Industrial Explosives Market

Global Market Study on Industrial Explosives: Huge Potential from Construction, Quarrying, and Metal Mining Sectors in Developing Countries

About the Report

Demand for industrial explosives has witnessed significant growth over the decades. Growth is projected to increase even faster over the next years, due to rising demand for blasting materials from the mining and construction industry. Increasing population and rapid urbanization is ensuring significant opportunities for ongoing and upcoming Industrial and commercial projects, which need explosives for various purposes.

In its revised study, Persistence Market Research offers insights about key factors fueling the demand for industrial explosives. The report tracks global sales in 20+ high-growth markets, where demand is high across the regions of Asia, MEA, North America, and Europe. It also analyzes the impact COVID-19 has had on the construction industry in general, and demand for explosives in particular. This edition (2021-2031) brings readers up-to-date with key market developments, providing analysis on how manufacturers and other stakeholders are reacting to change. Key industry metrics have been captured, and their impact on industrial explosive sales has been analyzed. The study also expands on the previous competitive landscape section, and readers will get to know the key strategies of established players as well as new entrants.

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Companies

  • Orica Limited
  • Exsa S.A.
  • Dyno Nobel/Incitec Pivot Limited
  • Eurenco SA
  • NOF Corp.
  • Enaex S.A.
  • AEL Mining Services Ltd./ AECI Group
  • Maxamcorp Holding Sl
  • Austin Powder Company
  • Irish Industrial Explosives Ltd.
  • Ideal Industrial Explosives Limited
  • Sichuan Yahua Industrial Group Co., Ltd.
  • Solar Industries
  • LSB INDUSTRIES
  • BME Mining

What Does the Future Outlook Look Like for Industrial Explosives in Comparison to Historic Patterns?

The industrial explosives market has seen steady demand growth from the mining end-use Industry. This growth has been observed more in the European region and East Asian countries. Moreover, looking at the types of explosives, demand for bulk explosives is likely to grow at rapid pace, particularly from the coal mining and metal mining industry.   

Challenges such as storage safety and risks associated with delivering Industrial explosives, besides providing more cost-efficient solutions have always been the prime concerns of manufacturers. Choosing the right product for specific applications has been difficult for end-use industries, hence, manufacturers have increased the number of features and efficiency with respect to industry-specific applications to fulfil these consumer requirements.

The market is likely to gain significantly from these end-use industries, and also, new research and developments in the field of industrial explosives are making their usage more convenient for end users, besides making them easier to store and deliver for manufacturers. Many prime manufacturers have started preparing and delivering bulk explosives on site, and other manufacturers are likely to follow to keep up with the dynamic environment of this industry.

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According to Persistence Market Research’s analysis, explosive sales have grown at 2.5% CAGR from 2016 to 2020.

Industrial explosives have been consistently employed in the mining and construction sector. Since they are widely used for blasting purposes, manufactures need to follow many government guidelines while manufacturing these for different kinds of applications. Growth in demand has been due to excessive production of coal in developing countries, China is the largest producer of coal worldwide, and has many coal mines, which is the reason behind huge demand for industrial explosives from the country. East Asia has the presence of several developing countries, which are high demanding nations for industrial explosives due to development of mining and construction industries. The Middle East & Africa and South Asia & Pacific regions are also witnessing growing demand due to the rise of end-use sectors in these regions. Owing to high production of crude metals in Latin America, the metal mining industry is raising demand for industrial explosives in the region.

Owing to the ongoing crisis caused by the COVID-19 pandemic, production and supply chain activities have seen a minor setback, yet, utilization will improve with economic recuperation post restrictions following the pandemic. The COVID-19 pandemic has had a severe impact on the global economy at various levels, and the impact has been seen on end-use industries as well. With a number of end-use industries affected in regions such as Europe, East Asia, and South Asia Pacific, supply and shortage in demand are expected to result in a significant drop in Y-O-Y growth. Yet, Persistence Market Research expects global industrial explosives market to expand at over 6% CAGR through 2031.

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Will Emerging Applications in Construction Influence Demand for Explosives?

Growth of the construction industry is expected to have a high impact on the demand for industrial explosives market. Demand is increasing due to ongoing developments in the transportation, commercial, and residential sectors. In the past few years, the tunnel making sector has grown owing to high transportation development activities for railways and roadways. Roadway development is being carried out on a large scale in developing countries such as China, UAE, Saudi Arabia, and India. For instance, in 2021 India inaugurated the longest highway tunnel in the world in the state of Himachal Pradesh, which has a length of 9.02 km, and is 10,000 feet above sea level. 

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What is the Commercial Potential of Industrial Explosives?

Industrial explosives are mostly used in the mining sector for blasting purposes. These explosives are used as blasting agents and high explosives for detonation or deflagration in mining activities. Industrial explosives have a wide range of applications in construction activities such as tunnel making, building demolition, and others, which bodes well for demand growth over the coming years. Increasing demand for minerals and metals coupled with the pressure to increase output cost-effectively have led to digital transformation in the mining industry, which is expected to boost demand of industrial explosives. In addition, future opportunities for mining in deep sea, space, and abandoned mines are also expected to create significant opportunities for industrial explosive manufacturers.

Why R&D is Key to Market Amalgamation?

Prime manufacturers of industrial explosive are investing in research & development activities to manufacture more convenient and handy explosive products. Competitive price offering, increase in end-user satisfaction regarding performance, and use of advanced technologies are the end results of such R&D activities. Moreover, establishing good supply chain networks in emerging countries coupled with long-term partnerships with regional distributors are also laying the way for diversification of channel reach. Operational efficiency and utilization of assets, workers, and associated processes are transforming to the delivery of substantially higher level of productivity.

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Country-wise Insights

What Makes China One of the Leading Markets for Industrial Explosives?

Persistence Market Research has projected China to remain one of the most remunerative and paying markets throughout the course of the forecast period. One of the key factors supporting growth in the mining sector in the country. As China is the leading coal and metal producing country in the world, the construction segment is rapidly growing in the country, which is expected to accelerate sales of industrial explosives over the coming years.

Despite a worrying start, the second half of 2020 provided a steady picture for the market. Commodity prices moved toward stability, creating sustainable market opportunities across regions, and translating into positive effects on the global construction industry. Attributing to these factors China remains one of the largest markets for industrial explosives in the world, which invariably makes it a lucrative pocket for manufacturers.

Why is the Mining Industry in India Key for Market Players?

India is one of the largest markets in the South Asia & Pacific region. Demand for industrial explosives is expected to be high during forecast period, due to the growing coal mining and quarry sectors in the country. Industrialization in the country is increasing at a high pace, which demands high-power supplies and raw materials. Also, India is the second-largest producer of coal worldwide, with the mining industry is growing rapidly, and, as such, surging demand for industrial explosives. The market in India is estimated to grow at a healthy CAGR over the forecast period and provide significant opportunities to market players.

Policies launched in favor of industrial explosives coupled with high growth in the mining sector have created a conducive environment for growth of the explosive industry in the country. India also has the presence of many prominent manufacturers.

Which End-use Industry is Driving Demand for Industrial Explosives in the U.S.?

Construction is the fastest-growing segment for the explosives market in the U.S. Many new construction & development projects have been announced by the government in recent times, which will enhance demand for industrial explosives in the country, also widespread mining activities are being carried out in the country, which is leading to rising demand for industrial explosives. In 2020, the U.S. Geological Survey announced that U.S. mines produced approximately US$ 86.3 billion in minerals in 2019, which is more than US$ 2 billion than 2018 production totals. American production of minerals are estimated at more than US$ 86 billion, which is critical for commerce and manufacturing industries, with many of these minerals being used in every day households in the country.

Why Does Russia Hold Maximum Potential in Europe for Explosives?  

Russia is world’s largest country and one of the largest producers of metals. More than 70% of the world’s copper is produced in Russia. The country is among the top 5 crude steel producers and also one of the largest producers of coal in the world. Due to these factors, mining activities in Russia are increasing significantly, which is driving the market for industrial explosives in the country. Sales in Russia have been growing significantly in the past few years, and further growth is anticipated over the coming years due to the presence of many key players in the country. With natural resources worth around US$ 75 trillion, Russia has the potential to dominate the global mining industry. The country is one of the world’s most important emerging markets, with large territories containing an estimated 15 to 17 percent of total global mineral deposits. Mining and metallurgical industries account for almost 20 percent of the country’s industrial output. Bulk explosive are expected to provide significant scope for manufacturers in the country.

Why is Demand for Explosives in Metal Mining Rising in Brazil?

Brazil has high demand for industrial explosives from the metal mining sector due to presence many metal producing companies in the country. The country has numerous metal producing mines, which are steering demand for industrial explosives in the country. Brazil is one of the largest producers and exporters of crude and stainless steel. With rising steel and iron production, it is expected that the metal mining sector will raise demand for industrial explosives in the country. 

What is the Scope for South Africa in Industrial Explosives?

South Africa is one the largest markets for industrial explosives, globally. The country sees high demand from coal mining, metal mining, and quarry and non-metal mining sectors. Furthermore, many developing countries in the Middle East & Africa region are focusing on construction development which is also raising the sales of industrial explosives in the country. Total revenue generated by the South African mining industry for the year ending 30 June 2020 increased by 4%, which shows the increase in mining activities in the country.

Category-wise Insights

Why Do Bulk Explosives Witness Higher Demand?

Bulk explosives are paste form explosives that are delivered on-site through bulk delivery trucks. The main reason behind high demand for bulk explosives is that they is mainly used in mining. Detonation and handling of these explosives is done by manufacturers, since they are directly delivered to on-site working area. In addition, bulk explosive are also cost-effective than package explosives, which is another major factor driving their demand across regions.

Which End-use Industry Drives Demand for Industrial Explosives?

The mining sector dominates the global industrial explosives. This is due to the high demand for explosives in new and upcoming mining activities across the globe. Major segments include coal mining, metal mining, and quarry and non-metal mining. In the past few years, the mining sector has witnessed substantial growth due to increasing demand for coal from the power sector, which has boosted demand for industrial explosives. The metal mining sector has grown significantly due to industrialization globally, which has led to increase in demand for metals from various end-use industries such as automotive and construction. Quarry and non-metal mining has increased with incremental growth in the past few years, which is raising the requirement for industrial explosives.

Competitive Landscape

The industrial explosives market is a moderately competitive space dominated by global players offering cost-competitive raw materials. The market is a highly consolidated industry, where key players hold major value share.  It is characterized by a large supplier base and strong B2B networks. The market has robust partnerships throughout the value chain. There is ample focus on strong research & development activities with innovation in mind. Companies are aiming at strategic collaborations with end users and regional distributors to address the requirements of an expanding customer base. Suppliers of explosives adopt acquisition and regional expansion strategies to establish a stronger foothold. Brand consciousness and aggressive marketing make it challenging for new entrants in this space. Furthermore, advent of online sales is also expected to create positive growth prospects for market players.

Some of the leading companies operating in the market are:

  • Orica Limited
  • NOF Corporation
  • Enaex S.A.
  • African Explosives Limited
  • Dyno Nobel
  • Exsa S.A.
  • Maxam corp Holdings
  • Austin Powder Company
  • Irish Industrial Explosives Ltd
  • Ideal Industrial Explosives Limited
  • Sichuan Yahua Industrial Group Co., Ltd
  • BME Mining
  • Solar Industries
  • LSB INDUSTRIES
  • Eurenco S.A.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value and Kilotons for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Oceania
  • Turkey
  • Northern Africa
  • South Africa

Key Segments Covered

  • Type
  • End Use,
  • Region.

Key Companies Profiled

  • Orica Limited
  • NOF Corporation
  • Enaex S.A.
  • Incitec Pivot Limited
  • Solar Industries
  • LSB Industries

Report Coverage

  • Market Forecast
  • Brand Share Analysis
  • Competition Intelligence
  • DROT analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon Request

 

Market Segmentation by Category

  • By Type
    • Bulk Explosives
    • Packaged Explosives
  • By End Use
    • Mining
    • Metal Mining
    • Coal Mining
    • Quarry & Non-Metal Mining
    • Construction
  • By Region
    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Pacific
    • Middle East & Africa

Key Questions Answered in Report

Q1. Which is the most lucrative market for industrial explosives?

East Asia currently leads the global market for industrial explosives. Sales in East Asia will be over 30% of the global share throughout the forecast period.

Q2. Which is the top-selling type of explosive?

Bulk explosives have significant demand across applications. Demand is expected to remain high in the near future, especially because of their versatile applications in a wide range of end-use industries, especially in mining applications.

Q3. Which end-use industry is demanding the highest requirement for industrial explosives?

Industrial explosives are widely used in the mining sector. Increasing population and rapid Industrialization are expected to surge demand over the coming years.

Q4. Which are some of the leading companies providing industrial explosives?

Some of the leading companies manufacturing industrial explosives are Orica Limited, NOF Corporation, Solar Industries, Incitec Pivot Limited, and Enaex S.A.

Q5. Which application segment is driving the sales of industrial explosives?

Coal mining has highest demand across all the applications for industrial explosives market.

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