The Global Market for Explosives is Projected to Reach 22.9 Million Metric Tons by 2022

Stable Recovery in Construction & Improving Defence Orders for Ammunition Products to Drive the Global Market for Explosives, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Explosives market. The global market for Explosives is projected to reach 22.9 million metric tons by 2022, driven by the gradual recovery of the construction industry in most countries worldwide and improving defence orders for ammunition products against the backdrop of strong global focus on homeland security and counter terrorism strategies.   

Explosive is a blended chemical substance that experiences quick change on reacting with host of external elements including friction, high temperature, impact, or shock. More often than not, explosives are custom packed for different end-uses, without exposing the chemical mixture to agents that may trigger explosion. About 75% of the explosives production is consumed in mining operations alone across the globe. Manufacturing and construction markets also account for a considerable share of the explosives market. Developing economies such as China, India, and South Africa are expected to drive growth of the explosives market with rise in construction, manufacturing industries, and defence spending. In addition, civil works and infrastructure projects such as tunnel constructions, development projects in developing and under-developed countries are expected to drive growth. Demand for explosives in the mining industry is expected to remain modest in the near term given the large inventory/production overhang, still weak mineral commodities market, and fragile hopes for a possible slow recovery in commodity prices in the year 2017. Worldwide explosives demand is susceptible to fluctuations in economy, energy prices, demand for base minerals, environmental push for cleaner fuels, transition from underground mining to surface mining, and availability of viable competitive technologies.

One of the key trends in the market is the growing employment of bulk emulsion explosives in mining operations. Emulsion explosives represent blasting agents which contain a super-saturated formulation of microscopic ammonium nitrate droplets suspended in oil along with emulsifying agents. The mining explosives market is also experiencing increasing use of electronic detonators, which is attributed to their enhanced vibration control. Electronic detonators also improve overall productivity levels by enhancing the value extracted from relevant ores. Mining explosives are also witnessing increasing use in the construction sector for tunneling and demolition of the old infrastructure. The mining explosives market is also witnessing increasing acceptance of controlled blasting along with the trend to hire highly skilled and proficient workforce. The trend is anticipated to help the market expand further and become more sustainable and eco-friendly.

Competition exists outside the explosive market for explosive manufacturers in form of rock breakers, diggers, and tunneling machines manufacturers. However, these substitutes are not as effective as explosives and are not expected to impact the explosives market significantly. With miners and blasting contractors developing simple ammonium nitrate explosives by procuring bulk equipment, explosive manufacturers are forced to drastically cut down the prices of explosives. In order to retain profits, explosive manufacturers are focusing on providing value added services to the customer such as designing the blasting activities which include boring of holes, installing shot in the quarry, filling bulk products in holes, installation of firing accessories and triggering the explosion. These services will help boost growth and maintain profitability.

As stated by the new market research report on Explosives, China represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 5.6% over the analysis period led by encouraging infrastructure development commitments. Countries in the Pacific Rim and Latin America, where penetration levels are low despite rich metal and coal reserves, offer tremendous scope for growth. Though U.S. is the largest market for explosives in terms of value, regions such as Africa, Asia and Latin America are expected to witness higher growth in the coming years.

Key players covered in the report include AEL Mining Services, Austin Powder Company, Chemring Group PLC, Enaex SA, EPC Groupe, EPC-UK, Hanwha Corporation, Incitec Pivot Ltd., Dyno Nobel, MaxamCorp Holding, S.L., NOF Corp., Orica Ltd., Solar Group, 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 worldwide. The report provides market estimates and projections in Metric Tons for 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 Other Explosives. The report also provides value analytics in US$ million for major geographic markets.

To connect with us, visit our LinkedIn page.

Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.