Sintered Steel Market

Sintered Steel Market

Sintered Steel Market is projected to grow from USD 24.4 billion in 2023 to USD 29.5 billion by 2028, at a cagr 3.9% during the forecast period. The market growth is driven by growing manufacturing and industrial sector. The industrialization and infrastructure development in emerging economies, such as China, India, and Southeast Asian countries, have increased the demand for sintered steel. The rapid urbanization, construction activities, and industrial growth in these regions drive the demand for sintered steel components in various sectors. Sintered steel finds applications in various industries, including machinery, construction, aerospace, and consumer goods. The increasing production activities and infrastructure development contribute to the demand for sintered steel components.

Attractive Opportunities in the Sintered Steel Market

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Sintered Steel Market Dynamics

Driver: Growing automotive industry

The growing automotive industry plays a significant role in driving the growth of the sintered steel market. The automotive industry is a major consumer of sintered steel components. As the global automotive production continues to rise, there is a higher demand for sintered steel parts in various vehicle systems. Sintered steel components are used in engines, transmissions, brakes, steering systems, fuel systems, and many other applications within vehicles. Sintered steel offers cost advantages over other manufacturing methods. The sintering process allows for efficient use of raw materials, reducing material waste and production costs. As the automotive industry seeks cost-effective solutions without compromising quality and performance, sintered steel becomes an attractive choice for various components. The growing automotive industry's focus on lightweighting, cost-efficiency, complex shapes, and high-performance applications aligns with the strengths of sintered steel. This synergy between the automotive industry's needs and the advantages of sintered steel drives its adoption and contributes to the growth of the sintered steel market.

Restraint: Volatile raw material (metal powders) prices

Raw material price fluctuations can be a considerable restraint for the sintered steel market, affecting the profitability and competitiveness of sintered steel companies The main raw materials required for sintered steel production include various metal powders such as iron, steel, tin, nickel, copper, molybdenum, and aluminum. When the cost of these raw materials increases, the cost of production increases. If sintered steel companies pass on these increased costs to their customers, they may lose business to competitors who can offer lower prices.

Opportunities: Growing electric vehicle (EV) market

The growing electric vehicle (EV) market presents significant opportunities for the sintered steel market. Electric vehicles require a range of specialized components, including electric motor cores, battery contacts, connectors, and power electronics. Sintered steel is well-suited for manufacturing these components due to its magnetic properties, high conductivity, and good dimensional accuracy. As the EV market expands, there will be a surge in demand for these sintered steel components, creating new opportunities for manufacturers.

Challenges:  Material limitations

The mechanical properties of sintered steel, including strength, toughness, and fatigue resistance, can be influenced by factors such as powder composition, powder particle size distribution, and sintering conditions. Achieving specific mechanical properties can be challenging, and sintered steel may not always match the performance of other materials, such as forged steel or certain alloys, in demanding applications.

Despite these challenges, sintered steel remains widely used in various industries due to its advantages in terms of cost-effectiveness, complex shape capabilities, and the ability to produce large quantities of components with good mechanical properties. Manufacturers continuously work on improving sintering techniques and developing new materials to address these challenges and expand the application potential of sintered steel.

Ecosystem

By Steel Type, Tool steel accounted for the highest CAGR during the forecast period

Tool steel is a type of high-speed steel used in tool production. It is manufactured through a process that involves pressing powdered tool components to achieve the desired shape and density. This near-net-shape manufacturing technique reduces the need for extensive machining and allows for precise shaping. To enhance its properties, hot-temperature cemented carbides are added to the tool steel, ensuring optimal density and uniform carbide distribution. The resulting high-density tool steel exhibits excellent grindability and possesses desirable characteristics such as hardness, wear resistance, and toughness. These qualities make tool steel suitable for a wide range of tool applications in industries such as manufacturing, construction, automotive, aerospace, and woodworking. It is commonly used to create various tools, including drills, cutting blades, punches, dies, molds, and tooling components.

By Process, Additive manufacturing accounted for the highest CAGR during the forecast period

The additive manufacturing (Am) is the fastest growing in the sintered steel market during the forecast period. Additive manufacturing is experiencing rapid growth in the sintered steel market due to several factors. It offers design freedom, allowing the creation of complex geometries and customized parts. The reduced material waste and improved manufacturing efficiency make it cost-effective. Additive manufacturing enables faster prototyping and shorter time-to-market. It also provides increased design flexibility and customization options. Advancements in materials and technology have expanded its capabilities, leading to higher densities and improved mechanical properties in sintered steel products. Overall, additive manufacturing is driving innovation and transforming the manufacturing landscape in the sintered steel market.

By Application, Engines accounted for the highest CAGR during the forecast period

Engine applications dominate the sintered steel market. This is primarily due to the exceptional mechanical properties offered by sintered steel, including high strength and wear resistance, which make it well-suited for engine components operating under extreme conditions. The cost-effectiveness of sintered steel, achieved through near-net shape production and reduced material waste, appeals to engine manufacturers seeking efficient solutions. Furthermore, the design flexibility of sintered steel allows for the creation of customized and intricate shapes, enhancing engine performance. The strong demand from the transportation industry, along with the continuous growth in vehicle production and technological advancements, further contributes to the significant presence of engine applications in the sintered steel market.

By End Use Sector, Electrical accounted for the highest CAGR during the forecast period

The demand for sintered steel in the electrical industry is driven by the increasing adoption of renewable energy sources, such as wind and solar power. Sintered steel is utilized in the manufacturing of electrical contacts, connectors, and other components for renewable energy systems. As the renewable energy sector continues to expand, the demand for sintered steel in this industry is expected to grow significantly.

Sintered steel, with its high thermal conductivity, can aid in heat dissipation in electrical applications. It is often used in heat sinks and thermal management solutions, where it helps transfer heat away from sensitive electrical components, preventing overheating and ensuring efficient operation.

Asia Pacific is projected to account for the highest CAGR in the sintered steel market during the forecast period

The Asia Pacific region, particularly countries like China and India, is undergoing rapid industrialization and urbanization. This has led to increased demand for various sectors, including automotive, construction, and machinery, which are major consumers of sintered steel products. The expanding industrial base and infrastructure development projects are driving the growth of the sintered steel market in the region.

The Asia Pacific region is one of the largest automotive manufacturing hubs globally. Sintered steel components are extensively used in the automotive sector for applications such as engine parts, transmission components, bearings, and braking systems. The increasing production of vehicles in countries like China, Japan, India, and South Korea has propelled the demand for sintered steel in the region.

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Key Market Players

Sintered steel market comprises key manufacturers such as Sumitomo Electric Industries Limited (Japan), GKN Powder Metallurgy (UK), Samvardhana Motherson Group (India), Resonac (Japan), The Miba Group (US), ASCO Sintering Co. (US), Schunk Sinter Metals (Germany), AMES Sintering Metallic Components (Spain), and Sintercom India Ltd. (India) and others. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the sintered steel market. Major focus was given to the new product development due to the changing requirements of transportation and electronics product consumers across the world.

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Scope of the Report

:

This research report categorizes the global sintered steel market based on Steel Type, Process, Application, and Region

On the basis of Steel Type:

• Stainless Steel
• Carbon Steel
• Alloy Steel
• Tool Steel

On the basis of Process:

• Metal Injection Molding (Mim)
• Additive Manufacturing (Am)
• Conventional Manufacturing
• Powder Forged Manufacturing

On the basis of Application:

• Engines
• Transmissions
• Bodies
• Chassis
• Drivetrains
• Electrical Appliances
• Others

On the basis of End Use Industry:

• Transportation
• Electrical
• Industrial
• Others

On the basis of Region:

• North America
• Asia Pacific
• Europe
• South America
• Rest of the World

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In March 2023, A definitive license agreement was signed by Sumitomo Electric Industries Ltd. and US Conec Ltd., allowing Sumitomo Electric Lightwave Corp. to produce MMC connector and TMT ferrule components for the use in the deployment of next-generation, high-density, multi-fibre cable solutions.
• In May 2023, Sumitomo Electric Industries, Ltd. and the National Institute of Information and Communications Technology (NICT) have jointly achieved a major breakthrough in optical fibre technology. They have developed a multi-core optical fibre with an impressive 19 cores, which is the largest number of cores ever achieved in a standard outer diameter (0.125 mm) fibre. They successfully transmitted data at a staggering speed of 1.7 petabits per second over 63.5 km.
• Resonac, formed on January 1, 2023, through the merger of Showa Denko and Showa Denko Materials (formerly Hitachi Chemical), marks a new beginning for the company. Their goal is to achieve global leadership in the chemical industry by prioritizing advanced functional materials and continuous transformation initiatives.
• In October 2021, For the development of multicore optical fibre cable, Sumitomo Electric Industries, Ltd. partnered with OCC Corporation, a fully owned subsidiary of NEC Corporation.
• In May 2019, Sumitomo Electric Industries, Ltd. acquired 100% shares of the European manufacturers of powdered metal components, Sinterwerke Herne GmbH (SWH, Germany) and Sinterwerke Grenchen AG (SWG, Switzerland). Its Powder Metal Products Division operates globally along with Sumitomo Electric Sintered Alloy Ltd.

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