Global Market for Explosives is Projected to Reach 21.8 Million Metric Tons by 2020

Strong Mining Activity in Developing Economies to Drive the Global Market for Explosives, According to New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, market size and demand forecasts on the global Explosives market. Global market for Explosives is projected to reach 21.8 million metric tons by 2020, driven by rising mining, construction and manufacturing activities in developing economies.

Opportunities for growth in the explosives industry is largely dependent on the metal and mineral extraction industry. More than 75% of explosives produced are consumed in mining operations alone across the globe. While the market has entered a stabilization phase in some countries, it is picking up momentum in other economies with availability of extensive mineral deposits for excavation. Developing countries are expected to turbocharge future growth in the market. Countries in the Pacific Rim and Latin America, where penetration levels are low despite rich metal and coal reserves, offer tremendous potential for growth. Though the United States is the largest global market for explosives, regions such as Africa, Asia, Latin America and Russia are expected to witness higher growth in the coming years.

Growth in the market is also linked to the rate of housing and infrastructure development globally. Over the coming years, Brazil and China will represent hot spots for infrastructure development, with China focusing on developing its rail network and urban public facilities in line with the goals of its current five year plan. The Middle East also represents a major market, where major private and public investments are being made in the real estate and infrastructure sectors. Increased investments in infrastructure are also expected in other regions of the world, especially given the growing importance of supply chains in augmenting a country’s growth. Increased impetus on infrastructure projects means higher demand for cement and hence for explosives, to mine raw materials for cement production. For instance, for each 1 million ton of cement produced approximately 235 tons of explosives are required for mining-related activities to extract raw materials used in cement production. Civil works such as railway tunnel construction and others require adoption of explosives.

Technology advancements are chiefly aimed at reducing mineral loss during excavation, provide greater control over rock fragmentation size and broken rock bulk density, and enable larger shot sizes without vibration impacts in underground mines. Electronic detonators, an emerging technology is growing in popularity. The growing focus on operational cost reduction juxtaposed with the fact that explosives constitute 10%-15% of the mining costs, is expected to bring pricing of explosives under extreme pressure. Besides the fall in commodity prices, underperformance in North America amidst the growing shift towards natural gas by power generation companies and continued weakness in West European markets continue to impact demand for explosives.

As stated by the new market research report on Explosives, Asia-Pacific represents the largest and the fastest growing market for explosives worldwide. In China and India, demand for ammonium nitrate, a key component in explosive manufacture, is expected to increase significantly, as mining companies gear up to expand production. The African mining industry is an active sector, with several Greenfield and Brownfield expansion projects in various stages of planning and implementation. South African market for explosives continues to remain strong, driven by the rich mineral deposits available in the country.

Key players covered in the report include AEL Mining Services Ltd., Alliant Techsystems Inc., Austin Powder Company, Chemring Group PLC, ENAEX, EPC Groupe, EPC-UK, Hanwha Corporation, Incitec Pivot Limited, Dyno Nobel, LSB Industries, Inc., MaxamCorp Holding, S.L., NOF Corp., Orica Ltd., Sasol Limited, Solar Industries India Ltd., and TITANOBEL SAS, among others.

The research report titled “Explosives: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of major companies. The report provides market estimates and projections in Metric Tons and US dollars for major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, and Rest of Asia-Pacific), Middle East/Africa, and Latin America (Brazil, Mexico, and Rest of Latin America). Product segments analyzed include Blasting Agents, Propellants, Pyrotechnics, and Others.