Market Overview:
Industrial explosives are chemical substances that can be used as powerful propellants and oxidizers in mining, construction, and other industries. They find various applications in blasting operations for tunneling, mining, infrastructural development, and quarrying of stones and minerals. Different types of industrial explosives are dynamite, slurries, emulsion explosives, and non-electric detonators that have high strength, thermal stability, moisture resistance, storage life, and performance. They help in efficiently breaking and fragmenting hard surfaces.
Market key trends:
One of the key trends in the industrial explosives market is growing mining activities across the globe. Mining operations require powerful explosives for digging and excavating tasks. According to the World Mining Data organization, global mining output increased by 1.7% in 2021. Rising demand for metals and minerals from end-use industries is augmenting mining exploration and extraction activities. This is translating into increased adoption of high-performance industrial explosives for mining applications such as coal mining and metal mining. Additionally, rapid urbanization and infrastructural development worldwide are propelling the construction sector, which is another chief end-user of industrial explosives for activities like tunneling and quarrying.
The global Industrial Explosives Market Demand is estimated to be valued at US$ 8.03 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the industrial explosives market is low due to the high costs involved in R&D activities for developing explosive products and regulations related to explosives manufacturing.
Bargaining power of buyers: The bargaining power of buyers is moderate as explosives are industrial products and switching costs for buyers are low. However, dominant position of key players limits options for buyers.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute raw materials and less differentiation in inputs.
Threat of new substitutes: Threat of new substitutes is low as there are limited alternatives to industrial explosives for large-scale applications in construction, mining and infrastructure development activities.
Competitive rivalry: Competition in the industrial explosives market is intense due to the presence of few large global players.
Key Takeaways
The global Industrial Explosives Market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand from mining & construction industries.
Regional analysis
Asia Pacific dominates the global industrial explosives market and is expected to grow at the fastest rate during the forecast period due to growing mining and infrastructure development activities in major economies like China and India. North America and Europe are also significant markets owing to presence of key players and advanced mining industries.
Key players
Key players operating in the 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. Orica Limited is the leading player globally with wide product portfolio and global distribution network.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
