INDUSTRIAL EXPLOSIVES MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global Industrial Explosives market size was valued at US$ 7.6 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.6% from 2022 to 2030.

An explosive is a reactive chemical substance, which contains a significant amount of potential energy that can produce an explosion if and when released suddenly. It is accompanied by the production of heat, light, pressure, and sound. Industrial explosives are high hazard blasting explosives mainly used in quarrying, mining, and construction industry. The choice of industrial explosives for a typical task depends upon major parameters including detonation pressure, the velocity of detonation, density, water resistance, storage life, and sensitivity. Industrial explosives are classified into following key types depending on their cap sensitivity namely high explosives and blasting agents.

Global Industrial Explosives Market: Regional Insights

Asia Pacific held a dominant position in the global Industrial Explosives market in 2022 accounting for 43.2% share in terms of value, followed by North America, Europe, Latin America And middle East and Africa

Figure 1: Global Industrial Explosives Market Share (%), By Region, 2022

In the global industrial explosives market, the Asia Pacific region emerged as the leader in terms of revenue share in 2022. This can be attributed to various factors including the availability of earth minerals, cost-effective labor, and a growing preference for the use of explosives in mining industry. China, India, Australia, and Indonesia are particularly driving the demand for industrial explosives in this region. The countries in Asia-Pacific prioritize mining activities to extract valuable mineral resources, which contribute significantly to their General Data Protection (GDP) growth.

Global Industrial Explosives Market- Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. This is attributed to downfall in the manufacturing of metal in engineering and construction sectors which have direct impact on the demand of industrial exclusives market. Industrial explosives are high hazard blasting explosives mainly used in quarrying, mining, and construction industry. Metal manufactures have experienced huge pressure due to decrease in demand, production and revenues. According to a recent survey of the National Association of Manufacturers (NAM), most of the metal manufacturers have faced around 80% financial impact on their businesses.

Global Industrial Explosives Market- Drivers:

A rise in the demand for construction materials sourced through quarrying

Quarrying operations play a crucial role in the supply of construction materials needed for the construction of roads and buildings. The rising need for mining explosives can be attributed to the escalating utilization of rocks, limestone, and construction stones in the construction industry. Quarries extract sand, gravel, and crushed rock, which are commonly referred to as aggregates, to cater to the construction industry's requirements. The worldwide need for aggregates continues to be significant due to their vital role in constructing residential houses, commercial buildings, industrial facilities, educational institutions, healthcare centers, and various infrastructure ventures.

In February 2022, the market for mineral products, including aggregates, concrete, asphalt, and mortar, experienced a notable surge in demand in Britain during 2021, exhibiting double-digit growth. This remarkable recovery indicates a significant rebound from the slowdown caused by the pandemic in the previous year.

The increasing number of tunnel construction and development projects

The process of construction of tunnel projects requires rock excavation. The drill and blast method is widely employed for rock excavation and is applicable to various types of rocks including igneous, sedimentary, and metamorphic rocks. When executed properly, it proves to be highly efficient, reducing both time and labor requirements. Consequently, the global industrial explosives market experiences growth due to the increasing demand for improved connectivity and efficient excavation techniques facilitated by industrial explosives. Moreover, industrial explosives are utilized in the excavation of land for the construction of dams, lakes, and other man-made water reservoirs. Artificial water reservoirs meet the dual needs of water for consumption and the generation of hydroelectric power, which acts as a critical growth driver of the global market.

In June 2022, India witnessed a rapid growth in the construction of tunnels, with the planning and execution of these projects being accompanied by numerous challenges. A panel of experts, representing various stakeholders, highlighted critical concerns regarding the future trajectory of the industry.

Global Industrial Explosives Market - Opportunities:                 

Merger and acquisition activities among market players

Major players in the market are involved in merger and acquisition activities, in order to gain a significant advantage in the market. For instance, in November, 2022, Rheinmetall (RHMG.DE), a Germany-based military equipment manufacturer, announced that it had reached to an agreement to purchase Expal Systems, a Spain-based company specialized in explosives and ammunition. The acquisition deal was valued at US $1.24 billion.

Government actions in the mining industry

Diverse industries greatly value mineral commodities, encompassing coal, metal ores, and rocks, due to their substantial importance. The role of coal in electricity generation is critical, while aluminum and bauxite are indispensable in construction and automotive sectors. Gypsum is extensively utilized in various applications, including cement production, wallboards, plaster of Paris, soil conditioners, and hardening retarders. Consequently, countries blessed with abundant mineral resources can leverage them to achieve macroeconomic stability, similar to oil and gas-rich nations. A lack of mining activities amplifies the dependence on mineral imports, which poses economic disadvantages. To tackle this, government mining departments invest in new mining projects to reduce reliance on mineral and coal imports. Such investments create profitable opportunities for expanding the global industrial explosives market. Furthermore, transformative initiatives like "Make in India" and the liberalization of Foreign Direct Investment (FDI) up to 100% are expected to bring about revolutionary changes in India's metals and mining sector, presenting advantageous prospects for market growth.

In December 2022, key milestones achieved by the Mines Ministry in 2022 included the Geological Survey of India (GSI) conducting cutting-edge mineral exploration activities with advanced technology. Additionally, Khanij Bidesh India Limited (KABIL) intensified its endeavors to secure strategic minerals from countries like Australia, Argentina, and Chile. Other notable achievements encompassed the successful auctioning of 90 mineral blocks and the establishment of District Mineral Foundation (DMF) in 622 districts.

Global Industrial Explosives Market- Trends:

Rapid growth of coal-fired power generation 

Rising urbanization has led to increasing demand for power. Government authorities need to meet the increasing energy demand with rising population. According to Coherent Market Insights’ analysis, global power generation is expected to witness a significant growth of 19.5% during 2022-2030. According to the U.S. Energy Information Administration (EIA), by 2040, the power generated using coal is expected to account for nearly 29% share in overall generated power, witnessing a decline of nearly 11% in its share between 2012 and 2040. Although there has been effort taken regarding renewable and cleaner energy sources for power generation, coal-fired power generation remains a major source of energy. Therefore, these factors are expected to drive growth of the global industrial explosives market during the forecast period.

In April 2023, India's coal-fueled power output experiences its fastest growth rate in 33 years. India's power generation grew at the fastest pace in over three decades in the just-ended fiscal year, a Reuter’s analysis of government data showed, fuelling a sharp surge in emissions as output from both coal- fired and renewable plants hit records.

Use of Industrial Explosives in Construction Industry

The increasing utilization of explosives in the construction industry for tasks such as road carving, excavation for building foundations, and demolition work is driving market growth. The creation of advanced explosives enables speedy and cost-effective construction processes, especially in demolition. The benefits of employing explosives in demolitions also encompass reduced time requirements and enhanced safety measures. As an illustration, the Supreme Court of India mandated the use of explosives for demolishing the twin towers of Supertech Emerald Court housing society. The demolition, scheduled for August 2022, is projected to involve approximately 2,500 to 4,000 kg of explosives.

On August 12, 2022, After the Supreme Court hearing on Friday, the demolition company will commence the charging process for the Supertech Twin towers in Noida, India, starting from Saturday. This step aims to ensure that the demolition takes place as scheduled on August 28 in Noida.

Global Industrial Explosives Market- Restraints:

Environmental Concerns

Industrial explosives, when not handled or disposed of properly, can have adverse environmental impacts. The release of harmful gases, pollution of water bodies, and disturbance to ecosystems are some of the concerns associated with the use of explosives. Increasing environmental consciousness and regulations aimed at minimizing these impacts pose challenges to the industry.

Dangers related to the use of explosives

The use of nitrogen explosives in mining presents a prominent risk of explosions. Blasts and shots are controlled releases of chemical energy, but the potential for uncontrolled release of stored energy also exists, sometimes going unnoticed. These unforeseen events can cause damage to equipment and infrastructure, release dangerous shrapnel, and result in injuries or even fatalities. The pathways through which individuals can come into contact with hazardous chemicals are known as exposure pathways. There are three primary exposure pathways: inhalation, ingestion, and skin contact. Employers have a legal obligation to compile written process safety information (PSI) regarding highly hazardous chemicals and process equipment for all processes covered by Process Safety Management (PSM) regulations. The compilation of such information helps employers and workers involved in operating the process to identify and comprehend the hazards associated with their operations.

Figure 2: Global Industrial Explosives Market Share (%), By Type, 2022

Global Industrial Explosives Market- Segmentation:

Global industrial explosives market report is segmented into, By Type (High Explosives, Blasting Agents), By End-use industry (Metal Mining, Non-Metal Mining, Quarrying, Construction and Others)

In 2022, the High Explosives segment held the largest revenue share within the overall market for industrial explosives. This was primarily driven by the growing demand for blasting agents in the mining industry. The utilization of blasting agents in mining activities has experienced rapid expansion due to the increased need for mineral extraction. Additionally, these agents are being extensively employed in construction projects due to their cost-effectiveness and convenient storage. Moreover, the rise in rapid excavation projects and the global demand for minerals and coal have played a significant role in fostering the growth of the blasting agents segment.

Highly explosive materials are substances that have the potential to rapidly release a large amount of energy in the form of an explosion when ignited or exposed to certain conditions. These materials are commonly used in various industries for their explosive properties, such as mining, construction, demolition, and pyrotechnics. They can be categorized into different classes based on their chemical composition and properties. These are extremely sensitive and can be easily initiated by heat, friction, or shock. Primary explosives are often used as initiating agents for Blasting Agents. Examples include mercury fulminate, lead azide, and lead styphnate.

Global Industrial Explosives Market: Key Developments

In October, 2022, Orica Limited, A leading explosives manufacturing company has made an announcement regarding its acquisition of Axis Mining Technology a global supplier of advanced drill-hole navigation and measurement technologies. This strategic acquisition is expected to unlock new avenues for growth within the mining value chain for the company.

In April 2022, Enaex S.A., a prominent player in the explosives industry, has effectively conducted trials on remote, robotic, and autonomous loading of explosives as a solution to address mining challenges in deep and intricate terrains.

In May 2021, Austin Powder has taken its explosives production to new heights by upgrading its HMX plant in Rafaela. This modernization has enabled Austin Powder to manufacture a cutting-edge "Class 5" granulometry product, specifically micronized, which is crucial for the production of shock tubes. The development of Class 5 HMX took place at the Rafaela Plant in collaboration with a customer and competitor from the explosives industry.

In June 2021,Chemring Group PLC had completed the acquisition of Cubica Technology Limited and Q6 Holdings Limited. This strategic move is anticipated to generate additional prospects for Chemring Group PLC to strengthen and expedite its Roke business.

Global Industrial Explosives Market: Key Companies Insights

Global industrial explosives market is highly competitive, owing to rising launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global industrial explosives market are Orica Limited, Irish Industrial Explosives Limited, Dyno Nobel Pty Limited/ Incitec Pivot Ltd., NOF Corporation, AEL Mining Services Ltd. / AECI Group, EURENCO, Enaex S.A., Austin Powder Holdings Company, Maxamcorp Holding S.L., and Exsa S.A.,

*Definition: Industrial explosives refer to highly controlled and specialized materials that are designed and manufactured for various industrial applications, particularly in the mining, construction, and demolition sectors. These explosives are formulated to release a significant amount of energy in a controlled manner when ignited, facilitating tasks such as rock blasting, excavation, and structural demolition. Industrial explosives are typically composed of a mixture of chemicals, such as ammonium nitrate and fuel oil (ANFO), or other explosive compounds, and they are carefully regulated and handled due to their potential for causing damage and injury if not used properly.