Molybdenum is a chemical element known for its high-melting point and resistance. It is commonly used in metal alloys such as stainless steel, which is highly corrosion-resistant. Increasing applications of stainless steel across various industries like chemical processing, aerospace, and oil & gas is fueling the demand for molybdenum. Molybdenum helps improve the strength, hardness, and durability of stainless steel. It is also used in low-alloy steels to enhance hardness and machinability.

The global molybdenum market is estimated to be valued at US$ 364.04 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity: Use in Energy Storage

The growing demand for energy storage solutions across the renewable energy sector presents a major market opportunity for molybdenum. Molybdenum oxides have proved to be promising materials for application in lithium-ion batteries as anode materials due to their good conductivity and structural stability. Molybdenum increases the energy density of lithium-ion batteries, improves their safety, and reduces the charging time. With increasing investments in large-scale energy storage projects worldwide to support the rising integration of renewable energy into the grid, the demand for advanced battery technologies like lithium-ion is set to surge in the coming years. This will subsequently boost the consumption of molybdenum required in battery manufacturing.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderately high as the initial investment required to enter the molybdenum market size is significant. However, several mining companies have licenses to start new mining projects which can increase competition over the forecast period.
Bargaining power of buyers: The bargaining power of buyers is moderate as molybdenum has applications across many end-use industries like construction, chemicals, transportation, etc. Buyers have some leverage to negotiate prices.
Bargaining power of suppliers: The bargaining power of suppliers is high as molybdenum reserves are concentrated among a few major players globally. This gives them control over pricing and supply.
Threat of new substitutes: The threat of substitutes is low as molybdenum has unique properties that are difficult to replicate. There are no direct substitutes for its use in steel manufacturing, chemical production, and others.
Competitive rivalry: The competitive rivalry is high due to the presence of many mining companies with a significant global market share.

SWOT Analysis
Strengths: Strong product specifications and performance attributes. Growing demand from end-use industries like construction and automotive.
Weaknesses: Volatility in molybdenum prices affects profit margins. Exposure to economic and political risks in major producing regions.
Opportunities: Increasing steel production in Asia Pacific leads to higher consumption. Rising use of molybdenum in catalysts and corrosion resistant alloys.
Threats: Trade wars and tariffs can impact supply and demand dynamics. Technological advancements may reduce molybdenum content in steel over the long term.

Key Takeaways
The global molybdenum market is expected to witness high growth over the forecast period. Currently estimated at US$ 364.04 Mn in 2024, the market is projected to reach over US$ 500 Mn by 2031, expanding at a CAGR of 4.8%.
Regional analysis indicates that Asia Pacific dominates the global molybdenum market with over 35% share in 2024. China contributes significantly to the region’s large production and consumption. Other major markets include the U.S., Europe, and Japan. Asia Pacific is expected to maintain its lead through 2031 driven by increasing steel demand from China, India, and other developing economies.
Key players operating in the molybdenum market are Baxter International Inc., GlaxoSmithKline plc, Novartis AG, Perrigo Company plc, Caleb Pharmaceuticals, Inc., Myungmoon Pharma Co. LTD., Alchem International, Phytex Australia, Centroflora-Cms, Alkaloids of Australia, and Fine Chemicals Corporation. The market is relatively consolidated with the leading players accounting for over 50% share. Companies are focusing on expanding mining capacities and long term supply agreements with customers to gain leadership positions.

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