The Amorphous Metal Ribbons industry was 628.11 Million USD in 2017 and is projected to reach 1135.68 Million USD by 2025, at a CAGR (Compounded Annual Growth Rate) of 7.68% between 2017 and 2025. The market is driven by various end-user industries, amorphous metal ribbons can be used to replace silicon steel, Permalloy, and ferriteas excellent materials to make transformer cores for high-frequency switch mode power supplies, current transformer cores, transformer cores for ground-fault-interrupters, cores for filters, storage inductors, and reactors, EMC common mode chokes, sensor cores, cores for saturable reactors, magnetic amplifiers, beads, and pulse compressors.
The initial costs of an amorphous core transformer are higher than of a crystalline silicon steel core transformer: first, the amorphous material itself is more expensive than crystalline silicon steel and second, the saturation magnetic flux density of amorphous steel is lower than that of silicon steel. This means larger sizes of amorphous core transformers are required, which results in a higher cost per unit. However, the higher initial costs can be compensated by lower operating costs over the lifetime of the transformers due to their increased energy efficiency.
The market for Amorphous Metal Ribbons is concentrated with players such as Hitachi, Henan Zhongyue, Junhua Technology, Londerful New Material, Shenke, Foshan Huaxin, Advanced Technology & Materials, Zhaojing Incorporated Company, Qingdao Yunlu Advanced Material Technology, Foshan Catech, Orient Group and so on. Among them, Hitachi is the leader with about 61% revenue market share in 2017.
The leading companies own the advantages on better performance, more abundant product’s types, better technical and impeccable after-sales service. Consequently, they take the majority of the market share of high-end market. Looking to the future years, the slow downward price trend in recent years will maintain. As competition intensifies, prices gap between different brands will go narrowing. Similarly, there will be fluctuation in gross margin.
The industry is expected to remain innovation-led, with frequent acquisitions and strategic alliances adopted as the key strategies by the players to increase their industry presence. Market stays in mature period with a clear concentration. Meanwhile, optimize product mix and further develop value-added capabilities to maximize margins. Manufacturers can take advantage of this situation by reinforcing their production units and supply-chains to avoid any delay in production turn-around-times (TAT) and supply-lead-times.
Significant and lasting barriers make entry into this market difficult. These barriers include, but are not limited to: (i) product development costs; (ii) capital requirements; (iii) intellectual property rights; (iv) regulatory requirement; and (v) Transitions’ unfair methods of competition.
Despite the presence of competition problems, due to the global recovery trend is clear, investors are still optimistic about this area, the future will still have more new investment enter the field. Even so, the market is intensely competitive .The study group recommends the new entrants just having money but without technical advantage and upstream and downstream support do not to enter into this field.