Sintered Steel Market To witness Huge Expansion By 2027

Sintered Steel Industry

The global sintered steel market size is anticipated to reach USD 177.9 million by 2027, according to a new report by Grand View Research, Inc. It is anticipated to expand at a compound annual growth rate (CAGR) of 5% from 2020 to 2027, The advantages such as low manufacturing cost, freedom in component design, and flexibility over other processes like forging and casting is anticipated to augment market growth.

Steel is a versatile material with various characteristics and is easily available at low cost. These attributes make it preferable over other materials in producing components, equipment, and tools. The demand for sintered steel parts is majorly driven by the automotive components industry followed by tools, electrical appliances, machinery equipment, and others.

The advantage of producing complex parts at ease has propelled the demand for sintered metal products, which has resulted in increased production capacity. For instance, Höganäs, a key market player invested in a new sintering furnace with an aim to cater to the rising demand for 3D printed components and additional material alternatives. The new furnace increased the company’s production capacity and is capable of catering to a wide range of metal powder. Growing production and demand for sintered metal parts is anticipated to positively influence market growth.

Electrical appliances is anticipated to be amongst the fastest growing application segments over the forecast period. Growing investment in the industry is expected to augment product demand over the forecast period. For instance, in November 2018, Bosch Home Appliances announced about investing USD 111.9 million (€100 million) in India over the next 3 to 4 years. This is expected to positively influence the market growth as sintered steel finds application in producing various components of home appliances like washing machines and refrigerators.

Cutting tools is another prominent application segment, which is expected to register a steady growth rate over the forecast period. Increasing demand from the manufacturing sector and other industries is anticipated to bode well for the segment growth. The cutting tool market is witnessing various strategic initiatives by the key players which is anticipated to have a positive impact on the product demand. For instance, in January 2020, GWS Tool acquired Inrepid Tool Industries.

Automotive components is the major application segment. However, the outbreak of the Coronavirus (COVID-19) epidemic in one of the largest economies of the world, China, is anticipated to negatively impact the country’s production sector along with other major countries such as Japan, Germany, and India.

China is a hub for manufacturing ample products and is involved in major imports and exports including automotive components, machine tools, and electrical appliances. As a result, Asia Pacific is anticipated to register a sluggish growth over the next couple of years on account of decline in production. The market growth is expected to pick up from 2021 to 2022, once the manufacturing sector in China resumes and definitive alternate options are sorted and put in place by the key countries for bring the trade and manufacturing sector on track.

Gather more insights about the market drivers, restrains and growth of the Global Sintered Steel market

Sintered Steel Market Segments Highlights:

Asia Pacific is expected to register a CAGR of 3.8% in terms of volume over the forecast period. The demand is expected to remain low for 2020-2021 due to the Coronavirus (COVID-19) outbreak
North America is expected to be the fastest growing regional segment in terms of volume, considering the establishment of automotive plants and factories in the region, with regard to the tariff concerns by the U.S. government
Machinery and tools is anticipated to accelerate at a CAGR of 5.2%, in terms of revenue, over the forecast period, on account of increasing production of electrical appliances and cutting tools across the globe
U.S. is among the key markets for sintered steel considering the tariff policies, which are propelling manufacturers to set up their components plants in the country in close proximity of the automotive manufacturers. The country accounts for a volume share of 51% of North America in 2019

Sintered Steel Market Report Segmentation

Grand View Research has segmented the global sintered steel market on the basis of application and region:

Sintered Steel Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)