Sponge Zirconium Market Overview
The sponge zirconium market size is
forecast to reach US$857.2 million by 2027, after growing at a CAGR of 5.3%
during 2022-2027. Globally, the usage of sponge zirconium in various
applications of chemical, military, nuclear and other industries is driving the
market growth. The increasing
utilization of industrial grade sponge zirconium in nuclear industry to produce zircaloy for nuclear reactor components is driving the demand
for sponge zirconium. Additionally, sponge zirconium, is a
sliver metal which is utilized for the manufacture of structural materials and
components for submarines, power generation reactors, and other applications in
military and defence industry. Additionally, sponge zirconium is applied for
the manufacture of chemical corrosion resistance equipment in nuclear and defence
industry. It is also known to resist different types of
corrosions including pitting corrosion which is forecasted to drive the global
sponge zirconium industry growth.
COVID-19 Impact
The COVID-19 outbreak widely affected the nuclear industry, military industry, chemical processing, and other industries. Owing to nationwide lockdown, the production process of various goods in these industries declined due to the non-functioning of the manufacturing plants. Economies of each sector got affected and resulted in stagnation of activities across the sectors that use sponge zirconium. For instance, according to the European Parliament, the fall in demand for chemicals inevitably resulted in shrinking production and reduced supply. In June, a 2.9% output growth was registered compared to May, showing some early and modest signs of recovery. Altogether, the total output for the chemical sector dropped by 2.8% from January to November 2020 compared to 2019. However, rising demand for nuclear reactor, and chemicals emerged as a driving factor for the sponge zirconium market during these challenging times.
Report Coverage
The report: “Sponge Zirconium Market Report
– Forecast (2022 - 2027)”, by
IndustryARC, covers an in-depth analysis of the following segments of the global
sponge zirconium industry.
Key Takeaways
- The Asia Pacific region dominates the sponge zirconium market owing to the rising growth and increasing investments in the military and defence industry. For instance, according to the Defence and Security Industrial Strategy, in UK, in 2021, the government invested US$ 31.2 billion in defence over the next four years, and the plans for that investment had been set out in the Defence Command Paper.
- Rapidly rising demand for global sponge zirconium in the chemical processing industry for corrosion-resistant structural material, has driven the growth of the sponge zirconium market.
- The increasing demand for global sponge zirconium in nuclear industry, due to its usage in the production of zirconium alloys, has been a critical factor driving the growth of the sponge zirconium market in the upcoming years.
- However, the strict regulations regarding the use of zirconium can hinder the growth of the sponge zirconium market.
Figure: Asia-Pacific Sponge Zirconium Market Revenue, 2021-2027 (US$ Million)
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Sponge Zirconium Market Segment Analysis – By Grade Type
The nuclear grade segment held the largest share in the sponge zirconium market in 2021. The main usage of sponge zirconium which is a sliver metal, is in the nuclear grade in nuclear industries to produce zirconium alloys that is zircaloy for nuclear reactor components such as cladding in fuel elements and also nuclear grade sponge zirconium has a higher purity as compared to industrial grade, metallurgical grade, and other grades. In nuclear industry hafnium in a minimum content is also required, however of which about 70 percent is nuclear grade. Additionally, nuclear grade zirconium sponge is primarily used for the powdered aircraft industry and nuclear submarines. Thus, with the rising demand for nuclear grade, the market growth for global sponge zirconium is expected to rise in the forecast period.
Sponge Zirconium Market Segment Analysis – By Application
The military & defence industry held the largest share in the sponge zirconium market in 2021 and is expected to grow at a CAGR of 5.8% during 2022-2027. In the military & defence segment, sponge zirconium in powdered form is utilized in the production of fire-inducing materials, military blowing agents, and flash powder. Nuclear grade sponge zirconium is an essential military strategic metal, utilized for the manufacture of structural materials and components for submarines, power generation reactors, and aircraft carriers. Additionally, Industrial grade sponge zirconium is primarily used for the manufacture of chemical corrosion resistance equipment in military and defence industry. The rise in the military and defence industry with rapidly increasing government investments, is driving the sponge zirconium market growth. For instance, according to the Indian brand equity foundation (IBEF), in October 2021, India signed contracts and cleared projects worth US$ 7.21 billion, to enhance military capability with locally produce weapons and systems, including tanks, airborne early warning systems, transport planes, counter-drone weapons, and helicopters. Thus, with the growth of the military & defence sector, the market growth for global sponge zirconium will further rise over the forecast period.
Sponge Zirconium Market Segment Analysis – By Geography
Asia-Pacific region dominated the sponge zirconium market with a share of 39.5% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for sponge zirconium in developing countries such as China, Japan, India, and South Korea. India is expected to continue its dominance in the sponge zirconium market during the forecast period. This is due to the growth of the chemical industry in the country. For instance, according to the Indian Brand Equity Foundation, in 2019 the Indian chemical industry stood at US$ 178 billion and is expected to reach US$ 304 billion by 2025. The chemical industry is expected to contribute US$ 300 billion to India’s GDP by 2025 and an investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. Sponge zirconium is also applied in military, nuclear, and other industries. It is widely utilized as an oxygen getter and catalyst. Zirconium sponges are cellular structures produced with a large volume fraction of pores. Sponge exhibits characteristics such as low-density, high-energy absorbance, high stiffness, low thermal conductivity, fire and pitting corrosion resistant, sound dampening qualities, and low magnetic permeability. Hence, zirconium sponges are used in applications such as heat exchangers, flow diffusion, lightweight optics, and for energy absorption. Thus, the increasing demand and growth in applicable industries, will drive the sponge zirconium market growth in the forecast period.
Sponge Zirconium Market Drivers
Surging Demand for Sponge Zirconium from Chemical Processing Sector
Sponge zirconium forms an oxide film at room temperature. This oxide film makes sponge zirconium and its alloys to have a good corrosion resistance characteristic. Additionally, it has good mechanical and heat transfer characteristics, along with the cost advantages, making sponge zirconium a good corrosion-resistant structural material in chemical processing industry. The increasing government investments in chemical sector is driving the market growth. For instance, according to the Indian Brand Equity Foundation (IBEF), in November 2021, Indian Oil Corporation (IOCL) invested Rs. 3,681 crores (US$ 495.22 million) to set up India’s first mega-scale maleic anhydride unit for manufacturing high-value specialty chemicals at its Panipat Refinery in Haryana. Thus, the rising growth and increasing investments in chemical processing industry, the market growth for global sponge zirconium is estimated to rise in the forecast period.
Increasing Nuclear Industry Is Driving the Sponge Zirconium Market Growth
The primary use of sponge zirconium in the nuclear industry is to produce zirconium alloys for nuclear reactor components, such as cladding for fuel rods. The growth and increasing investments by the government in the nuclear industry is driving the market growth. For instance, according to the world nuclear association, France derives about 70% of its electricity from nuclear energy, due to a long-standing policy based on energy security. In February 2022, France announced to build six new reactors and to consider building a further eight. Additionally, according to the government of Canada, Ontario invested US$25 billion over 2016-2031 to extend the life of 10 nuclear reactors to maintain nuclear power capacity. Thus, with the increasing growth of the nuclear industry, the market growth for global sponge zirconium is estimated to rise in the forecast period.
Sponge Zirconium Market Challenges
Strict Regulations Regarding the Use of Zirconium will Hamper the Market Growth
The utilization of zirconium is a major concern due to the health problems associated with it. Since, exposure to zirconium can cause eye irritation, lung irritation, and allergic skin reaction. Many governing bodies are continuously monitoring the proper use and effect on human health of zirconium. For instance, the Occupational Safety and Health Administration (OSHA) has set an exposure limit of 5 mg/m3. Thus, such strict regulations associated with the usage of zirconium is estimated to hinder the sponge zirconium market growth during the forecast period.
Sponge Zirconium Market Industry Outlook
Technology launches,
acquisitions, and R&D activities are key strategies players adopt in the sponge zirconium market. Global sponge zirconium top 10 companies include:
- ATI Metals
- Western Zirconium
- Cezus-Areva
- Chepetsky Mechanical Plant
- State Nuclear Baoti Zirconium
- Guangdong Orient Zirconic
- China Nuclear Energy Industry Corp.
- Nuclear Fuel Complex
- Jiangxi Kingan Hi-Tech Co. Ltd
- Shanghai Greenearth Chemicals Co., Ltd
Recent Developments
- In October 2021, Russia has developed a new process line for manufacturing the zirconium sponge needed for nuclear fuel assemblies. A new facility to make the substance has been launched by Rosatom subsidiary TVEL at its Chepetsky Mechanical Plant.
- In August 2020, China developed nuclear class sponge zirconium, developed by China Nuclear Energy Industry Corp., a subsidiary of China National Nuclear Corporation.
Relevant Reports
LIST OF TABLES
1.Global Sponge Zirconium Market, by Type Market 2023-2030 ($M)2.Global Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
3.Global Sponge Zirconium Market, by Type Market 2023-2030 (Volume/Units)
4.Global Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 (Volume/Units)
5.North America Sponge Zirconium Market, by Type Market 2023-2030 ($M)
6.North America Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
7.South America Sponge Zirconium Market, by Type Market 2023-2030 ($M)
8.South America Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
9.Europe Sponge Zirconium Market, by Type Market 2023-2030 ($M)
10.Europe Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
11.APAC Sponge Zirconium Market, by Type Market 2023-2030 ($M)
12.APAC Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
13.MENA Sponge Zirconium Market, by Type Market 2023-2030 ($M)
14.MENA Sponge Zirconium Market Analysis and Forecast by Type and Application Market 2023-2030 ($M)
LIST OF FIGURES
1.US Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)2.Canada Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
3.Mexico Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
4.Brazil Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
5.Argentina Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
6.Peru Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
7.Colombia Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
8.Chile Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
9.Rest of South America Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
10.UK Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
11.Germany Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
12.France Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
13.Italy Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
14.Spain Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
15.Rest of Europe Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
16.China Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
17.India Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
18.Japan Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
19.South Korea Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
20.South Africa Global Sponge Zirconium Industry Market Revenue, 2023-2030 ($M)
21.North America Global Sponge Zirconium Industry By Application
22.South America Global Sponge Zirconium Industry By Application
23.Europe Global Sponge Zirconium Industry By Application
24.APAC Global Sponge Zirconium Industry By Application
25.MENA Global Sponge Zirconium Industry By Application