The Technical Ceramics Market Projected to Grow at a CAGR of 6.8% and Generate a Revenue of $12,300.1 million by 2028Download Sample Reports Overview
The global technical ceramics market is anticipated to be valued at $12,300.1 million by 2028, surging from $7,379.0 million in 2020, at a noteworthy CAGR of 6.8%.
COVID-19 Impact on Technical Ceramics Market
The outbreak of COVID-19 has caused severe impact on technical ceramics market. This is majorly owing to disruptions in the supply chain and drastic decline in the demand from end-use industries namely electronics and automotive. In an attempt to control the spread of COVID-19 virus, the government of various countries have imposed complete lockdown for unprecedented time. This has led to closure of technical ceramic manufacturing units. In addition, the import-export of goods and raw materials required for technical ceramic manufacturing was negatively impacted due to closed borders. For instance, the automotive companies across the world are largely dependent on China for manufacturing and supplying various automotive components. Technical ceramics are widely used in the manufacturing of automotive parts such as spark plug insulators, emission control devices, sensors, catalyst support, and others. China being the epicenter of COVID-19 virus, the manufacturing and export of such automotive parts were severely disrupted which in turn has affected the technical ceramics market size during the pandemic.
The initiative taken by technical ceramic manufacturers to respond to COVID-19 crisis such as reducing the cost, improving cash flow, and liquidity is helping the company to recover from tough times. For instance, the group re-structuring and efficiency program implemented by Morgan Advanced Materials, UK-based leading technical ceramics, is helping the company to simplify the structure, drive efficient operations, and to align the company’s capacity with low demand for technical ceramics during the pandemic.
Global Technical Ceramics Market Analysis
Growing popularity of technical ceramics is attributed to its potential applications across artificial intelligence (AI), Internet of Things (IoT), and others. For instance, artificial intelligence (AI) exclusively relates to smart assistants such as Siri, Alexa, and others which are the power intensive devices. AI memory chip manufacturers believe that technical ceramics can play a vital role in providing universal memory which is fast, durable, reliable, non-volatile, and low power consumptive. Hence, replacing silicon-based memory chips used in AI with technical ceramics is anticipated to boost the technical ceramics market size in the upcoming years. In addition, the developments in IoT such as autonomous devices, smart wearable devices, driverless cars, and other uses of technical ceramics in miniaturized devices and small-scale components as these ceramic materials have superior thermomechanical properties and high temperature stability may further propel the market growth.
However, technical ceramics have low ductility due to which they are brittle compared to metals. Due to this, technical ceramics have low impact resistance. In addition, due to high hardness, high strength, and resistance to creep, these ceramic materials are less customizable. These factors are estimated to hamper the technical ceramics market demand during the analysis timeframe.
Extensive applications of technical ceramics in the medical industry are anticipated to generate huge growth opportunities. For instance, these ceramics are widely used in the medical sector owing to their non-toxicity, inertness, low friction coefficient, excellent chemical resistance, sterile nature, and durability. These ceramic materials are widely used in medical implants in the form of bulk components or as coatings & fillers. Various orthopedic procedures and implants such as hip, joint, knee, and spinal hard tissues use technical ceramics. Also, dental systems such as orthodontic devices like braces, root implants, and prostheses use technical ceramics. Some additional applications of these ceramic materials in medical sector include the use of technical ceramics in x-ray tubes, hand tools, pressure sensors, and femoral head implants for hip replacement, and others.
Global Technical Ceramics Market, Segmentation
The global technical ceramics market is segmented based on material, product, end-use industry, and region.
The material segment is further classified into oxide, non-oxide, and composite. Among these, the oxide ceramics sub-segment is estimated to have a dominant market share and shall surpass $6,186.3 million by 2028, with an increase from $3,760.8 million in 2020. This growth is majorly owing to the excellent price-to-performance properties of oxide ceramics such as thermomechanical properties. For instance, zirconia oxide ceramics are known for high strength and wear resistance due to which they are used as femoral balls in hip replacements. Similarly, the alumina oxide ceramics are known for their toughness due to which they are suitable for surgical implants.
The product segment is further classified into monolithic ceramics, ceramic coatings, and ceramic matrix composites. Among these, the monolithic ceramics sub-segment is anticipated to have a dominant market share and shall surpass $6,329.3 million by 2028, with an increase from $3,624.3 million in 2020. Monolithic ceramics that are unreinforced ceramics cast directly into the final form. Also, monolithic ceramics exhibit special features such as durability and reliability that make them suitable for various demanding applications such as electronics, automotive, defense, electrical, and others. Also, these ceramics have polycrystalline microstructure, and they are fabricated without a reinforcement material due to which they are used in mobile phones, laptops, and other electronic devices.
The end-use industry segment is further classified into electronics & semiconductor, automotive, medical, energy & power, industrial, and others. Among these, the electronics & semiconductor sub-segment is anticipated to have a dominant market share and shall surpass $4,784.3 million by 2028, with an increase from $2,678.6 million in 2020. Technical ceramics are largely used in electronics & semiconductor industry owing to their chemical compatibility, creep resistance, dimensional stability, minimal mass, longer life, thermal shock resistance, and maximum productivity. Due to these properties, these ceramic materials are used in the production of capacitors, alumina substrates, titanates, glass, quartz, ferrites, and others. In addition, technical ceramics are also used as ceramic supercapacitors in various high-density energy storage devices such as electric vehicle batteries.
The technical ceramics market for the Asia-Pacific region is anticipated to acquire dominant market share during the forecast period. This region’s market generated a revenue of $2,684.5 million in 2020 and is projected to reach up to $4,685.1 million by 2028. Asia-Pacific countries such as India, China, Japan are the largest technical ceramics producers and exporters globally. In addition, growth in the electronics sector especially in China as this country is leader in electric vehicles, industry-standard connectivity products, solar panel technologies, semiconductors & original equipment manufacturer (OEM) manufacturing, and others is expected to propel the market growth. Almost all the printed circuit boards (PCBs), data communication devices, and X86 servers are manufactured in China. All these devices use technical ceramics due to excellent thermal, electrical, and mechanical properties of these materials. These factors are anticipated to propel the Asia-Pacific technical ceramics market share during the forecast period.
Key Players in the Global Technical Ceramics Market
Some of the leading technical ceramics market players are
- CoorsTek, Inc.
- CeramTec GmbH
- Kyocera Corporation
- Morgan Advanced Materials
- Saint-Gobain Ceramics & Plastics, Inc.
- NGK Spark Plug Co., Ltd.
- Mcdanel Advanced Ceramic Technologies LLC
- Rauschert GmbH
- Superior Technical Ceramics
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Technical Ceramics Market:
- Bargaining Power of Suppliers: The technical ceramics manufacturers largely depend on raw material suppliers for the purchase of sand, feldspar, silica, and other raw materials. Hence, suppliers hold potential to bargain with the buyers and gain huge profits.
Thus, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: In this market, the concentration of buyers is growing at significant pace as manufacturers are focusing on building a strong consumer base.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: The threat of new entrants is moderate as the existing players are focusing on business expansion and acquisition to provide value propositions to the customers and are implementing low pricing strategy.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: There are various substitute products available in the market such as steel, plastic, glass-ceramics, and other metals which increases the threat from substitution to some extent.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The technical ceramics market players are focusing on acquisition and business expansion to grab new projects. As the price war among existing players is less the competition is intense.
Therefore, competitive rivalry in the market is high.