The growing spectrum of small, light-weight metal components in automotive is driving the growth of the MIM market globally. MIM has deeply penetrated the global automotive industry with a wide range of applications ranging from engine, steering systems, gearboxes, exhaust systems, and electronic systems among others. Automotive manufacturers are focused on lowering vehicle weight to boost fuel economy without compromising on safety and performance. The use of lightweight metal components produced through superior production technologies turned out to be the most effective solution. This need for high strength, low-weight automotive parts led to the adoption of MIM by automakers in their production activities. Rocker arms, shift levers, and turbocharger vanes are some of the typical metal components produced by MIM. Water-based agar binders are mostly used in automotive metal injection molding Also, the development of advanced metal powders and controlled expansion alloys led to the growth of MIM in these applications.
The global metal injection molding market has witnessed a negative impact due to COVID-19. The growth rate of the market is estimated to significantly decline during the pandemic in 2020. The lockdowns imposed in most of the global economies led to demand, production, and supply disruptions. Industries such as automotive, aerospace and defense, electronics, and consumer products witnessed production halts across the globe, at least in the first half of 2020. This has resulted in a significant decline in MIM parts in these industries. Automotive is the most affected end-use industry in the global MIM market with an annual growth rate declining from 14% in 2019 to 4.2% in 2020. The declined automotive production coupled with lower demand and production difficulties is the major factor hampering the demand for MIM parts. However, the market is likely to reach pre-COVID levels by 2021, majorly with significantly increased automotive demand in the Asia-Pacific region. India and China reported increased production and sales of cars and passenger vehicles in the later part of 2020 and growth is likely to continue in 2021.
MIM components for smartphones are another major end-use and widely affected sector during the COVID-19 pandemic. For instance, production plans for the second-generation iPhone SE have been delayed in China, and MIM producers in the region were greatly affected due to these unprecedented market conditions. The total shipments of smartphones were recorded at 908 million units from January-September 2020 which is 9.4% lower than that of the same duration in 2019. Also, the disruptions in the supply of raw materials and lockdown of molding activities are other factors affecting the metal injection molding market. The shipments of powdered metal have been declining with lowered automotive production, particularly in the North American region. According to industry statistics, nearly 75% of the total powdered metal products are used in the Automotive industry in the region. The spread of novel coronavirus led to a further decline in shipments, thereby affecting the growth rate of the market.
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