Refractories are ceramic materials that exhibit high corrosion and heat resistance and are used in applications where extremely high temperatures are routinely present. They are primarily used in applications such as steelmaking, cement production, nonferrous metal production, glass manufacturing, petrochemicals, electric utilities and others. Refractory materials are widely used for lining furnace walls and constructing structures to contain molten metals in applications such as glass production, steelmaking and other high temperature industrial processes.
The global refractories market is estimated to be valued at US$ 57616.65 Mn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The refractories market is primarily driven by sustained growth in iron and steel industry. The installation of refractories in steelmaking and cement industry is crucial for maximizing process efficiency and energy saving. According to World Steel Association, in 2022, the global crude steel production reached 1,847.6 Mt, witnessing a 3.4% growth over 2021. The growth in steel production is anticipated to fuel demand for refractories for steelmaking applications. Further, stringent emission regulations for industrial facilities are prompting companies to invest in energy efficient refractories to reduce fuel costs and minimize emissions.
SWOT Analysis
Strength: Refractories have high melting point and mechanical strength which allows them to withstand extreme temperatures and pressures. They also act as thermal insulators and are resistant to corrosion and slag erosion, which makes them ideal for use in industries involving high heat. Their ability to withstand corrosion and slag attack ensures long service life which reduces maintenance and replacement costs.
Weakness: Certain types of refractories contain carcinogenic materials and their production can release toxic emissions. Their manufacturing process requires high energy and produces substantial greenhouse gas emissions. Refractories are generally heavy and difficult to shape which increases transportation and installation costs.
Opportunity: Growth of steel and cement industries in developing countries is driving demand for refractories. Expanding global infrastructure and rapidly growing foundry sector also provide opportunities for market expansion. Development of innovative non-clay refractory materials with improved performance characteristics can help gain market share.
Threats: Stringent environmental regulations on refractory manufacturing may increase production costs. Volatility in raw material prices especially for magnesite and chrome affects the industry. Substitution threat from new high temperature resistant composite materials.
Key Takeaways
The global Refractories Market Growth is expected to witness high growth over the forecast period given the steady rise in steel production. Asia Pacific currently dominates the market led by China owing to robust growth of the Chinese steel industry and presence of key refractory producers in the region. The region’s share is projected to grow further as emerging economies like India ramp up infrastructure development and expand steelmaking capacity.
Key regional markets in Europe and North America are gradually recovering post pandemic slowdown with a resurgence in manufacturing and construction activities. Growing steel demand from automotive and machinery manufacturing is driving refractory consumption across developed nations.
Key players like Puyang Refractories and Chosun Refractories have a strong presence in China while IFGL Refractories and Vesuvius cater to the Indian and other Asian markets. Globally established players including RHI Magnesita, Imerys, and Harbisonwalker have extensive operations across major steel producing countries to leverage rising refractory replacement needs at plant level. Shinagawa and Krosaki target the Japanese steel sector with specialized monolithic and ramming mass products.
The refactories market is consolidated with top companies engaged in mergers and acquisitions to expand product portfolio and global footprint. Continuous research and development of innovative material grades suitable for newer steelmaking technologies and other high temperature processes can provide opportunities for market expansion.
