Global Refractories Market - Segmented by Product Type, End-User, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global refractories market has been estimated at USD 35,849.68 million in 2017. The market is expected to register a CAGR of 5.21% during the forecast period, 2018 to 2023. Iron and steel dominated the global refractories market with nearly 70% share globally, while other end-user industries segment is estimated to register the fastest CAGR through the forecast period.
Increasing Construction in Emerging Markets
Construction sector in Asia-Pacific is the largest in the world. The increasing infrastructure construction activities are the major drivers for the Asia-Pacific construction industry. In addition, the entry of major construction players from the EU into the lucrative market in countries like China, has further fueled the industry’s growth. Owing to their business potential, countries, such as Indonesia, China, Malaysia, Singapore, and South Korea have become hosts to numerous national and international events. The move has accelerated the demand for hotels, shopping malls, high-rise buildings, arenas, and stadiums (both outdoor and indoor), thereby, boosting the construction industry in the respective regions. In addition, the ongoing construction activities in Russia for FIFA 2018 and the construction projects taking place in the GCC region (accounting for about USD 2 trillion) positively impact the global market.
Magnesite refractories are known for their excellent resistance to basic slags (high in case of iron-rich and lime-rich slags), in spite of their poor physical properties. Magnesite refractory bricks are used in many forms, including magnesite brick, burned magnesite brick, fused magnesite brick, and others. It is also used in combination with many materials, such as magnesite alumina brick, magnesite alumina spinel brick, and various others. Increasing number of applications and the recovering steel industry are fueling the demand for magnesite refractories. This demand is projected to grow at an average pace during the forecast period.
Asia-Pacific Dominates the Market
Asia-Pacific has the highest share in the market, accounting for nearly 59% of the global market share in 2017. The market for Asia-Pacific is driven majorly by the increasing construction activities coupled with supportive government regulations. In the recent years, the construction industry has seen a massive growth. With the growing population and needs for houses, schools, hospitals in the region, the demand for refractories is expected to rise from cement and iron & steel industries. Huge consumer base and cheaper manufacturing costs in the Asia-Pacific region are drawing-in high FDIs, with India and China being the major countries.
China is the Largest Consumer
The Chinese construction market is the largest in the world and is demonstrating a slower growth rate of 10.16% from 2015. With the minimum growth rates of the construction and automotive sectors, the market for refractories has been impacted, adversely. However, with the increasing crude steel production in the country, the demand for refractories is expected to rise during the forecast period. The rising government investments in the transport infrastructure and water conversation sector is expected to maintain the growth rates of the construction sector in the country. In addition to all this, the approval of “Green building evaluation standard” by the government shall boost the green building market, hence benefitting the market for refractories market.
Key Developments in the market
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