Over the past few years, the worldwide tungsten market share is gaining appreciable momentum owing to its increased usage across various end-use sectors. The metal is used in the production of different types of alloys such as heavy metal alloys, stellites, and super alloys which are used in several industries along the likes of aerospace, automotive, manufacturing and electronics.
In terms of end use landscape, tungsten is highly used as an aerospace component in both commercial and military aircrafts. Layers of tungsten carbide are applied on various parts of the aircraft to increase its strength. The element is also used in simulations especially during flight testing mainly due to its higher density at a lower volume as compared to its counterparts. In simpler terms, the use of tungsten alloys in the production of aircrafts can lower the overall weight of the aircraft.
U.S. Tungsten Market Size, By Application, 2014 – 2025 (USD Million)
In this context, it is prudent to mention that aircraft manufacturers are ramping up the production to accommodate growing demand for airplanes. In fact, as per reliable estimates, over 38,000 aircrafts are expected to be produced in the next 20 years – a factor that would invariably drive the growth prospects of tungsten industry.
Moreover, the aerospace sector is expanding in several developing countries like India and China. According to credible sources, India may become the third largest aviation market catering to over 478 million passengers by 2036. This drastic boost in aerospace industry is directly increasing the demand for tungsten alloys in the manufacturing of aircrafts, thereby benefiting the overall tungsten market outlook.
With respect to the automotive industry, tungsten alloys are largely used in tooling and die cast applications in cars. The usage of tungsten in skid plates provide greater protection as compared to another metal due to its smaller volume, which is an important factor while designing a car. Tungsten is also used in other automobile parts such as the starter switch, horns, and distributors, eventually propelling tungsten market trends globally over the forecast duration.
Moreover, the automotive sector has witnessed a steady growth rate in the emerging economies of Asia such as China and India. A study by India Brand Equity Foundation states that the rise in middle class income and young population has resulted in the growth of automobile sector. Moreover, the FDI inflow in the automotive sector of the nation has been increasing steadily. Reportedly, between April – December 2018, FDI inflow in the automobile sector in India stood at USD 20.85 billion and the total exports in the year 2019 were recorded at 4.63 million.
Similarly, several leading automobile companies are based in Asia such as Bajaj, Honda, Datsun, Mitsubishi, Toyota, Hyundai, Kia Motors etc., thus driving the automobile industry in the continent. Therefore, the growth being registered by Asia’s automotive sector is fueling the overall tungsten market share owing to the fact that tungsten is used as an automotive part.
Speaking in terms of regional growth, the Europe tungsten market is witnessing a commendable expansion rate over the last few years. Reportedly, the region accounted for over one fifth of the total revenue share of the global tungsten industry in the year 2017. A slew of mining firms are exploring for tungsten and are in the process to open new tungsten mines or restart the abandoned ones.
Apart from Europe’s stronghold in the overall tungsten market, it is quite imperative to mention that China is considered to be the world’s largest consumer and supplier of tungsten. The country supplies tungsten to the U.S., Canada, Germany, and Bolivia. In the year 2018, the U.S. reportedly consumed over USD 900 million worth of tungsten by way of imports from China. Apparently, the high demand and supply of tungsten around the globe has eventually boosted tungsten industry size.
Driven by the increased production of aircrafts coupled with rising usage in automobiles sector, the product demand is certain to witness a drastic uptick in the years to come. The major players operating in the worldwide tungsten market include Wolfram Company JSC, Soloro, Japan New Metals Company, Wolfram Bergbau-und Hutten, and Specialty Metals Resources SA. According to a report by Global Market Insights, Inc., tungsten market share is estimated to exceed USD 8.5 billion by 2025.