Beryllium Market - Growth, Trends, and Forecast (2020 - 2025)
The market is segmented by Product Type (Alloys, Metal, Ceramics, and Other Product Types), End-user Industry (Industrial Components, Automotive, Healthcare, Aerospace and Defense, Oil and Gas and Other Energy, Electronics and Telecommunication, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, and Rest of the World)
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
Fastest Growing Market:
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The market for beryllium is expected to register a CAGR of around 2% during the forecast period. The major factors driving the growth of the market studied include beryllium’s increasing usage in medical equipment, owing to its superior properties, and its extensive usage in aerospace and military applications. On the flipside, the negative economic effects of COVID-19 are expected to hinder the growth of the market studied.
Alloys product segment dominated the market and is expected to grow during the forecast period owing to the fact that beryllium-containing alloys are only used in critical locations in products where they provide a design solution based upon reliability, miniaturization, improved energy management, and/or extending the service life.
Future demand for beryllium oxide in nuclear power generation is likely to act as an opportunity in the future.
North America dominated the market across the globe with the largest consumption from the countries, such as the United States and Canada.
Scope of the Report
The scope of the beryllium market report includes:
Other Product Types
Aerospace and Defense
Oil and Gas and Other Energy
Electronics and Telecommunication
Other End-user Industries
Rest of Asia-Pacific
Rest of North America
Rest of Europe
Rest of the World
Middle-East and Africa
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Key Market Trends
Automotive Segmnt to Drive the Market Growth
In the automotive electronics industry, beryllium is used as the connector material for battery and high-temperature applications. In addition, it is abundantly used in optical filters for night vision, speed control, sensors, and camera applications.
Furthermore, the metal is used in the form of CuBe- a high-performance alloy- for the powertrain. Beryllium in the form of metal matrix composites is employed for chassis, suspension, and braking component applications.
The lifesaving technology behind automotive airbags relies on beryllium alloys to work in a fraction of a second. Anti-lock brakes trust beryllium alloys to transmit electrical signals through terminal connections when seconds make a critical difference in preventing a collision.
Electric relays made with beryllium alloys allow automotive emergency flashers to operate every time even after continual cycles over the years of service.
A breakthrough in the use of beryllia ceramic in the electronic ignition systems led to a 20% increase in the automotive fuel efficiency.
Many substitute materials are tested for the replacement of beryllium in automotive electronics, which include alloys- like CuZn Brasses, CuSn Bronzes, and CuNiSi alloys. The insufficient combination of strength/ formability, electrical conductivity, stress relaxation resistance, failure to resist vibration and corrosion resistance are hindering this replacement.
The automotive industry is focused on innovation, and the onboard technology is turning them into computers on wheels.
Most of the new-generation vehicles are equipped with cutting edge connectivity features, which help in generating reams of data at high speed, allowing people to drive safely.
The automotive industry has seen slowdown from couple of years. According to the International Organization of Motor Vehicle Manufacturers (OICA), the automotive production witnessed a 5.2% decline from 96,869,020 unit in 2018 to 91,786,861 units in 2019. Also, the sales of the automobiles has declined in 2019 by around from 95.06 million units in 2018 to 91.29 million units in 2019.
Asia which is the largest automotive manufacturing hub has witnessed a decline of 6.4% in 2019. The major countries like China, Japan, India, South Korea, Thailand and Indonesia have registered negative growth in the production. This is majorly due to factors like decline in domestic demand, increasing labor costs and implementation of new vehicle norms (BS Stage 6 vehicles in India).
Furthermore, the slowdown in the manufacturing sector, due to the economic slowdown and lockdowns due to COVID-19 outbreak, is expected to have a negative impact on the growth of the automotive industry in short to medium term, in all the regions. This factor is likely to have an adverse impact on the demand for beryllium in coming years.
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China to Dominate the Asia-Pacific Market
In Asia-Pacific, China is the largest economy, in terms of GDP. The annual growth rates of the Chinese GDP were 6.6% and 6.3% in 2018 and 2019, respectively. China is one of the fastest-growing economies, globally, and almost all end-user industries have been growing, owing to the rising population levels, living standards, and per capita income levels.
However, owing to the international trade turbulences and unfavorable geopolitical affairs, the growth rate is expected to slow down during the initial years of the forecast period. Moreover, the COVD-19 pandemic has had a substantial economic impact. The Chinese economy contracted by 6.8% for the first time in decades in the first quarter of the year, as the pandemic forced factories and businesses to close.
The demand for beryllium was stable in the past few years. The aerospace and defense sector is the major consumer of beryllium in China. However, beryllium-copper alloys are mainly used in the manufacture of connectors, shrapnel, switches, and other electronic and electrical equipment. These alloy components are used in aerospace vehicles, automobiles, computers, and national defense and mobile communication networks.
China is the second-largest market after the United States. However, the Chinese market is still lagging, with a larger difference, in terms of market share, as compared to the United States. Presently, China’s beryllium ore supply is dependent on imports, with a major focus on the defense and science and technology fields, while the applications of beryllium-copper alloy are still far behind those in the United States and Japan.
However, in the long run, beryllium, as a metal with excellent performance, may penetrate further, from the existing aerospace and military fields to electronics and other emerging industries, under the premise of meeting resource guarantees.
China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, and earphones, account for the highest demand. The country not only caters to the domestic demand for electronics but also exports electronic output to other countries. However, in 2019, the country’s electronics industry was hit hard by the US-China trade war. Hence, Chinese electronic product assembling companies have been strategizing to shift their production bases away from China, in order to avoid US tariffs.
Moreover, China is on its course to overtake the United States as the world's biggest air travel market within the next three years. Yet, the country’s appetite for aviation seems set to be growing exponentially. The high demand for aviation has led to the government's decision to introduce airport building programs, which include huge investments in terminals and runways.Asia-Pacific recorded the highest growth rate in creating the market demand for beryllium during the forecast period.
The aircraft parts and assembly manufacturing sector in the country is growing at a rapid pace, with the presence of over 200 small aircraft parts manufacturers. Major manufacturers are concentrated in Nanchang, Shanghai, Chengdu, Xi’an, Harbin, Shijiazhuang, and Shenyang. The aviation base in Zhoushan is also being developed in order to create a robust aircraft manufacturing, repair, and maintenance base to cater to a capacity of nearly 600 aircrafts every year by 2025.
The country is one of the major solar panel manufacturers across the world, which is also the famous exporter of low-cost photovoltaic cells to numerous countries. China’s total solar capacity accounts for more than 34% of the global total solar capacity.
Overall, with the consistent growth in the solar PV, aerospace, and electrical and electronics in the country, the demand for beryllium is expected to increase at a faster pace in the overall region, in the coming years. On a further note, the huge growth of Asia-Pacific is quite instrumental in the expansion of the beryllium market.
China is the world’s largest automotive producer. However, in 2018, the country witnessed a decline of about 4.16% in the production of vehicles, accounting for 27,809,196 units of motor vehicles. The performance of the automotive industry was affected by the economic shifts and China's trade war with the United States. This trend sustained during 2019 as well, as the domestic automotive production and sales declined by 7.5% and 8.2%, respectively.
In 2019, Chinese healthcare expenditure was recorded to be ~USD 750 billion, which accounted for ~5.3% of the country’s GDP. The medical device market in China has been witnessing strong growth, with a growing number of hospitals and increasing demand for medical assistance. According to the China Association for Medical Device Industry, the size of the medical device market was recorded to be around ~USD 80 billion in 2019. About 70% of the growth was majorly fueled by hospital procurement.
With enormous prospects for the medical device market in the country, foreign-based companies have been expanding their local presence in China to grasp the current opportunities. At the same time, domestic medical device manufacturers have been trying to compete in medium-level technology niches and upgrading the quality of the medical devices produced.
Besides, government policies have been supporting and encouraging domestic medical device manufacturers, in terms of innovation and development, to increase the competency of domestic players in the market.
However, currently, due to the COVID-19 outbreak, economic and industrial manufacturing activities have been affected significantly in the country. As of mid-2020, as per the IMF, China is likely to register a GDP growth rate of about 1.2% for 2020, which may reflect a significant decline from 6.1% in 2019.
On the bright side, in March 2020, China lifted the lockdown in the country and commenced various industrial operations in the country. However, other countries are still aggressively engaged in lockdowns and treatments. Hence, from the above-mentioned factors, the demand for beryllium metals and alloys in China is likely to remain affected in the short run; however, the industrial demand is expected to normalize from 2021.
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The global market for beryllium is a highly consolidated in nature, with the top three players accounting for around 90% of the share in the global market. This scenario additionally reports a highly monopolistic market. The major companies include Materion Corporation, The atomic company "Kazatomprom" (Ulba Metallurgical Plant JSC), Hunan Shuikoushan Nonferrous Metals Group Co Ltd. (SKS), NGK Metals Corporation, and IBC Advanced Alloys, among others.