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The refractory materials market is estimated to grow at a CAGR of 4.84% between 2022 and 2027. The size of the market is forecast to increase by USD 6.55 billion. The growth of the market depends on serval factors, including increasing production capacity developments in the steel industry, an increase in demand for steel from end-user industries, and an increase in R&D activities by vendors.
This report extensively covers market segmentation by product type (clay and others, and non-clay), application (iron and steel, non-metallic materials, non-ferrous metals, and others), type (shaped and monolithic), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing production capacity developments in the steel industry are notably driving the market growth, although factors such as fluctuation in the cost of refractories raw materials and high energy consumption may impede the market growth. Our researchers analyzed the data with 2022 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 Refractory Materials Market Driver
The increasing production capacity developments in the steel industry are notably driving market growth. The global steel industry has been witnessing an increase in production capacity for the last decade because of new investment plans that are taking place in several parts of the globe. With the rising crude steel production capacities, globally, the production of steel has also surged in the past few years. Many regions around the globe will be exposed to the increased production capacity of steel.
The Middle Eastern region will experience a significant increase in steel production capacity during the forecast period because of the focus of the economies in the region on being self-reliable. Numerous capacity-addition projects are planned in APAC as well. Meanwhile, the economies that constitute the Commonwealth of Independent States (CIS) and the African market are also susceptible to a slight increase in capacity additions. The increasing crude steel production capacities in several regions across the world would certainly result in the growth of the global refractories market.
Significant Refractory Materials Market Trend
The shift of refractory type from shaped to monolithic is the key trend in the refractories market. The monolithic refractories are distinct mixes or blends of dry granular or cohesive plastic materials with an indefinite form. They have benefits over refractory bricks in different kinds of furnaces. They aid in quick installation and prevent interruptions in the production of special brick forms. The use of monolithic refractories regularly eliminates strenuous bricklaying tasks and intersections, which may lead to weakness in production.
Monolithic refractories are vital in the maintenance of furnaces since considerable maintenance can be completed with the least loss of time and, even during operations. They are rapidly replacing conventionally shaped refractories in several applications. These refractories are likely to witness increased demand for almost every application, including in the steel industry, and therefore expected to observe high popularity over shaped refractories during the forecast period, with a high growth rate.
Major Refractory Materials Market Challenge
Fluctuation in the cost of refractories raw materials and the high energy consumption is the major challenge impeding the refractories market growth. The cost involved in the production of the raw materials is a determining factor toward the end-use of these materials and in the last few years, there has been high volatility in the price of refractories raw materials. The cost of a refractory product involves three main factors, the cost of refractory raw materials, production cost, and the cost of designing and testing the product.
The fluctuation in the price is primarily due to economic conditions, political unrest, and the Eurozone slowdown. Another reason for the fluctuation in the price of raw materials is China's export policies. China is a major raw material supplier and has imposed heavy taxes on the export of refractory materials such as magnesite, high-grade alumina, and bauxite. These issues will have a high effect on both manufacturers and consumers and will continue to hinder market growth during the forecast period.
Key Refractory Materials Market Customer Landscape
The report includes the adoption lifecycle of the refractories 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 growth strategies.
Global Refractory Materials Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the refractories market.
SCR Sibelco NV - The company offers refractories for the construction industry. Under this segment, the company offers a portfolio of minerals such as Aluminum trihydrate, Baryte, Bentonite, Calcium carbonate, Chromite, Clay and Kaolin, Cristobalite, and Iron oxide among others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the clay segment will be significant during the forecast period. Clay refractory materials include fireclay, high-alumina, and mullite ceramics. Fire clay refractory products, being the most common refractory, are used in almost every end-user industry that involves high-heat processing operations, including iron and steel, cement, non-ferrous metals, glass, ceramics, petrochemicals, and sugar. As most of these refractory materials are consumed in the iron and steel industry, the demand for these refractories is dependent on the growth of the global iron and steel industry.
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The clay segment was valued at USD 16.85 billion in 2017 and continued to grow until 2021. The demand for clay refractories will continue to surpass that for non-clay refractories, owing to the rise in the use of high alumina-based and other high-value materials, primarily across the iron and steel, and cement industries. The largest market for this segment is APAC, where there has been rapid growth in the number of construction and industrial activities, which supplements the demand for iron and steel products. Therefore, the rising demand for iron and steel products in various end-user industries will supplement the growth of the global refractories materials market in this segment during the forecast period.
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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The increasing demand for refractory materials in the region is a direct effect of the increased crude steel production in the region. It is mainly on the backdrop of the presence of a few emerging economies and developed economies in the region. In countries such as China, Indonesia, South Korea, and India, several industrial, commercial, and residential projects are under development, which supplement the demand for iron and steel products, such as slabs, plates, rebars, and sheet pilings, in the region.
The regional refractories market witnessed a decline in its growth owing to the outbreak of COVID-19. However, various financial subsidies for new electric vehicles boosted the demand for the automotive sector, which will stimulate the growth of the regional refractories materials market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product Type (Clay and others, and Non-clay), Application (Iron and steel, Non-metallic materials, Non-ferrous metals, and Others), Type (Shaped and Monolithic), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
The reports categorize the global refractories materials market as a part of the global diversified metals and mining market within the global materials market. The global diversified metals and mining market covers companies engaged in the production or extraction of metals and minerals such as non-ferrous metals (except bauxite), salt and borate, phosphate rock, and diversified metal mining operations. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Refractory Materials Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.84% |
Market growth 2023-2027 |
USD 6.55 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.6 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 62% |
Key countries |
US, China, India, Russia, and Japan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alsey Refractories Co., Carborundum Universal Ltd., Chosun Refractories ENG Co. Ltd., Compagnie de Saint Gobain SA, Corning Inc., HarbisonWalker International Inc., IFGL Refractories Ltd., Imerys S.A., INTOCAST AG, KAEFER SE and Co. KG, Krosaki Harima Corp., Magnezit Group, Minerals Technologies Inc., Morgan Advanced Materials Plc, POSCO, Refratechnik Holding GmbH, RHI Magnesita GmbH, SCR Sibelco NV, Shinagawa Refractories Co. Ltd., and Vesuvius Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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