Tungsten carbide is used in varied applications in the defense, metalworking, oil & gas, power generation, and automotive industries, due to its superior properties, such as high thermal conductivity, high resistance to scratches and indentations, and stiffer than steel. The compound also displays exceptional resistance to ammonia, acetone, ethanol, water, gasoline, and weak acids. Owing to these, the tungsten carbide powder market will accelerate at a CAGR of 3.6% during 2018–2023. The market stood at $1,762.1 million in 2017 and it is expected to reach $2,176.8 million by 2023.

Another key factor driving the tungsten carbide powder market growth is the recycling of tungsten carbide scrap. Powdered and granular scrap of the compound is recycled to obtain its reusable form. Additionally, the trend of in-house recycling and refining of such scrap has led to the local manufacturing and usage of reusable tungsten carbide products. For example, Sumitomo Electric Hardmetal Corporation gathers cement carbide scrap from manufacturing units, where scrap is generated, for recycling and reprocessing it.

North America and Asia-Pacific (APAC) will collectively consume the highest volume of tungsten carbide in the coming years. This can be attributed to the surging shale gas exploration and production (E&P) activities, rising application of tungsten carbide in the automobile industry, and existence of established players. Among APAC nations, China will use the highest quantity of this compound, owing to the forward and backward integration in the value chain of the market, in-house production of cemented carbides, expansion of automobile industry, and presence of large mining and production facilities, in the country.

Additionally, Europe, Middle East and Africa (MEA), and Latin America (LATAM) are also expected to hold considerable share in the tungsten carbide market, on account of spurring demand for tungsten carbide-based tools in the oil & gas industry and rising application of the compound in the automobile sector. Furthermore, Germany is expected to lead the European market, due to the high demand for this powder from the automotive sector, as the country is home to leading automakers. Moreover, the Brazilian market will exhibit the fastest growth in LATAM, due to the growing automobile industry.

With the increasing applications of tungsten carbide and the rising activities of recycling of tungsten carbide scrap, the production and consumption of tungsten carbide will spike in the coming years.