Aluminium Powder Market Size, Share & COVID-19 Impact Analysis, By Type (Atomized Aluminium Powder and Flake Aluminium Powder), By Application (Industrial, Automotive, Aerospace & Defense, Building & Construction, Electronics & Semiconductors, and Others), and Regional Forecast, 2023-2030

The global aluminium powder market size was valued at USD 1.76 billion in 2022 and is projected to grow from USD 1.84 billion in 2023 to USD 2.70 billion by 2030, exhibiting a CAGR of 5.6% during the forecast period. Asia Pacific dominated the aluminium powder market with a market share of 47.16% in 2022. Moreover, the aluminium powder market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 537.56 million by 2032, driven by the rapid expansion of the industrial & automotive industries. 

Aluminium powder is a fine granular and crushed aluminium product. Spraying the molten aluminium at high speed to yield a dense powder is one of the popular techniques to obtain this powder. Two types of powders can be formed based on the type of atomizing gas used to burst the molten aluminium. Another way of processing the powder is dry magnetic stirring and hammering. The former is used for the production of granular and nodular powder, and the latter for the production of crusted and flattened powder.

The global market is experiencing a significant growth due to the increase in demand for brick production in the construction industry. The product is also a favored metal powder in fast prototyping and powder metallurgy. It is also a main ingredient in the production of solar cells, which drives the growth of the global market.

COVID-19 IMPACT

Disruptions in the Supply Chain Hampered Market Growth Amid COVID-19  

During the COVID-19 pandemic, extended lockdowns slowed down production in key industries such as construction, automotive, aerospace & defense, electronics, industrial machinery, and consumer appliances across all regions of the world, resulted in decreased product demand. Moreover, the production output of the major industries was significantly affected due to the disruption in supply chains. However, the market is projected to recover slowly in the upcoming years due to the mitigation strategies and business continuity plans adopted by the leading manufacturers and suppliers and government-backed initiatives to recover the economy.

LATEST TRENDS

Significant Growth in the Powder Metallurgy Industry Coupled with Rising Industrialization to Boost Market Growth

Powder metallurgy is a technology widely used for manufacturing parts or components by pressing metal powders in a rigid die under extremely high pressure. The use of powder metallurgy in several industries, including automotive, aerospace & defense, and electronics, continues to grow as powder metallurgy is widely recognized as an effective alternative to machined or cast parts. The growing awareness of improving fuel efficiency in some developing regions has increased the demand for powder metallurgy in the automotive sector.  

Moreover, metal powder forging, metal injection molding, hot pressing to reduce vehicle weight, lighter materials, and increased demand for alternative energy sources are driving the demand for powder metallurgy parts. The parts developed by powder metallurgy technology are used in the manufacture of many automotive parts. 

With increasing applications of powder metallurgy in the aerospace, energy, medical, and electrical industries, there are a lot of potential growth opportunities for the market players. Furthermore, the application of the product in these industries is anticipated to present lucrative opportunities for market growth.  

DRIVING FACTORS

Consistently Rising Product Demand from Automotive and Aerospace & Defense Industries to Propel Market Growth

Increasing demand for product from powder metallurgy for manufacturing of parts or components used in several industries is anticipated to be the game changer for the global market. In recent years, the automotive sector has witnessed a paradigm shift, with stakeholders bidding high on the electric future. Moreover, the properties of the powder, including lightweight, high strength, malleability, flexibility, conductivity, and reflectivity, are pushing its demand from the rapidly growing automotive industry.

Moreover, the product is a major component in the manufacturing of microchips, capacitors, and other electronic equipment owing to its superior thermal resistance, high boiling, and melting point. The product is also widely used for heat sink insulation. This, in turn, has resulted in increased demand from electronics and semiconductors industries, which is anticipated to rise further during the forecast period owing to rising digitalization across the globe, significantly propelling the growth of the market.

RESTRAINING FACTORS

Stringent Environmental Regulations coupled with High Cost May Limit the Market Growth

The implementation of stringent environmental regulations by governments and private associations is expected to have a negative effect on the market growth in the coming years. The increasing environmental issues and rising expectations from the public toward reducing pollution levels have forced several countries to introduce a new set of rules and regulations.

Manufacturing plants have been asked to meet new emission standards, which have increased the cost of the product. Furthermore, aluminium is known to have detrimental effects on human beings. Its exposure can have effects such as headaches, rashes, asthma, and insomnia. The product can ignite or explode, thereby posing workplace hazards, and its inhalation can cause pulmonary fibrosis.

Moreover, the availability of substitutes in different industries, including aerospace & defense, automotive, and certain industrial applications, may limit the aluminium powder market growth. 

SEGMENTATION

By Type Analysis

Atomized Aluminium Powder Segment to Dominate Owing to Superior Characteristics

Based on type, the market is segmented into atomized aluminium powder and flake aluminium powder.

The atomized aluminium powder segment accounted for the largest market share in 2022 and is expected to continue its dominance during the forecast period. Along with the general shape, metal chemistry (alloy) and particle size distribution are the primary product characteristics that distinguish atomized aluminium products. In the industry, atomized powder is a common material used in pigment production, mining and drilling explosives, rocket propulsion, and other applications.  

The flake aluminium powder segment is expected to show considerable growth during the forecast period. The wet milling process makes aluminium flake powders, which are dried with a vacuum mechanism that guarantees safety for further process. Moreover, aluminium flakes can oxidize in a controlled environment during drying. They are great for technical applications such as civil explosives and autoclaved aerated concrete, where the choice of lubricant and additives during the milling process gives the final product with different leafing or non-leafing characteristics. The finished results for shade applications are typically utilized in powder coatings, printing inks, material coatings, and others.

By Application Analysis

Industrial Segment Dominated Due to Rising Demand for Production of Inorganic and Organic Aluminium Chemicals

Based on application, the market is segmented into industrial, automotive, aerospace & defense, building & construction, electronics & semiconductors, and others.

The industrial segment is the fastest-growing and dominated the market in 2022. The increasing demand for the production of inorganic and organic aluminium chemicals owing to the properties such as weather resistance, chemical compatibility, hardness, and high tensile strength is propelling the segment growth.

The rising use of aluminium in the automobile industry is due to its practical use in high-strength aluminium alloys made from powders with the help of a single-step advanced manufacturing process.  Recent past has witnessed the significant rise in per-capita income in emerging economies of the world including China, India, Brazil, and South Africa. There is also a rise in defense rivalry in major economies of the world due to rising geo-political crisis in different parts of the world. These factors are significantly pushing the growth of automotive segment, presenting lucrative opportunities for aluminium powder market.

The product has broader use in the building & construction segment that helps to increase the gas-forming admixture and produces concrete of higher porosity, producing the more extensive pores structure of concrete.

The product has the major demand from the aerospace & defense sector and covers a wide variety of applications for rocket propellant additives, thermite mixtures, and building & construction.

Moreover, the increasing product demand for internal use in electronics & semiconductors sector is expected to drive the segment growth.

REGIONAL INSIGHTS

The Asia Pacific is slated to dominate the global aluminium powder market share during the forecast period. The region is the home to several developing economies with major contributors such as China, India, and others. These countries have a notable unidentified economic growth potential, which can be realized during the forecast period. This can be attributed to the growing urbanization, economic expansion, and rising industrial activities in these countries, which are expected to support the product demand in the region.

The growth of North America market can be attributed to the rapid expansion of the industrial & automotive industries in the region. According to the Alliance for Automotive Innovation, the automotive sector contributes USD 1.0 trillion to the U.S. economy annually with 4.9% of its GDP, and the demand for construction products is rising from both the commercial and residential sectors. Thus, it creates a rise in domestic demand for the product from the major end-use industries, which is expected to drive the market growth in the region.

In Europe, high product demand can be attributed to the rapid growth in the automotive sector and increased urban development. The primarily produced powder is utilized for manufacturing automobiles and industrial purposes in the region. Likewise, its larger chunk is used to manufacture automobile paints and sealants, and it has a significant demand in the defense & aerospace industry, which is significantly utilized in launching rockets.

The Middle East & Africa market is expected to grow significantly during the forecast period. The growing demand for the powder owing to the development of mega-projects in UAE, Qatar, and Saudi Arabia in the past few years is driving the regional growth.

Latin America market is one of the rapidly advancing regions in terms of technological advancements and urbanization. Presence of significant manufacturers such as Schlenk and Alcoa Alumínio S.A. is expected to propel the regional growth.

KEY INDUSTRY PLAYERS

Players Focus on Capacity Expansion Strategies to Stay Ahead

In terms of the competitive landscape, the market depicts the presence of established and emerging companies. AMG Advanced Metallurgical Group NV, AMPAL Inc., and VALIMET, Inc. are some of the key players in the global market. These players have a significant manufacturing capacity and are engaged in research and development for producing advanced products such as nano-aluminium powder for industry-specific applications. They are also engaged in the expansion of their manufacturing capacity and distribution and sales network in different parts of the globe.

LIST OF KEY COMPANIES PROFILED:

• AMG Advanced Metallurgical Group NV (U.K.)


• AMPAL Inc. (U.S.)


• VALIMET, Inc. (U.S.)


• AVL METAL POWDERS n.v. (Belgium)


• Henan Yuanyang Powder Technology Co., LTD. (China)


• Angang Group Aluminium Powder Co., Ltd (China)


• NovaCentrix (U.S.)


• MMP Industries Limited (India)


• SCHLENK SE (Germany)


• m-tec powder GmbH (Germany)

KEY INDUSTRY DEVELOPMENTS:

• June 2021: m-tec powder GmbH invested to expand its production capacity of the product in South Africa. With the new investment plan, the company intended to increase production capacities for gas- and air-atomized aluminium powders and aluminium-alloy powders.

REPORT COVERAGE

The research report provides a detailed market analysis and focuses on crucial aspects such as leading companies, applications, and types. It also offers insights into market trends and highlights vital industry developments. In addition to these factors, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation