Market Overview: The powder metallurgy industry is comprised of three major segments:
1. Companies that produce the powders, lubricants, industrial gases and other raw materials that goes into making finished components.
2. Companies that manufacture and provide the tooling, process equipment, and related services used in the making of finished components.
3. Contract and in-house fabricators of finished components.
Major Applications of Powder Metallurgy is in:
1. Automotive Industry
2. Electrical and Electronics
3. Industrial motors and controls
4. Household Appliances
5. Hardware
6. Medical and Dental
The automotive sector accounts for a dominant share of 65% in the global market. The favorable growth of the automotive industry, especially in developing regions such as Asia Pacific in the past few years, has boosted demand for powder metallurgy applications.
With a share of over 45% in the total global consumption, Asia Pacific is the largest market for powder metallurgy. It is growing at a CAGR of 5.01%. North America accounts for around 40.4% of the total market share in terms of value, followed by Europe.
The global powder shipments market should reach 4.7 billion pounds (in volume) and $10.9 billion (in value) by 2022 from 3.6 billion pounds and $7.3 billion in 2017 at a compound annual growth rate (CAGR) of 5.2% and 8.2%, respectively, from 2017 to 2022.
Advantages of Powder metallurgy process:
1. Eliminates or minimizes machining
2. Eliminates or minimizes scrap losses
3. Maintains close dimensional tolerances
4. Permits a wide variety of alloy systems
5. Produces good surface finishes
6. Cost effective
Opportunity Profile: Research and innovation into seeking new applications for powder metallurgy will open up new market opportunities in the coming years. Metalworking and other metallurgical processes are employed in many industries, which offer a wide scope for innovation in powder metallurgy techniques.
The ferrous category accounted for a whopping 80% of the global market, followed by non-ferrous powders. Demand for ferrous powder metallurgy is expected to increase in the coming years, thanks to increasing demand from the automotive and consumer electronics sectors.
Top global players in the industry:
- Carpenter Technology Corporation- Founded in 1889, the company has grown from one location in Pennsylvania to dozens throughout the U.S., Europe and Asia.
- GKN PLC- We have more than 160 manufacturing facilities, service centres and offices in over 30 countries.
- Allegheny Technologies Incorporated- ATI, with revenue of $3.6 billion for the twelve month period ending March 31, 2018 is the largest market for aerospace & defense, particularly jet engines.
- Hitachi Chemical Co- Established in 1962. The Co today has consolidated sales of worth 669.2 billion yen.
- Hoganas AB- Established in 1797 as a coal mining company, Hoganas AB today has 2,500 customers in 75 countries with more than 1500 products and 700 granted patents.
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