Carbonyl Iron Powder Market Report 2025 (Global Edition)

CURRENT SCENARIO OF THE CARBONYL IRON POWDER MARKET

Key factors driving the Growth of Carbonyl Iron Powder Market

• The rising demand for carbonyl iron powder in the electronics and technology industry propelling global carbonyl iron powder market development 

The electronics sector is a key driver of the carbonyl iron powder market's expansion. Carbonyl iron powder is used extensively in the manufacturing of electronic components due to its strong magnetic characteristics, which are essential in radio frequency (RF) applications. As electronic devices get smaller, there is an increasing need for high-purity, small-particle carbonyl iron powder because it can be utilized to create inductors, capacitors, and magnetic components that require precise electronic signal control. The market for carbonyl iron powder is expanding due to rising demand for carbonyl iron, and industry leaders are keeping up with this trend.

One of the primary drivers of the market is the electronics industry's increasing need. It is ideal for making inductive electrical components, which are found in many different types of electronic devices, such as computers, radios, televisions, cellphones, and chokes. Its remarkable properties—low coercivity, high electrical resistivity, low eddy current loss, high saturation magnetization, and high frequency stability—make it suitable for high-frequency applications. It is anticipated that the electronics industry would require more products with enhanced functionality, lower power consumption, more compact size, and lower weight.The electronics industry's need for it is anticipated to be driven by weight.

Foe instance, BASF produces carbonyl iron powders (CIP) since almost one century. The unique microstructures and unparalleled purity give our powders its outstanding magnetization behavior for electronic applications. BASF’s CIP grades are frequently used as inductor core material in DC / DC converters for power supply and in filter chokes for noise suppression.
(Source: https://electronics-electric.basf.com/global/G-EDM-Electronic-Materials/metal-systems/carbonyl-iron-powder/2024-02-21%20CIP-Brochure_Inductor.pdf.assetinline.pdf)

The growth of wireless communication infrastructure and the shift to 5G technologies are driving up demand for carbonyl iron powder. The industry's contribution to the manufacturing of electromagnetic shields and cores for high-frequency applications sustains the market's expansion. The growing automotive industry is driving the need for carbonyl iron powder, which is used in numerous vehicle components, leading to a positive market prediction.

• Growing Focus on Health to Result in the Expansion of the Market

The increasing emphasis on health is another factor propelling the market. As a dietary supplement, it is used to cure or prevent anemia caused by a lack of iron. Millions of people worldwide suffer from iron deficiency anemia, a prevalent ailment that primarily affects women and children. It can result in symptoms like weakness, exhaustion, pale skin, disorientation, shortness of breath, and an increased risk of infection. Because it has a higher bioavailability and less toxicity than other types of iron supplements including iron polysaccharide, ferrous fumarate, and sulfate, it is recommended above those other forms. 

• Approximately 25% of people worldwide have anemia. Iron deficiency, the most common cause, is responsible for 50% of all anemias. The rate of iron deficiency is higher in developing countries compared to the United States, where the prevalence of iron-deficiency anemia in men under 50 is 1%. In women of childbearing age in the United States, the rate is 10% due to losses from menstruation, while 9% of children ages 12 to 36 months are iron-deficient, and one-third of these children develop anemia. While the rate of iron-deficiency anemia is low in the United States, low-income families are particularly at risk.
(Source: https://www.ncbi.nlm.nih.gov/books/NBK448065/)

It is also used in the medical field for making magnetic resonance imaging (MRI) contrast agents, drug delivery systems, and magnetic hyperthermia therapy. These applications involve the use of it as a magnetic material that can enhance the imaging quality, target specific tissues or organs, and generate heat to kill cancer cells. The growing awareness and demand for health and wellness products and services are expected to drive the demand for it in the health sector. 
Carbonyl iron powder (CIP) is a novel material that has begun to be used as an iron supplement. CIP is elemental iron with > 98% iron content, whose key physical property is its fine spherical particle size (5 μm), and it is considerably smaller than the 10–100 μm of other forms of elemental iron. 

Key factors hampering the Market growth

• Fluctuation in Prices and Scarcity of Raw Materials Restrains Carbonyl Iron Powder Market Growth

The market for carbonyl iron powder is severely hampered by raw material price fluctuations. Economic policies, energy prices, and shifts in the supply and demand for iron ore are usually the root causes of this instability. For producers, this volatility can result in volatile prices for carbonyl iron powder, which makes risk management and cost forecasting challenging.
Manufacturers might have to change the prices of their products, which would make them less competitive and result in a smaller market share. This makes it difficult for the market to grow steadily since consumers might look for more reliable and affordable options.

Iron and carbon monoxide are combined to create iron pentacarbonyl, which is then thermally broken down into carbon monoxide and carbonyl iron powder. This is a labor-intensive and intricate process. High temperatures, high pressures, specialized machinery, and catalysts are needed for the process. The cost of producing it is also impacted by changes in the price of raw materials, particularly carbon monoxide and iron. Compared to other forms of iron powder, such as atomized, reduced, and electrolytic powder, which are manufactured using less complicated and expensive processes, the high cost of production renders it less competitive.

One of the main factors impeding the growth of the carbonyl iron powder market is the lack of raw materials. Because high-purity iron is a crucial raw material for the production of carbonyl iron powder, its scarcity can cause schedule disruptions and cost increases. 

Geopolitical concerns impacting supply chains, mining restrictions, or rivalry for raw resources from other industries can all lead to this kind of scarcity. Producers of carbonyl iron powder may find it more difficult to regularly meet market demand as a result of the ensuing supply volatility, which could result in financial losses and less opportunities for market expansion.

Opportunity

• The development of New Applications and Products is expected to Fuel the Growth of the Market 

One of the recent trends in the market is the development of new applications and products based on carbonyl iron powder. 

For instance, researchers from China have developed a novel method to synthesize carbonyl iron-based nanocomposites for electromagnetic interference (EMI) shielding applications. 
(Source;https://www.sciencedirect.com/science/article/abs/pii/S0169433223010577)

The nanocomposites consist of carbonyl iron nanoparticles embedded in a polymer matrix and exhibit high EMI shielding effectiveness and mechanical strength. 
Another example is the use of carbonyl iron powder as a catalyst for hydrogen production from ammonia borane. Fuel cells, automobiles, and power generation are just a few uses for hydrogen, which is regarded as a clean and renewable energy source. However, because of its great flammability and low density, hydrogen is difficult to transport and store. Hydrolyzing ammonia borane releases hydrogen, making it a possible hydrogen transporter. For this reaction, carbonyl iron powder can function as an effective catalyst, yielding high hydrogen yields under benign circumstances. 

In the Automotive industry, the growth of EVs with complex electronic elements, and effective electromagnetic interference (EMI) protection is important to avoid intervention. The advanced microwave absorbing materials provide a cutting-edge solution. These materials with enhanced properties can be integrated into the vehicle's design to provide effective EMI protection without any unnecessary weight.

By implementing advanced ferrite-based materials, EV manufacturers can build new shielding services that can efficiently reduce electromagnetic interference and guarantee excellent performance for major electronic systems in EVs. Manufacturers are searching to improve the performance and reliability of electronic systems in the modern vehicle industry, associated with the market expansion to provide more effective and technologically advanced services.
(Source: https://www.mdpi.com/1996-1073/16/14/5439)

How did COVID–19 Impact the Carbonyl Iron Powder Market?

The possibility of a global health emergency has been universally felt as a result of the epidemic. The market for carbonyl iron powder as well as many other industrial and manufacturing sectors have suffered as a result of this pandemic. Due to the global epidemic, demand has drastically decreased on the world market. 

• Some startling economic numbers include a 9 percent year-on-year fall in global production and manufacturing output, nowcasts that the value of global merchandise trade will fall by almost 27 percent in the second quarter of 2020, the largest fall in global commodity prices on record (-20.4 percent between February and March 2020).
(Source:https://www.un.org/hi/desa/data-tells-story-how-covid-19-changing-world#:~:text=Some%20startling%20economic%20numbers%20include,20.4%20percent%20between%20February%20and)

During the global epidemic, investors and the market's major stockholders have suffered a great loss. Such factors have a significant impact on the market for carbonyl iron powder as well. 

However, the majority of the international crossings have been sealed as a result of a stringent lockdown protocol that numerous regional administrations have enacted. This indicates that all commercial and business operations have been suspended for an extended period of time.

The pandemic negatively influenced the carbonyl metal powder market because many downstream users of electronics materials, aerospace and heavy equipment industries have witnessed a decline in demand. Some struggling companies may look to sell non-core assets, streamline operations, and reduce debt loads. In contrast, others with a strong balance sheet and access to capital are likely to make strategic acquisitions and further integrate their supply chains, resulting in increased merger & acquisition activity.

The global pandemic has a significant impact on the global market share for carbonyl iron powder and affects several global market sectors. The majority of manufacturing sectors experience a significant loss in production activities as a result of the closure of international borders. The majority of factory manufacturers were forced to halt production due to a scarcity of raw materials, which has had a substantial negative influence on the worldwide carbonyl iron powder market sectors.

The COVID-19 pandemic has had a significant impact on the carbonyl iron powder market share. On the supply side, the lockdown measures imposed by various governments to contain the spread of the virus have disrupted the production and distribution of it, leading to shortages and price fluctuations. On the demand side, the pandemic has reduced the consumption of it in some end-use industries such as automotive, aerospace, and general industrial, due to the decline in economic activity and consumer spending. 

Post pandemic – However, the pandemic has also created some opportunities for the market, especially in the electronics and medical sectors, where carbonyl iron powder is used for making inductive components, magnetic cores, microwave absorbers, and iron supplements.

The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. India is expected to become a $1 Tn digital economy by FY26. Currently, the electronics market in India is valued at $155 Bn with domestic production accounting for 65%.
(Source: https://www.investindia.gov.in/sector/electronic-systems)

Also, In Canada, Following the largest decline in almost a decade in 2020 because of the pandemic, manufacturing sales have reached their highest level on record in 2022.
(Source:https://www150.statcan.gc.ca/n1/pub/11-627-m/11-627-m2022050-eng.htm)

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Carbonyl Iron Powder Market is witnessing significant growth in the near future.

In 2023, the Reduced Iron Powder segment accounted for noticeable share of global Carbonyl Iron Powder Market and is projected to experience significant growth in the near future.

The Powder Metallurgy segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies BASF SE , Jinchuan Group International Resources Co. Ltd. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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