Steel Powder Market Size – By Particle Size, By Type, By Production Method, By Application and Forecast, 2025- 2034

Steel Powder Market Size

The global steel powder market was valued at USD 5.2 billion in 2024 and is estimated to grow at a CAGR of over 6.1% from 2025 to 2034.
 

Steel powder, a fine form of steel, is used in many industries because it is strong and durable. The automotive and aerospace sectors are driving the demand for steel powder as they need lightweight and strong materials. Using processes like powder metallurgy, steel powder helps make parts that are lighter and stronger, improving fuel efficiency and performance.
 

New technologies have helped the steel powder industry grow by improving how it is made. Methods like atomization and reduction have made steel powder better in quality and easier to produce. This helps manufacturers meet the strict requirements of industries like aerospace and automotive.
 

The use of steel powder is also growing in construction, industrial machinery, and electronics. In construction, it helps make strong structures. In industrial machinery, it is used for parts that resist wear and tear. In electronics, its magnetic properties make it useful for items like inductors and transformers. These trends show how new ideas and changing industry needs are helping the global market grow, making it an important material in modern manufacturing.
 

Steel Powder Market Trends

The global steel powder industry is changing due to new technologies and industry shifts. Additive manufacturing (3D printing) is a major trend, using steel powder to make detailed and custom parts, especially in aerospace, medical implants, and car prototyping. Sustainability efforts are also influencing the market, with more recycling in steel powder production to cut waste and reduce environmental harm. Demand for high-alloy and stainless steel powders is growing because they resist corrosion and perform well in industrial and marine uses. Regionally, Asia-Pacific leads in production due to lower costs, while North America and Europe focus on innovation with advanced powder metallurgy research. These trends show the market’s importance in modern manufacturing and material science.
 

Steel Powder Market Analysis

The steel powder industry faces challenges in maintaining consistent quality and purity. Industries like aerospace, automotive, and additive manufacturing need steel powder with uniform particle size, density, and chemical composition. Any variation in these factors can weaken the final products, increase rejection rates, and cause production delays.
 

Environmental concerns and strict regulations add more challenges for manufacturers. Processes like atomization and reduction create waste and emissions, including greenhouse gases and dust. To meet stricter environmental rules, companies must invest in cleaner technologies and better waste management, which raises costs. The global focus on sustainability also pushes manufacturers to recycle scrap steel into powder. Solving these issues is important for the market to grow and meet industry needs.
 

Based on particle size, the steel powder market is segmented into fine steel powder and coarse steel powder. In 2024, the fine steel powder segment was valued at over USD 3.2 billion. Its demand has grown due to its use in applications needing high precision and surface area. Industries like electronics, additive manufacturing, and metallurgy rely on fine steel powder for its better sintering, smoother surface finishes, and stronger properties. These features make it ideal for producing intricate components required in these fields. The material’s ability to meet advanced manufacturing needs has driven its adoption, contributing to the segment’s significant market value.
 

Based on type the market is segmented into stainless steel powder, alloy steel powder, carbon steel powder and tool steel powder. In 2024, the stainless steel powder segment held about 35.4% of the market share. It is expected to grow significantly by 2034 due to its corrosion resistance and wide use in industries like automotive, aerospace, and construction.
 

The demand is increasing because of its durability, strength, and ability to perform well in tough conditions. These properties make it ideal for components that need to last long and remain reliable, especially in harsh environments. Its versatility and performance continue to drive its adoption across various industrial applications.
 

Based on production method, market is segmented into reduction method, atomization and electrolysis. In 2024, the reduction method segment held about 50.9% of the market share. Reduction method is the top production method in the steel powder market because it is efficient and flexible. This method melts steel and turns it into fine particles, allowing precise control of size and composition. It creates high-quality steel powder with consistent properties, meeting the needs of industries like automotive, aerospace, and electronics. The demand for reliable and uniform steel powder is driving the use of atomization in these industries.
 

Based on application, market is segmented into automotive industry, aerospace and defense, construction and infrastructure, industrial machinery, electronics and medical and healthcare. In 2024, the automotive industry accounted for about 34.6% of the market share. It is expected to grow steadily due to the rising focus on lightweight materials that improve fuel efficiency and performance. Automakers are increasingly using steel powder to create lighter and durable components.
 

The aerospace and defense industries also rely on steel powder because of its high strength, meeting their strict material requirements. Additionally, the construction and infrastructure sectors are adopting steel powder for its strength and versatility, making it suitable for various applications. These factors are driving the demand for steel powder across multiple industries.
 

In 2024, the U.S. steel powder market earned USD 906.8 million, driven by demand from automotive, aerospace, and construction sectors. Advanced manufacturing and R&D investments have boosted its use in additive manufacturing and industrial machinery. The focus on lightweight, energy-efficient solutions has also increased powder metallurgy adoption, aiding market growth.
 

In North America, the U.S. leads the market, supported by strong industries, supply chains, and sustainable practices. Canada contribute through growing industrial and construction activities, backed by favorable trade policies. Advancements in powder metallurgy are improving product quality and expanding applications.
 

Steel Powder Market Share

Höganäs and Sandvik hold significant shares in the Asia-Pacific market due to the growing demand for steel powder products, especially in China and India. The Asia-Pacific region, the largest steel powder industry globally, is expected to grow further. This growth is driven by rapid economic development, urbanization, and the rising need for lightweight and strong materials in the automotive and aerospace industries. Höganäs and Sandvik, as major producers, are well-prepared to meet this increasing demand in the region.
 

Steel Powder Market Companies

Major players operating in the steel powder industry are:

• AMETEK Specialty Metal Products
• ATI Materials
• Carpenter Technology
• CNPC Powder
• Erasteel
• GKN Powder Metallurgy
• Hoganas
• Kennametal
• Rio Tinto Metal Powders
• Sandvik
• Voestalpine   
   

Steel Powder Industry News

• In November 2024, Sandvik showcased its latest range of metal powders at Formnext 2024, including copper-based C18150 and tool steel HWTS 50. Experts demonstrated these innovations, highlighting applications and discussing additive manufacturing customer cases.
   
• In September 2023, Hyundai Steel Co., a unit of Hyundai Motor Co., entered the battery materials business by supplying iron powder to Korean LFP cathode makers. It is partnered with L&F Co., EcoPro BM Co., and LG Chem Ltd. for test production.
   

The steel powder market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Particle Size

• Fine steel powder
• Coarse steel powder

Market, By Type

• Stainless steel powder
• Alloy steel powder
• Carbon steel powder
• Tool steel powder

Market, By Production Method

• Reduction method
• Atomization
• Electrolysis

Market, By Application

• Automotive industry
• Aerospace and defense
• Construction and infrastructure
• Industrial machinery
• Electronics
• Medical and healthcare

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia

• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa