Refractory Metal Market - Forecast(2024 - 2030)

Refractory metal market size is forecast to reach USD 11,417.91 million by 2030, after growing at a CAGR of 2.08% during 2024-2030. Refractory metals are a group of metals with exceptional heat and wear resistance. The expanding usage of refractory metals in industrial and consumer items, such as lightbulbs and welding consumables, as well as the rising need for high-temperature resistant materials, are the main drivers of the global refractory metals sector. Refractory metal demand is projected to be fueled by expanding urbanization and industrialization, especially in developing countries like China and India. These countries have made large expenditures in residential and commercial development. The market need may also increase as construction activity increases in developing countries. 

The expanding industrial demand for metals and minerals, particularly molybdenum, and tungsten, has led to a rapid expansion of the mining industry. Tools for drilling and excavating in the mining sector use refractory metals. Consequently, it is anticipated that throughout the projected period, the expansion of global mining activities would present new opportunities for the market for refractory metals.

The report “Refractory Metal Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the refractory metal market.

By Melting Temperature Type: High Melting Point Metals (Niobium, Molybdenum, Tantalum, Tungsten, and Rhenium), and Low Melting Point Metals (Vanadium, Hafnium, Titanium, Zirconium, Ruthenium, Osmium, Rhodium, and Iridium)

By Application: Lighting Applications, Furnaces, Probes, Surgical Clips, Stainless Steel, Others, 

By End Use Industry: Steel Industry, Electronics Industry, Nuclear Power Generation Industry, Aerospace Industry, Manufacturing Industry, Medical Industry, Mining Industry, and Others 

By Geography: North America, South America, Europe, APAC, and RoW

• On the market for refractory metals, China holds a dominant position. Increasing domestic demand, China's rapid economic development has significantly increased domestic demand for refractory metals, especially in fields such as aerospace, defense, and electronics. For instance, China is currently the world's largest consumer of niobium, making up about 25% of global consumption. Chinese companies have been inspired by this situation to increase their production capabilities and invest in new technology.

• Because of the high temperatures produced by jet engines, refractory metals are used as a superalloy in jet engine parts. The primary use of rhenium is in the aerospace industry. Airbus forecasts a demand for 39,490 new passenger and freighter aircraft between 2022 and 2041 and Boeing estimates that 7,450 new planes will be required in Europe between 2014 and 2033. Thus, refractory metals demand is currently increasing due to increased demand for engines in both commercial and military jets.

• Tungsten is the dominant segment in the refractory metal market. Among refractory metals, tungsten has the highest melting point and one of the highest metal densities. When combined with other elements such as carbon, it can become extremely hard and is not particularly expensive, so it is the go-to metal for high temperatures, increasing its market demand for a variety of applications such as light bulb filaments, welding electrodes, and furnace heating elements. Also, it is predicted that during the projected period, the number of tungsten manufacturing sites would increase, thus boosting the tungsten sector. The US Geological Survey predicted that additional tungsten production would start in 2023 and would come mostly from reactivated mines in Australia, the Republic of Korea, and the United Kingdom. 

High Melting Point Metals (2000°C) dominated the refractory metal market in 2023 with a market share of 63%. The growth is driven by the rising production of aerospace-related components and increased use of refractory metals in industrial products. Principal materials in the group are tungsten, tantalum, molybdenum, and niobium, all of which are routinely used in the furnace industry. The industrial sector uses more delivered energy than any other end-use sector, consuming about 54% of the world’s total delivered energy and the metal industry has a significant share in total industrial energy consumption.

The majority of these metals' applications are in the metallurgy, scientific, and engineering industries. Refractory metals are also chemically inert and have a high density. Their high melting points give way to powder metallurgy as the choice for manufacturing different components, resulting in an expanding market share for high melting point metals of the refractory metals. These high melting points refractory metals like rhenium are used by the oil industry to make catalysts, and it is anticipated that this trend will continue. In contemporary manufacturing, catalysts are crucial. Around 80% of all manufactured goods are produced nowadays with the help of catalysts.

Stainless steel dominated the refractory metal market in 2023 with a market share of 31%. Stainless steel is a type of steel that contains a minimum of 10.5% chromium by mass. Other alloying elements may also be added to stainless steel to improve its properties, including its resistance to corrosion, strength, and durability. Several types of stainless-steel products may be made using refractory metals. For instance, tungsten is utilized in the creation of high-speed stainless steel cutting tools, whereas molybdenum is occasionally added to austenitic stainless steel to increase its corrosion resistance.

According to the World Stainless steel Association, the production of stainless steel has increased, from 50730 to 58298 thousand metric tonnes from 2018 to 2021 respectively. Refractory metal demand has increased along with the demand for stainless steel. Also, the use of molybdenum in stainless steel alloys for tankers and chemical and pharmaceutical manufacturing plants is promoting market expansion. Overall, the use of refractory metals in stainless steel is high and depends on the specific application and properties required for the end product.

Steel Industry dominated the refractory metal market in 2023 with a market share of 22%. In the production of steel and iron, refractory materials are used to stop or slow down the creation of slag during the smelting processes. These substances' primary purpose is to absorb heat from molten metal and transfer it to the atmosphere. This avoids the buildup of significant volumes of slag, which could otherwise result in issues like elevated production costs and environmental damage. Zirconia (ZrO2), alumina (Al2O3), silica (SiO2), and magnesia (MgO) comprise the majority of these refractories (ZrO2).

According to the American Iron and Steel Institute, In the United States, 1,664,000 net tonnes of raw steel were produced, with a 74.4 percent capacity utilization rate. The capability utilization was 80.8% during the week ending February 11, 2022, when production was 1,755,000 net tonnes. The market for refractory metals is growing along with the manufacturing of steel.

Asia-Pacific dominated the refractory metal market in 2023 with a market share of 35%. Rapid economic growth in China has greatly raised local demand for refractory metals in APAC, particularly in industries like aerospace, military, and electronics. This circumstance has motivated Chinese businesses to boost production capacity and make investments in new technology. With the closing of numerous smaller mines and processing facilities in favor of larger, more efficient operations, the tungsten industry in China has lately undergone major strengthening.

China remained the world's largest producer of tungsten in 2021. According to the statistics from the U.S. Geological Survey, China's tungsten concentrate output reached 71,000 metric tons in 2022, which is roughly the same level as in the previous year. India has also advanced to a new stage of development due to the sector's emphasis on regulation and the enormous construction of infrastructure during this time. For instance, a growth strategy for infrastructure development was outlined in the union budget for the fiscal year 2022–23 and covered, among other things, roads, public transportation, logistics, housing, transportation, and commercial real estate. As a result, its growth will have a positive interdisciplinary cascading effect on many industries and markets, including the market for refractory metal in India. Furthermore, Japanese manufacturers have been growing their businesses through joint ventures and acquisitions in refractory metals.

• Growing demand for high-performance materials to support the refractory metals industry’s development

The growing demand for high-performance materials in industries such as electronics, steel, mining, and many others is driving the growth of the refractory metal market. Refractory metals exhibit a variety of properties such as high melting points, malleability, corrosion resistance, coatings and parts, and load-bearing components making them ideal for applications in these industries.

Governments and investors are also allocating funds and investments to support the development, production, and adoption of these materials. For instance, in 2022, the UK government announced an investment of $291.86 million in transforming the nation's aerospace innovation technology. The money will be used to create cutting-edge technologies including drones that can provide medical treatments and solar-powered aircraft.  Also, owing to this support, low-carbon aerospace innovation, economic expansion, and job creation will all advance. 

• Increasing industrialization and urbanization  

Industrialization and urbanization are driving the demand for refractory metals due to the rapid expansion of infrastructure projects and the need for better materials in industrial processes. This, in turn, is pushing the refractory metal market to new heights. According to the Global Steel Association, in 2021, the total amount of steel produced worldwide increased by 3.7% year over year to 1950.5 metric tonnes. It shows that the steel market is responding to this demand by increasing production and researching new materials used in various processes such as making furnaces, melting, casting, and many others. 

Significant expenditures in residential and commercial development have been made as a result of the expanding urbanization and industrialization, particularly in developing countries which is projected to increase demand for refractory metals.

• High cost and limited availability of refractory metals are hindering market expansion

Refractory metals are expensive to produce, due to their high melting points and the complex extraction and processing techniques required. The high cost can limit their adoption in certain applications and industries. Refractory metals, such as tungsten, molybdenum, tantalum, niobium, and rhenium, are relatively rare and difficult to extract. This limited availability can lead to price volatility, supply chain disruptions, and difficulty in meeting demand.

Refractory metals are often difficult to machine due to their hardness, brittleness, and low thermal conductivity, which makes them difficult to cut and shape. It typically requires extremely high temperatures to be melted and processed, which requires specialized equipment. The cost of the machinery is also anticipated to hinder the growth of the market. In addition, the limited availability of these metals is a result of their limited production and the demand for them often exceeds the supply. This is exacerbated by the fact that these metals’ availability is limited to the amount that is mined from the earth. These factors make it difficult for the market to expand and are a significant obstacle to the development of new applications for refractory metals. 

• Environmental Hazards and concerns

Refractory metals can have a large environmental impact due to their production and use. They are often produced in harsh conditions and require heavy metal processing, which can pollute the environment.  However, these metals can be hazardous to the environment if they are not properly handled and disposed of. Additionally, the use of refractory metals can contribute to air pollution and can harm the health of both humans and animals.

Furthermore, the extraction and processing of refractory metals can result in the release of toxic materials into the environment, which can further damage the ecosystem. Therefore, strict regulations and safety protocols must be in place to ensure that any use of refractory metals does not harm the environment. In 2019, to ensure the accuracy and dependability of the current refractory standards in the region, efforts like ReStaR (Review and improvement of testing Standards for Refractory Products) have been undertaken in Europe. These environmental regulations and limitations on the usage of refractory metals serve as a restraint on the market's expansion.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the refractory metal market. In 2023, the refractory metal market share has been fragmented by the major players accounting for 35.48% of the share. Major players in the refractory metal market are Jinduicheng Molybdenum Co., Ltd., Xiamen Tungsten Industry Co., Ltd., CBMM, Molymet, Plansee Group, Treibacher Industrie AG, ATI, H.C. Starck Tungsten GmbH, Ningxia Orient Tantalum Industry, Global Tungsten & Powders Corp., Climax Molybdenum, and others.

In December 2022, the acquisition of the US company Mi-Tech Tungsten Metals in Indianapolis has been approved by the authorities. Mi-Tech will be incorporated into the Plansee High-Performance Materials business area's global manufacturing and marketing network.

In North America, Plansee Group is strengthening its position in the tungsten product market. In December 2022, The Plansee Group has a binding contract in place to buy Indianapolis-based Mi-Tech Tungsten Metals from the US. Over 100 individuals work for Mi-Tech, which is regarded as one of the top manufacturers of tungsten-based goods in the US.