The major drivers for the global metallurgy equipment market are robust digitalization and surging integration of powder metallurgy in numerous sectors. In 2021, the market stood at $100.3 billion and it is predicted to touch $133.9 billion by 2030, booming at a 3.3% CAGR from 2021 to 2030. The outbreak of COVID-19 ruptured the market as it disrupted the industries that consume large amounts of metal, including industrial, automotive, and aerospace & defense. Thus, there was a significant fall in the power metal requirements, such as steel and iron.
Within the equipment segment, the milling machines category dominates the metallurgy equipment market, accounting for about 55% of the total market share. This can be credited to the steep rise in the count of metalworking facilities all around the world which has led to the enlargement of the global metalworking industry. Furthermore, the companies are involved in enabling software programs that run the tool changes, spindle speeds, and axis in machines that facilitate milling because of exorbitant labor costs. To improve the productivity of these machines, there is increased integration of CNC technology.
The rising integration of powder metallurgy in the automotive sector will spur the metallurgy equipment market growth. This can be ascribed to everlasting impact and lesser weight of powdered metals. They not only enhance the effectiveness of automotive components but also minimize the wastage of materials. Powder metallurgy is being adopted in the manufacturing of cars by developing nations, such as China. For instance, car registrations in China have increased by 1.3 million from 2020 to 2021, even amid the global pandemic, thereby propelling growth in the market.
Within the type segment, steelmaking equipment will witness the fastest growth in the metallurgy equipment market in the coming years at a 3% CAGR. This can be attributed to the rising deployment of steel in the electronics, infrastructure, equipment and machinery, marine, aerospace, and automobile industries. For example, steel contribution accounted for $3 trillion in the global economy. Moreover, to improve the durability and safety of passengers and vehicles, the steel is crush- and corrosion-averse. The snowballing demand for hybrid and electric vehicles will augment growth in the market.
APAC has generated the highest revenue in the market, of about $47.2 billion, attributed to the existence of advanced production centers in numerous industries. Moreover, China and India are two of the largest producers of iron and steel, which leads to an easy availability of these raw materials for regional industries. APAC countries are on the path to replacing those in North America and Europe as the major manufacturing hubs, with India, China, Japan, and South Korea already among the top 10 manufacturers in the world.
Hence, as the demand for metals grows in different industries, so will that for the equipment used to process them.
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