dominated the European regional market in 2020 and is a leading country in terms of 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 the growth of the regional market.

Key Companies & Market Share Insights

The major companies operating in the competitive landscape, such as Hoganas AB and GKN Sinter Metals Engineering GmbH, are focused on new product developments, strategic acquisitions, and expansion of their regional presence. For instance, in May 2021, Desktop Metal, a technology pioneering company, acquired Adaptive3D, a leader in elastomeric solutions for additive manufacturing.

Companies are also aiming for survivability and resilience to hold financial stability in the post-COVID-19 scenario. In the wake of the COVID-19 crisis, the demand for powder metallurgy slumped significantly owing to the temporary shutdown of industries. Moreover, the whole supply chain got disrupted, which hampered the market dynamics. Hence, as of 2021, companies are looking forward to revised business models to cater to the growing demand. Some of the prominent players in the global powder metallurgy market include:

• Molyworks Materials Corp.

• Advanced Technology & Materials Co., Ltd. (AT & M)

• JSC POLEMA

• Sandvik AB

• Hoganas AB

• GKN PLC

• Rio Tinto Metal Powders

• Rusal

• CRS Holdings Inc.

• Liberty House Group

Powder Metallurgy Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global powder metallurgy market report on the basis of material, process, application, end-use, and region:

• Material Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Titanium

  • Nickel

  • Steel

  • Aluminum

  • Cobalt

  • Others

• Process Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Additive Manufacturing

    • Powder bed

    • Blown powder

  • Metal Injection Molding

  • Powder Metal Hot Isostatic Pressing

• Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Aerospace & Defense

  • Automotive

  • Medical & Dental

  • Oil & Gas

  • Industrial

• End-use Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Original Equipment Manufacturers (OEMs)

  • AM Operators

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  •  Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa