Market Overview:

Refractories are ceramic materials which exhibit properties like high temperature strength and resistance to thermal shock. They are used in applications involving high temperatures like steelmaking, non-ferrous metal production, cement manufacturing, petrochemical processing, energy production and others. Refractories allow the lining to efficiently contain and isolate process materials from the surrounding structures even at elevated temperatures. They act as an heat resistant and protective barrier in applications involving high temperatures.

Market key trends:

Refractories find major applications in industries like iron & steel, cement/lime, non-ferrous metals, glass and others. Large scale infrastructure development activities are underway globally which has augmented the demand for steel, cement, glass and other building materials. According to the Global Infrastructure Hub, over $94 trillion will be invested worldwide in infrastructure by 2040. This rising infrastructural spending is benefitting refractories consumption via increasing demand from end-use industries. Furthermore, innovation towards development of improved refractory materials with features like extended life cycles, high thermal shock resistance and energy efficiency is also propelling the market growth.

Porter’s Analysis

Threat of new entrants: The refractories market requires high investments in setting up manufacturing plants and R&D facilities for developing specialized products, creating significant entry barriers for new players.
Bargaining power of buyers: The presence of several established players makes the buyers switch between suppliers easily based on product quality and pricing, exerting moderate bargaining power.
Bargaining power of suppliers: The raw materials used in refractories such as alumina, magnesite, chrome are produced by few major global players, giving them significant influence over pricing.
Threat of new substitutes: Substitute materials for refractories are still in development phases and not able to match the heat resistance and durability provided by refractories.
Competitive rivalry: Intense competition.

SWOT Analysis

Strength: Advanced R&D capabilities and diverse product portfolios of major players.
Weakness: Fluctuations in raw material prices affect the bottom lines. Dependency on steel and cement industries exposes refractories market to their volatility.
Opportunity: Growing infrastructural projects and industrialization in developing nations spur demand. Substitutes are being researched to replace chromite refractories.
Threats: Stringent environmental regulations on processing of chromite ores increases production costs. Economic downturns reduce capital expenditures by end-use industries.

Key Takeaways

The Global Refractories Market Demand is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing steel production worldwide. Asia Pacific currently dominates the market, accounting for over 45% share in 2023 primarily due to China’s large refractories production and consumption. Europe is the second largest refractories consumer, while South America is forecasted to grow at the fastest pace.

Regional analysis fastest growing and dominating region. Asia Pacific is currently the largest as well as the fastest growing refractories market. Expanding steel and cement plants in China and India is driving demand. Europe is the second major consumer of refractories. South America is projected to witness the highest CAGR during the forecast period on account of rapid urbanization and infrastructure projects in Brazil.

Key players operating in the refractories market are Puyang Refractories Group Co. Ltd., Chosun Refractories, INTOCAST AG, Harbisonwalker International, Saint-Gobain, IFGL Refractories Ltd., Vesuvius, Imerys, Shinagawa Refractories Co. Ltd., Krosaki Harima Corporation, RHI Magnesita GmbH, Magnezit Group, Resco Products, Minerals Technologies Inc., Refratechnik, and Morgan Advanced Materials. Mergers and acquisitions remain key strategies of these players to penetrate new geographies and enhance technology capabilities.

Note:

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it