In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
February 25, 2020 – China, the biggest car market and Wuhan, known as “motor city” for being home to auto plants and also the city at the center of the outbreak of COVID 19, witnessed a 92% fall in car sales in the first half of February 2020 as reported by China Passenger Car Association (CPCA).
According to IBEF (India Brand Equity Foundation): GST on electric vehicles is reduced from 12% rate to 5% as of March 2020, which shows the Indian government’s policy support towards the automotive sector.
In January 2018, Materion Corporation has been assigned a contract by UTC Aerospace Systems for imaging sensor technology for the US military. This MS-177 Sensor is designed to gather high-resolution images of large areas and will make use of Materion’s “AlBeMet”, an aluminum beryllium composite.
A metal matrix composite (MMC) is a material made up of two or more composite parts, where one should be necessarily metal and the other material could be a different metal or non-metal such as an organic compound or ceramic. They are created by diffusing a strengthening material into a metal matrix. The application of metal matrix composites is increasing in diverse end-use industry domains such as aerospace, ground transportation, thermal management, and industrial sector.
The metal matrix composites market is anticipated to record a CAGR of around 8% over the forecast period, i.e., 2020-2028. The market is segmented by product type, end-use industry, and region. Among product segmentation, the aluminum metal matrix composites segment is anticipated to hold the largest market share in revenue terms during the forecast period as they are the most potential material for structural and functional applications with a reduced price, thereby utilized in aerospace, defense, automotive & aviation, and thermal management fields.
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These composites are substantially being used for manufacturing automobile parts such as disc brakes and turbines. They help in order to decrease the weight of commercial vehicles, passenger cars, and enhance fuel efficiency.
High malleability, ductility, and tensile strength provided by metal composites make them desirable in diverse application segments including automotive, electronics, defense, and aerospace industries.
High-performance composites material are preferred for mounting of exterior chassis or framework in the aerospace and marine industry.
Properties such as stiffness in nature, low thermal expansion coefficient, lightweight, and dimensional stability led to the rising demand for metal matrix composites in communication satellites.
For shipbuilding, metal matrix composites of high buoyancy and light in weight are preferred.
Soaring manufacturing costs along with narrow technological competency for metal matrix composites handling are however anticipated to pose a challenge for the growth of the market during the forecast period.
Our in-depth analysis of the metal matrix composites market includes the following segments:
Geographically, the metal matrix composites market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America, driven by the U.S. and Canada metal matrix composites market is foreseen to hold the largest market share as a result of augmentation in the telecommunication and automobile industry.
The International Trade Administration (ITA), U.S. Department of Commerce: The United States is the world’s largest market for General Aviation aircraft and a global leader in Large Civil Aircraft production.
The metal matrix composites market in Europe is led by the UK, Germany, and France which is predicted to observe stable growth. Growing household expenditure on the automobile sector and rising medical expenses may propel the regional growth.
The Asia Pacific region driven by Japan, India, and China is projected to play a pivotal role in metal matrix composites market growth. India has a high success rate of launching space satellites & crafts with low budget technology that has grabbed world attention. Further, the rising aging population, growing health care expenditure, and surging economic standards in developing economies of China, Japan, and India may drive the regional growth during the forecast period.
According to an article by WHO published on Feb 4, 2019, demand for electric vehicles is witnessing an upsurge in China. In 2018, nearly 1.3 million electric vehicles and plug-in hybrids were sold, which is just 4% of all 28.1 million automobiles sold in China, 2018 at the time when the U.S. was under 2% and Europe was just over 3%.
The metal matrix composites market is further classified based on region as follows: