Market Trends of Metal Powder Industry
This section covers the major market trends shaping the Metal Powder Market according to our research experts:
Increasing Usage in the Transportation Industry
- Metal powder is the fastest-growing product in the automobile industry. The properties of metal powder help to improve the bulk properties of complex components such as reactivity, flow ability, compressibility, porosity, and hardenability.
- The global total production of vehicles was around 7,76,21,582 in 2020, and it increased to 8,01,45,988 in 2021. Also, in terms of revenue, the global automobile was generated about USD 2.7 trillion in 2021. It is projected that the market will grow to some USD 2.8 trillion in 2022.
- On average across all geographical regions, around 80% of all metal powder structural components are produced for automotive applications. The metal powder finds application in various automobile parts such as in oil pumps particularly gears, shock absorbers (piston rod guides, piston valves, end valves), Anti-lock Braking Systems (ABS), Exhaust systems (flanges, oxygen sensor bosses), Chassis components, Variable Valve Timing systems, Exhaust Gas Recirculation (EGR) systems, and Turbochargers
- Automobile manufacturers prefer iron powder for making brake pads and magnetic products to lower the brake weight, minimize the noise, and reduce material usage. The other products which are produced from metal powders are pulleys, thrust and backup washers, differential gear sets, helical gears, bevel gears, planetary gears, sprockets, output pulleys, fuel system flanges, exhaust flanges, access covers, spacers, racks, and many others. China is the leading exporter of automotive components with annual vehicle production accounted for over 30% of worldwide vehicle production. This enhanced the growth of automobile industry which has stimulated the market demand for metal powder.
- Furthermore, according to the Boeing Commercial Outlook 2021-2040, the total global deliveries of new airplanes estimated to 43,610 by 2040. The global airplane fleet amounted for around 25,900 as of year 2019. Owing to such huge expected deliveries, the demand for metal powders is likely to rise, globally.
- Owing to all these factors, the market for metal powder is likely to grow globally during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy, in terms of GDP (Gross Domestic Product). China and India are among the fastest emerging economies in the world.
- China is the world's leading producer and exporter of both automobiles and their parts. China continues to be the world's largest vehicle market with the Chinese government expecting that automobile output will reach 35 million by 2025. Also, in 2020, the overall sales of vehicles in China rose 16.4% year-on-year compared with the year-earlier level to 2.11 million vehicles and the annual sales volume of new energy vehicles in China is likely to hit 3 million units in 2025.
- In the fiscal year 2021, in India, the annual production of automobiles was 22.65 million vehicles that showed growth, and total sales increased by 5.8% to 18.49 million units, compared to 17.47 million units in 2020. Moreover, India's automobile exports reached 4.13 million vehicles in 2021, growing at a CAGR of 3.47% from 2016 to 2021.
- India has also become the third-largest domestic aviation market in the world and is expected to become the third largest air passenger market by 2024 and the number of airplanes is expected to reach 1,100 planes by 2027.
- China is also a leading producer of electronic products such as laptops, TVs, mobile phones, refrigerators, radiators, and many others. The revenue in the Chinese electronics segment is projected to reach USD 393.50 bn in 2022 with an annual growth rate of 4.04 %. In 2021, the value-added in the electronics manufacturing industry in China grew by 15.7 percent from the previous year, reaching the highest point of the given period which in-turns stimulate the demand for the metal powder market.
- Due to all such factors, the market for metal powder in the region is expected to have steady growth during the forecast period.
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