Scandium Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, France, Brazil - Size and Forecast 2024-2028

Scandium Market Size 2024-2028 

The scandium market size is estimated to grow by USD 268.2 million at a CAGR of 8.51% between 2023 and 2028. The aluminum industry is experiencing a significant surge due to the increasing adoption of electronic content in hybrid and electric vehicles. This trend is driving up the demand for lightweight and durable aluminum alloys, particularly aluminum-scandium alloys. Additionally, the rising usage of Solid Oxide Fuel Cells (SOFCs) in various industries, including transportation and power generation, is boosting the demand for high-performance aluminum components. Furthermore, the aerospace and defense sectors continue to be major consumers of aluminum-scandium alloys due to their superior strength-to-weight ratio and corrosion resistance. These factors collectively position aluminum as a key material in various high-tech industries, ensuring a robust future for the aluminum industry.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

Scandium is a transition metal known for its high strength-to-weight ratio and excellent corrosion resistance. The primary applications of scandium are in the aerospace and defense industries, where it is used to produce lightweight and strong alloys with aluminum. These alloys find extensive use in the manufacturing of jet engines, rocket components, and armor plating. Scandium also plays a crucial role in the production of Solid Oxide Fuel Cells (SOFCs), a type of energy storage technology. In SOFCs, scandium acts as an electrolyte, facilitating the movement of oxygen ions between the anode and cathode. The demand for scandium in this sector is expected to grow due to the increasing focus on clean energy and energy efficiency.

However, the production of scandium is challenging due to its scarcity and the corrosive nature of the molten material used in its extraction. The primary sources of scandium are coal and natural gas, which raises environmental concerns. The Inflation Reduction Act in the US has emphasized the importance of clean energy and may influence the demand for scandium in the energy sector. Companies like Elcogen and Bloom Energy are exploring the use of alternative precious metals like titanium and iron ore to replace scandium in SOFCs, which may impact the market dynamics. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increasing electronic content in hybrid and electric vehicles is notably driving market growth. The integration of electronic technology in automobiles is accelerating, particularly in the adoption of hybrid and fuel cell electric vehicles (FCEVs). This shift towards electrification is leading to an increase in the electronic content of automobiles, as traditional mechanical functions are replaced by electric motors and actuators. For instance, air conditioning compressors and other aircraft parts were previously driven by the engine, but now rely on electricity from the battery.

Similarly, in the aviation industry, air passengers travel in lighter aircraft due to the use of scandium in aircraft parts, enhancing fuel efficiency and reducing carbon emissions. Moreover, the demand for scandium is not limited to the automotive and aviation sectors, as it is also used extensively in electronics production for components such as wires, cables, portable computing devices, gaming systems, smartphones, TVs, and other personal electronic devices. The growing use of scandium in various industries is expected to drive its market growth during the forecast period, improving living standards by offering lighter, more efficient, and technologically advanced products. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The imperial development of scandium-modified EV alloy is the key trend in the market. Scandium is a valuable element that plays a crucial role in various commercial applications, particularly in the automotive and electronics industries. In the automotive sector, scandium enhances the yield strength of aluminum, leading to new structural applications in the expanding FCEV market. The global shift towards electric vehicles (EVs) is driven by the need to reduce carbon emissions and improve living standards. By adding just 2% of scandium to aluminum, the resulting alloy gains increased strength, corrosion resistance, heat tolerance, and weldability. These properties enable the production of lighter aircraft parts, reducing the overall weight of aircraft and consequently decreasing fuel consumption for both manufacturers and air passengers.

Additionally, the use of scandium alloys in electronics production facilitates the manufacturing of high-performance components for smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices. The ongoing research and development of scandium alloys continue to uncover innovative casting methods and heat treatments, further enhancing the potential for advancements in cast alloys. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

The need for fuses to sustain challenging and extreme conditions of EVs/HEVs operation is the major challenge that affects the growth of the market. The Scandium market holds significant potential in the realm of fuse manufacturing for Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs). Traditional fuses used in industrial applications, which adhere to the IEC 60269 standard, are unsuitable for EV and HEV applications due to their unique power management requirements. These vehicles necessitate fuses that can operate under conditions beyond the standard's research behavior. Aircraft manufacturers, seeking lighter and more efficient aircraft parts, also find scandium fuses advantageous in aviation electronics production.

Moreover, the increasing demand for personal electronic devices, such as smartphones, TVs, wires, cables, portable computing devices, and gaming systems, fuels the growth of the scandium market. Enhancing living standards worldwide contributes to the escalating demand for these advanced electronic components. Hence, the above factors will impede the growth of the market during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Australian Mines Ltd. - The company offers high purity scandium oxide, along with cobalt and nickel, for advanced technological applications.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Atlantic Equipment Engineers Inc.
• Australian Mines Ltd.
• GFS Chemicals Inc.
• Huizhou Top Metal Material Co. Ltd.
• Lenntech BV
• LB Group Co. Ltd.
• Materion Corp.
• Merck KGaA
• Platina Resources Ltd.
• Stanford Materials Corp.
• Thermo Fisher Scientific Inc.
• Treibacher Industrie AG
• United Company RUSAL

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By End-user 

The solid oxide fuel cells segment is estimated to witness significant growth during the forecast period. Scandium, a transition metal, is gaining significant attention in various industries due to its unique properties. In the aerospace and defense sectors, scandium alloys with aluminum are used to enhance the strength and durability of lightweight components. Scandium ceramics find applications in electronics as electrolytes in Solid Oxide Fuel Cells (SOFCs), facilitating the movement of oxygen ions between the anode and cathode.

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The solid oxide fuel cells segment accounted for USD 134.2 million in 2018. In energy storage technology, scandium is used as a precious metal catalyst in SOFCs to improve efficiency. However, the production of scandium involves the use of corrosive acids and molten materials, raising environmental concerns. The energy generation sector is exploring scandium's potential in coal and natural gas power plants for improved energy efficiency. The Energy Information Administration reports that clean energy sources like renewable power and nuclear power are expected to dominate the energy landscape in the coming years. The Inflation Reduction Act in the US provides incentives for the adoption of clean energy technologies, including fuel cell market growth. Companies like Elcogen and Bloom Energy are leading the way in fuel cell technology, using scandium in their products. Scandium is also used in alloys with titanium, iron ore, zirconium, and niobium. Magnetovana–ilmenite is a major source of scandium. Inner Mongolia and Bayan Obo in China are significant producers of rare earth elements, including scandium. The fuel cell market is expected to grow in the low-carbon economy, driven by the demand for clean energy and energy efficiency. BEVs (Battery Electric Vehicles) are another potential application area for scandium, given its lightweight properties and high strength.

Regional Analysis

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North America is estimated to contribute 70% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Scandium, a transition metal, is gaining significant attention in various industries due to its unique properties. In the aerospace and defense sectors, scandium alloys with aluminum are utilized for their enhanced strength and durability, reducing the weight of components and improving fuel efficiency. Scandium ceramics find applications in electronics, particularly in solid oxide fuel cells (SOFCs) as electrolytes, where oxygen ions flow between the anode and cathode. The precious metal is also essential in SOFCs as an anode material. However, its high cost and production challenges limit its widespread use. Scandium is resistant to corrosive acids and can withstand high temperatures, making it suitable for energy storage technology and energy generation from coal, natural gas, renewable power, and nuclear power. The Inflation Reduction Act in the US is expected to boost the clean energy market, including fuel cell technology, which may increase scandium demand. Major players in the fuel cell market, such as Elcogen and Bloom Energy, are investing in research and development to improve scandium utilization and reduce costs. Scandium is also used in alloys with titanium, iron ore, zirconium, and rare earth elements, like niobium, in various industries, including pigment plants, magnetovana–ilmenite, and inner Mongolia's Bayan Obo mining complex. The low-carbon economy is driving the demand for energy efficiency and clean energy solutions, further increasing the importance of scandium in various applications.

Segment Overview

The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user Outlook
  • Solid oxide fuel cells
  • Aerospace and defense
  • Electronics
  • Sporting goods
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

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Market Analyst Overview

Scandium is a transition metal known for its exceptional strength and lightweight properties. It is increasingly being used in various industries, particularly in the aerospace and defense sectors for manufacturing aluminum-scandium alloys. These alloys offer enhanced durability and resistance to corrosive acids, making them ideal for use in harsh environments. In the energy sector, scandium plays a crucial role in Solid Oxide Fuel Cells (SOFCs) as an electrolyte material. It facilitates the movement of oxygen ions between the anode and cathode, enhancing the overall efficiency of the fuel cell. Scandium is also used in the production of precious metal anodes and cathodes for SOFCs. The demand for scandium is also driven by its applications in the electronics industry. It is used in the production of high-performance batteries for Electric Vehicles (BEVs) and other clean energy technologies. However, the production of scandium is associated with environmental concerns due to its extraction from coal and natural gas.

The Energy Information Administration has emphasized the need for a low-carbon economy and the transition towards renewable power and nuclear power to address these concerns. Scandium is also found in association with other rare earth elements such as titanium, iron ore, zirconium, niobium, and rare earth elements in deposits like Magnetovana–ilmenite. The fuel cell market is expected to grow significantly due to the increasing demand for energy storage technology and energy efficiency. Companies like Elcogen and Bloom Energy are leading the way in the development of advanced fuel cell technologies using scandium. In conclusion, scandium is a versatile metal with a wide range of applications in the aerospace, defense, electronics, and energy sectors. Its unique properties make it an essential component in various industries, but its production and use come with environmental challenges. The transition towards a low-carbon economy and the development of clean energy technologies are expected to drive the demand for scandium in the future.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies