Industrial Refractory Materials Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Composition (Clay-Based, Non-Clay Based), By Industry (Metallurgical, Glassmaking, Ceramics, Others), And By Geography- Forecasts From 2022 To 2027

The industrial refractory materials market is expected to surge with a CAGR of 5.74% to achieve a market size of US$30.039 billion by 2027, from US$20.318 billion in 2020.

The market is expected to grow in the forecast period owing to the immense utilization of refractory materials in various end-use industries. The major industries include steel and foundry industries, glass, and cement, among others. The growing iron and steel industries are driving the growth of the global industrial refractory materials market in the forecast period. Refractory materials are resistant to heat and are used in providing linings for high-temperature furnaces, reactors, and other processing units. The increasing construction activities worldwide along with growing urbanization is further providing an impetus to fuel the demand for refractory materials, which is driving the market growth. The expanding global automotive industry will also contribute to market growth during the forecast period. Furthermore, the growing adoption of consumer electronics, particularly in developing economies, is driving the market growth during the forecast period. This is due to an increase in the middle-class population, rising disposable income, and rising family income.

Geographically, North America and Europe are expected to hold a significant market share due to construction activities in these regions, with significant construction spending in the North American region in particular. Because of the growing construction industry and rapid urbanisation, the Asia Pacific region is expected to be the largest market. Furthermore, the growing middle-class population provides a large consumer base for the use of refractory products in their daily activities such as automobiles, smartphones, cutlery, and many more. Furthermore, the increasing investments in infrastructural development in APAC countries, leading to an increase in construction activities at home, hospitality, and commercial and industrial sectors, are expected to boost the global industrial refractory materials market's growth over the next five years. In addition, the growing electronics industry and the rising automotive industry, with the purchase of new vehicles, are driving the market’s growth. Moreover, advancements in technology in the refractory materials industry resulting in the development of innovative products such as advanced ceramics are burgeoning the growth of the global industrial refractory materials industry.

The growing world steel industry is fueling the growth of the global industrial refractory material market during the forecast period.

The World Steel Association (WSA) predicts that the global steel industry will continue to expand, with China leading the way, followed by India, Japan, and the United States. Despite the pandemic's devastating impact on lives and livelihoods, the global steel industry was fortunate enough to end 2020 with only a minor decline in steel demand. This was due to China's surprisingly strong recovery, which saw 9.1% growth. Steel demand in the rest of the world fell by 10.0%. Steel demand will recover strongly in the coming years, both in developed and developing economies, supported by pent-up demand and government recovery programmes. However, most developed economies will need several years to return to pre-pandemic levels of steel demand.

Steel demand in developing economies other than China fell 7.8% in 2020. However, the picture varied within emerging economies. The most affected countries were India, the Middle East, and the majority of Latin American countries.

Steel demand in developing economies is expected to rebound relatively quickly in 2021 and 2022, benefiting from global economic recovery and renewed government infrastructure initiatives, with the growth of 10.2% and 5.2%, respectively. A faster recovery will be hampered by debt accumulation, a lack of recovery in international tourism, and slow vaccination.

Hence, this provides strong prospects for the growth of the refractory materials market to proliferate in the forecast period. In 2021, 1,951 million tonnes of global crude steel were produced. China was the largest producer in 2021, producing 1023 million tonnes of steel. India produced 118.2 million tonnes, while Japan and the USA produced 96.3 million tonnes and 85.8 million tonnes respectively. In the other areas of the world, the demand for finished steel for 2022 and 2023 is listed as follows: in Europe, EU-27, the steel demand for 2022 comprises 161.5 Mt, and in 2023 it is expected to be 167.9 Mt. For other parts of Europe, the steel demand for 2022 is 42.3 Mt and 44.1 Mt in 2023. In the Middle East region, the finished steel demand in 2022 was 50.2 Mt and is projected to rise to 51.7 Mt. In Asia and Oceania, steel demand rose from 1,313.1 Mt in 2022 to 1,336.8 Mt in 2023. While demand for finished steel in Africa, Central and South America is expected to rise from 39.1 Mt to 40.7 Mt and 48.5 Mt to 50.3 Mt, respectively.

Furthermore, as the innovations in steel products continue to proliferate, this will continue to show favourable growth prospects for refractory materials in the forecast period. Notable investments in the steel industry are further promoting the market’s growth in the forecast period. In addition, the innovative breakthrough technologies for the development of steel are helping in curbing carbon emissions, aiming at lowering carbon footprints.

In the future, structural changes in a post-pandemic world will cause shifts in the shape of steel demand. Rapid developments in digitisation and automation, infrastructure initiatives, urban reorganisation, and energy transformation will present exciting opportunities for the steel industry. At the same time, the industry is responding to the demand for low-carbon steel.

On the basis of industry, glassmaking is expected to hold a significant market share, propagating the market demand during the forecast period.

The global glass industry is expected to grow at a significant growth rate. The increase is primarily due to increased demand for glass in a variety of applications, including various residential and commercial infrastructure projects. The soaring demand for glass substrates from the transportation, electronics, and semiconductor sectors, particularly from the world's developing economies, is driving market demand. With increasing urbanisation, robust demand for housing, and investments by glass manufacturers, the Asia Pacific region is expected to be the largest market for glass consumption, particularly float glass. China, Germany, the United States, France, Japan, Spain, Argentina, Australia, Canada, Egypt, India, and Sri Lanka are among the other users. In addition, the glass industry is highly concentrated. For example, in the case of flat glass production alone, four companies dominate the global market. Nippon Sheet Glass (NSG) Group, Asahi Glass Company (AGC), Saint-Gobain, and the Guardian Group are among them.

Recent development and expansions

• RHI Magnesita establishes its North American headquarters in Tampa, Florida. The new headquarters will serve as the corporate hub for the company's current infrastructure in the United States, Canada, and Mexico in North America. The decision to locate their new North American headquarters in Tampa was strategic, as they have seen tremendous market development in the mid-Atlantic and southeastern regions of the United States in August 2022.
• Saint-Gobain Ceramics acquires Monofrax in April 2022. Saint-Gobain stated that the acquisition would aid in the company's growth in the refractory industry. Nicolas Miegeville leads the Saint-Gobain Ceramics business unit. This business unit includes SEFPRO and PCR (Performance Ceramic Materials).
• In May 2021, ArcelorMittal Refractories entered into a partnership with Krosaki Harima Corporation to increase production and broaden ArcelorMittal Refractories' refractory portfolio. Krosaki Harima will supply manufacturing technology and consumer services for associated products to steel mills in Europe under the terms of the agreement.

COVID-19 impact on the Industrial Refractory Materials Market

Coronavirus spread to over 180 countries, causing massive loss of life and economic impact worldwide. Because of its reliance on cement manufacturing, glass production, steel and metal, mining, heavy industrial, oil and gas, and other sectors, the refractory material market has suffered as a result of the COVID-19 pandemic. According to a report published by China's National Bureau of Statistics, the large-scale manufacturing industry saw a 20% decrease in production in March 2020 compared to March 2019, while profits fell by 66%. Several companies have either shut down or reduced their operations due to the risk of infections among workers in areas where refractory materials are used for thermal insulation. Customers' declining income and travel restrictions imposed by both local and government bodies have temporarily hampered the growth of the automotive sector, resulting in a contraction of demand for iron and steel where refractory materials are used for thermal stability. Several countries have temporarily halted trade in unnecessary products, causing the demand-supply chain of refractory material to be hampered in the midst of the COVID-19 situation. Structure changes in a post-pandemic world will cause shifts in the shape of market demand in the future.

Industrial Refractory Materials Market Scope:

Report Metric	Details
Market Size Value in 2020	US$20.318 billion
Market Size Value in 2027	US$30.039 billion
Growth Rate	CAGR of 5.74% from 2020 to 2027
Base Year	2020
Forecast Period	2022–2027
Forecast Unit (Value)	USD Billion
Segments Covered	Composition, Industry, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	RHI Magnesita GmbH, Saint-Gobain, Shinagawa Refractories Co., Ltd., Krosaki Harima Corporation, HarbisonWalker International, CoorsTek Inc., Morgan Advanced Materials plc, Refractory Minerals Co., Inc., Allied Mineral Products, LLC
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• By Composition
  • Clay-Based
  • Non-Clay Based
• By Industry
  • Metallurgical
  • Glassmaking
  • Ceramics
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Others
  • Middle East and Africa
    • UAE
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Thailand
    • Taiwan
    • Indonesia
    • Others

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Frequently Asked Questions (FAQs)

Q1. What will be the industrial refractory materials market size by 2027?
A1. The industrial refractory materials market is expected to reach a market size of US$30.039 billion by 2027. 

Q2. What is the size of the industrial refractory materials market?
A2. Industrial Refractory Materials Market was valued at US$20.318 billion in 2020. 

Q3. What are the growth prospects for the industrial refractory materials market?
A3. The global industrial refractory materials market is expected to surge with a CAGR of 5.74% during the forecast period. 

Q4. What factors are anticipated to drive the industrial refractory materials market growth?
A4. The industrial refractory materials market is expected to grow in the forecast period owing to the immense utilization of refractory materials in various end-use industries.

Q5. Which region holds the largest market share in the industrial refractory materials market?
A5. North America and Europe are expected to hold a significant share in the industrial refractory materials market due to the construction activities in these regions.

RHI Magnesita GmbH

Saint-Gobain

Shinagawa Refractories Co.,Ltd.

Krosaki Harima Corporation

HarbisonWalker International

CoorsTek Inc.

Morgan Advanced Materials plc

Refractory Minerals Co., Inc.

Allied Mineral Products, LLC