The industrial refractory materials market is expected to surge with a CAGR of 3.45% to achieve a market size of US$27.593 billion by 2025, from US$22.507 billion in 2019.The market is expected to propel in the forecast period owing to the immense utilization of refractory materials in various end-use industries. The major industries include steel and foundry industry, glass, and cement among others. The growing iron and steel industry is driving the growth of the global industrial refractory materials market in the forecast period. Refractory materials are resistant to heat and are used in providing linings for high-temperature furnace, reactors, and other processing units. The increasing construction activities worldwide along with the growing urbanization is further providing an impetus in fueling the demand for refractory materials driving the market growth. The growing global automotive industry is also contributing to the market growth in the forecast period. Additionally, the growing adoption of consumer electronics, especially in the developing economies of the world is driving the market growth in the forecast period. This is due to the growing middle-class population, rising disposable income, and increasing family income.
On the basis of geography, North America and Europe are expected to hold a significant market share due to the construction activities in these regions with significant construction spending, especially in the North American region. The Asia Pacific region is anticipated to be the largest market due to the growing construction industry with rapid urbanization. Also, the growing middle-class population is providing a huge consumer base for the utilization of refractory products in their day-to-day activities which include automobiles, smartphones, cutleries and many more. Furthermore, the increasing investments in infrastructural development in APAC countries leading to the increasing construction activities at home, hospitality, and commercial and industrial sectors, are further boosting the growth of the global industrial refractory materials market over the next five years. In addition, the growing electronics industry and the rising automotive industry with the purchase of new vehicles is driving the market growth. Moreover, advancements in technology in the refractory materials resulting in the development of innovative products such as advanced ceramics are burgeoning the growth of the global industrial refractory materials industry.
The growing world steel industry is fueling the growth of the global industrial refractory material market during the forecast period.
According to the World Steel Association (WSA) forecast, the global steel industry will continue to proliferate with China as the leader followed by India, Japan, and the United States. In 2019, the steel demand in China grew by 7.8% in order to achieve a production of 900.1 Mt (approximately). While, steel demand in the other parts of the world grew by over 2.0%, mainly driven by more than 4.0% growth from the emerging economies of the world excluding China.
According to the World Steel Association, global steel demand increased by 3.9% to 1,775 million tonnes in 2019 and is further estimated to increase by 1.7% (y-o-y growth rate) to attain 1,805.7 million tonnes by 2020. Hence, this is providing strong prospects for the growth of the refractory materials market to proliferate in the forecast period. In 2018, the 1,789 million tonnes of global crude steel was produced, rising 4.94% over 2017. China was the largest producer in 2018 producing 928 million tonnes of steel. India produced 106 million tonnes, while Japan and the USA produced 104 million tonnes and 87 million tonnes respectively. In the other areas of the world, the demand for finished steel for 2019 and 2020 is listed as follows: for Europe, EU-28, the steel demand for 2019 comprises 166.8 Mt and in 2020 it is expected to be 168.6 Mt. For other parts of Europe, the steel demand for 2019 is 32.9 Mt and 34.5 Mt in 2020. In the Middle East region, the finished steel demand in 2019 was 47.9 Mt and is projected to rise to 48.0 Mt. For Asia and Oceania, the steel demand rose from 1,248.1 Mt in 2019 to 1,270.0 Mt in 2020. While for the Africa and Central and South American regions, the demand for finished steel was estimated to grow from 36.0 Mt to 37.2 Mt and 43.8 Mt to 45.5 Mt.
Furthermore, as the innovations in steel products continue to proliferate, this is continuing to show favorable growth prospects for refractory materials in the forecast period. As per the WSA stats, in 2017, an investment of 5.9% of the total revenue was made by the steel industry in projects, research, and process improvement. Hence, notable investments in the steel industry are further propagating the market growth in the forecast period. In addition, the innovative breakthrough technologies for the development of steel are helping in curbing carbon emissions, aiming at the lowering of carbon footprint.
Other drivers driving the growth of the iron and steel industry include the growing construction sector which include the infrastructure and real-estate segments. Also, the steel consumption is widely utilized in shipbuilding, automotive industry, consumer electronics, electronics, and industrial goods production, hence driving the market demand.
On the basis of industry, glassmaking is expected to hold a significant market share, propagating the market demand during the forecast period.
The global glass industry is expected to grow with a significant growth rate. The growth is mainly attributed to the surging demand for glass in wide applications which include varied residential and commercial infrastructure projects. Also, the soaring demand for glass substrate from the transportation industry, electronics and semiconductor sector, especially from the developing economies of the world are driving the market demand. On the global level, the Asia Pacific region is expected to be the largest market for glass consumption, especially float glass with the increasing urbanization, robust demand for housing, and investments by the glass manufacturers. Other user countries include China, Germany, USA, France, Japan, Spain, Argentina, Australia, Canada, Egypt, India, and Sri Lanka.
Furthermore, the glass industry is a highly concentrated one, for example, in the case of the production of flat glass alone, there are four companies dominating the global market. This includes Nippon Sheet Glass (NSG) Group, Asahi Glass Company (AGC), Saint-Gobain, and the Guardian Group.