Growth Expected to Slow in MIM and CIM Markets
The global MIM and CIM market is expected to grow at the rate of 7.6% over the next six years.
The global markets for metal injection molding (MIM) and ceramic injection molding (CIM) have exhibited spectacular growth over the last two decades. Despite growth rates that will fall from double digits to single digits, some key players will surpass the $50 million mark in revenues for the first time, according to a recent report from BCC Research.
The global MIM and CIM market is expected to grow at the rate of 7.6% over the next six years, reaching $3.1 billion in 2020. Of this, $1.3 billion (40.2%) is expected in Asia, which should experience a six-year compound annual growth rate (CAGR) of 7.9%. The European market, which is expected to reach $980 million with a six-year CAGR of 6.1% through 2020, should see some market loss to reach 31.3% of the global market size in the end year. The North American market will regain some of its global share to 25.2%, and should show strong growth in real number terms as it reaches $790 million by 2020. The rest of the world will have the highest growth rate at 14.3%, reaching $105 million (3.3% of the global market) by 2020.
Since the market slowdown in 2008 and 2009, the MIM market has grown significantly, partly due to growth in the global automotive industry growth. The surging popularity of cell phones and other handheld products and electronics remains a boon to the MIM industry. This development has shifted the industry base slowly to emerging markets and to Asia, where most electronic manufacturing occurs.
The growth rate of the MIM and CIM markets has significantly surpassed that of global GDP, and the industry has withstood market turmoil in recent years caused by a global oil glut, currency fluctuations, and commodity price collapses. High single digit growth rates for the remaining decade should result due to expected currency fluctuations and financial tightening by central banks.
New technologies in the supplier industries such as metal powders and feedstocks, as well as process equipment, will continue to support growth of the MIM market. However, with the above-average margins enjoyed by the MIM industry, the squeezing of the supplier base for adding efficiency will not impact the industry for at least another decade.
“Larger companies have weathered the storm and have grown stronger and even larger in the meantime,” said Vijay Subramanian, research analyst. “The diversification into other applications such as medical and dental, aerospace, electronics and communications, and luxury products, has benefitted these companies. Indo-U.S. MIM, the largest player, became the first company to break the $100 million revenue threshold. Consolidation in the industry is increasing, which also will drive other companies to attain a larger scope of operations during the forecast period. More companies are expected to surpass $50 million in revenues for the first time.”
For more information, visit www.bccresearch.com.