Home Opportunity Roadmap for Steel Powder

Quick overview

Our client, a leading steel producer, wanted to expand its portfolio into steel powder space based on an informed feasibility assessment. Powder metallurgy is increasingly gaining importance owing to its utilization in the production of lightweight and complex components. The client wanted our support to understand the opportunity road map in terms of short-, mid-, and long-term horizons. It further wanted to uncover critical go-to-market strategy levers in terms of demand pull from newer applications, unmet needs of customers, channels, cost and price build-up, and barriers to entry.

Client success details

With our help, our client was able to gain a thorough understanding of the current and future demand landscape for steel powders, grade-technology-application matrix, cost build-up, pricing model and entry barriers to be considered. FutureBridge answered several strategic questions including:

In Non-traditional segments, demand-pull is expected majorly from three grades in industrial and consumables in the next 10 years.
  • What does the overall value chain for steel powder look like and what key players are involved at each node of the value chain?
  • Total addressable and attainable market by application, grades, technology, and region that client should focus on and why?
  • Who are the major competitors in the market and what are their offerings and customer base?
  • What are the customer preferences for selecting new suppliers?
  • How does the final price of steel powder build up considering manufacturing cost, margins, and other components?
  • What are the factors shaping steel powder pricing and how can the client devise its target pricing?
  • Entry barriers for the client in the steel powder market?

FutureBridge deployed a robust top-down and bottom-up combination approach across the ecosystem to develop a concise view of the current and emerging application areas for steel powders as well as an in-depth assessment of the price build-up, contract structures, and a sensitivity-based price forecasting analysis for the long term. FutureBridge further analyzed the region-wise competitive nuances and optimal approaches to enter the market by regional dynamics.

The methodology involved primary research, secondary research, expert consultation, and in-house analytical modeling across value chain nodes including raw material supplier, steel powder producers, processing companies, and end-users; thought leaders among others. 

The work FutureBridge carried out enabled our client to identify key application areas, target pricing, channels, the attainable share of wallet, risks, and success factors to formulate a suitable go-to-market strategy. The client eventually took a successful double-digit Euro million investment decision to set up a plant for steel powders.

 

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