The Global Industrial Explosives Market, By Deployment Model (High Explosives, Blasting Agents), By End-use industry (Metal Mining, Non-Metal Mining, Quarrying, Construction and Others), and By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2028, is expected to be valued at US$ 18,786.74 million by 2028, exhibiting a CAGR of 6.2% during the forecast period (2021-2028), as highlighted in a report published by Coherent Market Insights.
Industrial explosives are high hazard blasting explosives mainly used in quarrying, mining, and construction industry. The process of initiation of an explosive is termed as detonation. Industrial explosives are those explosives that find application in industrial activities such as mining, quarrying among others.
The global industrial explosives market is estimated to account for US$ 18,786.74 Mn in terms of value by the end of 2028
The steady growth of quarrying and construction sector is expected to propel the global industrial explosives market growth over the forecast period
According to Coherent Market Insights’ analysis, global construction industry is expected to be valued at US$ 15 trillion by 2025, increasing from US$ 8 trillion in 2012. Construction and mining activities are increasing in emerging economies such as MEA, Asia Pacific, and Latin America. Countries in Middle East & Africa such as Saudi Arabia and UAE, among others so also the countries in Asia Pacific such as India and Indonesia, among others are expected to focus on increasing their infrastructure and construction spending during the forecast period. Furthermore, the quarrying industry is expected to witness stable growth due to rising demand for sand and stone from the construction sector. Therefore, these factors are expected to propel the global industrial explosives market growth over the forecast period.
Robust growth of underground mining can present lucrative growth opportunities in the global industrial explosives market
Mining and exploration companies are focused on investments in extracting minerals from underground mines and incorporating advanced technologies to extract mineral-rich resources. Rising number of relatively mature mines with stringent regulations is expected to boost underground mining across the regions. For instance, in 2016, the Government of India announced an investment of US$ 119 Mn towards underground coal mines. Furthermore, key players are focused on mining industry with an emphasis on increasing depth of underground mines to extract minerals. For instance, in April 2014, KGHM Polska Miedź’ started a new project called ‘Deep Glogow’ for the extraction of copper and silver.
High cost of operation and maintenance is expected to hinder the global industrial explosives market growth over the forecast period
Storing and maintaining industrial explosives is a challenging task and requires an adequate storage facility. Furthermore, the operational cost of industrial explosives is significantly and high and requires industry expertise to perform properly. Therefore, these factors are expected to hinder the global industrial explosives market growth over the forecast period.
Major companies are focused on product launches, in order to enhance the product portfolio and gain a significant advantage in the market. For instance, in 2012, AEL Mining Services Ltd. introduced a shock tube Rhino Connector that offers increased reliability and mining productivity with less shrapnel. In 2014, Maxam launched an explosive facility in Mauritania, North Africa to facilitate explosive solutions for the Tasiast gold mine.
Key players are involved in business and capacity expansion, in order to expand the global market presence. For instance, in 2013, Dyno Nobel Pty Limited established a new production plant for ammonia in Waggaman, Louisiana with an 800,000 metric tons per annum capacity. In 2016, AEL Mining Services Ltd. expanded the supply of its products directly to customers in South America by setting up a supply officer in the region. Furthermore, in 2015, Maxamcorp Holding S.L. established a production facility for bulk emulsion solutions in Ogdensburg, New York.
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.
Major companies operating 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.