Market Overview:
Industrial explosives are high explosives that are manufactured and used for mining, construction, and other commercial applications. They consist of chemical compositions that can be detonated to fragment the rock or other materials. Industrial explosives offer superior properties such as high energy density, controllable discharge rate, and precision. They are widely used in quarrying, coal mining, metal mining, construction, and other industrial applications.
Market key trends:
The rising demand from mining industry is estimated to drive the growth of the industrial explosives market. Mining activities have increased substantially across regions due to the growing demand for metals and minerals globally. Industrial explosives play a crucial role in mining operations as they help in fragmentation of rock faces for easier excavation and material movement. According to the World Coal Association, in 2021, world coal production reached around 8 billion metric tons. This increased mining activities bode well for the demand for explosives used in coal mining operations. The growing mineral and metal mining is also anticipated to propel the growth of the industrial explosives market over the forecast period.
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 is moderate as the industrial explosives market requires high initial capital investment and established distribution network. Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have low switching costs and can easily shift between brands. However, industrial explosives have applications in major industries so buyers don’t have much influence. Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. Suppliers of raw materials include ammonium nitrate, dynamite, detonators etc. which are globally available. Threat of new substitutes: The threat of new substitutes is low as industrial explosives have well defined applications and there are limited alternatives. Competitive rivalry: High as the market is consolidated and dominated by top players.
SWOT Analysis
Strength: Wide product portfolio and global presence of key players. Manufacturing facilities located strategically to serve markets locally. Weakness: Vulnerable to fluctuations in raw material prices. Stringent government regulations regarding storage, transport and usage of explosives. Opportunity: Increasing construction, mining and infrastructure development activities driving demand. Growing shale gas and tight oil exploration providing growth opportunities. Threats: Economic slowdowns affecting end-use industries. Rising environmental concerns and shift towards alternative rock fragmentation techniques.
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 construction, mining and infrastructure development activities globally. Regionally, Asia Pacific dominates the market and is expected to grow at fastest pace due to strong economic growth in major countries including China and India. 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 .
