Refractory Material Market Expected to Reach $31.3 Billion by 2032

According to a new report published by Allied Market Research, titled, “Refractory Material Market," The refractory material market was valued at $20.9 billion in 2022, and is estimated to reach $31.3 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032.

Introduction

Refractory materials are inorganic, polyphase, polycrystalline, non-metallic, and porous materials that are resistant to decomposition by heat, chemical attack, and pressure. It is produced from oxides of silicon, aluminum, calcium, and magnesium. It is used to withstand high temperatures in kilns, furnaces, incinerators, and reactors. It is also used to make molds and crucibles for metals and glass sectors.

Market Dynamics

One of the primary drivers of the refractory materials market is the growth of the global steel industry. Refractories are indispensable in the steelmaking process, where they line the furnaces and vessels used for melting and shaping molten metal. As the demand for steel continues to rise, particularly in developing economies, the need for durable and high-performance refractory materials is expected to witness refractory material market growth.

Furthermore, the construction and infrastructure development sector significantly impacts the refractory material industry. The construction of buildings, bridges, and other infrastructure involves the use of refractories in the manufacturing of cement and other materials. Rapid urbanization and industrialization, especially in emerging economies, drive the demand for refractory products.

Additionally, refractories find extensive use in various high-temperature industrial processes such as glass manufacturing, petrochemical refining, and non-ferrous metal production. As industries continue to evolve and demand higher operational temperatures for improved efficiency, the need for advanced refractory materials that can withstand extreme conditions becomes crucial.

However, the manufacturing of refractory materials involves energy-intensive processes, particularly in the firing and curing stages. The high temperatures required to produce refractories contribute to elevated energy consumption. As industries globally emphasize energy efficiency and sustainability, the energy-intensive nature of refractory manufacturing becomes a significant restraint.

Also, compared to some other industries, the refractory materials sector often faces challenges in terms of research and development investments. The lack of substantial funding for R&D can hinder innovation and the development of advanced refractory materials that can offer improved performance, durability, and cost-effectiveness.

On the contrary, emerging economies, particularly in Asia-Pacific and Latin America, are experiencing robust industrial growth and infrastructure development. The increasing demand for steel, cement, and other high-temperature applications in these regions creates significant opportunities for the refractory materials market. As these economies continue to urbanize and industrialize, the need for durable and high-performance refractories is likely to expand.

Segmental Overview

The refractory material market is segmented on the basis of form, chemical composition, chemistry, end use, and region.

By form, the market is segregated into shaped and unshaped. Unshaped is projected to be the fastest-growing segment and shaped has garnered the highest share in the refractory material market size. The refractory materials market is experiencing an increasing demand for shaped forms due to various factors such as advancements in manufacturing processes, growing construction activities, and rising demand from end-use industries like steel, cement, and glass. Shaped forms offer superior performance and better resistance to high temperatures and corrosive environments compared to their unshaped counterparts. Additionally, the customization options available with shaped forms allow for precise fitting and enhanced efficiency in various applications, driving their popularity in the market.

By chemical composition, the global refractory material market is classified into alumina, silica, magnesia, fireclay, and others. Magnesia is projected to be the fastest-growing segment and fireclay has garnered the highest refractory material market share. The refractory materials market is experiencing an uptick in demand for Magnesia due to its unique chemical composition and beneficial properties. Magnesia, composed primarily of magnesium oxide, is valued for its high heat resistance, making it ideal for use in refractory applications such as lining furnaces and kilns. As industries such as steel, cement, and glass production continue to grow, the demand for Magnesia-based refractory materials is expected to increase further, thus driving market expansion.

By chemistry, the global refractory material market analysis is divided into acidic, basic, and neutral. Basic is projected to be the fastest-growing segment and has garnered the highest share in the refractory material market. The refractory materials market is experiencing a surge in demand for basic chemistry due to several factors. As industries such as steel, glass, and cement expand, there is a growing need for refractory materials capable of withstanding high temperatures and harsh conditions. Basic chemistry plays a crucial role in enhancing the performance and durability of these materials, driving manufacturers to prioritize the use of basic refractories to meet increasing demand and ensure product reliability.

By end use, the market is fragmented into metals & metallurgy, cement, glass & ceramics, power generation, and others. Cement is projected to be the fastest-growing segment and metals and metallurgy garnered the highest share in the refractory material market. The demand for cement as an essential ingredient in refractory materials has been steadily increasing due to growing construction and infrastructure development activities worldwide. Refractory materials are crucial for industries such as steel, cement, glass, and ceramics, where they are used to line furnaces, kilns, and reactors. This rising demand for refractory materials, driven by industrial expansion and infrastructure projects, has consequently fueled the demand for cement as a key component in their production.

Regional Analysis

Region-wise, the refractory material market trend is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is projected to register robust growth during the forecast period. The cement industry in India is growing rapidly, owing to increasing spending on housing and infrastructure activities where refractory materials are used in furnaces and kilns to withstand high temperatures. For instance, according to a report published by India Brands Equity Foundation, the Indian cement industry is expected to add around 80 million tons (MT) capacity by 2024. This is anticipated to increase the sales of refractory materials in the growing construction sector; thus, creating lucrative opportunities for the market.

Key players operating in the global refractory materials market include Calderys, Krosaki Harima Corporation, SHINAGAWA REFRACTORIES CO., LTD., Morgan Advanced Materials plc, RHI Magnesita GmbH, Saint-Gobain, Lanexis Enterprises (P) Ltd., IFGL Refractories Limited., Vitcas, and AGC Inc.

Key Findings of the Study

• By form, the shaped segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.0% from 2023 to 2032.
• By chemical composition, the fireclay segment is the most lucrative segment.
• By chemistry, the basic segment is projected to grow at the highest CAGR during the forecast period.
• By End-use, the metals and metallurgical segment dominated the shares in terms of revenue.
• By region, Asia-Pacific garnered the highest share in 2022, in terms of revenue, growing at a CAGR of 4.1%.