Driven by the Strong Mechanical Strength, and Growing Demand from the Iron and Steel Industry the Global Refractories Market is forecasted to Cross US$ 35 Bn by 2028 says Ken Research Study.
Refractory materials are non-metallic minerals possessing chemical and physical properties. It is resistant to decomposition by heat, pressure, or chemical attacks and retains its strength and form. Refractories are more heat resistant than metals and are used to line the hot surfaces inside industrial processes. “Ken Research shares 5 key insights on this high opportunity market from its latest research study”
1. The Soaring Infrastructure Development and Growing Steel Industry Augmenting the Demand Refractories
The Global Refractories Market is expected to witness positive growth during the forecast period, owing to its strong mechanical strength and its resistive property of decomposition by heat, pressure, or chemical attacks.
According to Ken Research estimates, the Global Refractories Market is estimated to be about US$ 25 Bn by 2022 and is expected to grow further to more than US$ 35 billion opportunity by 2028, witnessing growth at a CAGR of 5% during the forecast period 2022- 2028. Asia- Pacific is the most dominating region in the global refractories market. As the refractories market has no alternative and has wide applications, therefore it holds a minimum threat to be replaced by any substitute in the near future.
According to the World Refractories Association, one ton of steel requires approximately 10-15 kg of refractories to line the furnace in which it is produced. Without the protective material property of refractories, the furnace could not contain the molten steel.
2. Iron and Steel Surge in Automotive Sector Drives the Market Growth; High Demand for Refractories Observed
The demand for refractories is increasing due to an increase in demand for various industries like the automotive industry, energy and chemical industry, and others. The rise in demand for iron and steel in the automotive industry due to the surge in EVs is adding to the growth of the refractories market.
Organisation Internationale des Constructeurs d’ Automobile (OCIA), in 2021 quoted approx. 80.15 million vehicles were produced around the world, witnessing a growth rate of 3% compared to approx. 77 million vehicles in 2020, thereby enhancing the consumption of refractories for the manufacturing of vehicle body parts.
3. Overdependence on the Iron and Steel Industry, Companies Face Limited Opportunities in Market Expansion
The over-dependence of the refractories market on the iron and steel industry is a major challenge for the refractory market. The lining of a reactor, transport vessel or kiln uses a wide range of refractory products including bricks, monolithic, and high-temperature insulation wool. Refractories provide mechanical strength, protection against corrosion, and thermal insulation.
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According to World Refractories Association, 70% of the refractories are sold to the steel industry and the rest 30% of the share is covered by other end users like power generation, cement, glass, petrochemical, chemical, and paper & pulp. Thus, the downfall of the iron & steel industry would lead to a decline in the refractories market, restraining the market to grow.
4. A Significant Market Share held by the Brick and Shaped Segment, Also Likely to Showcase High Growth
The Refractories market is anticipated to be dominated by the brick and shaped segment during the forecasted period. The shaped bricks are specially made for particular kilns and furnaces and are generally machine-pressed. Furthermore, owing to its high use in metal and non-metal industries, the brick and shaped segment is likely to hold a significant market share.
For instance, according to China’s Five-Year Plan unveiled in January 2022, the construction industry is estimated to grow at a CAGR of 6% in 2022, hence indicating more production of steel leading to the growth of brick and shaped segment.
5. Asia Pacific Recognized as Largest Regional Market, Manufacturing and Industrialization Chipping in Aggressively
Asia Pacific is expected to dominate the Global Refractories Market during the forecast period. In Asia Pacific region, China is the largest economy having a large number of manufacturing and production industries in the world. As China possesses local availability of raw materials it dominates the refractories market in terms of consumption and production.
According to World Steel Association, China is the largest producer of steel in the world. The country’s annual crude steel production capacity stood at 1,032.8 metric tons in 2021, registering more than 50% of global production, thus creating market opportunities for refractories in the country. Furthermore, China is experiencing massive growth in its construction sector. According to the National Bureau of Statistics of China, in 2021, the construction output in China was valued at approx. US$ 4 trillion, hence driving the demand for the refractories market.
For more information on the research report, refer to the below link:
Global Magnesite Brick Refractories Market
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