Sintered Steel Market Trends

Increasing wide-scale applications of sintered steel in production of automobile products owing to its favorable mechanical properties are the significant factors boosting the market growth. The global sintered steel market is anticipated to record a significant CAGR over the forecast period, i.e., 2020-2028. The market is segmented by type into stainless steel, carbon steel, alloy steel and tool steel. Among these segments, the segment for stainless steel is anticipated to hold the leading share in the market on account of its wide application in construction as well as for use in transport, backed by the presence of several properties, such as high corrosion resistance, high strength, environment-friendly and good aesthetic appeal. 

Growth Drivers

Increasing Applications of Sintered Steel in Automotive, Aerospace and Industrial Machinery to Boost the Market Growth

There is an ever-growing technological advancement in the automotive sector, aerospace, machinery and other related industries all over the world. According to the World Steel Association, steel use is projected to increase by 1.5 times higher than present levels in order to meet the needs of our growing population. There is a rise in demand for sintered steel as a raw material to enhance the production output in several industries. This is anticipated to significantly expand the sintered steel market.

Rapidly Growing Construction and Transportation Industry to Drive the Market Growth

The construction and transportation sector have potential growth and investment opportunities across all the world’s infrastructure activities. According to the American Road and Transportation Builders Association (ARTBA), in the year 2020, the U.S. transportation infrastructure market is expected to grow at least by 5%. Sintered Steel is a commonly used and crucial component in almost all types of industries. On the back of these, the market is predicted to grow over the forecast period.

Restraints

High Production Costs to Hamper the Market Growth

There is an increasing cost involved in the production of sintered steel owing to the soaring alloy powder prices. Further, the cost of manufacturing sintered steels is higher as compared to other steels. This is estimated to hinder the growth of sintered steel market in the future.