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The refractory materials market for the steel industry size is estimated to grow at a CAGR of 4.27% between 2022 and 2027. The market size is forecast to increase by USD 2,152.48 million. The growth of the market depends on several factors, including increasing demand for steel from the construction, infrastructure, automotive, and other sectors, increasing R&D activities by vendors, and increasing capacity developments in the steel industry.
This refractory materials market for steel industry report extensively covers market segmentation by product (brick and monolithic), type (acidic, neutral, and basic), 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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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.
One of the key factors driving the refractory materials market is the increasing demand for steel from the construction, infrastructure, automotive, and other sectors. Steel, a vital resource globally, holds great significance in various fields such as infrastructure, construction, transportation, and food preservation. Its consumption is considered a crucial indicator of an economy's development and living standards. The demand for steel is driven by industries like construction, infrastructure, automotive, and consumer durables, which are experiencing growth worldwide.
Moreover, the Asia-Pacific region is undergoing significant urbanization, while the Middle East and Africa witness population growth and hosting major events, leading to increased demand for infrastructure and transportation facilities. The construction and transportation sectors are the major consumers of steel due to their expansion and renewal needs. The automotive industry is also a significant driver, as the demand for various vehicles, including passenger and commercial vehicles, continues to rise. Other sectors like energy, machinery, home appliances, and defense also contribute to the consumption of steel. The increasing demand for steel in these sectors is accompanied by a need for refractory materials in crude steel production, thereby fueling the growth of the global refractory materials market for the steel industry.
The rising popularity of monolithic refractories over shaped refractories is the key trend in the market. During the forecast period, monolithic refractories are expected to gain popularity and experience high growth rates compared to shaped refractories. These refractories are versatile and find applications across various industries, including the steel industry. Unlike refractory bricks, monolithic refractories do not have a fixed shape but are instead applied in a formless state and hardened to form a solid mass. They can be used in different forms such as castables, plastics, gunning mixes, mortar, and ramming mixes. The use of monolithic refractories enables the formation of joint-free furnace linings in new constructions or the repair of existing linings with minimal preparation.
Moreover, this reduces inventory requirements and allows for installation at high temperatures during standby mode. Monolithic refractories are also highly advantageous for furnace maintenance, as they can be applied with minimal downtime and even during operations. Their versatility and ease of use have led to their increasing adoption, gradually replacing traditionally shaped refractories in various applications. The growing usage of monolithic refractories is expected to drive the global market's growth in the forecast period.
Fluctuation in the cost of refractory raw materials and high energy consumption is the major challenge in the market. The price of refractory raw materials has experienced significant volatility in recent years, which impacts their overall cost and the production of refractory materials. The cost of a refractory product is influenced by three main factors: the price of raw materials, production costs, and expenses related to product design and testing. Raw materials like magnesite, alumina, bauxite, graphite, and zirconium, which are crucial in refractory production, have shown a high degree of price volatility. Fluctuations in prices can be attributed to factors such as economic conditions, political unrest, and events like the Eurozone crisis. China's export policies have also contributed to price fluctuations, as they have imposed significant taxes on the export of key refractory materials like magnesite, high-grade alumina, and bauxite.
Additionally, the production of refractory materials requires substantial energy consumption. Multiple energy-intensive firing processes are often necessary to achieve the desired outcomes. This high energy consumption poses a challenge to the growth of the global market focus during the forecast period.
The market research report includes the adoption lifecycle of the 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 for Steel Industry 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 market.
Allied Mineral Products LLC: The company offers refractory materials for the steel industry such as dry vibratable refractories.
The research 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 brick segment is estimated to witness significant growth during the forecast period. Refractory bricks are widely used in the steel industry, particularly for furnace lining applications. The most common and recognizable shape of these bricks is rectangular, and they have standardized dimensions.
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The brick segment was the largest segment and was valued at USD 5,005.72 million in 2017. Typically machine-pressed, they possess consistent properties. However, for specific applications like kilns and furnaces, special-shaped and hand-molded bricks are used. To provide insulation, the bricks are designed with numerous air spaces within them, preventing heat conduction. Only the solid particles in the brick conduct heat, while the air spaces contribute to insulation. To achieve this balance, refractory bricks are designed with uniformly distributed small-sized pores throughout their structure. Rectangular bricks or standard shapes are commonly used in bulk quantities, tailored to furnace construction and operating conditions. They are cost-effective compared to customized or intricate shapes that deviate from the standard rectangular design. These alternative shapes, such as straight, arch, circle, wedge, and key bricks, are variations of rectangular bricks with equal overall dimensions. There are various types of refractory bricks available, including magnesite bricks, magnesite chrome and chrome magnesite bricks, fused magnesite-chrome grain bricks, co-burned magnesite-chrome grain bricks, magnesite-spinel bricks, carbon-containing bricks, dolomite bricks, alumina bricks, alumina-chrome bricks, phosphate-bonded bricks, mullite bricks, alumina-carbon bricks, and silica bricks.
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APAC is estimated to contribute 73% 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 APAC region dominates the global market for refractory materials and is projected to maintain its leading position in the forecast period. This is primarily due to the increased production of crude steel in the region, driven by both emerging and developed economies. Various industries in APAC, including automotive, construction, aerospace, infrastructure, heavy industries, and consumer goods, have a significant demand for steel for diverse applications. China, Japan, and India are the top global producers of crude steel, and their industrialization and economic growth contribute to the rising demand for steel.
As the population in APAC grows and consumer income increases, there is a higher demand for automobiles, infrastructure, and consumer products, all of which require substantial steel production. Refractory materials play a crucial role in steel manufacturing, and countries like India, China, and Indonesia attract global manufacturers due to lower labor costs and favorable facilities for industry expansion. Investments by automobile manufacturers and the establishment of production plants by Western companies in emerging economies like India and China are expected to drive the global steel market, consequently impacting the growth of the refractory materials market for the steel industry in APAC.
In 2020, the COVID-19 pandemic led many countries in the region, such as India, Japan, South Korea, and China, to impose stringent lockdowns. Similarly, crude steel production in Japan reached 83.2 Mt in 2020, which was 16.2% lower than that in 2019. The decline in steel production in major countries, such as India and Japan, negatively impacted the refractory materials market for the steel industry in APAC in 2020. However, in 2021, these countries started ramping up COVID-19 vaccination drives, which resulted in the removal of restrictions and the reopening of steel production plants, thus, leading to increased crude steel production in 2021. The construction industry is witnessing high growth, which is expected to boost the growth of the refractory materials market for the steel industry in the region during the forecast period.
The refractory materials market for steel industry 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.
Refractory Materials Market For Steel Industry Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.27% |
Market growth 2023-2027 |
USD 2,152.48 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.11 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 73% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allied Mineral Products LLC, Chosun Refractories ENG Co. Ltd., Compagnie de Saint Gobain, HarbisonWalker International Inc., Imerys S.A., Krosaki Harima Corp., Magnezit Group, Minerals Technologies Inc., Morgan Advanced Materials Plc, Puyang Refractories Group Co. Ltd., Refractarios Alfran S.A, Refractory Minerals Co. Inc., Refratechnik Holding GmbH, RHI Magnesita GmbH, Saudi Refractory Industries, Shinagawa Refractories Co. Ltd., Unifrax I LLC, 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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