Market Trends of Global Iron Powder Industry
This section covers the major market trends shaping the Iron Powder Market according to our research experts:
High Demand from Automotive Segment
- Iron powder is formed from various iron particles. The particle size of iron powder varies from 20-200 micrometers. Iron powder is commercially available in three types - reduced iron powder, atomized powder, and electrolyte iron powder. Iron powder serves automobile parts majorly. Iron powder is used as a filler in friction materials in automotive original equipment manufacturers (OEMs) and aftermarket brake pads and clutches.
- They are also extensively used in manufacturing sintered parts, which are common in transmission and engine applications. The expansion of the automotive segment in China is anticipated to benefit the demand for iron powders. According to the International Organization of Motor Vehicle Manufacturers (French: Organisation Internationale des Constructeurs d'Automobiles) (OICA), China is the largest producer of automobiles. The country alone produced 2,60,82,220 units of vehicles in 2021.
- Also, India witnessed a significant increase in the sales of passenger vehicles and commercial vehicles. For instance, the domestic sales of passenger vehicles were 3,069,499 for 2021-2022, representing an increase of 13% compared to 2020-21.
- Furthermore, the country witnessed a significant increase in the production of passenger vehicles. For instance, according to the latest data published by the Society of Indian Automobile Manufacturers (SIAM), the production of passenger vehicles reached 3,650,698 for 2021-2022, representing an increase of 19% compared to 2020-21.
- Thus, with expanding automotive industry, the demand for iron powders subsequently increases during the forecast period.
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Asia-Pacific to Dominate the Iron Powder Market
- Asia-Pacific accounted for the largest iron powder market in the past few years. The growing automotive industry in various countries in the Asia-Pacific region is driving the market studied. Rapid population expansion and increased disposable income are two major reasons driving up demand for vehicles in the region.
- Powdered iron is used in the automotive industry to manufacture a variety of parts and components, including bearings, gears, camshaft pulleys, and crankshaft sprockets. Additionally, the fabrication of structural parts employs powdered iron for cutting, welding, and other tasks.
- According to the China Association of Automobile Manufacturing (CAAM), the country's production of new electric vehicles (NEVs) witnessed a year-on-year increase of 96.9 percent in December 2022. Thus, the expanding electric vehicle market is expected to increase the demand for iron powders.
- Furthermore, in countries such as Malaysia, the Philippines, and others, the production of motorcycles and scooters increased significantly. For instance, the Philippines produced 867,453 motorcycles and scooters in 2021, up 32% compared to 2020. As a result, it positively boosts the market growth.
- Hence, with the expanding automotive, metallurgy, and several other industries in the region, the demand for powdered iron is expected to increase significantly.
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