April 24, 2024
Refractories Market

The Global Refractories Market Is Driven By Growth In Steel And Cement Industries

Refractories are heat-resistant materials that form a thermal barrier and protect furnaces or fireplaces from melting under high temperature in industrial processes. Refractories are used in lining of high temperature furnaces, kilns, incinerators and other heated equipment in various industries such as iron & steel, non-ferrous metals, glass, cement and energy & chemicals. Refractories provide thermal protection, corrosion and erosion resistance and are used to withstand high temperature as high as 3000°C while they are in close proximity to the heat source. The global refractories market is estimated to be valued at US$ 66374.39 Mn in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

One of the key trends in the refractories market is the development of green refractories. Conventional refractories release greenhouse gasses and other emissions during their production as well as combustion which adversely impacts the environment. Moreover, increased awareness regarding global warming and climate change has driven the demand for eco-friendly products across different industries. To fulfill this demand, manufacturers are developing refractories using raw materials that release lower carbon emissions and are recyclable. For instance, bio-based binders are being used in carbon-based refractories as a substitute for conventional materials. Also, recycled clay containing high iron content is used as a substitute for traditional raw materials. Such eco-friendly product launches are expected to gain traction in the coming years thereby driving the green refractories market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low as refractories require high capital investments to establish production plants and distribution channels.

Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have many established players to choose from however changing suppliers involves significant switching costs.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in refractories such as clay and magnesite have few substitutes however established suppliers have significant bargaining power.

Threat of new substitutes: The threat of new substitutes is low as substitutes for high temperature materials are limited and developing new materials requires significant investments.

Competitive rivalry: The competitive rivalry is high among established players due to their global presence and capabilities to produce customized products.

Key Takeaways

The global Refractories Market Growth is expected to witness high growth.

Asia Pacific region currently dominates the market owing to presence of bulk of manufacturers and rapid infrastructure development activities. China contributes largest share to the regional as well as global refractories market.

Key players operating in the refractories market are RHI Magnesita, Vesuvius, Krosaki Harima Corporation, Shinagawa Refractories, Saint-Gobain, Corning Incorporated, Morgan Advanced Materials. Refractories producers are focussing on capacity expansions and acquisitions for further strengthening their market position. Established players are investing in R&D to develop advanced non-clay refractory materials with lower carbon footprints.

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